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

From: Mark Foster (no email)
Date: Sun Jan 20 2008 - 15:03:32 EST

  • Next message: William Herrin: "Re: Cost per prefix [was: request for help w/ ATT and terminology]"

    On Sun, 20 Jan 2008, Buhrmaster, Gary wrote:

    >
    >
    >> 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".
    >
    > If I were the DSL companies, I would consider advertising
    > with a commercial recalling the fable of the tortoise and
    > the hare. You see a starting line, the rabbit jumps out
    > early (8mb/s), and then crawls forward (64kb/s). The
    > turtle starts a little slower (3mb/s), but just keeps
    > going, beating the rabbit easily.
    >
    ... except that for the majority of users, the length of the racecourse is
    well and truly within the sprinting distance of the rabbit.

    Guys, this isn't exactly a new idea if you include parts of the world
    outside of the USA.

    For example, on my residential DSL service i've used 4.7G this month. With
    1/3 of the month left, I have more than half of my self-selected 10Gig cap
    available. (And I grabbed at least two CD ISO's the other day.)

    The model works. What remains to be seen is whether it's actually
    feasible in a market where truly flat-rate services are hitting the market
    at margins where they can barely pay for themselves.

    Mark.


  • Next message: William Herrin: "Re: Cost per prefix [was: request for help w/ ATT and terminology]"





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