[RTC List] [Fwd: Re: Your Future Broadband Will Cost More, for Less]

[JBilderback]

Kathy Moxon wrote:

> I don't totally understand the rationale of user limits--or is
> it just a new pricing structure (instead of one price you have
> to pay for what you use) and are they moving to pay for what
> you use because broadband capacity is scarce? Or just because
> they can?
> 

1) They are currently running a "limited time promotion" offering
new DSL accounts at discounted rates. (probably no lack of
capacity) I'd imagine if you had access to account information and
proposed new rates you'd find a serious revenue enhancer. OTOH ...
as far as I read, this is a "trial" in the Reno area and perhaps
the CPUC can prevent it from morphing into new rates for
California. OTOH ... the serious bandwith hogs (file sharing, etc)
shouldn't go unnoticed. Users going beyond a reasonably generous
limit should pay more for the bandwidth they're using.

2) Who else are you going to use if not ATT or someone reselling
their DSL lines? (the advantages of a deregulated monopoly owning
infrastructure aren't always for the citizens they are supposed to
serve) (Ok ... there's 101netlink and satellite as a couple of
options)


> I am at a broadband meeting in San Francisco (tomorrow) and one
> of the topics of conversation might well be what kind of things
> are telecoms doing that thwart the deployment of ubiquitous
> broadband within the state and what /might/should they do
> differently that would increase the use of broadband for
> increased economic benefit and improved well being...
> 
> Any messages I should carry?

Perhaps something like PG&E's requirement to phase in alternate
energy ... AT&T might be influenced to offer a percentage of
bandwidth to small businesses (or community service districts, or
??) at a rate that allows them to offer service at a price
competitive with AT&T and still make expenses/profit.  Perhaps
they might be influenced to offer wireless broadband at
competitive rates and even lead the way in providing open access
to the newly available "white space".

> 
> Kathleen E.Moxon CAO/Director of Programs Humboldt Area
> Foundation 373 Indianola Road Bayside, CA 95524 707-442-2993 
> 707-442-9072 (fax)
> 
> -----Original Message----- From: list-bounces at redwoodtech.org
> [mailto:list-bounces at redwoodtech.org] On Behalf Of JBilderback 
> Sent: Friday, November 07, 2008 9:38 PM To:
> list at redwoodtech.org Subject: Re: [RTC List] Your Future
> Broadband Will Cost More, for Less
> 
>> AT&T this week said it would join other broadband providers
> in trialing tiered broadband
> 
> from the AT&T "news release":
> 
> " Britton said that 5 percent of AT&T's users account for 46 
> percent of network traffic, and the top 1 percent represents 21
>  percent of overall use. He said the trial project would not
> affect 95 percent of AT&T users."
> 
> It's interesting that the above statement of the problem leads
> to the following solution:
> 
> " The caps for new users are tiered according to the broadband
>  service they receive, with the lowest tier, at 768 Kbps,
> allotted a 20-GB monthly limit. Subscribers who pay for 1.5
> Mbps, 3 Mbps and 6 Mbps will receive monthly limits of 40, 60
> and 80 GB, respectively."
> 
> Which is obviously just a lame excuse to raise rates and has 
> little if anything to do with the supposed 5% of users abusing
>  their service agreement.
>