[133726] in North American Network Operators' Group
Re: Some truth about Comcast - WikiLeaks style
daemon@ATHENA.MIT.EDU (Dave Temkin)
Thu Dec 16 12:16:02 2010
Date: Thu, 16 Dec 2010 09:15:51 -0800
From: Dave Temkin <davet1@gmail.com>
To: Jeff Wheeler <jsw@inconcepts.biz>
In-Reply-To: <AANLkTingimq4xvs9capFkB2jNM=pE10aeZuxg8PqTJBu@mail.gmail.com>
Cc: nanog@nanog.org
Errors-To: nanog-bounces+nanog.discuss=bloom-picayune.mit.edu@nanog.org
Jeff Wheeler wrote:
>
> 1) Comcast believes they can exact a great deal of revenue from
> content networks. For this to be comparable to their captive
> customers, per-megabit rates must be reminiscent of pre-Level3 days,
> when $30/Mb was a bargain. This would spell bad news for Netflix. Of
> course, since cable companies typically must pay network affiliates
> and media companies great sums for television programming packages, it
> is in direct opposition to the TV content/delivery model. It would be
> hard to argue both sides if both businesses were faced with
> like-minded regulators.
>
I disagree. Even at $1/Mbit and 6Tbit of traffic (they do more), that's
still $72M/year in revenue that they weren't recognizing before. Given
that that traffic was actually *costing* them money to absorb before,
turning the balance and making that kind of money would be very
favorably looked upon in a unit where a customers margin for 6+ months
can be eaten up in 1 service call.
-Dave
