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freitasm

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#69383 7-Oct-2010 08:31
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An interesting article: Why Broadband service in the U.S. is so awful.


Here consumers generally have just two choices: the cable company, which sends data through the same lines used to deliver television signals, and the phone company, which uses older telephone lines and hence can only offer slower service.

The same is not true in Japan, Britain and the rest of the rich world. In such countries, the company that owns the physical infrastructure must sell access to independent providers on a wholesale market. Want high-speed Internet? You can choose from multiple companies, each of which has to compete on price and service. The only exceptions to this policy in the whole of the 32-nation Organization for Economic Co-operation and Development [OECD] are the U.S., Mexico and the Slovak Republic, although the Slovaks have recently begun to open up their lines.


It seems they vie for the kind of broadband market we have here in New Zealand... They make it sounds like the grass is not that green on the other side.





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ockel
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  #389054 7-Oct-2010 08:57

Academic research shows that inter-platform competition rather than intra-platform or regulatory settings are greater determinants of penetration/adoption and economic benefit.

Akamai's State of the Internet reports and the OECD Broadband reports when coupled with the analysis of when ULL/UBS/etc are introduced by country show that regulatory settings have little or no correlation with speed or uptake.  Propensity to consume and the perceived marginal utility for greater speeds have a greater bearing on whether higher speeds are offered.  If consumers dont see a benefit they are unwilling to pay for it. 




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wuzy
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  #389075 7-Oct-2010 10:20
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Compare Auckland to another city in the US of the same size (in population), we're still lagging behind by miles.

freitasm

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  #389078 7-Oct-2010 10:25
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wuzy: Compare Auckland to another city in the US of the same size (in population), we're still lagging behind by miles.


That's an article written by an American author about how they see their industry. It's not my opinion seeing I don't have first hand experience. But it's good to see some in the U.S. think their model is wrong - and our model is right.

Now for comparisons, compare using this and let us know results, not just "hunches". Please go ahead, select a few cities and post the results here.





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petes117
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  #389079 7-Oct-2010 10:27
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They don't know how good they've got it for DSL in America. "Data cap? Whats that?"

k1wi
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  #389086 7-Oct-2010 10:42
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There is a distinction between speed and data allowances that needs to be considered. When considering those graphs, you do need to remember that US internet is tiered on speed, not data usage as is here (well, until the advent of VDSL I guess). Plus those speed tests don't factor in price.

Personally, I haven't noticed much of a difference going from 4mbit and 12 mbit given you're only assigned 20GB/s a month.

I agree open access/competition is the idea situation, but network operators will always put as many roadblocks in the way as they can - access to cabinets, hurdles to access to the exchange etc.

freitasm

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  #389088 7-Oct-2010 10:47
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gurthang117: They don't know how good they've got it for DSL in America. "Data cap? Whats that?"


Some cable operators in the US are toying (and already testing) data caps. Obviously they are on 500GB plans, not the stupid 40GB plans Telecom puts out here - but the era of "unlimited" is gone.

Also mobile operators are all limiting their "unlimited" plans, by simply removing those or imposing soft caps. Sprint may be the last one to do so, and it will be soon over.





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foobar
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  #389180 7-Oct-2010 13:56
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I'm actually for data caps. Or rather, for metered service. A carrier who charges per GB of transfered data will have a hard time arguing against net neutrality. That's because "the need to reign in those pesky file sharers" is often cited as THE reason by carriers and ISPs for messing with our data packets.

If you have a well thought out pricing model for actually consumed bandwidth, though, then excessive use would regulate itself due to cost and the carriers really wouldn't have a reason to oppose net neutrality. Or rather, they'd be forced to come up with another crazy argument.

Net neutrality is more important than a few dollars more or less at the end of the month for us.
 

 
 
 

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freitasm

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  #389183 7-Oct-2010 14:02
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Very good way of putting it... Also remember if you pay for "included bytes" and don't use them the average price could be even higher than what you pay for a metered service.

My parents-in-law are in a plan with XNET where they pay a minimum fee for the service and then $1 per GB. Use more, pay more. Go away on holiday, pay less...





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SteveON
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  #389185 7-Oct-2010 14:07

Even in some built up areas in the US you are lucky to get wired broadband.
What's the drop-out rate of mobile calls in the USA? its pretty high...

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  #389188 7-Oct-2010 14:13
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freitasm: My parents-in-law are in a plan with XNET where they pay a minimum fee for the service and then $1 per GB. Use more, pay more. Go away on holiday, pay less...


sounds like "Buy yourself a Ferrari and save on fuel by taking a bus". Yeah right.

There should not be any fixed cost involved to please customers like that. They use DATA - pay for it. don't use DATA - why the hell should they pay? for what?

That's what I like back in home country and sure unlimited DATA on limited speed (2-4mbps) would do the magic and save planet :D




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freitasm

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  #389190 7-Oct-2010 14:16
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kobiak:
freitasm: My parents-in-law are in a plan with XNET where they pay a minimum fee for the service and then $1 per GB. Use more, pay more. Go away on holiday, pay less...


sounds like "Buy yourself a Ferrari and save on fuel by taking a bus". Yeah right.

There should not be any fixed cost involved to please customers like that. They use DATA - pay for it. don't use DATA - why the hell should they pay? for what?

That's what I like back in home country and sure unlimited DATA on limited speed (2-4mbps) would do the magic and save planet :D


I think you completely missed the point. They are on a "pay what you use plan". Which is more sensible than a "pay $60 for 40GB, but if you go on holiday for a full month it will still cost you $60".

I think the analogy should be more like "Buy yourself a Ferrari and pay for the fuel you actually use instead of a full tank every time, with an unlimited tank".









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kobiak
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  #389195 7-Oct-2010 14:24
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@freitasm you mentioned minimum fee - which in my opinion should not be there. they charge for basically nothing. I guess GB cost already includes some servicing + blah blah blah costs. So that actually misses the idea of NO use NO pay. because they still had to pay something (minimum fee). This is should work like prepay mobile phone.

And the cost of minimum FEE is very high in comparison to GB cost. Like a Ferrari and full fuel tank :D Ferrari owners don't care about fuel costs I suggest :)




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  #389196 7-Oct-2010 14:24
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In the US they are seeing increased profit taking/maximization due to lack of competition, you can see the exact opposite happing in Australia (moving towards much larger caps and unlimited offerings) as the competition is really hot/fierce there right now.



Regs
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  #389201 7-Oct-2010 14:43
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gurthang117: They don't know how good they've got it for DSL in America. "Data cap? Whats that?"


we're never going to be 'on par' with data costs in the US.  Their data does not have to transit 20,000km of undersea fiber cable.




Regs
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  #389202 7-Oct-2010 14:46
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kobiak: @freitasm you mentioned minimum fee - which in my opinion should not be there. they charge for basically nothing.


there are minimum fee's for electricity supply, gas supply, water supply (in some areas, others have it built in to rates, or consumption charges).

your ISP has to rent the line to your house, there is upkeep on all that infrastructure - its a bit more than 'nothing'.  Not to mention the email servers, web hosting and other products they roll in to a connection.




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