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Karl Bode
News Guy
join:2000-03-02

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reply to telcolackey
Re: [TWC] Pricing model changing soon

quote:
I bet that the majority of the BBR folks here are in the 40-60G / month range, but think they are going to be impacted by issues like this. In reality it is the multi-terabyte p2p DVD downloader that causes faster than normal network growth requirements and the push to usage tiers.
Investors who get a taste of per-byte billing will want more. It ramps up the revenue stream, and if they can sell it from the marketing side, it will expand.

And with systems like DirecTV's VOD system that uses your broadband connection to automatically download HD video, combined with the vast volume of on-line video that's emerging daily, the category "bandwidth hog" is going to ramp up very quickly.

I doubt this trial will have 400GB as its consumption ceiling, so I think this probably would impact many more consumers than just the 24/7 DVD p2p RIP junkies...


telcolackey
The Truth? You can't handle the truth

join:2007-04-06
Death Valley, CA


1 edit
said by Karl Bode See Profile :

And with systems like DirecTV's VOD system that uses your broadband connection to automatically download HD video, combined with the vast volume of on-line video that's emerging daily, the category "bandwidth hog" is going to ramp up very quickly.
Perhaps, but as you add more electronics to your house, or christmas lights outside, doesn't your electrical bill go up? Maybe you go from 100amp service to 200amp service... maybe the electrical company needs to add more infrastructure...

said by tiger72 See Profile :

except that bandwidth doesn't expend resources. It's either a "use it or lose it" product - not a finite resource which can be saved and used elsewhere.
Incorrect. Increase in bandwidth growth over and above normally yearly growth causes unexpected capital expense. This can either be shared among all users, light, moderate, heavy and terabyte dvd downloaders, or the costs are put where they belong.
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tiger72
SexaT duorP
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join:2001-03-28
Saint Louis, MO
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reply to Karl Bode
said by Karl Bode See Profile :

quote:
I bet that the majority of the BBR folks here are in the 40-60G / month range, but think they are going to be impacted by issues like this. In reality it is the multi-terabyte p2p DVD downloader that causes faster than normal network growth requirements and the push to usage tiers.
Investors who get a taste of per-byte billing will want more. It ramps up the revenue stream, and if they can sell it from the marketing side, it will expand.

And with systems like DirecTV's VOD system that uses your broadband connection to automatically download HD video, combined with the vast volume of on-line video that's emerging daily, the category "bandwidth hog" is going to ramp up very quickly.
People do not like seeing overages on their accounts. Americans in particular like to see "unlimited", and suddenly saying that we're going to have overages for a population which doesn't know the difference between a bit and a byte, or a megabyte and a gigabyte will NOT go well. It's one thing on cell phones when we have limited minute plans. Everyone knows what a minute is, and even then overages are frequently negotiated down. It costs lots of money to pay employees to waste time negotiating down costs so customers actually pay their bills.

Until everyone knows how much a gigabyte is, telling people that they have a cap of xGB/mo is a useless, costly waste of time. And for the educated users, it's twice as bad since most of us would contend (and waste service reps time arguing) that if they are going to charge us by-the-byte, then having speed caps is doubly bad as we don't want to be restricted on both counts.
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Karl Bode
News Guy
join:2000-03-02

Host:
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PC gaming GAMES
PC gaming Tech

4 edits
I think yeah, that's a good point too. Confusion. That was the primary stumbling block a Jupiter analyst cited to me last month when I spoke with them...

Per-byte billing will be a real hit with the "can't differentiate a Mhz from a MB no matter how many times my son tells me" crowd...especially just as HD film distribution over broadband is taking off.

But I imagine they like that. Lots of ridiculous bills rung up by confused soccer moms, which makes investors happy, which in the end is all this is really about. Not fairness, or making a fair profit (they already do), or anything else.

Gib4500

join:2003-12-08
Sardis, OH
·AT&T Midwest
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reply to telcolackey
If their going to implement this then why are they raising the speeds all the time. I would rather they leave the speed at say 7mb and have it like it is than increase the speed and then say oh you have to pay extra if you actually want to use your connection. I don't think this could be implemented because to many people would cancel service. If they implement this this would take this country back yet another step in broadband. The internet is used for many many usefull things and to say you have to pay a premium up and beyond what you already are paying will make it so some people may not afford the internet anymore, which is sad.


Phil
Rojo Sol
Premium
join:2001-06-11
Camarillo, CA
reply to Karl Bode
On the flip side, how many people check their electrical meter every month, yet still pay their electric bill? If they could bill based on flat per byte rate this could be realized quite easily.
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