wifi4milez
Big Russ, 1918 to 2008. Rest in Peace
join:2004-08-07
New York, NY
 ·Verizon FIOS
 ·Sprint Mobile Broa..
 ·RoadRunner Cable
 ·BroadVoice
| reply to cmaenginsb
Re: I cant say I 100% agree with this.....
said by cmaenginsb  :I guess it comes down to why these providers are adding capacity. In almost all cases it is because they are adding customers, you can't add customers and not add the capacity to support them. The cost of doing this is built into their cost of providing service to the new customers, so unless their existing customers start using more bandwidth there is no need for a rate increase. As someone from the ISP industry, I have not seen the average use per customer jump that much. Dont get me wrong, its not that the average user is consuming that much more than before. It more about the fact that there are simply more users on the network who have high bandwidth needs. Most carriers are adding capacity so they can better serve their customers (which is good), however, the cost of being able to provide higher tiers of service must be passed on. Generally speaking, the first batch of (business) customers who purchase services after an upgrade end up paying for it in some way. Back in the 90's many dot.com carriers had a "build it and they will come" mentality, and that is why most of them are long gone. Today, you are hard pressed to find a carrier that will build into a new location without already having the business (ie. signed contracts from a customer) to pay for running and splicing fiber, and all the equipment necessary to serve the customers. Its all about $ folks, and if there is no foreseeable rate of return it just aint happening!
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я люблю Денди! |
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Skippy25
join:2000-09-13
Hazelwood, MO | You need to also factor in the shear fact that overtime everything gets cheaper to provide. If broadband does not, then it is 100% a management problem. |
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wifi4milez
Big Russ, 1918 to 2008. Rest in Peace
join:2004-08-07
New York, NY
·Verizon FIOS
·Sprint Mobile Broa..
·RoadRunner Cable
·BroadVoice
| said by Skippy25 :You need to also factor in the shear fact that overtime everything gets cheaper to provide. If broadband does not, then it is 100% a management problem. Sure, if the number of customers stayed exactly the same, the costs of the equipment and network could be amortized to the point where the company could lower costs if they wanted to. However, it is clear that the number of customers keeps growing, and with it the cost of upgrading the network also grows. It is not realistic to expect widespread price cuts during a growth phase in any industry, let alone one that is spending billions to keep up with demand.
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я люблю Денди! |
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