Level 3 Communications Issues Statement Concerning Comcast's Actions

Tue Nov 30 08:02:23 UTC 2010

No matter what, Comcast is the loser. If subscribers can't access
content they will be calling Comcast customer service. Only a small
fraction of those subscribers will have any clue who L3 is or why
that's important and even fewer will be understanding of Comcast's
position. They're not in the position of power. L3 knows it and took
the opportunity to make them look foolish.

Either they're greedy or their price model is broken. Regardless, it's
remains a Comcast problem.

Jeff

On Tue, Nov 30, 2010 at 2:47 AM, Kevin Blackham <blackham at gmail.com> wrote:
> On Nov 29, 2010, at 15:57, William Warren <hescominsoon at emmanuelcomputerconsulting.com> wrote:
>
>> I think Karl Denninger has this one called right:
>> http://market-ticker.org/post=173522
>
> I don't think so. Let's do a little math exercise:
>
> Comcast charges me $75/mo for my pipe, but let's discount that for bundling, promos and lower tier services. $30-40 avg ok?
>
> For that money I get 250GB a month. Let's assume I actually use it - which I never do, even with Netflix, other VOD, and many habits common to eyeballs - but for the sake of a number to work with, I do. That's less than 1Mbps average per month. I'm not factoring in deviation from avg to peak, so I am going to assume 1Mbps per sub is peak per sub and 250GB is not the average for the user base.
>
> That is at least $40/Mbps paid by the eyeballs... or if I am very wrong, $20/Mbps. This is unsustainable and requires income at both ends for a healthy business model?
>
> I'm not convinced. Either I'm calculating something wrong, or greed is at work.

-- 
Jeffrey Lyon, Leadership Team
jeffrey.lyon at blacklotus.net | http://www.blacklotus.net
Black Lotus Communications - AS32421
First and Leading in DDoS Protection Solutions