Reply #3: Umm, hello? [View All]

[RoyGBiv]

Tando is not in the habit of posting random bits of nothing that he pulls out of the ether and does in fact take some care when commenting on any issue, most especially those having something to do with technology of this sort.

According to employees on DSL Reports, this is in fact the new pricing model.

And this is the way it typically works. One of the worst kept secrets in the industry is that broadband service is mostly profit ... or could be mostly profit except that the companies who offer it have been using the revenue stream to invest in their own infrastructure. Whatever the case, it generates a lot of income. This also leaves a lot of room for manipulation of prices *downward*, which is rare in a service industry. (When is the last time your cable or phone bill went down?) Competition among the companies has become so fierce, that they play with these prices or with their pricing structure for packages, often by adjusting Internet service rates. For example, at Cox, when you got the 3-product bundle, you got a discount depending on the level of service in that bundle. Almost the entire amount of that discount came off the Internet service. The discount's product code is in fact an HSI product code.

When you do an across-the-board price cut, the companies tend to offer it to new customers first, but will certainly give it to already existing customers when they ask. Otherwise, you get a scenario where the customer disconnects, then reconnects later either under another name or, if the company salespeople don't check closely (which they usually don't if they have a quota system placed on them), the same name. And that process costs the company money, so they prefer just to give you the new rate.

Not sure why you'd react to Tando's PSA post in such a manner.