baineschile
2600
Premium
join:2008-05-10
Sterling Heights, MI
1 edit | reply to rudnicke
Re: Gonna loose customers?
When did metering become about being necessary, as opposed to an exuse to get rid of the high-use people they dont want? |
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AtlGuy
join:2000-10-17
Marietta, GA
| When caps of 5GB to 40GB were instituted in test markets, with a $1 per GB overage. You're telling me a family of 5 who has multiple computers who uses 50GB on average a month are high use?
If they want to terminate high use accounts, then do it. I'm sure there has to be something in their TOS to allow such a thing without instituting a ridiculously low cap on everyone. |
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Pizz
Hi
join:2000-10-27
Astoria, NY
 ·Verizon Online DSL
 ·RoadRunner Cable
| reply to baineschile
said by baineschile  :When did metering become about being necessary, as opposed to an exuse to get rid of the high-use people they dont want? Because every single MSO doesn't want to boot off the suppose 5% of heavy users, why? Because they can use them to new pricing models. MSO's do not want to blame their lack of upgrades/infrastructre on their inept policies, but to blame the bandwidth piggys.
Cablevision is the only MSO that literally does massive improvements to their network, and stays on the cutting edge. So bandwidth on the end-user and last mile, isn't much of a problem, so in the future costs won't cut into profits. |
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RR User
@rr.com
 from:
Core0000
jonnyz
| reply to AtlGuy
Actually, what TW doesn't want you to know is that even a heavy user that consumes 50-100GB a month is highly profitable. Even a 500GB+ a month user is profitable. The real problem is that the last mile doesn't support very heavy users well. 40Mbps of shared bandwidth between 100-200 people doesn't cut it very well anymore in the age of HD video and 10+ megapixel images. TW is just too cheap to upgrade to DOCSIS 3 right away, and therefore came up with this genius plan to hold them over a while longer, all the while collecting a huge profit in the process.
It costs TW (and most other broadband ISPs) roughly $5-$8 a month to physically provide you with broadband service. That's the cost per user which goes back into the system to pay the tech support, tech visits and network maintenance and keeping the physical plant running. The rest of the $40-50 you pay is nearly pure profit. And for those who ask... I got this data from a technical write up on broadband service published a good few years back. If I still had the URL I'd surely post it here.
If "little ol me" can buy bandwidth in 1TB chunks at a rate of 2-3 cents per gigabyte from the host who manages my servers, what kind of rates do you think TW gets? I keep running the numbers though my head only to come up with the fact that bandwidth is most likely a reasonably fixed cost for TW, which basically brings the problem down to the shared 40Mbps last mile.
All I can say is "Spend the $20-50 per customer and upgrade to DOCSIS 3 already, TW" because this is ridiculous. Comcast is doing it, Cox is doing it, hell even bankrupt Charter is doing it! There is no reason TW can't be upgrading as well... They are raking in more profits than most cable companies.
There is no reason to meter residential bandwidth use. Digital phone isn't metered, nor is how many hours of TV you watch. TW makes the claim that it's unfair for those who use less... Well what about the people who spend an hour a week watching tv, or using the phone, while the guy next door watches TV 12 hours a day and is on the phone 24/7, yet pays the same rate as you. It doesn't float. You sell a service at a price people are willing to pay and let them use it how they want and feel is worth while... Or we could go back to the days of metering phone usage, and why not start charging $1 an hour to watch TV as well.
Stop crying poverty TW, don't you realize how much money you're already milking out of us? A lot of us really don't have anymore to give! If I could pay my bill with my own blood, I'd be dead. |
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TheGhost
Premium
join:2003-01-03
Lake Forest, IL
clubs:
 ·AT&T U-Verse
·Comcast
| reply to baineschile
This is also a preemptive strike against internet video competitors. How likely are you to sign up for Netflix knowing it will drive up your cable bill - just order the PPV from TWC (or insert your CableCo here). It is not just video, ANY of the providers services will probably be exempt, and since they control the pipe, they can do what they want.
I bet TWC would also cry bloody murder if Rochester tried to start their own muni-fiber project or something like that. |
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KodiacZiller
join:2008-09-04
73368 | reply to RR User
RR User, you are on a roll, bro. Keep it coming! |
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bootspur
join:2009-04-11 |  reply to Pizz
Yeah, you know I have noticed this as well. . . |
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