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Cable/Video

10 Meg Is Here!

6:00 AM -- I just boosted my bandwidth again, this time to 10 Mbit/s. Charter Communications Inc. , my service provider, charges me a little more because I don't take their TV service along with my bandwidth subscription. But, interestingly, they aren't exactly advertising the bump up to 10 Meg in my neighborhood, since it's not widely available.

But here's an interesting thing, I think: A look back at my bandwidth prices paid over a three-year period shows that my top download speed is up considerably, but the price per day is down about 3.8 percent.

Table 1: What I Get, What I Pay for Charter Bandwidth
Date Downstream Upstream Price Per Month (After Tax) Price Per Day Price Per Megabit (Per Month)
Sep-03 1.5 Mbit/s 128 kbit/s $62.91 $2.10 $41.94
Mar-04 2 Mbit/s 128 kbit/s $41.23 $1.37 $20.61
Jul-04 3 Mbit/s 256 kbit/s $41.23 $1.37 $13.74
Jan-05 3 Mbit/s 256 kbit/s $52.05 $1.74 $17.35
Mar-06 3 Mbit/s 256 kbit/s $32.46 $1.08 $10.82
Sep-06 10 Mbit/s 1 Mbit/s $60.47 $2.02 $6.04
Mar-07* 10 Mbit/s 1 Mbit/s $86.38 $2.88 $8.63
* Projected price based on the end of a 6-month promotion




The price per megabit of available bandwidth has fallen by about 80 percent in just three years. I'm not complaining -- but how do service providers even hope to make money on bandwidth when prices are falling that fast?

— Phil Harvey, Cheap Bits Editor, Light Reading

optiplayer 12/5/2012 | 3:39:33 AM
re: 10 Meg Is Here! Charles,

Thanks for the post. Can you point to a source?

Also, if breakeven was in sight (I am highly skeptical) why couldn't they raise a bit more money or why didn't the founders, who must have made a boat-load on Qtera, fund it?
Charles_C 12/5/2012 | 3:39:35 AM
re: 10 Meg Is Here! On Friday Sept.8th JDSU acquired the assets of Optovia Corp. through a bidding process put forth by a bank looking to collect on it's debt. Optovia had a promising future with order backlog and break even in sight but they ran out of runway. Supposedly JDSU paid ~$2.5 - 3 million but it is unclear what they intend to do with the assets of this company.
^Eagle^ 12/5/2012 | 3:39:36 AM
re: 10 Meg Is Here! I agree. Optovia was very successful overall.

Good solid product, good customer traction. MCI as a customer. ADVA OEM partnership, etc.

What happened to them. How about some investigative journalism here? I know phil's personal bandwidth is an interesting talk for a coffee break, but I am less interested in his anecdotal experiences than I am in real news about the optical communications business. I emphasize NEWS. not simple regurgitation of press releases from the marketing departments of companies.

Please give us some real news reporting and analysis.

Also missed was Ezconn merger with Gtran. (they were sharing booth at ECOC and were quite open about there being a merger.

sailboat
busted 12/5/2012 | 3:39:36 AM
re: 10 Meg Is Here! hut skipper, hut hopper, what difference does it make.

Optovia was an incredibly successful optical amplifier start-up story (please skip the comments like; "if they were so successful, then why did they disappear"). Now they have disappeared; overnight!

Where are the journalists at lightreading?
Lite Rock 12/5/2012 | 3:39:37 AM
re: 10 Meg Is Here! You sure they didn't call it the "hut hopper"?
optiplayer 12/5/2012 | 3:39:37 AM
re: 10 Meg Is Here! Well it looks like Optovia's web site is gone and there was no PR from either Optovia or JDSU so was this an asset sale/liquidation?

thenight62 12/5/2012 | 3:39:38 AM
re: 10 Meg Is Here! hybrid raman amps... hut skipper.
DCITDave 12/5/2012 | 3:39:40 AM
re: 10 Meg Is Here! Optovia... what do they do again?

ph
busted 12/5/2012 | 3:39:41 AM
re: 10 Meg Is Here! proof!? That is why we need journalists; isn't it?
Lite Rock 12/5/2012 | 3:39:41 AM
re: 10 Meg Is Here! Yo? That is so 80's...

Why would you bust Phil's hump about this when nobody covered this acquisition. It is not even listed on the JDSU web site.

How do we know they really acquired Optovia?

Can you provide some evidence?

I mean, I am happy if they did. The folks that moved from Boca needed to get some kind of reward for moving to MA.

Cheers
stephencooke 12/5/2012 | 3:39:42 AM
re: 10 Meg Is Here! Phil,

There are at least a couple of points to consider here:

1) What is your actual network bandwidth (this generally has to do with the stat-muxing ratio in your 'hood)

2) It is assumed that not everyone will call customer service and will cough up the extra $23.47/month above what you are paying now. The point is that, as long as it didn't cost Charter that much to provide the bandwidth increase that you see, they are still gaining revenue if not margin as well. This is the same rationale behind mail-in rebates.

Steve.
thenight62 12/5/2012 | 3:39:45 AM
re: 10 Meg Is Here! Yo Philter.

How'd you miss Optovia getting taken out by JDSU? Ain't this an optical news site? :0

DCITDave 12/5/2012 | 3:39:46 AM
re: 10 Meg Is Here! I think you're right. As soon as someone rolls into my 'hood with FTTx, I'll be 10 Meg goes down to $49 or less.

As an aside, I'll probably never pay the $70+ listed on the chart for my service.

The customer service people at Charter encourage customers to call after their price promotion ends so they can glom onto another promotion before the rate goes up.

Why not just be a good company and charge what's fair?

ph
trzwuip 12/5/2012 | 3:39:49 AM
re: 10 Meg Is Here! The answer is that prices for cable internet have always been too high, but now cable has to compete with fiber to the home services.
DCITDave 12/5/2012 | 3:13:07 PM
re: 10 Meg Is Here! The 10 Meg followup is here:
http://www.lightreading.com/do...
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