Re: Some truth about Comcast - WikiLeaks style

[Dave Temkin <davet1 () gmail com>]

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