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Time Warner Transfer Caps May Inspire Fair-Price Legislation
Posted by
Soulskill
on Sun Apr 12, 2009 04:11 PM
from the what-have-you-got-against-monopolies dept.
from the what-have-you-got-against-monopolies dept.
Time Warner's recently announced plan to expand their broadband transfer caps to new markets drew heavy criticism, which prompted their attempt to smooth things over with a ridiculously expensive "unlimited" plan. That wasn't enough for New York Representative Eric Massa, who now says he will draft legislation to "curb tiers, particularly in areas where a broadband provider owns a monopoly on service." Massa said, "Time Warner believes they can do this in Rochester, NY; Greensboro, NC; and Austin and San Antonio, Texas, and it's almost certainly just a matter of time before they attempt to overcharge all of their customers," adding, "I believe safeguards must be put in place when a business has a monopoly on a specific region."
Related Stories
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Technology: Time Warner Expanding Internet Transfer Caps To New Markets 394 comments
Akido37 writes "Time Warner Cable is expanding its transfer capping program to new markets in Rochester, NY, Austin, TX, San Antonio, TX, and Greensboro, NC. It seems they have been testing plans with 5, 10, 20, or 40GB of data transfer per month, with prices ranging from $30 to $55 a month. BusinessWeek quotes Time Warner Cable CEO Glenn Britt saying, 'We need a viable model to be able to support the infrastructure of the broadband business ... We made a mistake early on by not defining our business based on the consumption dimension.' Ars Technica adds, 'The BusinessWeek article notes that only 14 percent of users in TWC's trial city of Beaumont, Texas even exceeded their caps at all. My own recent conversations with other major ISPs suggest that the average broadband user only pulls down 2-6GB of data per month as it is. One the one hand, this suggests that caps don't really bother most people; on the other, it indicates that low cap levels aren't needed to keep traffic 'reasonable' since it's actually quite low to begin with.'"
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Technology: Time Warner To Offer Unlimited Bandwidth For $150 479 comments
unr3a1 writes to tell us that Time Warner Cable has responded to the massive criticism of its new plan to cap user bandwidth with a new pricing model. Users will be given a grace period in which to assess their pricing tier. The "overages" will be noted on their bill, allowing them to change either their billing plan or their usage patterns. "On top of a 5, 10, 20, and 40-gigabyte (GB) caps, the company said this week that it would offer an additional 100GB tier for heavy users. Prices (so far) would range from $29.95 to $75.00 a month, with users charged an extra dollar for every GB more they download, although that charge is also capped at $75. An 'unlimited' bandwidth plan, therefore, tops out at $150."
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Up next (Score:5, Funny)
Unlimited water and electricity for flat rates plus a pony.
Re:Up next (Score:5, Insightful)
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Re:Up next (Score:5, Insightful)
You'd have to be really slow to believe that.
Parent
Re:Up next (Score:5, Insightful)
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Damn, gotta love that profit model.... (Score:4, Insightful)
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Re:Up next (Score:5, Interesting)
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Re: (Score:3, Funny)
you think that the internet is unlimited
Seriously. We all know the internet is limited. Fits in a shipping container [sun.com].
Re:Up next (Score:4, Interesting)
for electricity and water, you build the delivery infrastructure, and the costs incurred by the company are the maintenance cost of this delivery infrastructure plus production of water and electricity.
A company could build a huge delivery capacity, but the resource itself (water, power source) is limited and increasing its availability to the customer is not possible.
Internet service providers, build the last mile delivery service, pay to maintain it, then produce what which we have to pay for? capacity? capacity is not scarce because we know they can build more capacity into their infrastructure.
Reaching an infrastructure's limit in usage, especially a huge one such as theirs, would tell me that it is fully utilized. They have to make a profit at this point because most of their cost is fixed! it might take time, but they can expand their infrastructure overtime and still make a profit, so I don't think capacity is the limiting factor here
content? which makes me wonder, don't content providers pay also for internet capacity? if the capacity exists for them to provide all their content, why shouldn't it be any different for the last miles the ISPs offer? aren't content providers also end users like us for other ISPS?
Here is another thought, why wouldnt the RIAA,MPAA sue ISPs when they charge us on bits for downloaded copyrighted content? wouldn't they be technically charging us for the content which they do not own? would they also be copying portions of the copy righted content every time it goes from one router to the next? why sue people running bit torrent trackers then and not ISPs?
