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

From: Frank Bulk (no email)
Date: Mon Jan 21 2008 - 20:21:08 EST

  • Next message: Scott McGrath: "Re: An Attempt at Economically Rational Pricing: Time Warner Trial"

    Which of the telecom service providers is moaning about being a provider?
    This conversation started with Time Warner's metered trial, and they aren't
    doing it in response to people complaining -- I'm pretty sure there was a
    financial/marketing motive here.

    There are some subscribers who complain about asymmetrical speeds, and some
    members of this listserv who fall into that category, but I would hazard a
    guess that less than 5% of the entire N.A residential subscriber base would
    actually pay a premium to have higher upstream speeds (we provide that
    option with our service today for an extra $10 and very few take it). And
    for that small base, an operator isn't about to rebuild or overbuild their
    network. Oh, they'll keep it in mind as they upgrade and enhance their
    network, but upstreams speeds aren't an issue that cause them to lie awake
    at night. I think FiOS as a competitive factor will move them more quickly
    to better their upstreams, though.

    So I don't think telecom providers think they are in the ghettos, and
    neither do most customers. As for creative technology, I'll let someone
    else buy DOCSIS 3.0 first and drive down prices with their volumes -- I'll
    join them in 3-5 years. On the DSL side, the work on VDSL2 demonstrates the
    greatest benefits on short loops. I haven't see any technology that serves
    fantastic upstream speeds at 1, 2 and 3x a CSA.

    Frank

    -----Original Message-----
    From: [mailto:] On Behalf Of

    Sent: Monday, January 21, 2008 5:36 PM
    To:
    Subject: RE: An Attempt at Economically Rational Pricing: Time Warner Trial

    > There are symmetric versions for all of those. But ever
    > since the dialup days (e.g. 56Kbps modems had slower reverse
    > direction) consumers have shown a preference for a bigger
    > number on the box, even if it meant giving up bandwidth in
    > the one direction.
    >
    > For example, how many people want SDSL at 1.5Mbps symmetric
    > versus ADSL at 6Mbps/768Kbps. The advertisment with the
    > bigger number wins the consumer.

    Seems to me that Internet SERVICE Providers have all turned
    into telecom companies and the only thing that matters now
    is providing IP circuits.

    If P2P is such a problem for providers who supply IP circuits
    over wireless and cable, why don't they try going up a level
    and provide Internet SERVICE instead? For instance, every
    customer could get a virtual server that they can access via
    VNC with some popular P2P packages preinstalled. The P2P software
    could recognize when it's talking over "preferred" circuits
    such as local virtual servers or over peering connections that
    aren't too expensive, and prefer those. If the virtual servers
    are implemented on Linux, there is a technology called FUSE
    that could be used to greatly increase the capacity of the
    disk farm by not storing multiple copies of the same file.

    Rather than moaning about the problems of being a telecom
    provider, people could apply some creative technology to get
    out of the telecom ghetto.

    --Michael Dillon


  • Next message: Scott McGrath: "Re: An Attempt at Economically Rational Pricing: Time Warner Trial"





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