Santa Rosa, CA
|reply to route246 |
Re: I feel like I'm subsidizing other customers
said by route246:I think the feeling comes from the impression from our US broadband marketplace that speed costs money. In fact, speed is either a configured limitation, or a physical one - but on a given technology, speed itself is costless.
I'm not sure why you feel you are subsidizing. Your speed is a function of where you live which is your choice. In general (not necessarily your case, I'm generalizing), COs are optimally located at the historical center of a population cluster. The fact that homes further away from a dense population cluster are in general more desirable has the downside of being further away from the CO.
This leads to the "I am getting less speed so I should pay less" feeling, which does seem reasonable. However, in our model, serving a customer at any distance, they receive the maximum speed (because speed is costless), the cost (and thus price) is derived from the infrastructure cost, not a configured limitation.