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inflation;price hikes; capitalism & fed corrup (Score:5, Interesting)
First they sell 'unlimited internet' for a "lowish" monthly fee like $30. Then they collect a bunch of subscriptions and don't funnel sufficient amount into R&D, so they then create the idea of 'scarcity', so they can implement 'caps' (pre-emptive strike against being able to sub to an "on-demand" download HD movie service" for more than 1 movie). Now they re-introduce the old unlimited at the new shiny price of $150.
Like cell service. Reasonably usable plans were available for $29-$39 dollars. Then it was $49, now it's closer to $59 or
$69 if you want, say 10 hours a month of unrestricted call-time.
Unlike computer services which used to be priced in 5-15$/minute of cpu time or hour of computer time that eventually fell to
too small to be metered. This was the effect of innovation, competition and progress.
Now, we see the opposite effect of little or no competition and low innovation and low progress -- the companies divide up
their current 'offerings' into smaller chunks to give smaller amounts for the same price while 'quintupling' the price for
the old service.
Sounds like a ~ 400% price increase for the same old service, or "500% inflation". Someone asked for items that have increased
by large amounts (much more than the published rate of 'inflation')...it's not all items at the same time, but a 5x jump for
unlimited computer download access might qualify as an example of excessive inflation -- either that or gouging... Why?
Because they can.
Free market capitalism becomes corrupt when a few people (or pseudopeople(Corps)) buy up the market. Seems like corruption is the natural consequence of capitalism. It's even being acknowledged that the pay-for-performance system in place for financial was one of the main factors leading to the systemic abuse, fraud and corruption that is slowly falling out as people's abuses are falling out of the woodwork as deleveraging and the Fed's mantra of "constant-inflation is good" mantra is running into problems.
It's unrealistic and a systemic abuse to constantly inflate the currency as the Fed has done and has stated as one of its guiding goals -- not keeping inflation 'in check', but always making sure there is some inflation around 2%/year. The idea of 'deflation', was so scary, recently, that the Federal Reserve "printed" hundreds of billions of dollars over last fall just to inject into the economy to stimulate inflation to counter the economy's contraction. Rather than allowing natural deflation to occur (as happened in the stock market to some extent), the dollar should have been allowed to contract by 3-4% as the economy
contracted. Instead, they print more paper, so each dollar becomes worth less (inflation) to counter the natural contraction.
When the economy rebounds, there will be so much money in the economy, we risk an unpredictable rebound. Instead of providing
stability, the Fed has its focus on constant low-level stimulation, regardless of economic conditions. Pretty stupid policy to leave in the hands of private enterprise.
Parent
freemarkets (Score:5, Insightful)
Free market capitalism becomes corrupt when a few people (or pseudopeople(Corps)) buy up the market.
That is not a freemarket. A freemarket is a "free market". If I wanted to and had the money in a free market I could have cable or fiber optics lain down to provide any and all services it could handle. But there is no free market. Instead the telecos and cablecos try to block competition by blocking access. The radio and TV broadcasters do the same with the airwaves.
Seems like corruption is the natural consequence of capitalism.
Corruption doesn't apply to capitalism any more than it applies to communism and socialism. Anything and everything, including churches, mosques, and temples are susceptible to corruption.
Falcon
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Re:Up next (Score:4, Insightful)
That would be a good argument except that we have examples from many areas around the world where much cheaper internet with much higher capacities are available.
Now sure- you could suggest that japan or korea are small. But so are new york and most other major metropolitan areas.
It is extremely clear that we are being ripped off big time.
It may go into city coffers as bribes/fees, or it may be going straight in the pocket of the back bone providers, or perhaps the monopolistic city ISP's.
But it is clear we are being ripped off because we have many counter examples of the same thing being done better, faster, AND cheaper all around the world.
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net capacity (Score:5, Informative)
Capacity is only unlimited if income is unlimited. Even in a monopoly people will only pay so much, so there's a limited income to expand the network - which puts hard physical limits on capacity, and to make any money at all the network has to be contended.
Thing is is here in the USA cablecos and telcos received almost $200 billion [tispa.org] to buildout broadband but they did not. All they did was use the money to pad their bottom lines. They also battle attempts by others build out broadband. Some articles and posts on /. have been about this, whither it's telecos trying to block muni wifi or cablecos trying to block cities from installing cable. One example is A Broadband Utopia [ieee.org]. Commercial broadband businesses tried to stop it but were unsuccessful. They were successful though having the Utah state government enact a law that requires it to be open, which was planned from the beginning. Because of the network Comcast [dslreports.com] was forced to offer a $90 bundle.
