 espaethDigital PlumberPremium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
 ·Clear Wireless
| reply to Lazlow
Re: Metered Billing Has Its Place said by Lazlow:They really cannot justify it. Just look at TWC's 10K. The cost of Revenues for HSI was $146 million(page 60) but the Revenues generated by HSI was $4.159 Billion (page 89). The 10K balance sheet only shows direct costs (power, hardware, maintenance, vendor fees) and not indirect costs like operating the service vehicle fleet, developing tech training programs, paying employee salaries + benefits, call center operation costs, etc. |
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| You would need 200,000 employees being paid $50,000 each to get to even 1 billion. This indirect excuse is bullshit too. |
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| reply to espaeth
All of the indirect costs you mention would exist even if they didn't provide HSI, as they must have these for TV. Sure there are a few extra people that they might of had to hire to cover the people who buy only internet, but I'm sure the majority of their HSI customers probably have cable TV as well. |
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espaethDigital PlumberPremium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2 Reviews:
·Clear Wireless
| said by delltechkid:All of the indirect costs you mention would exist even if they didn't provide HSI, as they must have these for TV. Sure there are a few extra people that they might of had to hire to cover the people who buy only internet, but I'm sure the majority of their HSI customers probably have cable TV as well. There are a number of dual-purpose employees, which is why it's difficult to tie them to a specific product. Still, if you needed 40 FTE hours/week to serve a function specific to video that same person isn't going to be able to have more time dedicated to HSI. As workload increases you need more people, even if some of their duties may be shared.
The HSI call center support staff are different from the video support staff. There are still many data-only field service techs, and without the HSI product they wouldn't need the CMTS layout they have (and associated employees who manage that), they wouldn't need the abuse staff to deal with DMCA complaints, they wouldn't have as much to manage in terms of ARIN IP netblock allocations, DNS assignments, mail server operations, DNS/DHCP server operations, etc.
No matter how you look at it, direct costs of a specific service alone are a poor way of relating the total cost of providing that service to revenue. |
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| reply to espaeth
said by espaeth:The 10K balance sheet only shows direct costs (power, hardware, maintenance, vendor fees) and not indirect costs like operating the service vehicle fleet, developing tech training programs, paying employee salaries + benefits, call center operation costs, etc. And those indirect costs scale not with traffic, but with number of customers. The number of trucks, technicians, and call center workers you need doesn't change whether your customers are using 10 GB/month, 100 GB/month, or 1000 GB/month. |
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| said by DGLewis:said by espaeth:The 10K balance sheet only shows direct costs (power, hardware, maintenance, vendor fees) and not indirect costs like operating the service vehicle fleet, developing tech training programs, paying employee salaries + benefits, call center operation costs, etc. And those indirect costs scale not with traffic, but with number of customers. The number of trucks, technicians, and call center workers you need doesn't change whether your customers are using 10 GB/month, 100 GB/month, or 1000 GB/month. and it would be safe to assume that these costs would go down due to the caps. e.g. less customers = lesser need for technicians/truck rolls |
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| reply to espaeth
said by espaeth:The 10K balance sheet only shows direct costs (power, hardware, maintenance, vendor fees) and not indirect costs like operating the service vehicle fleet, developing tech training programs, paying employee salaries + benefits, call center operation costs, etc. None of which are affected by bandwidth utilization. |
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espaethDigital PlumberPremium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2 Reviews:
·Clear Wireless
| reply to DGLewis
said by DGLewis:And those indirect costs scale not with traffic, but with number of customers. The number of trucks, technicians, and call center workers you need doesn't change whether your customers are using 10 GB/month, 100 GB/month, or 1000 GB/month. I didn't say they were related to traffic consumption. I simply stated that you can't directly relate the direct costs of Data Services on a 10-K statement to revenue because it doesn't account for the most expensive parts of providing the service: the humans involved in the operation of the services, taxes, interest on outstanding debt, and other overhead. |
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 rawgerzThe hell was that?Premium
join:2004-10-03
Grove City, PA | reply to Metatron2008
TW is a public company, so they will like many others look for any way to increase their earnings. It's all about the shareholders.
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You can't make all the people happy all of the time. But it should be common sense to shoot for the majority. |
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 ceo
@frontiernet.net | The, its about the shareholders is as valid as the need to charge more for the same service. The shareholders are not getting anymore of anything. The stock prices are deflating faster than a vanishing clown act, and anyone invested in the great shareholder wall street fiasco know that real well. Its about the fat cat execs at the top of these companys who are getting rich at every ones expense. |
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| reply to Metatron2008
Odd - my calculator keeps coming up with $10 billion for 200,000 x $50,000. |
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Reviews:
 ·SureWest Internet
·AT&T Yahoo
 ·Comcast
| reply to wwdubbia
said by wwdubbia:said by DGLewis:said by espaeth:The 10K balance sheet only shows direct costs (power, hardware, maintenance, vendor fees) and not indirect costs like operating the service vehicle fleet, developing tech training programs, paying employee salaries + benefits, call center operation costs, etc. And those indirect costs scale not with traffic, but with number of customers. The number of trucks, technicians, and call center workers you need doesn't change whether your customers are using 10 GB/month, 100 GB/month, or 1000 GB/month. and it would be safe to assume that these costs would go down due to the caps. e.g. less customers = lesser need for technicians/truck rolls Cost has gone down but our usage has not 
The more we use the less it cost
on the other hand, the less we use the more it cost
buy more, pay less! lol
buy large quantity save money! |
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