You have the glut of telco and broadband before the bubble burst. Everyone was trying to build networks, super data, and fiber rings. So you have more capacity than will be needed in the next 5-10 years.
Computer costs have dropped dramatically, servers, etc, etc.
Competition is cutting the cost. With the glut of capacity, and the fact a T1 wholesale price is $41 (atleast where I live, and I know this because I was in telco for 8 years), and they resell it at $280+, and the Telcom Act of '96 where you have these third party prodivers who can drastically undercut the incumbants..
Yeah. So you take all of those, plus some other factors, and tada, price drops dramatically. Smaller companies can do more with less (i.e. Level 3, Trivalant, etc. vs. a Baby Bell).
