Originally Posted by bplewis24
You got that right.
Nobody should for one second fool themselves into thinking the companies are taking anything close to a loss in profits because of these "internet hoards." It has just diminished their profit margin by whatever margin, no matter how slight, and they're looking for a way to possibly increase them again. The only way it backfires is if customers leave for another provider, which is why it's being rolled out in a "test" market first.
"diminished profit margins" = "loss in profits". It's means the same thing.
Let me point out something here. According to the article, TW estimates the heaviest 5% of users take 50% of the bandwidth (and from what other ISPs have said, this is a conservative estimate). Now, understand this clearly: 95% of users are currently being given only 50% of the original total capacity of the network.
Now, imagine for a moment if they got rid of that uber heavy 5% (which a hard-cap would likely do). The other 95% of users would now have access to the entire
original capacity, and can download twice as much as they did before; so 6mb lines could be turned into 12mb lines, and so on up.
Remember now, bandwidth is a use-it-or-lose it proposition. The cable companies, no matter how greedy they are, can't stuff it in a van or bottle it up for later. The excess capacity has
to be redistributed, and all that freed capacity would be going into every mom-and-pop casual user/customer they have.
That increase in speed in-and-of-itself is going to give a boon to IPTV and download-distribution models. The trade-off would be how high or low the download cap is, something which has yet to be seen. If it's overly aggressive (say 40GB or less for basic), then yea, bye bye iptv. If it's high enough, at say 100GB for basic, then the cap might be a non-issue (for most people).
If the cap doesn't affect most users, but still gives them an increase in speed, then it becomes the ideal solution. There is potential for this is make life a hell of alot better for current TW customers, and that shouldn't be overlooked.