 funchordsHelloPremium,MVM
join:2001-03-11
Yarmouth Port, MA
kudos:5 | reply to Z80A
Re: Just shows the tiers people are buying 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.
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Robb Topolski -= funchords.com =- Cape Cod, MA -- KE1MO
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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. |
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 Z80APremium
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. |
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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. |
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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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