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

Re: Why Defend

While you are absolutely right that Comcast has a ton of capacity, that really is irrelevant to be honest. Comcast has a right to price their products to fit their business model. And while people call foul at every turn, the fact is that comcast has bills to pay. If they opened up the pipes, and EVERYONE starts streaming over night as their primary TV, well, for 1, NOW that capacity starts to fill up.. and 2, they erode their revenue stream which in the greater scheme of things pays the bills. Whats that? "they can live with less revenue?" .. probably, but who's to dictate that? If they can dictate revenue for business, then perhaps they can dictate your income too. THIS is where competition comes in to keep a market in check.

Comcast could EASILY just price in an internet tier at $99.99 and make the $100 per house they want AND make a much higher profit margin since internet doesn't have to pay networks a portion, BUT, the fact that Verizon is around with Fiber and is not capped tells you why comcast hasn't made the move to just raise the price of internet.

HOWEVER, if Verizon starts to see a drop in adoption and use of Fios video service, and their fiber traffic rises at the same time,.. guess what? ..capped Fios service will arrive. I would tend to believe that the reason Fios isn't capped YET is because their bundles/packages are where they'd like to see them, now so they don't need to screw with their internet... yet.