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rradina

join:2000-08-08
Chesterfield, MO
reply to AMejia1976

Re: What about Lite and Standard...

My area has the opposite problem. Charter's minimum tier is 30Mbps. From a support perspective, it wouldn't cost them a dime to provide a whole bunch of tiers and extremely attractive price points on the lowest tiers (i.e. 1, 5, 10, 30, 100, 300). However, from a revenue perspective they make more if the minimum is 30 which keeps the base price higher.

It's similar to hard drive prices. By capacity, the cost drops by half between the current and last gen maximums. Below that, the curve flattens and the lowest is not significantly less than the last gen maximum. This is likely because regardless of capacity, there is a minimum manufacturing cost. Cable probably also has a minimum cost per drop but bundling skews it.