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bicker

join:2007-05-10
Burlington, MA

Value-based pricing

Anyone who thinks that they're not going to end up paying based on value is delusional. If value-based pricing is not brought about by metering, or by a cap plus overage charges, then it will be brought about by raping the low-end users (typically the elderly, at least in this space), making them pay far more than what they're getting is worth, in order to subsidize the overuse by the high-end users (typically games and video downloaders, at least in this space), so that the average price matches the average value.

If you think the low-end users are going to stand for that very long, you don't understand the nature of the consumer marketplace, these days. An inequity like that will be addressed by service differentiation -- a new service just for the low-end users, forcing more and more of the burden for supporting the high-end on the high-end (i.e., a dismissal of the subsidization). So, just like we've seen with cellular, we'll see low-end services, for occasional users, and then a much higher-priced high-end service, for heavy users.

The end-result is going to be the same, no matter what. It is all just a matter of how we get there.


ZachAttack

@rr.com

That only works if the amount of the product is finite, with data there is no limit. Comparing internet to water is flawed, to electricity is flawed too. You can't run out of internet. Low end users are low end because they either don't know about the content online (meaning once they are shown it they will utilize it), or they haven't been taught how to use it effectively, either way watching television for any amount of time you are inundated with links to websites and now twitter, that eventually even the "low-users" will ask around/learn it themselves/or get a family member to show them, and move out of the "low-users" group. This is a one-way street for these company's into getting regulated, or put out of business. The Gov't is now much more likely to do things which past governments never dreamed they could have, and if people get upset they will complain and the Government Will act, and these Co.'s will find out they miss the days when they could come up with these kind of schemes.


bicker

join:2007-05-10
Burlington, MA

I think you're radically over-optimistic about how socialistic this administration will drive the country. It isn't going to happen.

Let's test your logic: Why are there tolls on highways? You cannot run out of highway, can you? And that's not even a company charging you those tolls... that government itself.



ZachAttack

@rr.com

Tollroads have a constraint, physical-space you could cover every square inch of land with a tollroad and you'd still have a physical constraint, with data that doesn't exist. You can copy data infinitely and you never run out of data. The Government doesn't run all toll-roads, many toll-roads are contracted out. I'm not a socialist but I am one who believes that business has gone too far, and it's harming the country.


bicker

join:2007-05-10
Burlington, MA

There is no difference between toll roads and communications lines. You can "cover every square inch of land with" communications cable and "you'd still have a physical constraint" on bandwidth. The constraint does exist, even though you don't want it to, and even though it destroys your argument.


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