Falcon
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Re:Up next (Score:5, Insightful)
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Re:Up next (Score:4, Interesting)
Can I have whatever it is that you're taking that's making the sky such a pretty rosy color? Check their tiering structure, they didn't drop prices when they put caps on it. They won't in the future either.
If this were truly a competitive market, then you might actually see that. The problem is you're looking at a monopoly marketplace for the last mile. With Cable & DSL being the only 2 viable broadband technologies in place for 90% of the people who can get them, there isn't significant enough market pressure to force any price lowering.
Why do you think they are taking the Chicago suburbs to court over community laid last mile? If the Cable/Telco companies have to actually compete on price & service quality, then you would see low tier service at a lowered price. Until then, expect them to make low end tiers out of their normal price & rape you for using enough bandwidth to actually use anyones VOIP or Video service but theirs.
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Re:Up next (Score:4, Insightful)
That is a good point. And as long as they hold their monopolies, then this particular aspect needs to be regulated. That is, with respect to services that they offer over their lines, they have to behave like common carriers.
We've tried incentives like huge tax breaks to get them to modernize their networks to increase capacity, but they tend to just pocket most of that money and go right on raping their customers. I blame government corruption and incompetence for that. If you're gonna put the carrot out there, you'd damn well better have a stick too.
As long as they're allowed to have control over the last mile to homes and businesses, we're all gonna get screwed. That infrastructure should be a municipal asset where we can contract out maintenance and upgrades, and then allow any provider that wants to compete to have access to deliver service over that infrastructure. Right now we are pretty much stuck with them whining about how it's so expensive to provide service and increase capacity. That's bullshit when they've been given more than enough time and money to do so, in addition to the ability to charge duopoly-size fees already. I won't be crying for them.
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The real solution (Score:5, Insightful)
The real solution is to get rid of government-enforced monopolies on utilities.
Re: (Score:3, Insightful)
One of the reasons for enforced monopolies is that for an infrastructure service that is considered "crucial", like electricity, phone and water you don't want the inevitable pressure to cut costs by scrimping on reliability in order to compete. That is why these enforced monopolies are, in theory, regulated heavily.
Of course, I personally don't think that precludes heavy competition with heavy regulation, but what do I know. :)
Re:The real solution (Score:5, Insightful)
Nonsense. If that was true, then why don't we have a state-sanctioned monopoly on all foodstuffs so we don't run the risk of 'unreliable' supply? I mean, food is so crucial.
The reason for any enforced monopoly is to artificially raise prices.
If you honestly think that competition to lower prices is only achieved through skimping on quality or reliability then I'm sure you used a room-sized, vacuum-tube, multi-million dollar computer from the 60s to type your comment instead of a US$ 400 MSI Wind netbook, but then again, what do I know. :-)
When something is left to the marketplace and free competition ( i.e. "unregulated" ), consumers will choose the best and cheapest alternative. When it is left to regulation, consumers are deprived of choice on that characteristic by force of law, and if the regulation is poorly crafted ( not unusual, to use an euphemism ) then we're all screwed with nowhere to run.
Limiting competition is regulation's very goal, with several companies lobbying to make sure the final text benefits them individually as much as possible.
Parent
Re:The real solution (Score:5, Insightful)
Because it's not needed? There's no problem with 50 producers competing for who can deliver the cheapest rice, because there's no problem with all of them making their products available for sale, and it still must pass government quality standards.
That doesn't work with things like water though. Would you want to have 10 sets of water pipes, with all the street digging that implies, and 10x more frequent pipe breakage? The space available for piping is very limited as well.
In this situation the way to go is not having 10 sets of pipes, but have one, highly regulated delivery network (water, power, fiber), and competition in the supply of that network (powerstations, water filtering plants, ISPs).
Done correctly, the delivery network lacks any reason to prefer or favor one provider over another, and the providers lack the ability to deny access to each other, since they don't own the delivery network. The consumer can then freely choice which they want, and the entry barrier for a new provider is low because it doesn't require digging up streets.
