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paisp
join:2004-02-16
Newtown, PA | Allow me to explain the threat... I bet the cablecos didn't tell the investors that even with the telcos having 1% of the video market, they will make WAY more profit than the cablecos will be making off telephone with their 8% market share.
THERE IS NO MONEY IN TELEPHONE ANYMORE.
BUT THERE'S A TON OF MONEY IN TV SERVICE!!
My guess is when speeds get high enough and the broadcasters realize they don't need cable or telco to reach the customers (they can sell direct via Internet) all these companies will be reduced to a small pile of ISPs. Who knows! | |
fiberguyMy views are my own.Premium
join:2005-05-20
kudos:3 | I doubt what you say..
There is more profit in Voip than there is in traditional landline based switch telephone service.
Compare the cost of operating a switch vs. voip based call routing, and I think you will find it's less expensive.
There very much is money in telephone if done correctly.
Even if speeds get high enough, remember who still owns the pipes. I do believe that television will converge with internet and telephone, and it will happen in our time.. when? Who knows.. 10 years? I think that's reasonable.. 20 years to more perfection and more of a standard I would thing.
Ultimately, one thing remains.. in order for ANY wireline service to remain in the black and operational without any governmental handouts, a certian price point per home/user will have to be reached. Elimiate the TV side for cable all together, or phone side for telco and watch internet prices sky rocket. | | |
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paisp
join:2004-02-16
Newtown, PA | said by fiberguy:I doubt what you say.. There is more profit in Voip than there is in traditional landline based switch telephone service. Compare the cost of operating a switch vs. voip based call routing, and I think you will find it's less expensive. There very much is money in telephone if done correctly. Even if speeds get high enough, remember who still owns the pipes. I do believe that television will converge with internet and telephone, and it will happen in our time.. when? Who knows.. 10 years? I think that's reasonable.. 20 years to more perfection and more of a standard I would thing. Ultimately, one thing remains.. in order for ANY wireline service to remain in the black and operational without any governmental handouts, a certian price point per home/user will have to be reached. Elimiate the TV side for cable all together, or phone side for telco and watch internet prices sky rocket. Good point, but I see it this way. Anyone can put together a VOIP company and because the costs can be reasonable to do so, there's always going to be someone to sell cheaper than the next guy... and some even free if you listen to an ad or do some other chore in lieu of payment.
Video, conversely, has several barriers to entry. Franchise agreements and deals with content providers such as Disney, etc... it makes it hard for just anyone to jump in. So the few who can make it happen will control that arena. Think about it now.... you can have Internet and VOIP for pretty cheap. But that damn Sat or Cable bill is still up there, and is not coming down.
There's plenty of fat in the video bill and nobody's looking to reduce it.
Same with Cell service. Any average "joe" can't afford to occupy every tower, so the few who can aren't looking to devalue the market anytime soon.
My opinion is that there is no profit in Internet connectivity or phone anymore (the dime a minute days are over). But, video and cell... that's the biggies and for cable companies to have picked on those sleeping giants such as Verizon (who have like 80+ billion in the bank), dumb move. | |
| reply to paisp
When speeds get high-enough those telco network providers will abuse their customers by not being network nettral. This abuse will result when cable operators, satellite operators, and non-middlemen start offering anyone IP-based television and those telco operators start blocking/degrade Internet websites that compete in the video market.
This will, in turn, result in those telco customers leaving them for more friendly, and neutral, providers. I know I would. And if the telcos were making so much profit then BellSouth wouldn't be selling itself to SBC, and Qwest wouldn't be looking to be gobbled up like a value meal by Verizon. | |
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