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Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5

A UBB plan can be designed to be revenue neutral

A UBB plan can be designed to be revenue neutral now while riding the upside of growing traffic. That is, the per byte billing rate can be set such that they make no more or no less than what they bring in now. But as traffic continues to grow as more and more users start streaming video, they can ride that to higher revenue. And that higher revenue can be used to both expand infrastructure and create higher profits.
--
The nine most terrifying words in the English language are, I'm from the government and I'm here to help.
»www.politico.com/rss/2012-election-blog.xml



Abbot7

@apexcovantage.com

Can never tell if serious or trolling.

A UBB plan can be designed to be revenue neutral now while riding the upside of growing traffic. That is, the per byte billing rate can be set such that they make no more or no less than what they bring in now.

Which they would never, ever do. If they did, it would be just to sell sheople on the idea right before jacking up the overage rates. Then jacking them up twice a year "for utility."


JasonOD

@comcast.net

reply to Linklist
I just want Comcast to start charging something, anything, for overages. Right now they're walking away from money.

Kicking higher use customers off or sending them to Comcast's business class product (which is an abuse of that service) isn't the answer now that they are fully DOCSIS 3.


rradina

join:2000-08-08
Chesterfield, MO

I agree that they shouldn't kick them off. They should "upgrade" them to a service that suits their needs.

However, charging overage fees will eventually bring anger from the average user. We're headed toward more data, not less. While today's caps might be OK for most, cable has been busy raising speeds but leaving caps fixed. Sooner or later this is going to collide with the average user. When enough folks get angry, they are going to look for alternatives. One of two things is going to happen. Either competitors will enter the market because they sense there's money to be made or the lack of competition will cause legislators to regulate. Case in point, I understand congress is considering revising the baggage fee mania of the airlines. Despite competition and Southwest NOT charging baggage fees, it seems evident that the airlines have ticked off their customers enough for even a heavily lobbied and pro-corporate congress to consider taking action.

I don't see a whole lot of difference between the airlines baggage fees and HSI-provider caps with overage fees.


praetoralpha

join:2005-08-06
Pittsburgh, PA
Reviews:
·Earthlink Cable ..
·Verizon FiOS

reply to Linklist

said by Linklist:

And that higher revenue can be used to create higher profits.

FTFY.

Monopoly think: Why waste perfectly good money on infrastructure when it can be used to make the bottom line bigger???


Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5

said by praetoralpha:

Why waste perfectly good money on infrastructure when it can be used to make the bottom line bigger???

Cable companies spend Billions every year on infrastructure upgrades. Read the annual reports.

talz13

join:2006-03-15
Avon, OH

said by Linklist:

said by praetoralpha:

Why waste perfectly good money on infrastructure when it can be used to make the bottom line bigger???

Cable companies spend Billions every year on infrastructure upgrades. Read the annual reports.

Has their infrastructure spending in absolute dollars increased proportionally as their customer base and revenues have increased?

Skippy25

join:2000-09-13
Hazelwood, MO

reply to JasonOD
Of course and we wouldnt expect anything less from you.

I also want the car dealers, super markets, insurance companies, all local utilities, cable / SAT and IPTV, online retailers, the government, movie theaters and gas stations to start charging more too because they are all walking away from money!!!


openbox9
Premium
join:2004-01-26
japan
kudos:2

reply to Abbot7

said by Abbot7 :

Which they would never, ever do.

Why not? Can you think of a more palatable method to introduce UBB while avoiding strong opposition from the masses?

quintin3265

join:2008-06-07
State College, PA
Reviews:
·Comcast

reply to JasonOD
Comcast does have overage charges - they're the $17 difference between business class and residential class.

Comcast isn't stupid, and they wouldn't be allowing people in business class to use unlimited bandwidth if they weren't making money. Anyone who believes that they are somehow ignorant that heavy users subscribe to business class service is naive. Their system isn't being "abused" - they're offering a better service and you pay more money for it. Their network is so undercapacity, in my area at least, that they make money even on the $43/month residential users who hit their caps. They aren't going to kick off users who pay them $17 more to use a network that has more than enough bandwidth available. That's probably why their business services are slower than their residential services - because the speed of the connection is calculated to be its own cap.

To me, this seems to be a very fair system as it is currently set up. If you want a cap, you pay less for residential service. If you want unlimited service, you pay more for commercial service. You get what you pay for, and Comcast makes money accordingly.

In my opinion, Comcast's business class is by far the best ISP that I have ever had. Unlike FiOS, I always get Comcast's provisioned speeds and have never seen a slowdown below those speeds at any time of day. Comcast's network has never gone out, not even once, and their ping times are lower than Verizon's. I never hear from them about bandwidth usage or running servers. I send them my $60 every month, and it just works.


openbox9
Premium
join:2004-01-26
japan
kudos:2

reply to JasonOD

said by JasonOD :

Kicking higher use customers off or sending them to Comcast's business class product

Isn't that charging more by default?

openbox9
Premium
join:2004-01-26
japan
kudos:2

reply to Skippy25
They likely will if the market bears it



Thaler
Premium
join:2004-02-02
Los Angeles, CA
kudos:3

reply to Linklist
They could...but they won't. If UBB was made fairly, customers would actually be able to save money by using less bandwidth. As things stand now, no customer actually sees savings. The best they can aim for is to continue to be screwed at today's rates.

said by Linklist:

And that higher revenue can be used to both expand infrastructure and create higher profits.

They've already been very profitable. Shouldn't the current high profits go to network infrastructure investment? What is there to believe that this influx of profit would be any different?


Abbot7

@jillyred.net

reply to openbox9
Apparently you didn't read my second sentence.



Thaler
Premium
join:2004-02-02
Los Angeles, CA
kudos:3

reply to Linklist
I honestly wouldn't know it based upon what I see locally. Many of our utilities seem to be operating on a skeleton maintenance budget.


Kearnstd
Elf Wizard
Premium
join:2002-01-22
Mullica Hill, NJ

reply to Linklist
They let people use business class unlimited because they know the typical home user who gets it to go download crazy is also unlikely to be calling in a lot and using that expedited service that business class comes with.
--
[65 Arcanist]Filan(High Elf) Zone: Broadband Reports


Rekrul

join:2007-04-21
Milford, CT
Reviews:
·AT&T U-Verse

reply to Linklist

said by Linklist:

Cable companies spend Billions every year on infrastructure upgrades. Read the annual reports.

And yet somehow, all of their upgrades are crippled by a handful of users running BitTorrent. Or so they claim...

Wilsdom

join:2009-08-06

1 edit

reply to Linklist
For TWC I see only $150 million devoted to upgrades of their $18 billion business. There are a few billion more for maintenance, subscriber boxes, and expansion, but those don't improve customer service to justify massive rate increases. It also appears that TWC's cost of bandwidth per data customer is about $1 per month!


openbox9
Premium
join:2004-01-26
japan
kudos:2

reply to Abbot7
I did, but you prefaced it with "they never will".



r81984
Fair and Balanced
Premium
join:2001-11-14
Katy, TX
Reviews:
·row44
·AT&T U-Verse
·AT&T DSL Service

reply to Linklist
You cant be this stupid???

Sorry, but everyone uses the internet for different things and more or less than others. To come up with a current revenue neutral per byte billing makes no sense and then we all get screwed as we use the internet more.

Also the costs of the network have almost nothing to do with usage, they are fixed costs based on the equipment and physical line to your house. If you use your connection to download 500GB in a month your connection still cost the same as someone that downloaded 50GB a month.

You should not get unfair discounts for using your connection less when costs are the same.
--
...brought to you by Carl's Jr.


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