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Chesterfield, MO
reply to IowaCowboy

Re: Why should Netflix undercut cable

But what about the providers who don't have triple play revenue, like AT&T and Verizon? (Sure, there's limited FIOS and U-Verse where both are in the TV business but compared to their core wired business of delivering bits, it doesn't compare to cable's success at getting most folks to spend more with them to offset plant costs.) Are AT&T and Verizon subsidizing their wired infrastructure costs with wired revenue? Of course that would be like shooting your own foot since their wired business is still regulated and they are allowed to charge a price that guarantees a set profit margin. In fact, there are actually claims that Verizon is illegally pushing wireless costs into its wired expense column since that's still a regulated monopoly. What about cable companies undercutting POTS service with $19.95 unlimited local/long distance VOIP? What about wireless cannibalizing POTS service?