Topic 'Re: If you can afford the 100 Mbps tier' in forum '' - dslreports.com

Re: If you can afford the 100 Mbps tier

Mon, 15 Oct 2012 09:08:25 EDT

franknalco posted : Non-recurring charges have been rising as companies try to recoup money lost from other sources, at least in the b2b segment. This has been the trend especially in markets where the monthly recurring charges have been under pricing pressure.
Charter operates in a lot of 3rd-tier markets, i.e. places like St Louis. This often gives them an advantage because of the lack of competition. If you have to have 100 Mb service and they are the only ones around to provide it, they can count on whoever needs that level of service to come to them regardless of the NRC. It is a charge many business won't spend a lot of time thinking about. They will try to keep the MRC as low as possible and usually don't negotiate the NRC. So on the b2b segment, the NRC has been rising.
For the last 10 years, MRCs have been falling in b2b markets, not just in the US, but around the globe. Margins are very thin the on b2b side in most markets where there is more than one strong player. What i used to pay for a T1 I can now get an OC3 in many markets, but usually with a much higher NRC/Install cost. NRCs have been rising, and $200 - $500 for an install is not unusual. I guess if you want a level of service that is often consumed by businesses and enterprises, then you will probably have to pay the same NRC, or perhaps more since consumers usually can't negotiate a deal for themselves.

Re: If you can afford the 100 Mbps tier

Wed, 10 Oct 2012 21:20:08 EDT

Ahuacamolli posted : But you would be okay with Charter's 500 GB cap for it's 100 Mbps residential cable internet service?

Re: If you can afford the 100 Mbps tier

Wed, 10 Oct 2012 18:19:59 EDT

viper3431 posted : I understand that it only applies to NEW 100m activations. My point was that when they bring promotions back (and they will at some point) this will discourage customers from purchasing the higher rate tier. This is simply a move to slow uptake on this tier since it costs them much more to upgrade the network, split nodes etc. to support it.

Re: If you can afford the 100 Mbps tier

Wed, 10 Oct 2012 11:33:25 EDT

rradina posted : If few sign up, then their statement doesn't make sense. There's not enough revenue made to fund those incremental investments. I really don't care if they charge an install fee but this smells a lot like a Billy Mays infomercial where if you buy one at $19.99, you get one free, just pay a separate $15.99 processing/postage/shipping/handling/whatever fee.

Ultra is a premium service which results in higher incremental network investments, equipment costs, and other operating expenses," the company tells me. "In an effort to maintain reasonable monthly recurring service fees, we have implemented a higher installation fee for Ultra customers."

This statement is especially full of hot air in an economy that loves to give stuff away but charge a monthly fee for the life of the product. The RIAA would just love to get rid of the concept of selling a song on any medium if they could figure out a way to charge you every time you play a song.

Re: If you can afford the 100 Mbps tier

Wed, 10 Oct 2012 04:09:41 EDT

elios posted : thought that was how supply and demand worked
ether every one is getting it there for price goes up or they are just trying to keep keep people from getting it

its one or the other you cant have it both ways

Re: If you can afford the 100 Mbps tier

Wed, 10 Oct 2012 03:30:38 EDT

Bhruic posted : You really need to work on reading better, because when I say "it's what people are willing to pay", you can't really come back with "No, it's what people are willing to pay!". Well, I guess you can, but you look silly.

Similarily, I wasn't asking them to justify their costs. I was refuting your point that this is a perfectly acceptable charge for no other reason than the fact that people can afford to pay it. Being able to afford to pay something doesn't automatically mean that it's an acceptable charge.

Re: If you can afford the 100 Mbps tier

Tue, 09 Oct 2012 23:51:11 EDT

BF69 posted :

said by rradina:

If you ask me, the $200 install fee is to discourage folks from getting it

I though that's what the price increase from $88 to $110 was for.

perhaps, just perhaps, too many folks are signing up for it and they are having trouble supporting it.

I doubt that "too many" people are signing up to pay $110 a month for internet.

Re: If you can afford the 100 Mbps tier

Tue, 09 Oct 2012 23:48:02 EDT

BF69 posted :

said by viper3431:

You're assuming that everyone is getting the service at the standard rate. I'm currently getting 100M for $60/mo as part of my bundle. When the promotion ends I'll surely go back to 30 instead of paying nearly double just to keep this package.

This way they'll be able to charge the $200 "activation fee" to discourage people like me from taking advantage of great pricing in the future. Funny thing is Charter called me and offered me this spectacular deal, which I verified here on the direct forum before proceeding back in March.

if you're getting it at a promo rate you already have it and thus won't be charged the $200. This is only going to affect NEW 100 Mbps customers and they won't have a promo rate.

