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keno5net

join:2002-01-05
Milwaukee, WI

1 recommendation

Why shouldn't Broadband be sold like electric

Would it be more equitable if last mile broadband internet were sold the same way that electricity is sold now.

Electric power charges include charges for:
The connection, how big are the wires going into your home it would relate to maximum available bandwidth.

The demand the maximum average amps used in a set time period usually15 min. adds a percentage to the per unit usage cost. This would relate to how often the broadband is used to its maximum capacity. This is usually only applied during times of peak usage like noon to midnight.

The usage, total used in a month. KWh for electric or Gb for network. This will change month to month depending on how much data is transferred.

Large customers of ISP's are already charged this way and it would be an incentive for the last mile ISPs to provide sufficient bandwidth to avoid reducing usage or demand as that would also reduce revenue.

I know many here would be the ones hurt most by this change but the way it is set up now would be like the power company charges everyone the average of all the bills now sent out for electricity to the homes with the same size service instead of charging by how much is actually used.

So am I missing something here or would this only work if the internet was regulated in the same way as electric power is now?

Ole Juul

join:2013-04-27
Coalmont, BC
Reviews:
·Callcentric

1 recommendation

I'm with you on the idea of a thought experiment on how things should or could be. However, I guess I'm not really understanding you. Electricity is not charged on the size of the connection. 100 amp service is charged the same as 200 amp service. The cost of the "last mile" wires is paid by you either way, and after that you pay by the usage.

How is that different from broadband? Users connect to an ISP who offers bandwidth and usage in whatever package makes business sense to them. If I want more, I pay more.


Kilroy
Premium,MVM
join:2002-11-21
Saint Paul, MN

1 recommendation

reply to keno5net
You must have missed when they did this back in the dial up days. Internet usage was billed by the hour then to gain more customers ISPs went to the all you can eat plan to gain customers. Now that they have the customers on an all you can eat plan they are complaining that their customers are eating too much. The ISPs have no one to blame but themselves for the mess.

Let the ISPs take the money they charge, constantly raising their rates when their product costs them less, and invest in their infrastructure.
--
"Progress isn't made by early risers. It's made by lazy men trying to find easier ways to do something." - Robert A. Heinlein

Ole Juul

join:2013-04-27
Coalmont, BC
Reviews:
·Callcentric

1 recommendation

So broadband is indeed sold like electricity. In both cases the price is based on monopoly control. As the product becomes more in demand, they raise the prices. With electricity the scarcity is real, but with broadband it's artificial. With broadband it's a curious arrangement where they actually make money on what they don't do.

said by Kilroy:

Let the ISPs take the money they charge, constantly raising their rates when their product costs them less, and invest in their infrastructure.

Is there a way to break the monopoly so they would be competing on product? Perhaps a Chinese company will be able to move in at some point.


blohner

join:2002-06-26
Cortlandt Manor, NY
Reviews:
·ooma
·Google Voice
·Optimum Online
I don't have a monopoly here - I have two relatively competitive providers...
Maybe it is time you complain to your local government if you have a monopoly - and lobby them to shake up the marketplace... I hear your thoughts - on the same hand I think the only think that will happen with a complex tariff showing max throughput (xxx amp service) and consumption (xxx KWh for a month) is that the ISP will ultimately raise the cost per customer - charge for complex metering that doesn't really work - and 60% of the customers lose in the process... Grandpa may win as he only does emails and x-words but the rest - not so much....

P.S. I am thinking of moving into an area with a similar monopoly - but I have to look at the total sundry costs - and I am quite happy to pay $500 for reasonable internet vs. reducing my property taxes by over $10,000

--
I am addicted to speed --- Ultra101 speed that is ---

PX Eliezer
Premium
join:2013-03-10
Graustark
kudos:7
Reviews:
·Optimum Voice
·callwithus
·Callcentric
said by blohner:

I don't have a monopoly here - I have two relatively competitive providers...
Maybe it is time you complain to your local government if you have a monopoly - and lobby them to shake up the marketplace...

In the case of Ole Juul, he lives in a rural area.

And in my own case, I live in a prosperous NJ town near NYC. We have Optimum here. Verizon FiOS [does] have govt permission to come in, but Verizon chooses not to. How do you propose that Verizon be forced?

PX Eliezer
Premium
join:2013-03-10
Graustark
kudos:7
Reviews:
·Optimum Voice
·callwithus
·Callcentric
reply to keno5net
said by keno5net:

Would it be more equitable if last mile broadband internet were sold the same way that electricity is sold now.

Sounds like you are talking about metering.

But consider: It benefits everyone if people download Windows security updates and other security updates. Makes the whole community safer.

By charging for every MB of data, you are discouraging that....


blohner

join:2002-06-26
Cortlandt Manor, NY
Reviews:
·ooma
·Google Voice
·Optimum Online
reply to PX Eliezer
Good question... The rural comparison was actually where I am ultimately moving to. Some things are more expensive (I am looking at a T3 line vs. Optimum) - some are much cheaper (property taxes) - overall I come out ahead - except telling the 'city folks' what I will be paying for internet is obscene...

In your case: that's a hard sell - can't force them to come in - local gvt. could try to entice them - no push for govt channel studio etc... (We got FIOS a few years back while some neighboring towns got skipped as they where either unfriendly - or in the case of a town my best friend is located in - just simply to slow to respond... - It's similar to coned running gas - 'one time offer - if you miss it for whatever reason we will not come back')...
--
I am addicted to speed --- Ultra101 speed that is ---