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funchords
Hello
Premium,MVM
join:2001-03-11
Yarmouth Port, MA
kudos:5

reply to Z80A

Re: Just shows the tiers people are buying

said by Z80A:

FiOS users for example have 50Mb service available to them, but most are plenty happy with the lower tiers.
The questions people should be asking are

why?
when is it likely to change?
--
Robb Topolski -= funchords.com =- Cape Cod, MA -- KE1MO
Tweet! Tweet! -- »twitter.com/funchords


Z80A
Premium
join:2009-11-23
Reviews:
·Cox HSI

1 edit

Because they can do with 15Mb what they could do with 50Mb. It certainly didn't a big deal over price as many of these tier bumps isn't a lot. For example VZ's 15/5 to 25/25 bump is $15. Same with my provider Cox, speed bump is about $15 for double the speed but most people don't bother. Most people don't give a crap so long as it is reliable.

It will change when there is a "killer app" that requires 15Mb+ speeds to work well.
--
"Our goal (was to make) a billion phones Flash-enabled by 2010...We're actually going to get 1 billion Flash-enabled phones by 2009." -Adobe Chief Technology Officer Kevin Lynch in Nov 2008.



funchords
Hello
Premium,MVM
join:2001-03-11
Yarmouth Port, MA
kudos:5

Exactly right.

said by Z80A:

It will change when there is a "killer app" that requires 15Mb+ speeds to work well.
And that won't happen until enough of us have the faster speeds available to us at prices that make sense.
--
Robb Topolski -= funchords.com =- Cape Cod, MA -- KE1MO
Tweet! Tweet! -- »twitter.com/funchords

iansltx

join:2007-02-19
Golden, CO
kudos:2
Reviews:
·Verizon Online DSL
·Comcast

What's the financial incentive for companies to lower prices on their higher speed tiers? If you like Net Neutrality thenthere is no incentive. If you're ani-Net-Neutrality then you can have content providers subsidizing a faster connection so all sorts of new applications are available.

I like Net Neutrality myself, but realistically a great unwashed masses could do everything they want right now on a 1.5/512 connection.



Z80A
Premium
join:2009-11-23

reply to funchords
It won't happen until people demand it. People aren't going to demand it unless they have something they want to do with it.


sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

reply to iansltx

said by iansltx:

What's the financial incentive for companies to lower prices on their higher speed tiers? If you like Net Neutrality thenthere is no incentive. If you're ani-Net-Neutrality then you can have content providers subsidizing a faster connection so all sorts of new applications are available.

I like Net Neutrality myself, but realistically a great unwashed masses could do everything they want right now on a 1.5/512 connection.
Financial incentive? You're right, there is no real competition. Why would they lower prices when they know no one can beat them?

Are you trying to argue opex? That is laughably small for cable companies, who manage insanely high 80% margins on their internet services.

iansltx

join:2007-02-19
Golden, CO
kudos:2

I'm not talking about opex. I'm asking why a provider would lower the pricing on their premium tiers if their net cash flow due to doing so would be negative anyway.


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