On Monday 14 September 2009 07:06:48 pm Reinier Battenberg wrote: > what is the difference between lowering prices and > doubling speed?
This is a common tactic in the world of data transport and IP Transit. Service providers, generally, don't want to disrupt their revenue. Moreover, for networks operating at scale, the cost of increasing customer's bandwidth is nominal when pitched against reducing their fees instead. It is even more common in data transport, i.e., leased lines, IPLC's, e.t.c., because revenues in this segment still enjoy relatively high margins (fewer players, e.t.c.). So service providers can afford to add capacity to their customer's links, after all, idle capacity doesn't get you much, since your cost is still the same. Cheers, Mark.
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