al_bundling
Joined 12 years ago
Joined 12 years ago
It very much does. It gives you a sense of real world marginal costs, a fair assessment of fair market value (fair retail cost = reasonable markup factor * wholesale cost) and a sense of scale.
> If an average coder can't even get bandwidth at $0.001/GB with some serious effort,
If I can, you can. I've even given examples with links to order pages. Not that I recommend FDCservers, mind you.
> then how this this a valid point of comparison for how much bandwidth should cost for the average internet user?
It's a valid point because it tells you how much bandwidth ACTUALLY costs compared to what Comcast says it costs.
> I doubt you can get Level3 or Internap to beat HE prices.
How much money do you have on you? There's a bet I'd like to win.
The article states 30% cheaper, not 30% more efficient.
> If it's $103/GWh, on the other hand, then we're talking about only ~10% overhead on costs.
The article states $103/kWh, not per GWh. To calculate overhead costs you would need to know life cycle costs which were not disclosed.
The question is, what are the life cycle costs? If it's on par with pumped hydro, then we are talking.
In the case of the OP, even they are at least 5 to 6 years out according to the founders.
We are not talking about individuals buying retail bandwidth here.
Price discrimination is ok, if it in addition to providing a premium product also makes the good or product more affordable and available to another class of customers, thus creating a consumer surplus. Classic example: air travel.
Comcast's offering is a sham. It makes broadband more expensive for everyone. This is inherently worse.
The best kind of rate raises are rate raises that don't look like a rate raise but effectively is one.
> Put another way, why is it ok to charge less for a capped speed but it isn't ok to charge less for a capped monthly transfer?
Because the monthly cap is far too low and the usage fees are ridiculously expensive. Combined with the fine print 95% of customers are worse off with a monthly capped transfer.
There are a few problems with this. Firstly, very few users are going to cut down peak usage, because it's during primetime that they have the free time and inclination to use the Internet.
Secondly most people don't even know what a GB is. Thirdly, you assume usage-based fees are meant to curb usage rather than drive profits.
> or services would offer a way to cache episodes locally during the night so you can watch them after work.
Since we are basically talking Netflix here, this is never going to fly with the DRM guys.
This is not a technical problem, as you can see, since the desided outcome can be reached, if you are willing to ignore some legal niceties...