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espaeth
Digital Plumber
Premium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
reply to JigglyWiggly

Re: News: Internet Data Caps

said by JigglyWiggly:

There is no technical reason for caps now, especially with 8 downstream channels.

It's a business model limitation, not a technical limitation.

said by JigglyWiggly:

Just want even more$$$

Yeah, to fund the next round of upgrades as utilization continues to grow.

Unless you're promising to never use more data in the future than you do right now?

rmdir

join:2003-03-13
Chicago, IL
So they are committing to using all the additional revenue to invest in the network? Or committing to sending damned near all of it to shareholders and not building out the network?


espaeth
Digital Plumber
Premium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
Will the additional revenue be translated with 100% efficiency into network expansion? Probably not.

It does create a situation where if they run out of capacity they can't sell more bandwidth to increase revenue, however, which tends to mean that capacity augmentation projects get funded much more easily.