Re: If you can afford the 100 Mbps tier

Tue, 09 Oct 2012 20:52:36 EDT

rradina posted : I agree they can afford it but usually the more "luxury" the item, the more free perks. I believe BMW offers lifetime free routine maintenance (whatever that means). It sure sounds better than paying $200 to install Charter's elite package.

If you ask me, the $200 install fee is to discourage folks from getting it because, perhaps, just perhaps, too many folks are signing up for it and they are having trouble supporting it. Either that or folks who get it bench the performance and when they don't get what they believe they deserve, Charter has to "tweak" their install (run a new drop, split the node) until the are satisfied.

Re: If you can afford the 100 Mbps tier

Tue, 09 Oct 2012 20:03:09 EDT

viper3431 posted : You're assuming that everyone is getting the service at the standard rate. I'm currently getting 100M for $60/mo as part of my bundle. When the promotion ends I'll surely go back to 30 instead of paying nearly double just to keep this package.

This way they'll be able to charge the $200 "activation fee" to discourage people like me from taking advantage of great pricing in the future. Funny thing is Charter called me and offered me this spectacular deal, which I verified here on the direct forum before proceeding back in March.

Re: If you can afford the 100 Mbps tier

Tue, 09 Oct 2012 18:43:53 EDT

BF69 posted :

said by Bhruic:

You've rather missed the point. If all the people paying $110/mth now could afford to pay $1000/mth, would that justify Charter in making the price increase? The issue isn't what people can afford to pay, it's what people are willing to pay.

No YOU miss the point.

A) Things are priced based on what people are willing to pay.

B) Charter doesn't have to justify it's costs. Not to you or anyone else. Charter could charge $1000 for installation. Guess what, no one would get that tier then and then Charter will adjust pricing accordingly.

Re: If you can afford the 100 Mbps tier

Tue, 09 Oct 2012 18:41:10 EDT

BF69 posted : So someone paying $1320 a year for 100 Mbps internet can surely afford a ONE TIME $200 fee.

Re: If you can afford the 100 Mbps tier

Tue, 09 Oct 2012 18:04:14 EDT

big_e posted : As long as it benefits a corporation, or the wealthy the answer is yes. But when it comes to taxes, or anything that will benefit the poor or middle class the answer is no.

Re: If you can afford the 100 Mbps tier

Tue, 09 Oct 2012 16:41:16 EDT

rradina posted : Well, kind of if after you buy the 250K Lamborghini it costs you $100K/month to maintain it.

Re: If you can afford the 100 Mbps tier

Tue, 09 Oct 2012 15:01:17 EDT

battleop posted : You seem to have forgotten that people are entitled to 100Mbps and therefore the $200 activation fee is just a money grab by Charter.

root@battleop# killall -HUP sarcasm
--
I do not, have not, and will not work for AT&T/Comcast/Verizon/Charter or similar sized company.

Re: If you can afford the 100 Mbps tier

Tue, 09 Oct 2012 14:45:44 EDT

Bhruic posted : You've rather missed the point. If all the people paying $110/mth now could afford to pay $1000/mth, would that justify Charter in making the price increase? The issue isn't what people can afford to pay, it's what people are willing to pay.

Re: If you can afford the 100 Mbps tier

Tue, 09 Oct 2012 14:02:56 EDT

AVD posted :

said by Bhruic:

Is "you can afford to pay it" the metric that we are now using to determine if something is priced fairly?

just half of the supply and demand equation that sets prices in a capitalist market.
--
--Standard disclaimers apply.--

Re: If you can afford the 100 Mbps tier

Tue, 09 Oct 2012 13:22:23 EDT

BF69 posted :

said by Bhruic:

Is "you can afford to pay it" the metric that we are now using to determine if something is priced fairly?

Yes it is and always has been. Is $250K a "fair price" for a Lamborghini? It's a car. I takes you from point A to point B like a $15,000 Kia.

Re: If you can afford the 100 Mbps tier

Tue, 09 Oct 2012 12:25:52 EDT

Bhruic posted : Is "you can afford to pay it" the metric that we are now using to determine if something is priced fairly?

If you can afford the 100 Mbps tier

Tue, 09 Oct 2012 11:53:56 EDT

BF69 posted : you can afford the $200 activation fee.

I wouldn't pay $110 a month for 100 Mbps if you gave me free activation and no cap.