Comments on: Time-Warner’s Being Smart Not Greedy http://www.markevanstech.com/2008/01/18/time-warners-being-smart-not-greedy/ A Canadian Take on the Web Sun, 07 Sep 2008 23:41:08 +0000 http://wordpress.org/?v=2.6 By: Mark Evans http://www.markevanstech.com/2008/01/18/time-warners-being-smart-not-greedy/#comment-38362 Mark Evans Fri, 18 Jan 2008 18:41:06 +0000 http://www.markevanstech.com/2008/01/18/time-warners-being-smart-not-greedy/#comment-38362 James: The question - and the challenge - is balancing the best interests of the web with the self interests of ISPs, who have near monopolies on broadband service. As a result, they can pretty much do what they want from a pricing and service perspective given there's little competition. Given broadband has become a much-need utility for many people, what can consumers do to make ISPs "behave"? Should broadband be - heaven forbid - regulated so schemes like what TW wants to do are reviewed? Lots of questions as we move forward. James: The question - and the challenge - is balancing the best interests of the web with the self interests of ISPs, who have near monopolies on broadband service. As a result, they can pretty much do what they want from a pricing and service perspective given there’s little competition. Given broadband has become a much-need utility for many people, what can consumers do to make ISPs “behave”? Should broadband be - heaven forbid - regulated so schemes like what TW wants to do are reviewed? Lots of questions as we move forward.

]]> By: James http://www.markevanstech.com/2008/01/18/time-warners-being-smart-not-greedy/#comment-38352 James Fri, 18 Jan 2008 18:16:58 +0000 http://www.markevanstech.com/2008/01/18/time-warners-being-smart-not-greedy/#comment-38352 Of course time warner is being greedy. The cost of extra bandwidth is marginal for TW, yet they want to charge for it. If every ISP uses this model, this will put a stranglehold on the net, and will set it back 10 years in terms of content. We're just seeing now the proliferation of broadband around the world spawning a lot of rich media on the net in terms of video, voice, web apps. If people have to pay for incremental bandwidth, then it'll made everything uneconomical, and we might as well go back to websites with just images and text. Of course time warner is being greedy. The cost of extra bandwidth is marginal for TW, yet they want to charge for it. If every ISP uses this model, this will put a stranglehold on the net, and will set it back 10 years in terms of content. We’re just seeing now the proliferation of broadband around the world spawning a lot of rich media on the net in terms of video, voice, web apps. If people have to pay for incremental bandwidth, then it’ll made everything uneconomical, and we might as well go back to websites with just images and text.

]]> By: Time Warner’s Planned Tiered Service is a Smart Move - Betaflow http://www.markevanstech.com/2008/01/18/time-warners-being-smart-not-greedy/#comment-38318 Time Warner’s Planned Tiered Service is a Smart Move - Betaflow Fri, 18 Jan 2008 16:31:14 +0000 http://www.markevanstech.com/2008/01/18/time-warners-being-smart-not-greedy/#comment-38318 [...] Mark Evans points out that Time Warner is being smart, not greedy with their plans for tiered broadband service and now that I think about it, I think he is right. As the broadband market stands today, every customer pays an equal amount for an equal share of resources. The problem is that not every customer uses or needs all of the resources alloted to them. [...] [...] Mark Evans points out that Time Warner is being smart, not greedy with their plans for tiered broadband service and now that I think about it, I think he is right. As the broadband market stands today, every customer pays an equal amount for an equal share of resources. The problem is that not every customer uses or needs all of the resources alloted to them. [...]

]]> By: Idea du Jour: Bandwidth Credits http://www.markevanstech.com/2008/01/18/time-warners-being-smart-not-greedy/#comment-38315 Idea du Jour: Bandwidth Credits Fri, 18 Jan 2008 16:21:29 +0000 http://www.markevanstech.com/2008/01/18/time-warners-being-smart-not-greedy/#comment-38315 [...] actually–I’m not sure why everyone’s got their panties in a twist. Mark Evans has some reasonable commentary on the [...] [...] actually–I’m not sure why everyone’s got their panties in a twist. Mark Evans has some reasonable commentary on the [...]

]]> By: Murph http://www.markevanstech.com/2008/01/18/time-warners-being-smart-not-greedy/#comment-38311 Murph Fri, 18 Jan 2008 16:03:26 +0000 http://www.markevanstech.com/2008/01/18/time-warners-being-smart-not-greedy/#comment-38311 The flaw in this logic is that the marginal cost of bandwidth is next to zilch. As long as there is excess capacity in the system (and currently that is the case), then it is economically rational that different types of users pay the same amount. From a business point of view, price should be based on what the service is worth to the customer. The best way to establish that value would be competition between providers (those who don't like what Time Warner charges should have the option of DSL). The flaw in this logic is that the marginal cost of bandwidth is next to zilch. As long as there is excess capacity in the system (and currently that is the case), then it is economically rational that different types of users pay the same amount.