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Re:The real solution (Score:5, Interesting)
Sadly, not only are they not "regulated heavily," in most cases they're not regulated at all. Municipalities used to have a lot of regulatory authority over cable operators, but a variety of deregulatory actions by the FCC and Congress have eroded most municipal control. Internet service isn't regulated either; it's considered an "enhanced information service" and thus exempt from the common-carrier regime that applies to services like telephony.
I don't see many options other than re-estabishing common-carriage as the dominant regulatory model for these services. The carriers will argue that they can't make enough money under this model to justify the investments required to maintain and upgrade their network facilities. Perhaps a workable model is to give operators a fixed time limit (twenty years after the initial license perhaps) after which they must convert to common carriage. You'd have to write the rules carefully to make sure ownership changes of existing plant doesn't restart the time period.
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Re: (Score:3, Insightful)
Yes because that's worked so well in the UK where prices have rocketed along with profits.
Caps are about broadband video (Score:5, Insightful)
These ridiculous caps are all about cable companies protecting their becoming-outdated business model. Right now, they charge for content (HBO, various extra channel packages, etc.). Customers getting high quality video (for some definitions of high quality) from places like Hulu is eventually going to eat up the cable monopoly cash cow that Time Warner Cable currently enjoys. So how do they stop it and protect their outdated business model? Caps. Insanely low transfer caps that all but eliminate high amounts of streaming video and that protect their cable company business.
If there's a reason the gov't should step in and put a stop to low transfer caps, it's this.
-S
Re:Caps are about broadband video (Score:4, Informative)
What I have in Western Washington (near Seattle) is Comcast and Verizon. They both charge basically the same price for all services. If there were TRUE competition, i.e., many different companies, there's NO WAY they'd be able to charge such high prices without losing customers. But, since there are only 2 companies, they basically have all the benefits of collusion, without any actual collusion. I mean, if one of them decided to charge some arbitrary fee, the other one would follow. Double-Grrrrr....
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Re:Caps are about broadband video (Score:5, Insightful)
I think you're right on the money. A friend of mine also pointed out that this is also a kindof backdoor to a tiered internet.
Imagine that if everyone had caps, TWC and others could go to netflix and say "you know, for only 1% of every customer's signup fee, we'll avoid counting bandwidth you send against our customers", and then announce the partnerships and how you can watch Netflix streaming on their service "for free".
I can't wait to replace TWC. As soon as I find a provider in my area who isn't TWC and isn't AT&T, I'm so there.
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Prices (Score:3, Interesting)
America can have the Australian experience! (Score:3, Funny)
Common Sense (Score:5, Insightful)
I don't see why this wasn't enacted many many years ago.
Comcast, for example, would buy all of a region's smaller cable companies and make them fly the Comcast banner. Then prices would jump 20-40% in the next year. Usually the buy-outs would have to be approved, and would be approved under the condition that Comcast provide similar service for similar prices.
Granted monopolies need to be policed like this. This isn't a case of other companies not wanting to bother with the cost and time to set up competition.
This is exactly what Time-Warner was banking on. You don't see cell phone companies deciding that unlimited text messaging is no longer unlimited, or that your 500 minutes isn't sustainable, so now you get 200 minutes. Mainly because cell phone companies have competition everywhere. If you don't like Sprint, try US Cellular or Verizon. Maybe even T-mobile. They all have their ups and downs, but more importantly, there are alternate choices. ISPs aren't always that way.
Hourly-fee dial-up ISPs went away pretty quickly once competitors started popping up. I think most broadband ISPs were starting out at the unlimited level to compete with dial-up ISPs, and now that the dial-up ISPs are no longer a threat, they want to reneg on the contracts they made us all sign. Not our fault your business model wasn't able to be supported, now honor our damn contracts.
Re:Common Sense (Score:5, Insightful)
If that were true, I wouldn't be so bothered. The reality of it however is that they are making a killing in profit NOW with 'unlimited' service. The business model is fine, they've just beaten every other ISP out of the market and now how no competition (as you said) and are coming up with new ways to rip people off.
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Why Higher Rates? (Score:4, Interesting)
I see so many articles about ISPs hiking up their rates or beginning to use bandwidth caps but what I want to know is why?
Yes, a customer who downloads 300 GB a month is more expensive than someone who doesn't but that sort of customer behavior is something that all service businesses have to deal with. I work in the webserver management department of my company. For a flat monthly rate, we will fix, upgrade, secure, and do whatever other odd jobs you want to your server. Some customers make fifty (stupid) requests per month and take up tons of our time but they get billed the same amount as the customers who only make one or two requests. But at the end of the month, both customers are getting the same level of service. How did my company figure out how to reasonably deal with this sort of overuse and underuse behavior while large ISPs can't?
