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Transmaster
Don't Blame Me I Voted For Bill and Opus

join:2001-06-20
Cheyenne, WY
reply to Greg2600

Re: Will you save money?

said by Greg2600:

That is my question. When most people get done picking channels.

That is the 800 pound gorilla. The present bundling system in kind of like a supermarket. Instead of looking at the money made from an individual product a supermarket looks at to over all cash flow and have complex computer models to predict shopping habits. Before Thanksgiving really cheap turkeys. The stores make the money all of the stuff you purchase to go with that turkey, when "bundled" to gather the store makes money while the consumer actually saves money. The same could be said about the TV entertainment business. Because of the bundling process the consumer pays X number of bucks for a bundle, if they paid for each channel it would cost them more. The problem, of course is the vertical integration there is no competition for your dollar. So delivery companies can charge pretty much anything they want. In other words we are stuck with what we have.
--
I am quite sure now that often, very often, in matters concerning religion and politics a man's reasoning powers are not above the monkey's.
- Mark Twain in Eruption

PastTense

join:2011-07-06
united state
While this type of system could happen, along with cable companies cutting the cost for their bundles because there is competion (Dish, Directv, cable, over the air and various internet options), cable companies could well respond by increasing the cost of their internet services--where only a small fraction of the market has strong alternatives--and then only one--resulting in consumers being no better off financially.


FFH5
Premium
join:2002-03-03
Tavistock NJ
kudos:5
said by PastTense:

cable companies could well respond by increasing the cost of their internet services--where only a small fraction of the market has strong alternatives--and then only one--resulting in consumers being no better off financially.

That is a sure lock on happening. As cable companies lose some TV channel business to streaming competitors the cost of Internet access will rise to cover their TV losses.
--
A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves money from the public treasury.

Telco

join:2008-12-19
It's already happening actually. I'd love to see all of those who claimed that Google FTTH is expensive, come here and explain the $74.95 for a 25/4 Comcast service starting today. That's $4.95 more already and does not include Comcast's other BS fees, for a fraction of the service.

BTW Have you ever noticed what they pay and receive in other Big Gov nations (exc Canada).

JPL
Premium
join:2007-04-04
Downingtown, PA
kudos:4
said by Telco:

It's already happening actually. I'd love to see all of those who claimed that Google FTTH is expensive, come here and explain the $74.95 for a 25/4 Comcast service starting today. That's $4.95 more already and does not include Comcast's other BS fees, for a fraction of the service.

BTW Have you ever noticed what they pay and receive in other Big Gov nations (exc Canada).

Two words to describe this: 'loss leader'. Google Fiber is cheap because they haven't passed on the full cost of operation to consumers yet. All new business start-ups start this way. When a new hair place opened up by my house, they were offering hair cuts for $8. More than 50% less than the competition. Think they're still only charging $8? Of course not. The price is right in line now with everyone else around them. What they offered initially was a promo price - it wasn't designed to earn a profit. It was designed to create flow - make you go into the store to try them out.

Again, this is nothing new. Amazon existed for probably 6 years before they turned a profit (heck, they still incur a loss for every Kindle Fire sold - expecting to make it up on you buying material to go on your Kindle). Verizon inititally really under-priced FiOS. Eventually the R&D gets paid off, though, and you've established a customer base. At that point you need to move into the black. Which means that you have to operate with a positive cash flow.

You can't make the assessment that Google Fiber is 'cheap' because you don't yet know what it will ultimately be priced for when it gets to that positive cash flow stage. My guess - it'll be right in line with everyone else in the market - and probably higher. I know the price of fiber has dropped, but it's still MUCH more expensive than laying coax. Installation alone for fiber is probably 2 to 3 times what the installation cost is for coax (cost of running service to a new home).

And the cost in those 'big government nations' is hidden. Ok, you don't pay as much for monthly service on some things. But if you're willing to incur a marginal tax rate of 90%... go right ahead. The point is - you're still paying for it. It's just not going directly to the company. You make it up (and then some - since government is far from the most efficient conduit of spending) in taxes.
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