marigolds
Gainfully employed, finally
Premium,MVM
join:2002-05-13
Saint Louis, MO | reply to GrandMstrBud
Re: [IA] Internet only gets penalized for not having TV service?
It's all because cable internet is such a poor money maker. Basically, VoIP has a huge margin, TV next, and cable internet generally loses money. The almost sole purpose of cable internet is to sell the other two services. |
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fiberguy
My views are my own.
Premium
join:2005-05-20
| said by marigolds  :It's all because cable internet is such a poor money maker. Basically, VoIP has a huge margin, TV next, and cable internet generally loses money. The almost sole purpose of cable internet is to sell the other two services. I know this is a little late of a post to this, but have been gone for a month. However, the internet is a HUGE money maker, not a loss. It costs about $5 a month per provide the internet to the consumer in the long run. (It's why ATT Broadband wanted to get rid of @home years ago. This information was published in the news at the time)
The reason why they give you a "bundle discount" on internet when purchased with TV is because of Wall Street. There is money in numbers. Investors like to see "VIDEO" numbers, not necessarily broadband numbers. A video 1 basic customer is still a video customer to the investor. Video 1 customers count as video and compare to other competition such as DISH and DIRECT.
VoIP is about 2nd in line for profit. It's HSI, VoIP, then Video. In video, cable providers care about Basic 1, Pay Channels, Dish WinBacks, HSI and Basic phone service. When digital switched phone service was offered, it was all about the calling features too. |
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drslash
Goya Asma
Premium
join:2002-02-18
Marion, IA
| said by fiberguy :VoIP is about 2nd in line for profit. It's HSI, VoIP, then Video. In video, cable providers care about Basic 1, Pay Channels, Dish WinBacks, HSI and Basic phone service. When digital switched phone service was offered, it was all about the calling features too. Based on what I have read over the years in the news and financial statements, phone service has the highest profit margin, followed by TV service, followed by HSI.
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Save water...drink beer! |
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fiberguy
My views are my own.
Premium
join:2005-05-20 | Then we disagree. Having as many years in the business, and having been invovled in the area of finance, I will disagree. |
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