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InvalidError

join:2008-02-03
kudos:5
reply to HeadSpinning

Re: [DSL] Bell FTTN 50 Mbps tier

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
kudos:6
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.
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MNSi Internet - »www.mnsi.net

InvalidError

join:2008-02-03
kudos:5
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
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
kudos:6
reply to InvalidError
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.
--
MNSi Internet - »www.mnsi.net