An Attempt at Economically Rational Pricing: Time Warner Trial
Patrick W. Gilmore
patrick at ianai.net
Fri Jan 18 21:01:00 UTC 2008
On Jan 18, 2008, at 3:11 PM, Michael Holstein wrote:
> The problem is the inability of the physical media in TWC's case
> (coax) to support multiple simultaneous users. They've held off
> infrastructure upgrades to the point where they really can't offer
> "unlimited" bandwidth. TWC also wants to collect on their
> "unlimited" package, but only to the 95% of the users that don't
> really use it, and it appears they don't see working to accommodate
> the other 5% as cost-effective.
I seriously doubt it the coax that is the problem.
And even if that is a limitation, upgrading the last mile still will
not allow for "unlimited" use by a typical set of users these days.
Backhaul, peering, colocation, etc., are not free, plentiful, or
trivial to operate.
> My guess is the market will work this out. As soon as it's
> implemented, you'll see AT&T commercials in that town slamming cable
> and saying how DSL is "really unlimited".
I do not doubt that. But do you honestly expect the at&t DSL line to
provide faster / more reliable access?
Hint: Whatever your answer, it will be right or wrong for a given time
in the near future.
--
TTFN,
patrick
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