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Originally Posted by Ignition
As I've stated repeatedly before, this is a standard fact of life with the vast majority of mass-market ISPs, 5% of users are responsible for 60-70% of utilisation, and the only reason prices are as they are is that this 5% are subsidised to varying degrees by the other 95%.
Again not trying to turn this into a cap thread, just stating the facts as they are. Without the mass of light users who are the vast majority, the service would cost a fortune or be horribly oversubscribed.
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Sorry but I can't let those comments pass without a response. While your figures are I believe accurate re 5% of users etc etc (which is true for a lot of things in life) by your logic we should next year see price reductions as those 5% become capped. Yeh right. We'll see BBand profits increase, the directors get a nice six figure bonus and the shareholders get an extra few cents dividend while the users gain a restricted service.
No doubt some will argue that users are going to gain extra speed. Well what do you know that's gonna cost NTL almost zip ongoing as the cap for most users will be the same (if not less) than current so bandwidth costs to NTL will lessen. I'll be able to use up my allowance in half the time. Whoppy doo.
BBand is profitable now. All ISP's are doing by introducing caps + PAYG overages is ensuring they can wring more profit out of the system. They know they will only upset 5% of their user base but set themselves up for increased profits over time as usage levels increase. I very much doubt we will ever see caps increase, instead PAYG will be the way to go as thats where the profit is.
Perhaps I'm being cynical but time will tell.