Some truth about Comcast - WikiLeaks style
Dave Temkin
davet1 at gmail.com
Thu Dec 16 17:15:51 UTC 2010
Jeff Wheeler wrote:
>
> 1) Comcast believes they can exact a great deal of revenue from
> content networks. For this to be comparable to their captive
> customers, per-megabit rates must be reminiscent of pre-Level3 days,
> when $30/Mb was a bargain. This would spell bad news for Netflix. Of
> course, since cable companies typically must pay network affiliates
> and media companies great sums for television programming packages, it
> is in direct opposition to the TV content/delivery model. It would be
> hard to argue both sides if both businesses were faced with
> like-minded regulators.
>
I disagree. Even at $1/Mbit and 6Tbit of traffic (they do more), that's
still $72M/year in revenue that they weren't recognizing before. Given
that that traffic was actually *costing* them money to absorb before,
turning the balance and making that kind of money would be very
favorably looked upon in a unit where a customers margin for 6+ months
can be eaten up in 1 service call.
-Dave
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