[101891] in North American Network Operators' Group
RE: An Attempt at Economically Rational Pricing: Time Warner Trial
daemon@ATHENA.MIT.EDU (Rod Beck)
Sun Jan 20 12:47:39 2008
Date: Sun, 20 Jan 2008 17:34:07 -0000
From: "Rod Beck" <Rod.Beck@hiberniaatlantic.com>
To: "Andrew Odlyzko" <odlyzko@dtc.umn.edu>, <nanog@merit.edu>
Errors-To: owner-nanog@merit.edu
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Hi Andrew,=20
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.=20
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.=20
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.=20
My humble two cents. PS: I'll take a look at your papers.=20
Roderick S. Beck
Director of European Sales
Hibernia Atlantic
1, Passage du Chantier, 75012 Paris
http://www.hiberniaatlantic.com
Wireless: 1-212-444-8829.=20
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.=20
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<P><FONT SIZE=3D2>Hi Andrew,<BR>
<BR>
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.<BR>
<BR>
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.<BR>
<BR>
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.<BR>
<BR>
My humble two cents. PS: I'll take a look at your papers.<BR>
<BR>
Roderick S. Beck<BR>
Director of European Sales<BR>
Hibernia Atlantic<BR>
1, Passage du Chantier, 75012 Paris<BR>
<A =
HREF=3D"http://www.hiberniaatlantic.com">http://www.hiberniaatlantic.com<=
/A><BR>
Wireless: 1-212-444-8829.<BR>
Landline: 33-1-4346-3209.<BR>
French Wireless: 33-6-14-33-48-97.<BR>
AOL Messenger: GlobalBandwidth<BR>
rod.beck@hiberniaatlantic.com<BR>
rodbeck@erols.com<BR>
``Unthinking respect for authority is the greatest enemy of truth.'' =
Albert Einstein.<BR>
<BR>
<BR>
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