[TWC] NEO Rate Hike Page 2

[TWC] NEO Rate Hike Page 2
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hobgoblin @ 4th Nov 11:21PM:
Re: [TWC] NEO Rate Hike

"Exactly where are their bandwidth fixed costs escalating?"

I love the way you inserted "bandwidth"

The letter said "fixed" not Fixed bandwidth" The cost of everything is going up, employee costs, electricity costs, health care, everything is going up.

The cost of internet service has not gone up for years.

Hob
--
"A foolish consistency is the hobgoblin of little minds."
- Ralph Waldo Emerson

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oldbuzzard @ 5th Nov 03:24PM:
Re: [TWC] NEO Rate Hike

said by hobgoblin :

"Exactly where are their bandwidth fixed costs escalating?"

I love the way you inserted "bandwidth"

The letter said "fixed" not Fixed bandwidth" The cost of everything is going up, employee costs, electricity costs, health care, everything is going up.

The cost of internet service has not gone up for years.

Hob

Actually, of your list, only health care is going up significantly. Inflation is currently running at about 1.5%/year and that includes health care. There are tons of reports and articles summarizing them that indicate that wages have not kept pace with inflation for the past ten years. Translation: effectively, employee costs have dropped. Add to that the productivity increases and operational efficiencies that consolidation have brought, the cost of supplying Road Runner has dropped considerably and continues to do so.

No reasonable argument could be made that the cost of supplying shared high speed Internet service has gone up. It has consistently dropped. And the profits from it have consistently risen - despite the lack of rate increases.

I'm not syaing increased profits are a bad thing. What I am saying is that claims that the current price increase is reflective of cost increases is flat out not true. And FWIW, while the rates in NE Ohio have not risen, the service in may parts of it has deteriorated notably over the past few years.
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oldbuzzard @ 5th Nov 03:31PM:
Re: [TWC] NEO Rate Hike

said by hottboiinnc :

no i'm not holding out. There is no actual proof. If you want proof call VZ or ATT and ask them for quotes. The prices would be the same as they were last year or the year before that. Why do you think they require massive contracts to get the bandwidth? And why do the small HSI providers have caps on their bandwidth usage? Why? Because it's NOT getting cheaper.

You can have a "study" about anything but it doesn't make it fact. Only the market prices make it fact and I don't see any pricing that shows that the prices are cheaper.

I'm talking about the cost of buying bandwidth in bulk - TW's costs, not yours or mine. Go and price bandwidth in bulk and its way cheaper than it was 5 years ago and it was way cheaper then than it was 10 years ago. What has happened is that retail costs (what you and I pay) have been flat and profits on supplying high speed bandwidth have gone up.

Compare any major providers SEC filings over the years (including TW's) and you will see that their profits have risen as retail rates have stayed pretty much the same and speeds have increased. There is no other way I know of for that to happen other than their costs dropping.

Of course, without actually speaking with each of their vendors, confirming their stories with years of invoices, accessing their internal reports, grilling the authors of those reports to confirm that they didn't fudge the numbers to exceed analyst expectations, that's just a theory.
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dustman81 @ 6th Nov 08:46PM:
Re: [TWC] NEO Rate Hike

I got on their new subscriber promo (Digital Cable + 7MB RR + DVR) for $89.90 since I moved and Uverse isn't available at my house. They're raising those rates, too since I'm not under a "Price Lock Guarantee".

TWC really has me over a barrel here since I can't even get DSL at my house. I've been seeing Uverse VRADs going in a couple of miles down the road from my house and the AT&T trucks have been heading in my direction. As soon as I can, I'm going back to Uverse. At least they send you a postcard warning you ahead of time that they're going to raise rates.
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hobgoblin @ 6th Nov 09:01PM:
Re: [TWC] NEO Rate Hike

"At least they send you a postcard warning you ahead of time that they're going to raise rates."

You mean like the letter that was posted.

Hob
--
"A foolish consistency is the hobgoblin of little minds."
- Ralph Waldo Emerson

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hottboiinnc @ 9th Nov 07:13PM:
Re: [TWC] NEO Rate Hike

they maybe still building that network but doesn't mean you'll get service. I have a VARD and can't get service. nobody can in my area. It's not turned on. they want more people on their current network before turning on services to another.
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