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battleop

join:2005-09-28
00000

reply to r81984

Re: Something has to give.

"ISPs are not eating any costs. In 99% of the US broadband ISPs are monopolies"

You clearly have absolutely no idea as to what you are taking about. Please show us where A. ISPs are not taking a hit on this and B. where 99% of broadband ISPs are monopolies.


Hangmn
Don't Fight It...It's Inevitable
Premium
join:2000-04-08
Philadelphia, PA

said by battleop:

"ISPs are not eating any costs. In 99% of the US broadband ISPs are monopolies"

You clearly have absolutely no idea as to what you are taking about. Please show us where A. ISPs are not taking a hit on this and B. where 99% of broadband ISPs are monopolies.

ISPs CLEARLY gouge customers as the WHOLESALE costs of bandwidth has been on the DECLINE for a DECADE and providers FAITHFULLY increase fees twice yearly..You sir clearly have no idea...oh and not to mention NO COMPETITION
--
»davescustompc.com


Jason Levine
Premium
join:2001-07-13
USA

reply to battleop
As far as B is concerned, most areas in the US have only one or two broadband ISPs to choose from. You have the phone company or the cable company. These two "compete" but just enough to maintain their duopoly. Less lucky areas only have one ISP and people have a choice of going with the only broadband ISP or not having broadband Internet. (Still less lucky areas have no broadband ISPs, but I think that's a different discussion.) Very few areas in the US have 3 or more ISP choices.
--
-Jason Levine



swintec
Premium,VIP
join:2003-12-19
Alfred, ME
kudos:4
Reviews:
·RapidVPS
·Sprint Mobile Br..
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·RoadRunner Cable

reply to battleop

said by battleop:

You clearly have absolutely no idea as to what you are taking about.

Oh hey you must be new here.
--
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backness

join:2005-07-08
K2P OW2

reply to Jason Levine
and if somebody is dumb enough to challenge them and open a third service, they promptly upgrade the area and lower prices to kill the new guys margins.



swintec
Premium,VIP
join:2003-12-19
Alfred, ME
kudos:4
Reviews:
·RapidVPS
·Sprint Mobile Br..
·VoicePulse
·RoadRunner Cable

said by backness:

and if somebody is dumb enough to challenge them and open a third service, they promptly upgrade the area and lower prices to kill the new guys margins.

Well gee whiz...that sounds an awful lot like...how business works?
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LostInWoods

join:2004-04-14
Reviews:
·Windstream

If you have a monopoly, it does. You can afford to lower prices for awhile in a small area to kill off new competitors. Then you and raise the prices back again once the blood dries.

I really don't understand some of the people on here who reflexively root against municipal broadband offerings as "unfair government interference in the free market" when the local monopoly or duopoly got established by government franchises with guaranteed rates of return. The removal of those franchises doesn't remove the enormous advantage the original entrenched players have.

When there are only two "competitors", there really is no free market for a local government to meddle in.



Jason Levine
Premium
join:2001-07-13
USA

And, in some cases, those municipal broadband offerings are in areas the duopoly isn't servicing, but the duopoly opposes it because they might one day decide to enter that market and, if/when they do, they don't want to "compete with the government." So the people continue to get no access and the duopoly ISPs get to keep promising access... sometime... maybe... we'll see.
--
-Jason Levine



r81984
Fair and Balanced
Premium
join:2001-11-14
Katy, TX
Reviews:
·row44
·AT&T U-Verse
·AT&T DSL Service

reply to battleop

said by battleop:

"ISPs are not eating any costs. In 99% of the US broadband ISPs are monopolies"

You clearly have absolutely no idea as to what you are taking about. Please show us where A. ISPs are not taking a hit on this and B. where 99% of broadband ISPs are monopolies.

You obviously have no idea what you are talking about.
Your monthly fee pays for your internet connection.
How much do you think the physical cable to your house and the routing equipment costs??? Paying $50 a month to to your ISP is almost all profit for them. If it was not then they would go under after paying tv content provider with $50 a month cable plans.

Google/netflix pays their monthly fees to their ISP.
ISPs get money from everyone to pay for the network and can basically charge any price since broadband ISPs are monopolies.
--
Your behavior is inconsistent with your desire to be treated like everyone else.


swintec
Premium,VIP
join:2003-12-19
Alfred, ME
kudos:4
Reviews:
·RapidVPS
·Sprint Mobile Br..
·VoicePulse
·RoadRunner Cable

said by r81984:

How much do you think the physical cable to your house and the routing equipment costs???

Not sure, can you please tell us? How much does the pole rental cost throughout an entire plant, the line maintenance techs and all the equipment including truck and gas, call center buildings, staff, remote buildings for CMTS and associated equipment, advertisements, peering costs to offload the traffic and the list goes on and on and on.

This isnt just stringing a piece of CAT 5 to each house and plugging it into a 80 dollar Linksys router you know.
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r81984
Fair and Balanced
Premium
join:2001-11-14
Katy, TX
Reviews:
·row44
·AT&T U-Verse
·AT&T DSL Service

said by swintec:

said by r81984:

How much do you think the physical cable to your house and the routing equipment costs???

Not sure, can you please tell us? How much does the pole rental cost throughout an entire plant, the line maintenance techs and all the equipment including truck and gas, call center buildings, staff, remote buildings for CMTS and associated equipment, advertisements, peering costs to offload the traffic and the list goes on and on and on.

This isnt just stringing a piece of CAT 5 to each house and plugging it into a 80 dollar Linksys router you know.

I guess you did not read my post.
Providing internet is cheaper than providing cable tv, but yet they basically charge the same per month for each service.
Their plant is already paid for from the cable TV, internet is just a bonus.
They make a fortune off the internet.
--
Your behavior is inconsistent with your desire to be treated like everyone else.


battleop

join:2005-09-28
00000

reply to r81984
Just wondering. How long have your worked in the ISP industry at a level where you are part of the decision making process?


gruntlord6

join:2010-06-10
Barrie, ON

reply to battleop

said by battleop:

"ISPs are not eating any costs. In 99% of the US broadband ISPs are monopolies"

You clearly have absolutely no idea as to what you are taking about. Please show us where A. ISPs are not taking a hit on this and B. where 99% of broadband ISPs are monopolies.

ISPs are NOT eating the cost. You obviously do not understand canadian broadband. The lowest tier plans have a 2gb cap, the highest having a 175gb cap. In the case of UBB with wholesalers its even worse. The wholesaler pays the ISP for bandwidth, provides thier own network after the initial transit, and then the consumer gets billed by the wholesaler and the ISP for overages.

Tell me how that is "eating the cost"


battleop

join:2005-09-28
00000

"You obviously do not understand canadian broadband."

Very true, seeing as how I don't work for a Canadian ISP and this statement was about "US broadband ISPs are monopolies"


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