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Dones
join:2008-02-14
Toronto, ON

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Re: [DSL] Bell FTTN 50 Mbps tier

Am I the only one surprised that bell is offering unlimited for $30? I wonder if that applies to ftth.
HeadSpinning
MNSi Internet
join:2005-05-29
Windsor, ON

HeadSpinning

Member

said by Dones:

Am I the only one surprised that bell is offering unlimited for $30? I wonder if that applies to ftth.

If Bell's CBB rates to wholesale customers are truly based in reality, and not in fantasy, then they shouldn't be able to economically offer unlimited on 50/10 FTTN.

BACONATOR26
Premium Member
join:2000-11-25
Nepean, ON

BACONATOR26

Premium Member

said by HeadSpinning:

said by Dones:

Am I the only one surprised that bell is offering unlimited for $30? I wonder if that applies to ftth.

If Bell's CBB rates to wholesale customers are truly based in reality, and not in fantasy, then they shouldn't be able to economically offer unlimited on 50/10 FTTN.

Well we all know it's not based on actual costs..

silvercat
join:2007-11-07

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Perhaps they already know that the upcoming capacity rate decision will not be favourable to them, so this could be a way of "pre-empting" better packages that could be offered by the independent ISP's.
InvalidError
join:2008-02-03

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said by HeadSpinning:

If Bell's CBB rates to wholesale customers are truly based in reality, and not in fantasy, then they shouldn't be able to economically offer unlimited on 50/10 FTTN.

Well, some of those wholesale customers are still somehow managing to offer unlimited with those rates for lower price than the incumbents' nearest equivalent.

It is called averaging. The average person who pays for "unlimited" uses nowhere near that much. As long as the price is set right with a broad enough spread of usage patterns, it averages out fine.
HeadSpinning
MNSi Internet
join:2005-05-29
Windsor, ON

HeadSpinning

Member

said by InvalidError:

said by HeadSpinning:

If Bell's CBB rates to wholesale customers are truly based in reality, and not in fantasy, then they shouldn't be able to economically offer unlimited on 50/10 FTTN.

Well, some of those wholesale customers are still somehow managing to offer unlimited with those rates for lower price than the incumbents' nearest equivalent.

It is called averaging. The average person who pays for "unlimited" uses nowhere near that much. As long as the price is set right with a broad enough spread of usage patterns, it averages out fine.

ISPs have already stated that with the CBB pricing model, even after price increases, they're no longer making any profit on wholesale GAS services. The only reason they've not raised them yet is because they're waiting for an appeal on the CBB rates. Every month the decision is delayed costs them money, but multiple package changes in a short period only angers consumers, which serves the incumbents interests.

By the way, I'm not an idiot. I understand the concept of averaging usage, probably more than you ever will.
InvalidError
join:2008-02-03

InvalidError

Member

said by HeadSpinning:

ISPs have already stated that with the CBB pricing model, even after price increases, they're no longer making any profit on wholesale GAS services.

Start.ca did not exist on legacy tariff rates. I doubt a new entrant would be able to stay in business long enough to see the CRTCs' decisions to produce favorable tariff changes if they did not set prices to manage a profit on the services they offer now, however thin it may be.

silvercat
join:2007-11-07

silvercat

Member

said by InvalidError:

Start.ca did not exist on legacy tariff rates. I doubt a new entrant would be able to stay in business long enough to see the CRTCs' decisions to produce favorable tariff changes if they did not set prices to manage a profit on the services they offer now, however thin it may be.

Even Start is not making a profit, at least in Cogeco served areas, even with their revised packages:
»Re: New packages are available
HeadSpinning
MNSi Internet
join:2005-05-29
Windsor, ON

HeadSpinning to InvalidError

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said by InvalidError:

Start.ca did not exist on legacy tariff rates. I doubt a new entrant would be able to stay in business long enough to see the CRTCs' decisions to produce favorable tariff changes if they did not set prices to manage a profit on the services they offer now, however thin it may be.

Start is an established ISP that newly entered the cable market. As has been pointed out above, they're not making money on CBB rates.