[171970] in North American Network Operators' Group
Re: Observations of an Internet Middleman (Level3) (was: RIP
daemon@ATHENA.MIT.EDU (Mark Tinka)
Sun May 18 03:30:31 2014
X-Original-To: nanog@nanog.org
From: Mark Tinka <mark.tinka@seacom.mu>
To: nanog@nanog.org
Date: Sun, 18 May 2014 07:34:24 +0200
In-Reply-To: <53765D59.50406@ispn.net>
Reply-To: mark.tinka@seacom.mu
Errors-To: nanog-bounces@nanog.org
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On Friday, May 16, 2014 08:47:53 PM Blake Hudson wrote:
> How residential ISPs recoup costs (or simply increase
> revenue/profit) is another question entirely. I think
> the most insightful comment in this discussion was made
> by Mr. Rick Astley (I assume a pseudonym), when he
> states that ISPs have several options to increase
> revenue A) Increase price of their product, B) Implement
> usage restrictions, or C) Charge someone else/Make
> someone else your customer. I think he successfully
> argues that option C may be the best. As we've seen, the
> wireless market in the US went for option B. We've yet
> to see where the wireline market will go.
Some of the operators, here in Africa, who are venturing=20
into FTTH, are continuing on with their data caps.
I suppose if you're primarily a mobile carrier who uses data=20
caps to charge for access (and makes lots of money in the=20
process for, pretty much, selling nothing), the model=20
becomes attractive regardless of the medium.
New providers who are not encumbered by this type of=20
thinking, obviously, have a more flexible and forward-
thinking business model.
Mark.
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