On Nov 29, 2010, at 15:57, William Warren <hescominsoon@emmanuelcomputerconsulting.com> wrote:
I think Karl Denninger has this one called right: http://market-ticker.org/post=173522
I don't think so. Let's do a little math exercise: Comcast charges me $75/mo for my pipe, but let's discount that for bundling, promos and lower tier services. $30-40 avg ok? For that money I get 250GB a month. Let's assume I actually use it - which I never do, even with Netflix, other VOD, and many habits common to eyeballs - but for the sake of a number to work with, I do. That's less than 1Mbps average per month. I'm not factoring in deviation from avg to peak, so I am going to assume 1Mbps per sub is peak per sub and 250GB is not the average for the user base. That is at least $40/Mbps paid by the eyeballs... or if I am very wrong, $20/Mbps. This is unsustainable and requires income at both ends for a healthy business model? I'm not convinced. Either I'm calculating something wrong, or greed is at work.