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elray

join:2000-12-16
Santa Monica, CA

How long before we see the "DCIA Tax"?

This will only result in higher bills, and another round of finger-pointing when carriers try to innovate.

Industry had better counter this nonsense, and agree upon a metering standard, both software and hardware.

skeechan
Ai Otsukaholic
Premium
join:2012-01-26
AA169|170
kudos:2

Re: How long before we see the "DCIA Tax"?

No it won't. If the market would support higher prices, they would already be charging higher prices.
TBBroadband

join:2012-10-26
Fremont, OH

Re: How long before we see the "DCIA Tax"?

The market does support higher prices. If it didn't don't you think the prices for HSI wouldn't be cheaper?

skeechan
Ai Otsukaholic
Premium
join:2012-01-26
AA169|170
kudos:2

Re: How long before we see the "DCIA Tax"?

That isn't how market prices work. Price and demand settle to an equilibrium and HSI is elastic. That is where the market is now. If the market supported higher prices, they would be higher.
Skippy25

join:2000-09-13
Hazelwood, MO

Re: How long before we see the "DCIA Tax"?

Price and demand have little to do in a monopolistic/duopolistic captured market.

When you feel it is important enough your choice will result in:
• Go with or go without you will pay more. - Monopoly
• Go with A that is crap (dsl/wireless/uVerse) or go with B that is much better (cable/fiber) you will pay more. - Duopoly

Also, keep in mind bandwidth to an extent is pretty unlimited on a wired network.

skeechan
Ai Otsukaholic
Premium
join:2012-01-26
AA169|170
kudos:2
Reviews:
·Clear Wireless
·Cox HSI
·Verizon FiOS

3 edits

Re: How long before we see the "DCIA Tax"?

Monopoly is meaningless when the product in question is elastic. This isn't water or gasoline. Price and demand are relevant in EVERY market. There is a point of profit max and for residential HSI from the MSOs it's about $50. Charge more and demand drops as evidenced by few people buying high end tiers. Look at the DSLR Archive and you see everyone buys the cheap tiers. Raise the price of the cheap tiers and you lose subs, profit doesn't go up.

If demand would support them charging more, they would be charging more. The reason they can't is because it is an elastic product despite the oligopoly. If the product was inelastic as you suggest, HSI would be $100/mo, not $50. Then if it does go to $100, more companies enter the market and the price drops.
elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink
said by Skippy25:

Price and demand have little to do in a monopolistic/duopolistic captured market.

When you feel it is important enough your choice will result in:
• Go with or go without you will pay more. - Monopoly
• Go with A that is crap (dsl/wireless/uVerse) or go with B that is much better (cable/fiber) you will pay more. - Duopoly

Also, keep in mind bandwidth to an extent is pretty unlimited on a wired network.

If its limitless, then why doesn't Sonic allow businesses on their fiber? Why does Google prohibit servers in Fiberhood?

The fact is that price/bit has fallen dramatically over the last decade, as well as the entry price, and that doesn't factor in ~25% inflation.

We're paying less than half what were charged a decade ago, which is 25% of what we paid 15 years ago, for more speed than we could ever imagine using, and that's under a monopoly that only perceives a duopoly threat.

skeechan
Ai Otsukaholic
Premium
join:2012-01-26
AA169|170
kudos:2
Reviews:
·Clear Wireless
·Cox HSI
·Verizon FiOS

Re: How long before we see the "DCIA Tax"?

They can have the capacity but they could be doing research as in residential ISP marketing research and if their AUP is significantly different than the telcos and the MSOs the information they obtain is skewed. IOW, they want to know what the usage patters of telco and MSO customers and of course the telcos and MSOs are going to tell them. They have to run their own trial under similar circumstances to find out.