Sunday, April 12, 2009

This is 100% about protecting their cable tv and on-demand services.

Link

Corporate Guy wrote:

This is 100% about protecting their cable tv and on-demand services. They basically figure that if you get your tv/movies from someone else, you still need to pay them for it. It's basically no different than throttling competing services, but by marketing it as a fee based service they hope to sneak around regulators and hope that their "capitalist" approach will gain them "conservative" political support.

One gigabyte costs less than one cent. If you used 1tb of data that at most is going to cost the ISP 10 dollars. Current pricing already is setup to adjust for bandwidth hogs. Time Warner has their turbo add-on which basically doubles the download speed of their base service for 10-15 bucks. Since most hogs would pay that fee for the added speed, they are already being paid by and profiting more on "hogs".

Most of the cost for broadband is a fixed network cost, not bandwidth. They want to charge 75 dollars more as an extra fee that at the most extreme could only really cost 10 bucks. An average hog probably only uses 100-300gb a month. So 1-3 dollars more in bandwidth than the old lady checking email to them justifies charging people 75 dollars more.

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