Monday, April 20, 2009

and they'll sell us the cable they'll hang us with

Cable companies want to gouge us a lot more, says this NYT article:


The cost of providing Internet service is about to fall even more, as cable companies install new technology, called Docsis 3, that will both increase their capacity and allow them to offer much faster download speeds.

So far, however, companies in the United States have chosen to use Docsis 3 as an opportunity to offer far more expensive Internet plans. Comcast has introduced a new 50-megabit-per-second service at $139 a month, compared with its existing service that costs about $45 a month for 8 megabits per second. Time Warner just announced it will charge $99 for 50 megabits per second.

By contrast, JCom, the largest cable company in Japan, sells service as fast as 160 megabits per second for $60 a month, only $5 a month more than its slower service.

Why so cheap? JCom faces more competition from other Internet providers than companies in the United States do.



the restaurant bill analogy does not apply for cable. you set up all-in-one plans to lure customers, then you complain of the usage. tell you what - open up a la carte service for cable TV channels and maybe we can discuss this usage pricing thing for the Internet.

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