·Time Warner Cable
I have empirical examples of surprisingly low high speed take rates from Sweden, France, Britain, Hong Kong, Japan, Korea, and California. A difference of $10 to $30 discourages 3/4ths of the customers. Google is looking for $70/month for a gig, compared to 10 meg cable at about $50 and 3 meg DSL at about $35....A $50 difference between 10 meg cable and 50-100 meg DOCSIS has been standard in the U.S. and the take rate on the higher speeds has been so low no company will reveal it.
OK, this guy needs a new job or should at least cover the industry.
1. I guess he hasn't been reading how dryloop DSL is going the way of the dodo bird. Take that $35 and multiply by at least two and add another $15 in taxes. I guess he also failed to mention 3gps can barely even handle one HD stream. FAIL
2. 10meg for $50, maybe an intro rate. Verizon fibre only starts at $60 now for 15/5. So $10 more for 1GBS? FAIL
3. This totally ignores caps. The cablecos are busy putting on caps low enough so you can't ditch the cable. Add in the cap effect and you are not even close. FAIL
4. GOOG 3 play is on par with other cable packages so lets talk about that. Google hardware is VASTLY superior, throw in a terabyte in the cloud to backup your PC's or keep all your data, and a mondo DVR w/ 2 TB. I pay $10/month for backup. Add in caps and I'm dead. FAIL.
5. Google CS -> Ok, and companies like Frontier, TWC, and Comcast are known for their stellar customer service.
6. TWC JUST mentioned in their latest earnings how successful they have been moving customers to higher tiers and gave numbers. I guess reading 10-Q is out of the question.
This is all BS because at the end of the day if google went into midmarkets that cable and a puny DSL cover they could wipe them out because they have the pockets to weather the inevitable loss leaders the cablecos would offer. With one stroke, google could offer 100/100 for $50 and decimate the competition.
I know they are smart. They deliver the infrastructure/equipment at scale, and then sell it off to a regional provider or equity firm for profit. Rinse and repeat. Google boxes everywhere....
I have FIOS, and will probably dump them when my "price protection" goes because they want to jack my rates 25% for zero additional benefit other than Fran needs a new jet. At that point Goog would be $20 less than my new improved FIOS cost.
Sounds like I would just hate 1Gbps.. Not. Sign me up.