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fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3

1 recommendation

reply to 45612019

Re: A 10 GB cap? What a joke.

said by 45612019:

No. They're paid for by having numerous subscribers forking out $60 or more a month for service.

Implementing low bandwidth caps with high overage fees is completely unnecessary to recoup deployment costs. That's what the subscriber fee is for. Vastly marked up bandwidth overage fees are just an opportunity to price gouge the consumer.

Have you ever run a company? .. it sure doesn't sound like it. According to you, the activist however, anything that doesn't fit your agenda by any company is going to be foul.

Towers, power, backhaul, employees, workmans comp, insurance (health and liability) taxes of all sorts, advertising, customer service, installation expenses, maintenance, the data itself, government affairs, the cost of spectrum, fuel, vehicle maintenance, the list goes on.. those are expenses.. and as someone that DOES run a business I can tell you that arguments that people like you make just irritate the hell out of me. You think you have it all figured out.. you think it's all about bandwidth. Oh, and they are allowed to make a profit too.

Now please, go on to tell me how all the stuff I mentioned above has nothing to do with the cost of providing the service, for one reason or another.

I don't know where you people get these figures and formulas you come up with to justify your position, but you're FAR FAR FAR off the mark most of the time.

But yea.. it's all about punitive caps and overages so they can gouge the consumer.

chances14

join:2010-03-03
Michigan
said by fiberguy:

said by 45612019:

No. They're paid for by having numerous subscribers forking out $60 or more a month for service.

Implementing low bandwidth caps with high overage fees is completely unnecessary to recoup deployment costs. That's what the subscriber fee is for. Vastly marked up bandwidth overage fees are just an opportunity to price gouge the consumer.

Have you ever run a company? .. it sure doesn't sound like it. According to you, the activist however, anything that doesn't fit your agenda by any company is going to be foul.

Towers, power, backhaul, employees, workmans comp, insurance (health and liability) taxes of all sorts, advertising, customer service, installation expenses, maintenance, the data itself, government affairs, the cost of spectrum, fuel, vehicle maintenance, the list goes on.. those are expenses.. and as someone that DOES run a business I can tell you that arguments that people like you make just irritate the hell out of me. You think you have it all figured out.. you think it's all about bandwidth. Oh, and they are allowed to make a profit too.

Now please, go on to tell me how all the stuff I mentioned above has nothing to do with the cost of providing the service, for one reason or another.

I don't know where you people get these figures and formulas you come up with to justify your position, but you're FAR FAR FAR off the mark most of the time.

But yea.. it's all about punitive caps and overages so they can gouge the consumer.

you gotta remember though that the majority of people on here do not/have not run their own business so they only look at stuff through a consumer point of view so it's understandable why people are uninformed and have no clue about underlying expenses

and remember around here any business that makes a profit is consider evil and greedy

fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3
And I agree with you.. and I accept that. But the problem is that when they go beyond just a "thought" and try to push it out as a matter of fact.. that's where I will take on the debate.


anon222

@adstx.net
reply to fiberguy
That is a nice set of examples but you left out the fact that those costs don't increase once someone hit a magic number of GB's. You think tech support starts making a higher hourly wage or suddenly hires more people when you hit a certain GB? Think their employee insurance rates go up once I hit 10GB? lol They aren't increasing their backhual if they are rate limiting. Not one thing you listed goes up in cost when a user hits a magic number at which time they are exorbitantly charged for overages. Yes it is their choice but what the poster is getting at is the only cost that increases for Verizon is the cost of transfered bytes for said customer and the cost is very low for them. Instead of throttling they will impose crazy fees to line their pockets and advertise stunning speeds without rate limits!

GroovyPhoenx

join:2006-05-22
Gloucester, ON
reply to fiberguy
It does, of course! It's called the price of doing business. Making a profit? No that's not a crime. Profeteering however is. and at the cost and even with a markup, if the bandwidth cost and all those mentioned merited SOME markup it certainly shouldn't be from 10 cents to 10$! that's just ludicrous,

Just because someone CAN make that much a profit doesn't mean they SHOULD.

I can charge 100000000 to optimize a PC, but that doesn't mean I'll get it. Healthy competition keeps pries down, but companies like verizon etc don't want that to happen, instead those profit dollars are spent on big "donations" on senators/congressman to make sure they get their way. Hire more lobyists, and kill teh american economy. You want to blame folks for that? Blame moneygrubbing people who just think of the all mighty dolla.

travelguy

join:1999-09-03
Santa Fe, NM
Reviews:
·Callcentric
said by GroovyPhoenx:

It does, of course! It's called the price of doing business. Making a profit? No that's not a crime. Profeteering however is. and at the cost and even with a markup,

Really? Please cite the law that states that "profeteering", whatever that is, is illegal. Aside from a few state and local laws regarding pricing during or immediately after an emergency, I'm not aware of any.

said by GroovyPhoenx:

Just because someone CAN make that much a profit doesn't mean they SHOULD.

I think you might want to take a basic refresher course in economics. Just because someone can make a profit means they absolutely should. Those profits are turned around and spent on other products and services, which in turn puts other people to work and allows those business owners to make a profit.

travelguy

join:1999-09-03
Santa Fe, NM
Reviews:
·Callcentric

1 recommendation

reply to anon222
[
said by anon222 :

what the poster is getting at is the only cost that increases for Verizon is the cost of transfered bytes for said customer and the cost is very low for them.

What law requires that selling price be based on marginal cost?

Consider toll roads - If one additional vehicle goes across the road, do their costs increase? Should all the drivers get a rebate?

Consider airlines - If one more person gets on the plane, do their costs increase? Should that person fly free or all the other passenger tickets be reduced?

Pricing is based purely on what a person is willing to pay. If that covers costs plus a profit over the long term, then the business will continue. If not, it will shut down.

The primary flaw with cost plus pricing is that there is zero incentive to reduce the cost. If you know you are always going to get a certain percentage, why would you ever spend any money on improving what you are selling?

Profit is the motivation to invest. High profits attract competitors which drive prices down. Ultimately, the consumer can just say no and drive the company out of business. How's that for power?