Another problem I have with raising rates and imposing limits is the lack of justification. The only thing I've ever heard is "It's those evil pirates! They're making your bills go up!" Yeah, right. There was a time when illegal media downloading was pretty much the only kind of media downloading that existed but now we have Netflix and iTunes and a whole slew of completely legitimate streaming sites. So let's say I do pay $150/month for unlimited bandwidth. Where is my $150 going? I'm sure there is an answer to this and I would be much more willing to pay it as long as it doesn't include "into the pocket of our CEO". Anyone have a link to an article (preferably written by an unbiased third party) that would explain this?
CEO Says one Thing Their SEC Statements Say Otherw (Score:5, Insightful)
CEO of time warner said that broadband costs are spiraling out of control.
Their SEC Statements for 2008 said YOY operating costs for their broadband service decreased 11%. It also netted them nearly 4 billion dollars in revenues.
In 2007 they also reported decreased operating costs and massive profits.
I'd love for that asshole to testify to congress the same thing, cause I'm sending my congressmen their 10K statements. Maybe a CEO going to jail for blatantly doing nearly the same shit bank CEO's and other officers have been doing will finally wake these people up.
http://stopthecap.com/2009/04/10/why-is-time-warner-saying-costs-increasing-to-consumers-but-decreasing-to-stockholders/ [stopthecap.com]
Fifteen years ago these thieves .... (Score:3, Interesting)
lobbied Congress with perks and "campaign contributions" to kill initiatives to install fiber optic cable as a community service/commodity, claiming "unfair" competition. The telcos promised they would complete buiding the fiber optic future in the 1990s, got tax breaks and rate relief to the tune of HUNDREDS OF MILLIONS, pocketed the cash and then promptly forgot their promise. I still have UNUSED fiber optic cable running through my yard from our canceled community project. As a result, I have to pay $72US for 10Mb/s bandwidth and TimeWarner and the other cable/Telecos are constantly trying to think up new ways to create artificial scarcity of bandwidth in order to charge more rent for an outdated wire pipe. These thieves have PROVEN in the past that they cannot be trusted and are too greedy to be given the opportunity to steal again.
It's time the people took back control of the Internet, complete the Fiber Optic (or better) technology and make it a service like electric, water and sewer, cheap and affordable to EVERY house.
Re:I wonder what fraction of US broadband customer (Score:3, Interesting)
Since the majority of the USA have only one cable provider I would say the majority. Local governments have been granting monopolies for decades. As they upgraded to high speed internet. you get cable and random pockets of DSL. I day random as I can't DSL in my home though people within 2 miles of me can.
Re:I wonder what fraction of US broadband customer (Score:4, Insightful)
you both probably get better and faster service for both TV and internet than I do with Embarq and shantel. We've got no cable option for internet and embarq's had a monopoly here since before it was Embarq, the wires are literally disentegrating and calling for support on anything will half the time get you hung up on because they have no need to do anything to keep you as a customer.
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Re:America against Bandwidth Caps (Score:5, Insightful)
It is not so much the caps.. it is the fact the the rates are 3-5x what people are paying now which is, antidotally, 2-3x times what most people around the world pay. Caps wouldn't be so bad if everyone got some benefit.. as it is it is just an excuse for the ISPs to grab a 3-5x price increase.
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Re:America against Bandwidth Caps (Score:5, Insightful)
I pay X amount of dollars to have Y data download rate (and Z data upload rate). My ISP advertised the rate, I bought the rate, that's what I expect them to be able to deliver "most" of the time.
Now, if they want to put a cap on my useage, say C gigabytes per month, then if that limit is less than (2592000 s * X bits/s), I expect my useage fee to decrease proportionately to however much smaller my new download limit becomes.
DECREASE. Not increase. They will be taking away value that I expect based on the advertised service. I expect to pay less for less value.
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Re:America against Bandwidth Caps (Score:5, Insightful)
I'm in Austin, so I stand to be affected by this in the near future.
I wouldn't be opposed to a metered plan if it was really a metered plan.
