> Not to mention that providers would have no reason to offer such cheap offerings, either.
Sure they might. Large companies with deep pockets subsidize the premise to their own benefit (whatever that happens to be). In your example, let's say instead it's $3 per month for just Facebook services (FB, Instagram, WhatsApp, etc). Comcast partners with Facebook on the effort, in which Facebook pays a few dollars per month to subsidize the user plan.
Facebook currently derives something close to $9 per month from US & Canadian members. They hit 45.6% net income margins last quarter, which is extraordinary. They're set to become the greatest pound for pound profit machine in world history, they can afford to use some of that margin to further lock in their monopoly by purchasing preferential access treatment in numerous ways.
Sure they might. Large companies with deep pockets subsidize the premise to their own benefit (whatever that happens to be). In your example, let's say instead it's $3 per month for just Facebook services (FB, Instagram, WhatsApp, etc). Comcast partners with Facebook on the effort, in which Facebook pays a few dollars per month to subsidize the user plan.
Facebook currently derives something close to $9 per month from US & Canadian members. They hit 45.6% net income margins last quarter, which is extraordinary. They're set to become the greatest pound for pound profit machine in world history, they can afford to use some of that margin to further lock in their monopoly by purchasing preferential access treatment in numerous ways.