Friday, March 1

Time Warner Cable is telling us that we don't really want super-high-speed internet

Following-up yesterday's telecom post…we have Time Warner Cable's CTO spouting off corporate propaganda that consumers don’t really want the gigabit internet speeds offered by Google Fiber and other high speed providers:
"On Wednesday, at a conference in San Francisco, Esteves downplayed the importance of offering a service to compete with Google, as reported by The Verge. 'We're in the business of delivering what consumers want, and to stay a little ahead of what we think they will want…. We just don’t see the need of delivering that to consumers,' she said, referring to gigabit-speed internet connections.
"Esteves thinks only business customers will need that kind of bandwidth, and she noted that Time Warner already offers gigabit connections for businesses in some markets.
"Google rolled out its gigabit speed fiber optic service in Kansas City earlier this year. But big telcos like Verizon and Time Warner have been slow to match it. In fact, Verizon has frozen expansion of its much slower — and more expensive — fiber optic service, known as FiOS.
"Experts believe that this reluctance has less to do with a lack of customer demand and more to do with protecting high margin broadband businesses. Companies like Time Warner Cable make around a 97 percent profit on existing services, Bernstein Research analyst Craig Moffet told the MIT Technology Review this month. But Verizon is more interested in wireless broadband, on which it can make an “absolute killing,” by charging per gigabyte for usage, broadband industry watcher and DSL Reports editor Karl Bode told Wired earlier this year."
You Don’t Want Super-High-Speed Internet, Says Time Warner Cable (Wired)

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