said by Dogfather:
That is what BW said, not what TW said. They're guessing, just like the rest of us are guessing.
BusinessWeek is a publication, not a blog. They can't make statements like that without fact checking them, unless they preface their speculation. (ie, We believe they would keep the middle tiers the same price...)
said by Dogfather:
TW hasn't elaborated on what they're doing. They only thing they've said what is in the memo and the short damage-control follow up where they said that 5% of users consume 50% of the service. That's it so far.
And as other analysts point out, the tier claims don't match the needs of fixing the latter issue. IOW, the bit caps are way overkill for what the TW spokeshole was complaining about. The two issues don't appear to be related.
These "analysts" quote all kinds of uses that aren't representative of average users. Sure, online backups and movie downloads from Unboxongoflixtunes are valid legal uses of a home Internet connection .... but they're not common. Most people
don't even make backups, yet alone have the presence of mind to do offsite backups. A friend of mine is doing some consulting work for Charter Communications so I recently had the opportunity to see what a CMTS usage report looks like for them. I had to page down a few times before I found the first modem that downloaded more than 2GB in a 30 day period. From the CMTS I looked at 5GB would have satisfied over 90% of the users.
Members of this site are not representative
of broadband subscribers as a whole. True average subscribers just don't drive massive usage. People who join a forum just to talk about their broadband connection are the folks that are going to be more inclined to be early adopters of things like online video distribution. Assuming you work in an office-like environment, you should ask around to see hwo many people are downloading movies or pushing bandwidth intensive apps. I think it might surprise you.