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espaeth
Digital Plumber
Premium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
reply to thevorpal1

Re: Next round of web-hog ads in the works

said by thevorpal1:

5gb/m for $25

10gb/m for $30

20gb/m for $50

40gb/m for $80

You know it is going to look something like that. You will get less service for more $.
I doubt it. The industry needs this system to be successful, and they know it. That doesn't mean you're going to see 500GB for $50, but 40GB isn't going to be $80 either. I fully expect some people are going to be pissed off about this, and I expect those people to leave TWC. (mission accomplished?) The plans they come out with will most likely appeal to the overwhelming majority of their subscriber base.

Lazlow

join:2006-08-07
Saint Louis, MO
espaeth

That does not make sense. If you assume that thier numbers are correct and 95% of their customers use less than 5gb/month then they will take a huge loss by charging them less than they are now. Lets assume they have a hundred customers:

$30x100=$3000 (right now)

$25x95=$2375(less than 5gb)
$80x5=$400(40gb plan)

$2375+$400=$2775(new 5gb +40gb)

$2775 is less than $3000 so they would show a net loss. They will almost have to charge the same amount as they are now for the base package, just to break even on the deal. This also does not take into account the huge amount of overhead that will come about in tracking/billing the bandwidth.


espaeth
Digital Plumber
Premium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
Most people sign up for a higher level of service than what they really need. Not everyone is going to gravitate to the 5GB intro plan, most people will likely opt to stay price consistent with what they already pay and go with a middle tier plan. Some will downgrade to a cheaper plan, most will stay with a middle tier plan, and they can make up quite a big of ground no the top tier + overages.

Lazlow

join:2006-08-07
Saint Louis, MO
Espeaeth

Get real, very few people are going to pay $1.00/GB overages for any length of time.

With how hard they are pushing 95% use less than 2GB, and 5GB being the cheapest plan I bet the VAST majority of those users will drop back to the $25 plan. Two and a half times your bandwidth use will be more than enough overhead for these people. Just think about cell phones. People do not get a plan with 2-1/2 the number of minute they use.

The other thing you (and the cable companies) are forgetting is that hard times are at the door. People are scared and will be trying to save money wherever they can ($5 is $5).