 espaethDigital PlumberPremium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
 ·Clear Wireless
| reply to NOCMan
Re: Love this site. said by NOCMan:Metered billing would be the death of innovation of any bandwidth intensive services on the internet. The same way that text message fees and cellular data plan costs prevented people from using those applications?
Yes, companies are profit-minded and will therefore charge more than it costs to provide the service. The rules of supply and demand still hold true though, if the price decreases the demand as you suggest, that leads to busts in supply which creates natural pressure to reduce the cost to increase demand again. |
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| Um...how about the same way that usage caps have killed video services in countries like New Zealand and Australia?
Internet services don`t follow a typical supply-demand curve. The curve is highly inelastic, demonstrating its utility and necessity to consumers. |
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espaethDigital PlumberPremium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2 Reviews:
·Clear Wireless
| said by sonicmerlin:Um...how about the same way that usage caps have killed video services in countries like New Zealand and Australia? I assume you are referring to this; note it only talks about a single video provider having an issue.
You can't compare the network ecosystem of Australia and New Zealand to that of the US, Europe, or Asia. Base circuit costs are ridiculous, largely due to heavy government regulation and taxation of telecom, which makes providing capacity disproportionately expensive compared to other world markets. Combine that with the heavy reliance on expensive transoceanic fiber backhaul for connectivity to the rest of the world and it's obvious why they have challenges with network utilization and expansion. |
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DampierPhillip M Dampier
join:2003-03-23
Rochester, NY | Australia's ABC-TV, the nation's public broadcaster, has also loudly complained about Internet Overcharging schemes like usage caps, and has begged to be made exempt from them so it can provide online video to Australians. Most providers have said no, and the service suffers for it.
Other providers have never gotten beyond the planning stages because the business model doesn't work in usage capped broadband. Canadian video services are a great example.
Asian broadband costs less and is faster than what we have in North America. It's also untrue that regulation and taxation is the cause of Internet Overcharging. In Canada, the CRTC has rubber stamped provider positions on broadband issues for years, and the result has been usage capped -and- speed throttled service, despite dramatic profits.
Competition, and the relative lack of it, is a much better explanation for getting away with these overcharging schemes. That was one of the big reasons Time Warner chose Rochester for its little experiment in April. We're the only city of size in New York where Verizon isn't constructing or preparing to upgrade to FiOS. When the incumbent telco ISP has 5GB of usage in their Acceptable Use Policy, there isn't much downside to overcharging consumers who have nowhere else to go.
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Phillip M. Dampier
Editor, Stop the Cap!
»stopthecap.com |
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