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Wilsdom

join:2009-08-06
reply to megarock

Re: Gee...

Probably less than 40% of customers would even notice the new pricing, and if the top 25% of bandwidth users canceled TWC's profit would probably only increase. Even if there was a slowdown in profit growth, a price increase on existing accounts would bring things back to normal.


rebus9

join:2002-03-26
Tampa Bay
Reviews:
·Verizon FiOS
·Bright House

said by Wilsdom:

and if the top 25% of bandwidth users canceled TWC's profit would probably only increase.

How so?

The network is currently supporting those users and still has some excess capacity available (headroom). If the hogs dropped out, all you'd have is more UNUSED capacity, NOT lower costs, because the ISP will not DOWNGRADE the network if utilization drops a few percent.

So you've lost the monthly revenue those ex-customers were paying, and ended up with more of something that's (now) sitting there un-used.

Given a choice between (a) having unused/slack capacity, or (b) filling up some of that slack capacity with paying customers, as a business owner I would choose 'b'.

You act like bandwidth is a rare-earth element (and only finite quantities exist) and those 500 bandwidth hogs paying $49/month are taking up resources which COULD BE given to 5,000 grandmothers at $49/month.

And that's just NOT the case.

Bandwidth is plentiful, and getting MORE plentiful every year. AND the cost to acquire/deliver that bandwidth is going down. This is nothing more than (another attempted) money grab by TWC.