blind_html [Fwd: Why Comcast hates - and fears - the Internet]

  • From: Nimer <nimerjaber1@xxxxxxxxx>
  • To: blind_html@xxxxxxxxxxxxx
  • Date: Sat, 14 Feb 2009 10:17:24 -0700

Comcast can hate the internet, but the fact is, I can't stand comcast with a passion.


-------- Original Message --------
Subject:        Why Comcast hates - and fears - the Internet
Date:   Sat, 14 Feb 2009 05:10:48 -0500
From:   Ray T. Mahorney <coffee-craver@xxxxxxxxxxxxxx>
Reply-To:       Blind-chit-chat@xxxxxxxxxxxxxxx
To:     <Undisclosed-Recipient:;>



February 12th, 2009 @ 10:02pm

Why Comcast hates - and fears - the Internet

Posted by Robin Harris
ZDNet.com

http://blogs.zdnet.com/storage/?p=397 <http://blogs.zdnet.com/storage/?p=397>

Comcast lost corporate credibility last year over Internet bandwidth
management: breaking FCC rules; enraging customers; and packing public
meetings with Comcast employees. All that over network management?

Nope. Comcast has a much bigger problem - and it isn't with Torrent users.

Follow the money

How does Comcast make its money? Selling TV programs - and now HDTV
programs - to subscribers. Internet access is a profitable addition for
current subscribers, but as a stand alone business it stinks: cable
costs are too high to be supported by ISP revenue alone.

But what are Internet users doing? The are using the Internet to
download TV shows and movies. Comcast can't sell you the content as
"cable TV" when you can get it for free on the web.

VOIP too

Another fast growing business for Comcast is VOIP. But if you use Skype
over your Internet connection you won't buy Comcast's VOIP service.

It is a conundrum, indeed. If they increase the bandwidth of their
system to enable Internet HD video, they slit their own throats. If they
don't the telcos may steal Internet business with DSL or wireless 3G.

What is Comcast to do?

It looks like they're moving towards a multi-prong strategy:

* Meter Internet bandwidth. This is a winner: less investment in
bandwidth; a chance to collect overages from heavy downloaders;
entry-level pricing low enough to keep DSL and satellite at bay.
* Push "everything" packages. TV, phone, Internet at a price carefully
calculated to be less than the sum of the parts. Grab telco revenue,
minimize downloading, lock out ISP competition.
* Kill "net neutrality." Comcast wants to charge Internet entertainment
suppliers so make up for the people canceling cable TV service. Common
carrier status (see "Net Neutrality" is stupid) eliminates this revenue,
so Comcast is fighting it.

The Storage Bits take

Cable's had a good run, but it is coming to an end. TV, which used to be
concentrated in 3 networks, is now atomized among dozens competing for
screen time with video games, DVDs and computers.

Cable's costly infrastructure, optimized for hundreds of channels, can't
adjust to a world where entertainment is downloaded. They have to tame
the Internet to survive.

The telcos have been going through hard times as land line usage
craters. Cable is next up.

Gigabit Ethernet to every home should be a national goal. Let people,
not companies, decide what they want to see. Let entrepreneurs build new
services to use that bandwidth and see what happens. It will be cool.

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