From a business point of view, price should be based on what the service is worth to the customer. The best way to establish that value would be competition between providers (those who don’t like what Time Warner charges should have the option of DSL).

]]> By: Mark Evans http://www.markevanstech.com/2008/01/18/time-warners-being-smart-not-greedy/#comment-38309 Mark Evans Fri, 18 Jan 2008 15:53:02 +0000 http://www.markevanstech.com/2008/01/18/time-warners-being-smart-not-greedy/#comment-38309 Larry: I agree that it's a fine balance facing the ISPs as they play the bandwidth game. It depends on why they want to do it - force heavy users to pay more or move towards a pay-as-you-go approach (which, as you suggest) could temper demand. Larry:

I agree that it’s a fine balance facing the ISPs as they play the bandwidth game. It depends on why they want to do it - force heavy users to pay more or move towards a pay-as-you-go approach (which, as you suggest) could temper demand.

]]> By: Larry Borsato http://www.markevanstech.com/2008/01/18/time-warners-being-smart-not-greedy/#comment-38305 Larry Borsato Fri, 18 Jan 2008 15:27:03 +0000 http://www.markevanstech.com/2008/01/18/time-warners-being-smart-not-greedy/#comment-38305 And as you pointed out, the economics of VOIP cease to exist. And as you pointed out, the economics of VOIP cease to exist.

]]> By: Larry Borsato http://www.markevanstech.com/2008/01/18/time-warners-being-smart-not-greedy/#comment-38303 Larry Borsato Fri, 18 Jan 2008 15:26:13 +0000 http://www.markevanstech.com/2008/01/18/time-warners-being-smart-not-greedy/#comment-38303 I don't necessarily think that this is a bad thing, but you're incorrectly comparing speed with size. If I choose to pay for a slower speed, then I will just have to wait longer to download my movies or music or whatever. That is my choice. When you pay by the byte, then I have no choice. If I want more content then I pay more, or I simply cannot afford the content. Right now if Bell or Rogers ups the cost for a particular speed package, you may select a lower cost package. If they up the charge per MB, will you just download less email? Upgrade applications less frequently? Download 10% less music? How will you feel paying for the spam you get? How well this works depends on the cost bands they choose. If they only make those who use large amounts pay more (as they claim that is the problem) then this shouldn't be an issue. But if there are huge jumps at 1GB, 2GB, or 3GB, then I think that you can kiss digital music and movie downloads goodbye. There is the chance that they may kill the demand for their own product. I don’t necessarily think that this is a bad thing, but you’re incorrectly comparing speed with size. If I choose to pay for a slower speed, then I will just have to wait longer to download my movies or music or whatever. That is my choice.

When you pay by the byte, then I have no choice. If I want more content then I pay more, or I simply cannot afford the content.

Right now if Bell or Rogers ups the cost for a particular speed package, you may select a lower cost package. If they up the charge per MB, will you just download less email? Upgrade applications less frequently? Download 10% less music? How will you feel paying for the spam you get?

How well this works depends on the cost bands they choose. If they only make those who use large amounts pay more (as they claim that is the problem) then this shouldn’t be an issue. But if there are huge jumps at 1GB, 2GB, or 3GB, then I think that you can kiss digital music and movie downloads goodbye.

There is the chance that they may kill the demand for their own product.

]]> By: Mark Evans http://www.markevanstech.com/2008/01/18/time-warners-being-smart-not-greedy/#comment-38298 Mark Evans Fri, 18 Jan 2008 14:41:46 +0000 http://www.markevanstech.com/2008/01/18/time-warners-being-smart-not-greedy/#comment-38298 Depending on much VoIP bandwidth you use, you may have to upgrade/increase your bandwidth, which is exactly what TW wants you to do. Depending on much VoIP bandwidth you use, you may have to upgrade/increase your bandwidth, which is exactly what TW wants you to do.

]]> By: 12345 http://www.markevanstech.com/2008/01/18/time-warners-being-smart-not-greedy/#comment-38291 12345 Fri, 18 Jan 2008 14:05:47 +0000 http://www.markevanstech.com/2008/01/18/time-warners-being-smart-not-greedy/#comment-38291 curious, where do you think this leaves voip users like me who use the standard tw residential roadrunner and vonage packages.? curious, where do you think this leaves voip users like me who use the standard tw residential roadrunner and vonage packages.?

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