[133734] in North American Network Operators' Group
Re: Some truth about Comcast - WikiLeaks style
daemon@ATHENA.MIT.EDU (Dave Temkin)
Thu Dec 16 13:55:25 2010
Date: Thu, 16 Dec 2010 10:53:53 -0800
From: Dave Temkin <davet1@gmail.com>
To: Jeff Wheeler <jsw@inconcepts.biz>
In-Reply-To: <AANLkTimTcaPrG9=e5N0ni7qTCNDZ2inf0b15PU6H4BM8@mail.gmail.com>
Cc: nanog@nanog.org
Errors-To: nanog-bounces+nanog.discuss=bloom-picayune.mit.edu@nanog.org
Jeff Wheeler wrote:
> On Thu, Dec 16, 2010 at 12:15 PM, Dave Temkin <davet1@gmail.com> wrote:
>
>> 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
>>
>
> Yeah, because it makes a lot of sense to fuck with a billion dollar a
> month revenue stream so you can extract a few million dollars more per
> month from IP carriers. This definitely makes more sense than, say,
> running the billion dollar a month side a little more efficiently.
>
> You need to understand the scale of comcast's expenses and revenue on
> the access and transport side of their business, in order to have a
> remotely intelligent opinion about whether or not they are doing
> anything smart with the peering/transit side, in these conditions.
>
I do. And yes, they are happy to "fuck with a billion dollar a month
revenue stream" (that happens to be low margin) in order to set a
precedent so that when traffic is 60Tbit instead of 6Tbit, across the
*same* customer base they have today that's insisting on getting that
$19.99/month promo deal for life they make up the infrastructure
investment on the backs of the content providers and not their
customers. $1B/month from your customers + $1B/month from your content
providers is what they'd ideally like to see and this is just laying the
groundwork for it.
They have a captive audience. What percentage of their customers who
they're offering 10Mbit+ connections to do you think have a 10Mbit+
alternative? It's not very many.
-Dave
