Observations of an Internet Middleman (Level3) (was: RIP

Mark Tinka mark.tinka at seacom.mu
Sun May 18 05:34:24 UTC 2014

On Friday, May 16, 2014 08:47:53 PM Blake Hudson wrote:

> How residential ISPs recoup costs (or simply increase
> revenue/profit) is another question entirely. I think
> the most insightful comment in this discussion was made
> by Mr. Rick Astley (I assume a pseudonym), when he
> states that ISPs have several options to increase
> revenue A) Increase price of their product, B) Implement
> usage restrictions, or C) Charge someone else/Make
> someone else your customer. I think he successfully
> argues that option C may be the best. As we've seen, the
> wireless market in the US went for option B. We've yet
> to see where the wireline market will go.

Some of the operators, here in Africa, who are venturing 
into FTTH, are continuing on with their data caps.

I suppose if you're primarily a mobile carrier who uses data 
caps to charge for access (and makes lots of money in the 
process for, pretty much, selling nothing), the model 
becomes attractive regardless of the medium.

New providers who are not encumbered by this type of 
thinking, obviously, have a more flexible and forward-
thinking business model.

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