|reply to tshirt |
Re: depending on the base price...
said by tshirt:they've hinted at offering unlimited but at a very high rate in the future to replace the income of tv subs.. I think all of them will go to this soon
Or suppose they shifted it even more
say $25 for a 5 gb account and a $50 or $75 cap for a really high cap (I don't think you'll see true unlimited ever seriousley offered again, at least not using that term)
Anyway some plan that doesn't overcharge low end users (but still gets more people paying the base network/plant costs) and allows you to buy more consumption in chunks.
with more total users, TW makes the more money they want, and you pay for what you use with out HUGE overages or extremely low limits, everybody comes out better.
I would agree that all will go to tier pricing, However you'll either see business tiers( as ComCast does for unlimited) at a very high rate(unlikely as it will drive away actual businesses they they worked hard to attract) or (more likely ) those plans will also have some higher level cap.
Unlimited at the high speeds available today is too attrative to those that Choose to abuse the intend purpose and potentially incurs great cost.
Bullshit. A connection maxed 24/7 at the rate set by the ISP is hardly "abuse" since they chose to offer that speed, and it does not incur "great cost". They never provide actual numbers, but we can be certain that they still make a nice profit off that usage even with a flat rate, because data actually costs them almost nothing.
You are right that MOST of the cost is the Plant, and building addtional capacity, replacing equipment and maintaince is the "GREAT COST".
I know you believe your mantra of "everyone else makes too much money, everyone else charges too much for services rendered, and everyone else demands too much profit".
So should I assume you choose to make as little as possble, charge below cost for your effort and ideas, and lend money for free?
Since most of the larger ISP's are publicly traded, a person such as yourself can easily research their annual reports and learn exactly where they make their sub 10% annual profit margin*. **
*Industry average nationwide for large ISP's, quite a bit below other similarly capital intensive, high cash flow-high expense industries.
** A far more important measure than exactly where each penny is made.