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Re: An Attempt at Economically Rational Pricing: Time Warner Trial
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