Re: [isp-bandwidth] Om Malik supports throttling, gets flamed

[Hans Wolfgang Lutz <hwl@highlytechnical.com>]

On Wed, 30 Apr 2008, Scott Granados wrote:

> I think one thing we need to remember is this game changes at a rate
> much faster than what we've experienced before.
Fast change means shorter useful equipment life, yes?  That's part of
what started this mess.

Old-school telcos had equipment that they amortized over forever and a
day.  This meant low service cost, slow technological advances, and a
high entry barrier for newcomers.

Technology moved along.  Newcomers could beat up on the old-school
players (who recognized this and did everything in their substantial
power to stonewall competitors).  New offered the innovative new
services.

Then old "got in the game" to draw customers (revenue) away from
competitors.  Ever deal with wholesale DSL?  Ever notice how $ILEC
sells retail DSL service for less than "wholesale" lines?

So... we have new-breed players trying to undercut old-school ones to
attract customers, and old-school characters returning fire in hopes
that their financial reserves (and lobbying power) will keep them
alive.  In a war of attrition, the fat one lives longest.

Savvy smaller players realize the situation, and take advantage of
unsustainable pricing offered by the bigger players.  When one large
player becomes unviable, it's time for the next bargain du jour.

Turmoil will continue until all the main players sell based on
sustainable models.


> I don't think it's realistic to think the unlimited plans will go
> away.  Smart people will figure out the transmition / bandwidth
> problem.
Making a run for Congress?


HWL
--
"Even I have to give credit to anyone who can make a relatively-honest
couple of BILLION bucks... so here's to you, Bill.  I won't be buying
any more of your software, but you got my respect."  --Beryl Shmuel





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