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Anon

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Re: AOL could make a comeback

said by IowaCowboy:

AOL could make a comeback if cable companies were forced to lease bandwidth at cost to competing ISPs like telephone companies have to do so with CLECs.

So ISP should pay the cost of building and maintaining infrastructure then basically let other companies use said infrastructure to undercut them on pricing since they have no infrastructure costs themselves. Yeah makes sense. Sounds totally fair.

If I were and ISP under that scenario why bother making improvements to said infrastructure? Since I would be forced to cut my pricing which means less profits also no matter how low my prices are some people will go to this new competition anyways so that's even more reduced profits. So why spend any money on making improvements? Where is my incentive? Why should I spend millions if not billions so some other company can use MY improvements to take my customers away? It's kind of easy for these guys to say "hey look were cheaper than the evil, greedy cable company" when one doesn't have any infrastructure costs. I also find it ironic to bash the company that is giving you the means to even exist.

Can you imagine if other businesses worked that way?

kevinds
Premium Member
join:2003-05-01
Calgary, AB

kevinds

Premium Member

They still get money from the subscribers,
The ISPs don't have to support the customers,
The ISP may not make as much money, but they still make more money than they would if that subscriber went to another service.

Look at the wireless industry, and all the MVNOs

Rambo76098
join:2003-02-21
Columbus, OH

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No one is saying they should lease it below cost. But there's a point where they can sell it at cost, sans overhead and profit, and the ISP would still come out ahead. The lines are still going to be there, and you're still going to incur a lot of the same expenses whether or not customer X is on your infrastructure thru reseller #1.

Surprisingly enough, manufacturing/selling at cost can sometime be better than not selling at all. I'd recommend reading "The Goal" by Goldratt. Pretty interesting stuff.

FLATLINE
join:2007-02-27
Buffalo, NY

FLATLINE

Member

You people amaze me. Try doing some research in what these companies charge you and what their costs are. I'm not even talking specifically about ISPs. Look into a number of companies. Chances are your being ripped off in some way shape or form. But yet here you are arguing for them as if they give two shits about you. Its pathetic, its sad, but most of all you just make yourselves look foolish. Well done!
intok (banned)
join:2012-03-15

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Can you imagine that they can rent the access to their backbone out?

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Anon

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said by kevinds:

Look at the wireless industry, and all the MVNOs

because Big Government forces them too. Let those MNVOs build out their own networks.

kevinds
Premium Member
join:2003-05-01
Calgary, AB

kevinds

Premium Member

And I'm sure some of them would like to if were allowed to get spectrum too...

I wasn't aware that the gov't forced them to offer service to the MVNOs though