nanog mailing list archives
RE: An Attempt at Economically Rational Pricing: Time Warner Trial
From: "Rod Beck" <Rod.Beck () hiberniaatlantic com>
Date: Sun, 20 Jan 2008 17:34:07 -0000
Hi Andrew, I don't think it is obvious that it is too expensive to justify metering in today's environment. Such a claim was definitely true a few years ago when end users were mostly sending email, instant messages, and downloading web pages, but innovation has probably changed the outcome of the cost/benefit analysis so that metering can be justified for the heavy users. Regarding stimulating demand, the only obvious way to increase revenues and profits in a flat rate pricing scheme is to add more users or bundle more products (voice, voicemail, television, etc.). I would argue that the US has reached the point where further increases in broadband penetration probably require either subsidies or government fiat or pressure (Korea, Japan, etc.). And the large American underclass doesn't that help the broadband penetration cause either. Indeed, the virtue of metering is that it gives the provider an incentive to stimulate demand. Flat rate pricing is the worst model in terms of stimulating supply and investment. My humble two cents. PS: I'll take a look at your papers. Roderick S. Beck Director of European Sales Hibernia Atlantic 1, Passage du Chantier, 75012 Paris http://www.hiberniaatlantic.com Wireless: 1-212-444-8829. Landline: 33-1-4346-3209. French Wireless: 33-6-14-33-48-97. AOL Messenger: GlobalBandwidth rod.beck () hiberniaatlantic com rodbeck () erols com ``Unthinking respect for authority is the greatest enemy of truth.'' Albert Einstein.
Current thread:
- Re: An Attempt at Economically Rational Pricing: Time Warner Trial Andrew Odlyzko (Jan 20)
- RE: An Attempt at Economically Rational Pricing: Time Warner Trial Rod Beck (Jan 20)
- Re: Lessons from the AU model (was: An Attempt at Economically Rational Pricing: Time Warner Trial) Andy Davidson (Jan 20)
- Re: Lessons from the AU model Matthew Moyle-Croft (Jan 20)
- Re: Lessons from the AU model Andy Davidson (Jan 20)
- Re: Lessons from the AU model Matthew Moyle-Croft (Jan 20)
- Re: Lessons from the AU model Martin Barry (Jan 20)
- Re: Lessons from the AU model Randy Bush (Jan 20)
- Re: Lessons from the AU model Martin Barry (Jan 20)
- Re: Lessons from the AU model Mark Newton (Jan 20)
- Re: Lessons from the AU model Adrian Chadd (Jan 20)
- Re: Lessons from the AU model Matthew Moyle-Croft (Jan 20)
- Re: Lessons from the AU model Andy Davidson (Jan 21)