[opendtv] Re: AT&T to Google Fiber: Suck it up, broadband is tough - and get ready to eat our dust | ZDNet
- From: Craig Birkmaier <brewmastercraig@xxxxxxxxxx>
- To: opendtv@xxxxxxxxxxxxx
- Date: Mon, 19 Sep 2016 06:54:53 -0400
On Sep 18, 2016, at 8:12 PM, Manfredi, Albert E <albert.e.manfredi@xxxxxxxxxx>
wrote:
Craig Birkmaier wrote:
Now add the fact that the only thing that made (makes) the telco
FTTH overbuilds possible is the opportunity to sell MVPD bundles,
and the economics suck even more.
That's a narrative you dreamed up. Reality says that what the owners of
content in these "bundles" ask so much that some companies have figured it
out. Remove the "bundles," offer neutral broadband service, and they come out
ahead. We already covered this ground.
No Bert. I have posted several articles confirming this. The case you are
citing is a small independent cable system that decided to drop TV service
because of the service ever increasing cost of the content (subscriber fees).
That was a legacy system, paid for primarily from TV service. I don't think
they came out ahead; but the small profits from operating the TV service were
not sufficient to keep collecting money for the content conglomerate.
Bert says the MVPD bundles are going away; if he's right, then
broadband must pay all the bills as anyone can sell VOIP and TV
services over broadband.
"All the bills"? What does that even mean?
It's called Return on Investment Bert. The bills include operating expenses,
new capital expenses, taxes and fees collected for the local franchise
authority, state and federal governments, customer service, and service on
debt. After paying all of those expenses, the ROI is what's left as a
percentage of the capital invested.
Broadband service would use the same model as telephone service and DSL
service. You pay for access to that infrastructure. You don't pay for
content. Instead, the content sites compete against one another, so they have
a natural self-regulating mechanism that keep their prices under control.
There really is such a world out there, Craig.
Yes Bert, we know your mantra. All the ISP gets is the monthly charges for the
service, any overage fees, and possibly rental fees on leased customer premises
equipment.
If the system is self regulating, why did the FCC classify it under Title II to
regulate it?
And notice: a complete absence of any conspiracy theories with politicians
and incumbents.
No conspiracy theories needed when we are talking something as basic as
economics 101 Bert. Broadband overbuilds are a poor investment. The threat of
rate regulation adds another another potential risk to the investment. Not my
words, as I have posted numerous analyses that say this.
Regards
Craig
Other related posts:
- » [opendtv] AT&T to Google Fiber: Suck it up, broadband is tough - and get ready to eat our dust | ZDNet- Craig Birkmaier
- » [opendtv] Re: AT&T to Google Fiber: Suck it up, broadband is tough - and get ready to eat our dust | ZDNet- Manfredi, Albert E
- » [opendtv] Re: AT&T to Google Fiber: Suck it up, broadband is tough - and get ready to eat our dust | ZDNet- Craig Birkmaier
- » [opendtv] Re: AT&T to Google Fiber: Suck it up, broadband is tough - and get ready to eat our dust | ZDNet- Manfredi, Albert E
- » [opendtv] Re: AT&T to Google Fiber: Suck it up, broadband is tough - and get ready to eat our dust | ZDNet- Craig Birkmaier
- » [opendtv] Re: AT&T to Google Fiber: Suck it up, broadband is tough - and get ready to eat our dust | ZDNet- Manfredi, Albert E
- » [opendtv] Re: AT&T to Google Fiber: Suck it up, broadband is tough - and get ready to eat our dust | ZDNet - Craig Birkmaier
- » [opendtv] Re: AT&T to Google Fiber: Suck it up, broadband is tough - and get ready to eat our dust | ZDNet- Manfredi, Albert E
- » [opendtv] Re: AT&T to Google Fiber: Suck it up, broadband is tough - and get ready to eat our dust | ZDNet- Craig Birkmaier
- » [opendtv] Re: AT&T to Google Fiber: Suck it up, broadband is tough - and get ready to eat our dust | ZDNet- Manfredi, Albert E
- » [opendtv] Re: AT&T to Google Fiber: Suck it up, broadband is tough - and get ready to eat our dust | ZDNet- Craig Birkmaier