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funchords
Hello
Premium,MVM
join:2001-03-11
Yarmouth Port, MA
kudos:6

1 recommendation

reply to KrK

Re: Cable companies need to wake up

said by KrK:

250GB seems fair.... but the $15.00 for 10 GB is steep. $1.50 a GB is way too high.... It's obviously designed as a penalty to try and get people to cut usage,
Agreed.

said by KrK:

otherwise, why not just give the 250GB and then meter the rest above that for a realistic figure, say 10c a GB...
This point is moot as we both agree on your previous statement, but let's continue for the sake of examination.

Purchasing the additional bandwidth from their upstream providers is not the only issue.
- The impact of heavy users on the last-mile network exists. Using Praeto 80/20 metaphor to describe it -- it probably is true that they can serve 80% of their customers at 20% of the cost. Heavy bandwidth eaters probably are 20% of the users but are the primary driver for plant upgrades 80% of the time.
- They don't want to be perceived as "metered." FIOS isn't, and that's their competition. So they still want to keep the comparisons to metered Internet to a minimum.
- Comcast is a bandwidth aggregator, and bandwidth is not sold by their providers by "consumption" but by a committed-rate (they are charged whether or not usage reaches that high). They have to make such purchases with sufficient headroom to keep the nature of the traffic "bursty" (otherwise everything crawls) but low enough to avoid wasting money on bandwidth they cannot sell.

I hope that explains that part -- even though your main point is right on.
--
Robb Topolski -= funchords.com =- Hillsboro, Oregon
HTTP is the new Bandwidth Hog...


KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
Yes, that makes a lot of sense.

Also, look at it this way--- it will "encourage" people to NOT switch their source of video entertainment (IE TV, Movies) from the Cable company to new third party options via IP and their broadband connection... due to the cost.

IE, a handy way to 1) Help control bandwidth expense 2) Generate some additional revenue from heavy users and 3) Put the brakes on the competition from video over the 'Net.

Looks like all wins to them, doesn't it.
--
"Regulatory capitalism is when companies invest in lawyers, lobbyists, and politicians, instead of plant, people, and customer service." - former FCC Chairman William Kennard (A real FCC Chairman, unlike the current Corporate Spokesperson in the job!)


NOCMan
MadMacHatter
Premium
join:2004-09-30
Colorado Springs, CO
reply to funchords
This point is moot as we both agree on your previous statement, but let's continue for the sake of examination.

Purchasing the additional bandwidth from their upstream providers is not the only issue.

Actually bandwidth costs are pretty linear the first 50 dollars a customer pays for all the customer service maintenance taxes etc. After that were still talking less than 15 cents per gigabyte and comcast is a transit carrier as well. I have OC3's from both Comcast and Time Warner in use around the country.

That being said if they think they're going to charge 1.50 per gigabyte I will begin to organize an effort for government regulation of overage charges. I will not see a Enron of the internet rise to power.

At their prices it would cost hundreds of dollars for any decent online backup.

They would of been more resposible to put no hard caps but tiers above certain usage. Is 100 dollars a month so terrible for a user that might download a few thousand gigs of data legitimately?

What then for companies that provide you services. Comcast would be able to outprice them on virtue of they control the cost of data now. So a HD download from Apple could cost you 9 dollars on top of what Apple charged. How is that fair for Apple?

This is net neutrality at it's core. They were stopped from charging content providers and now they figured it out that they can charge you and get away with it.
--
Mac Chatter
»www.macchatter.net