The electric company doesn't care how many toasters I own, or how often I make toast, or anything. They charge me an activation fee when I start service, and then they bill me for the electricity I use. THAT is a metered plan. If I could do that with bandwidth (at a reasonable rate per GB), I'd be perfectly happy.
This Time Warner crap is NOT like that. They want to charge me an activation fee, a monthly usage fee, AND a dollar per gigabyte for every GB over their arbitrarily imposed limit. That's NOT cool.
The basic point of the pricing structure appears to be to control my behavior online, and it irritates me no end.
Parent
Re:America against Bandwidth Caps (Score:5, Insightful)
No, I wouldn't. But if I go in to that restaurant and start eating and, after 5 plates, they tell me that they won't give me any more, that I've reached my cap, then yes I will expect a refund. They didn't include a 5-plate cap in what they offered, it isn't included in what they offered. If they want to change the deal to something that does include it, then you better believe I'm going to want to change my end of the deal too to reflect what they're offering from their side.
The difference between TW and your scenario is that in your scenario the consumer's deciding not to use all he's entitled to, with TW it's TW deciding the consumer won't be allowed everything he's entitled to.
Parent
Re: (Score:3, Informative)
Uh, I don't think you understood what you're replying to. Your analogy applies to pre-cap service, which no one was complaining about. To further your analogy, the addition of the caps is like having gone there for years and typically eaten 2-4 plates, then one day they take your plate away after you've finished your first helping, and tell you there's a one-plate limit. Suddenly, it doesn't seem like nearly as good a deal.
Re: (Score:3, Informative)
These caps don't seem to have anything to do with peak time usage. If the caps were only on peak time it'd be something different entirely.
Re: (Score:3, Interesting)
I'm fine with caps when I'm told what I get for what I pay for and not "hey we're giving unlimited bandwidth but oh hey don't use more than 2 gbps per month and we'll shape the shit out of your traffic between noon and 9pm".
ISPs should be forced to advertise only what you get and tell you what they do to your traffic so you know exactly what you're getti
Re:America against Bandwidth Caps (Score:5, Insightful)
The main problem we have with it is the industry should be providing MORE service for less money, not the opposite.
Parent
Re: (Score:3, Insightful)
I think there was a fundamental problem with the marketing of broadband which either poorly communicated the intent behind the term "unlimited", intentionally misleading, or they didn't expect that people would actually try to use the service as if it was unlimited. The companies claim that "unlimited" meant "always on", as in, you don't have to dial in or disconnect. I can understand that, but given how it was marketed, I think it's more like the marketing was intentionally misleading.
Frankly, I had no p
Re:America against Bandwidth Caps (Score:5, Informative)
Is it just me or do I find the complaint against Bandwidth Caps ridiculous?
I only seem to see people complaining about it in America, most of Europe (afaik) has gotten used to having bandwidth caps.
Are you out of your mind? The reason why you see people complaining about it in America and not in Europe is because a lot of European countries do not have any kind of download caps whatsoever so we don't have to complain about it.
Parent
Re:Complaining when you got what you asked for (Score:5, Informative)
"High-speed data costs decreased for the three and nine months ended September 30, 2008 primarily due to a decrease in per-subscriber connectivity costs, partially offset by subscriber growth.
"In 2007, TW made $3,730 Million, on high speed data alone, and then had to turn around and spend $164 Million to support the cost of the network. 2007 total profit on high speed data: $3.566 Billion"
"In 2008, TW made $4,159 Million, on high speed data alone, and then had to turn around and spend $146 Million to support the cost of the network. 2008 total profit on high speed data: $4.013 Billion"
Stop shilling for corporations. Clearly the unlimited broadband model has been extremely profitable.
Wake up and smell the non-corporate content suppression.
Parent
Re:Complaining when you got what you asked for (Score:5, Insightful)
Bandwidth and infrastructure does cost money.
But heres the reality. In the Greensboro area (where I live and know what goes on at the TWC datacenter) they charge approximately 100 times what it costs them to provide the bandwidth and infrastructure.
We complain because some of us who work in the industry know how much bullshit the prices are and more importantly we know for a fact that their traffic shaping and caps are not because its expensive, they are because they simple do not want to pay for the bandwidth they've sold.
The infrastructure they have is more than enough to support much more bandwidth with the switch to DOCSIS 3.0, which they are already doing.
The only limit is the pipes from them to the rest of the world.
When they drop services, they don't lower my price.
