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Investigate the market for internet service providers (ISP's), is it competitive and do consumers get a fair deal?

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Investigate the market for internet service providers (ISP's), is it competitive and do consumers get a fair deal? I have decided to investigate the market for ISP's and I have done some research on what companies are in the market, how the price which they charge, the quality of the service which they are offering, the choice which consumers have when choosing an ISP, the after sales services which they receive, the reliability and restrictions of the broadband. I am trying to see if the customers do get a fair deal by seeing how allocative efficient the companies are. I have decided to focus my investigation on the market for broadband because now companies provide mostly broadband for their customers and nearly all the packages on offer are broadband because this is what most consumers want as it has a lot more to offer. In the market for ISP's there are a wide range of companies competing and offering different services along with their internet packages. This could be for the reason that barriers to entry, are not that high so that means that it is relatively easy for new companies to set up and operate in the market, it is also fairly easy for them to exit the market if they wish to. ...read more.


The wholesale broadband market is one of the markets that is, under the EU rules, subject to telecom regulation by independent national telecom regulators with the objective of opening this market up to competition by new market entrants." This shows that the governments are trying to make the market for broadband more competitive so that it is closer to perfect competition and to ensure that consumers are getting a fair deal. Do customers get a fair deal? I am also looking to see if consumers get a fair deal when selecting an ISP, I have created a questionnaire and have given it to a cross section of the public so I can see what they think of the internet which they are being provided with. I think a potential problem with the marketing of the internet as a product is that a lot of the companies are using confusion marketing as a techniques because 50% of the people which I asked were unsure what they were really getting included with their internet package, they had a basic idea, but didn't really know what was truly on offer to them. I think this is a way that customers are being exploited by ISPs as they don't truly know what they are paying for. ...read more.


By having competition in the market it keeps the prices and services which the companies offer at a low price to stay competitive and it basically just value for money for the consumers, perfect competition is ideal in a market. In conclusion I think that the market for ISP's is quite a competitive market because of all of the companies which are already competing in that market offering consumers a wide choice allowing them to decide which is the best service provider to suit their needs. I also think that consumers are getting a fair deal, but only if they have the internet because some of the providers offer benefits for ordering online and if a customer does not have the internet they could miss out on these things. For most consumers they are able to shop around on the internet and enables them to do this much easier as they can look at all of the companies and see what they are offering, I think this has also made the market a lot more competitive. Most of the customers which I asked are also happy with the service which they are receiving so this shows that they think that they are getting a fair deal, as most shopped around when looking for an ISP so they got the best deal they could at the time of sign up. Laura Clements ...read more.

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