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Roadrunner testing capped Broadband in 4 more cities

Discussion in 'Tech Talk - Gadgets, Gizmos and Technology' started by Richard, Apr 1, 2009.

  1. RAD

    RAD Well-Known Member

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    FYI for anyone in the Austin area, KEYE-DT says they're going to do a story on this tonight on the 10PM news, at least that's what they said in an e-mail got from them.
     
  2. Groundhog45

    Groundhog45 Hall Of Fame

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    Thanks, Rad. I have it set up to record. :D
     
  3. dodge boy

    dodge boy R.I.P. Chris Henry

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    A much as I hate AT&T, in myy area it is either them or TWC... I thought deregulation would stop this type of Duopoly..
     
  4. RAD

    RAD Well-Known Member

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    They didn't say much, just basically said what was in the BusinessWeek story. I was hoping that maybe they had interviewed a few folks about this and what the impact would be on their use of the net.
     
  5. Juppers

    Juppers Icon

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    The problem is the price the service providers pay for bandwidth to the internet far exceeds the cost subscribers pay. In the past, oversubscribing solved the price difference, selling each megabit 20 or more times, because not everyone uses all their bandwidth all at the same time. With VOD and file sharing now using more bandwidth at more times, they have to cover their expenses to provide enough bandwidth for their entire customer base. The best way to do this is have the people that use the service the most cover the shortfall, paying closer to the actual cost of the service they are using. Notice I said closer. You are still paying far less than what the ISP is paying for the bandwidth, typically $2000-$5000 per 100mbit.
     
  6. Chris Blount

    Chris Blount Creator of DBSTalk Staff Member Administrator DBSTalk Gold Club

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    This morning on WOAI in San Antonio, the news director stated that the real reason is that downloadable video content threatens the cable side of the business. He said that Time Warner is trying to put a crimp in people who watch TV through downloads.
     
  7. RAD

    RAD Well-Known Member

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    OK $2000 to $5000 for a 100Mb connection. That's 12,500,000MB/second or 750,000,000MB/minute. So in 3/4 of a minute you could work up tp the 1GB threshold where TWC wants to charge the extra $1.00. In 1 hour that 100Mb connection could do 45GB of data, $45 in extra charges. With 24 hours in a day and a 30 day average per month that's 720 hours so 720 x $45 is $32,400, so even using your top end $5000/month that's $27,400 extra profit for TWC. OK, due to overhead, latency and all the other things that happen in a network you're not going to have that pipe actually passing that much data 24x7, just pointing out that TWC is charging a LOT more for that extra GB then it's costing them to provide.
     
  8. Bob Coxner

    Bob Coxner Icon

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    From the DSL Reports story:

    In reality, Britt is pursuing metered billing because it gives him a way to monetize and/or control Internet video, which poses a very serious long term threat to his cable television revenues. The pressure to shift to metered billing also comes from investors, who obviously love the idea of charging consumers more money for the same (or less) service in an age where the cost of bandwidth and network hardware continues to drop. Keep in mind that Time Warner Cable has yet to officially announce DOCSIS 3.0 upgrades in a single market.

    The question remains: will metered billing only be something Time Warner Cable imposes on less competitive markets, where limited choices mean consumers can't vote with their wallets? Or do company executives really think they can bring 40GB (or even 100GB) caps to bear in markets where they compete with uncapped (so far) and speedier Verizon FiOS?

    So far they're avoiding "big red" markets like the plague.

    All five of these trial markets have limited or no FiOS availability. Rochester is home to financially-troubled Frontier, who (judging from posts to our forums) can barely offer consumers more than 3Mbps, and has been exploring 5GB caps. The other Time Warner Cable trial markets are in AT&T territory. AT&T is also testing metered billing, imposing caps from 20 to 150GB in two trial markets, charging customers $1 per gigabyte in overage fees.
     
  9. bidger

    bidger Hall Of Fame

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    Given the fact that an emerging Generation has no use for traditional multichannel television, it's probably accurate.
     
  10. Hansen

    Hansen Hall Of Fame

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    Well, if that can be proven (and it would be great if it can be), then that surely amounts to anti-competetive behavior.
     
  11. stephenC

    stephenC Legend

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    But, doesn't that demographic generally use their portable Wi-Fi device (iPod) for watching video?

    Also, what about hotspots (Starbucks)? Will the ISPs limit commercial accounts? Probably not, so we could always buy a commercial account tier product and continue with VOD undeterred.
     
  12. SParker

    SParker Active Member

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    I'm not a big fan of government intervention but they may have to in these cases. 5GB might have been fine around 5-8 years ago but today they are way too low! On demand movies and downloading game demo's can use that cap in a few days!
     
  13. machavez00

    machavez00 Hall Of Fame

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    At least Qwest is giving some competition in their service area. Cox is the cableco in Arizona and Qwest is offering up to 20M ADSL2 connections. I have their 12M/892K service
     
  14. RAD

    RAD Well-Known Member

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    I tend to agree with this mainly because these companies will be lining up at the government trough for recovery $'s. Please help us build our networks, while at the same time we make it more expensive to use, sorry don't buy that.
     
  15. Hansen

    Hansen Hall Of Fame

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    Let's also not forget that these companies really brought much of this problem upon themselves. They introduced VOD to the market, which spurred others such as DirecTV to make it available to customers thereby infringing on the cable company's broadband bandwidth. Further, not only are are the caps an attempt to try to control the loss of customers on the cable side by making it more difficult to watch shows via video streaming and VOD but they are also trying to protect from overload the weak broadband network infrastructure that they have over the years failed to update and build up to deal with the increased demand. Of course, now the customers get to deal with the problems and their actions.
     
  16. rebkell

    rebkell Godfather

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    Don't we always, the reason they were able to take over so much of the broadband, was because the telcos didn't use all the money they got for build out and instead stuck it in their pockets to please investors.
     
  17. Hansen

    Hansen Hall Of Fame

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    It's kind of funny. Read this thread thinking I'm stuck with TWC RR service and I get home today and find a note that Verizon is installing FIOS. Never thought they would venture into our subdivision given that the houses are about an acre apart from each other. High cost for them given how the homes are spread out. Good to have some competition or least an alternative now.
     
  18. Nick

    Nick Retired, part-time PITA DBSTalk Club

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    The...
    ...and, like 'Murphy's Law', if things can go wrong, they will. Greed is the new standard; subscribers are just sheep to be sheared, and the customer is not only no longer always right, the default corporate position is that the customer is always wrong. If your problem is not addressed in our FAQ, tough - don't bother us - you really don't matter unless you cancel - then we'll get busy and bug the hell out of you with teaser deals until you come back, then we can resume ignoring you.

    The grass isn't always greener, it just looks that way. The day of unlimited bandwidth is over. The future information superhighway will be narrower and cluttered with arbitrary Nixonian speed limits, but you can go as fast as you want to -- that is, if you don't mind ponying up for all those speeding tickets.

    Just beware of those Ludowician speed traps.
     
  19. Chris Blount

    Chris Blount Creator of DBSTalk Staff Member Administrator DBSTalk Gold Club

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    Sounds like Time Warner is starting to listen. Packages are a bit better but still need work:

    Full Story
     
  20. RAD

    RAD Well-Known Member

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    So they up the price of the Turbo (more then what I'm paying now), put a cap on it and lower the speeds. Makes me want to stay with TWC/RR for internet service:rolleyes:
     

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