iansltx
join:2007-02-19
Golden, CO
kudos:2 Reviews:
 ·Verizon Online DSL
 ·Comcast
| reply to funchords
Re: Just shows the tiers people are buying 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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| 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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