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espaeth
Digital Plumber
Premium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
Reviews:
·Vitelity VOIP

reply to Combat Chuck

Re: Cable companies need to wake up

said by Combat Chuck:

Because capping has nothing to do with the line between the customer and the ISP; but the line between the ISP and other ISP's, which is an issue for every ISP regardless of how they deliver service to the customer.
I don't know if I agree with that. Carrier bandwidth is the cheapest bandwidth you can buy; it's generally a small number of massive circuits with large commits so Internet bandwidth itself is dirt cheap. The DS1/DS3/OC3 circuits to feed the remote terminals, on the other hand, require buildout of the telco ATM cloud which is definitely not cheap bandwidth.

The costs are in the last mile, always have been.

Crookshanks

join:2008-02-04
Northeast PA
Reviews:
·Frontier Communi..

said by espaeth:

The costs are in the last mile, always have been.
This held true even for POTS services. Recall how the price of long distance dropped like a stone after the AT&T divestiture while the price of local service has done nothing but increase. AT&T was using long distance revenue to subsidize the last mile and couldn't keep doing that once other players entered the long distance market.

How quickly we forget.

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