Why am I still paying the same price when they outsourced their news servers and put the entire north and south carolina region on a single link to giganews which was saturated during the TRIAL PERIOD, before the moved everyone on to it. It was never upgraded, users just get slower and slower news service, and they spend less and less, and I still pay the same thing.
Until you actually know what you're talking about, don't try to convience those of us with a clue about how much it costs to run a network. Some of us have done it and know its bullshit.
Their prices are hardly fair, take a look at their rate plans, do the math, compare them to what a normal business pays for unreliable service like the provide to the home, then get a clue.
Parent
Re: (Score:3, Insightful)
Why are you paying more?
Because you and others are willing to pay more for less. The market will continue to go in this direction until enough people drop service to make it unprofitable. They'll find the high point on the profit/effort graph and go with that price.
I don't think its a bad thing for companies to want to profit, but I DO think its a bad thing for them to offer less and charge more. This is the opposite of progress.
Re:Complaining when you got what you asked for (Score:5, Insightful)
In addition, these companies took millions of dollars in funding from the government to improve their infrastructure for just this very reason. To plan for future capacity. They did nothing with it other than spam additional channels in tiered packaged that no one wants and are now overselling internet bandwidth (according to them) even though I never see a slowdown and haven't for years, even before fiber.
On top of that, they have a monopoly in most areas where people who want broadband have no choice but to pay if they want to retain anything other than dial-up. They expect me to pay what I pay now for an unlimited plan, with cable and premium channels, just for the internet access I have now.
It's obvious they are doing this to prevent competition from sites like Hulu. With the internet, you really don't need cable tv. Given a good pipe and content providers offering up content directly, it severely compromises their business model. This technology should be dirt cheap these days as usually happens with wide adoption, yet the price for broadband keeps skyrocketing. There is no where near enough competition.
Cable companies have been gouging consumers for years with anti-competitive agreements with local municipalities that prevent other telecoms from entering the scene. If I had another option, I'd take it in a heartbeat. Perhaps this will put some regulation back on them until there is competition or at least an environment that fosters competition.
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Re:Complaining when you got what you asked for (Score:4, Insightful)
Better yet, have each city pay and build out the fiber network and treat it like a utility to the content providers. That would open up the industry to competition as they wouldn't have to own and/or build the pipes to deliver their content, it would regulate the cost of the pipe itself, and the taxpayer would eventually earn back the cost of building the network via the rental to the cable/internet providers. It would also remove a huge barrier to new competition entering the area as they won't have to build out their own fiber lines to compete.
Sounds like a pipe dream though...(ouch..bad pun)
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Re: (Score:3, Interesting)
It's not the fact that heavy users pay more that bothers me so much, it's the details of it.
1. The connections at the isp are sold by speed, not total data transferred. SO it seems highly questionable when cable companies repeatedly bump everyone's speed, then at the same time introduce caps. Furthermore, they need the pipes to support peak load, but at non-peak times they have lots of excess capacity. Yet the caps don't take this into effect at all. It seems a much fairer way to do it would be to adju
Re:Complaining when you got what you asked for (Score:4, Informative)
I work at a relatively small ISP, and our Internet circuits cost us $50-75/meg (plus we have multiple paths for redundancy), and that doesn't include our infrastructure (routers/switches, UPS/generator, A/C, people, etc.). If you want a guaranteed 6 meg pipe, you shouldn't expect to get it for $99.
You—like many other people—are confusing "speed of pipe" and "number of bytes transferred".
We know your ISP doesn't pay $50 per megabyte transferred, because you'd have to charge customers thousands of dollars a month for the equivalent of dial-up access. You might pay $50 for each megabit/second of pipe you want to the Internet, but if you do, you are getting severely overcharged.
If you sell me a 6Mbps connection, then, yes, I (and everyone else) expect to be able to use all 6Mbps twenty-four hours a day. Most users probably won't use it 24/7, but they all expect that whenever they get on the Internet, then that's the speed they'll get.
Your costs don't change if people do use their connection to download 24/7, because all peering agreements are based on transit out of a network. So, you don't want people uploading a lot, but downloading is essentially "free", since there are no costs beyond the price of the pipe, and that is charged based on the max speed, not the number of bytes transferred.
Last, there are ISPs that realize everything I have said is true, and manage to provide the full speed that was contracted for every hour of every day, with no limit on the total bytes transferred, all at a reasonable cost. And, those ISPs aren't losing money.
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