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Problems With Broadband Pricing







Problems With Broadband Pricing

Problems With Broadband Pricing 01/08/2004 08:42 PM

Interesting article at PC Magazine taking on the issue of broadband price gauging. He points out that, unlike with dialup, you generally only have a very few choices for high speed internet access to your home. The providers (usually cable or telephone companies) are doing everything they can to prop up prices - even though, like most digital things, the price should start to drop after a certain point. On top of that, MSN and AOL are trying to get people to pay more money for additional services that really aren't necessary - but many consumers think they need AOL or MSN on top of their cable/DSL connection in order to reach the internet. The writer agrees that, for some people, some of the services offered by AOL or MSN might be useful, but not on top of the always rising price of a high speed internet connection. He's hoping that more competition comes to the broadband world and forces down prices. Some of that seems to be happening already, as DSL providers have been dropping their prices to compete with cable - but it remains to be seen if there's really enough competition in the marketplace.




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Pricing software by means


Pricing software by means 01/09/2004 09:51 PM

Among the many responses to my post on piracy was one which suggested I price my software by country. The general idea is that it's unfair that someone in the United States is charged the same price as someone in, say, Russia, where economic conditions are much harsher.

I have to say that I agree with this sentiment. Russia isn't such a warez capital because it's a dishonest country - it's a country with many skilled people thrown into chaotic times. In order for some of them to maintain these skills, they may need to stay up-to-date with the latest software. But in order to be ethical, they need to shell out a week's pay to register one measly program.

I've actually talked with other shareware authors about this in the past, and a number of them shared my belief that charging a lower price in certain countries would be a better way to do business. Several of us discussed ways to handle this, but in the end it was decided that it would be so hard to manage that it wouldn't be feasible. Verifying the country of origin and weeding out fraud would simply require too much time. There are ways to automate this, of course, but most of us need to rely on third-party ordering services so we don't have much control over the purchasing process - so it would be up to us to handle the extra work.

Most shareware companies are one-person outfits such as my own, and we all find it difficult to balance the many demands of running our businesses. We tend to shy away from anything that's time-consuming simply because we often have no time left at the end of the day. In my case, I'm not going to implement something if it means I have less time to spend with my kids.

One possible solution is to skip charging by country and instead ask each customer to pay what s/he believes the software is worth. A minimum price would be required to make sure the order processing fees are covered, but the final price would be determined by the customer. This sidesteps the need for any verification, and could potentially even increase earnings since I'd get orders from those who previously couldn't afford our software.

On the surface I really like this idea, but the more you think about it the more it seems just as problematic. First there's the fear factor: I rely on software sales to feed my family, so I'm scared to try such a thing. But even if I ignore this (not to mention the issues involving third-party ordering services), there are still a boatload of issues involving corporate sales, etc., that would eat away at my time.

I'd like to hear other thoughts on this so I've enabled comments for this post. However, I'm going to disable them once the comment spammers hit, so if you have your own blog you'd be better off posting there and sending a trackback ping.

BTW, I should add that my posting about this does NOT mean that I'm about to implement such a system, since the ordering services for both TopStyle and FeedDemon are already in place. I'm simply thinking out loud about how such a system might work in case I want to try it with future software.


Pricing and Internet Architecture


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Grok Description matches for Problems With Broadband Pricing
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Intel's Telecom Weapon: WiMax


Intel's Telecom Weapon: WiMax 04/20/2004 01:48 AM
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Alvarion VP says that the company's new platform is ready for WiMax, backed by their promise to upgrade it: A few weeks ago, I wrote about Alvarion's BreezeMax platform and took the company to task for not spelling out precisely what they were promising customers when saying that BreezeMax was their WiMax platform. WiMax hasn't reached a final certification stage yet for equipment that complies to IEEE 802.16a: broadband wireless point-to-point service in the 2 GHz to 11 GHz range for licensed and unlicensed bands. That certification standard might not be ready until 2005; likewise, chips designed for it could be that far ahead, too. I wrote in May that Alvarion should have said We're not selling WiMax equipment, but something we believe we be so close to it that only firmware upgrades are required. I also wrote, Interestingly, while they say futureproofed on one page, they don't mention whether purchasers would receive free hardware upgrades if the WiMax standard as deployed is too different to allow firmware changes to this equipment. Alvarion wanted to clarify what they meant, and I spoke today with Carlton O'Neal, the vice president of marketing for the company. I asked O'Neal if Alvarion is guaranteeing its customers--as a few other firms have apparently done in a limited way--that BreezeMax would be a zero-cost WiMax upgrade when the final standard was available. He said it would. O'Neal said that the company had built the platform to allow software upgrades, firmware upgrades, and hardware upgrades. They believe that with the current state of the WiMax standard they can entirely rely on software and firmware to handle full WiMax certification: "Our hope, our plan, is that it's software and firmware," he said. Their last resort would be hardware, but "we're prepared to do that." Alvarion has been developing the BreezeMax system for three years, and decided that given the state of WiMax and their own readiness, they needed to bring the carrier-grade equipment into the marketplace with a commitment to make this their flagship WiMax platform even though the standard is still under development. What they deploy today works, and some of their customers may choose to stick with it far past when interoperable WiMax hardware and their own upgrades are available. Alvarion will eventually rely on chips built by Intel to power their WiMax gear, and Intel's circuits aren't due until 2005 at this point. But...

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AT&T to Test WiMax High-Speed Wireless
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AT&T Corp. said on Monday it would test a much-hyped high-speed wireless technology later this year to see if it can be used to replace traditional data lines to businesses.

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WiMAX 2005 – B2B Conferences, Visiongain


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Attend visiongain’s Telecommunication conference, “WiMAX 2005 – capabilities, costs, time scales, standards and alternative solutions”. This two-day conference will provide a platform for over 20 representatives from the WiMAX Forum and the mobile industry to discuss the latest developments of WiMAX before the standards are confirmed. [PRWEB Feb 6, 2005]

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Pre-WiMax at 100 mph


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The Brighton Express uses pre-WiMax gear to achieve 60 miles of coverage at 100 mph: Peter Judge reports from the London-to-Brighton line that although coverage is yet contiguous--that's still to come--the service offers seamless performance across each base station zone by relying Wi-Fi in the carriages to WiMax base stations along the route. T-Mobile is involved in this unwiring--which was carried out by Nomad Digital--and is offering the service at no charge while they tune the system. The estimate is that the 37 802.11d-based Redline devices will need to be increased to 60, or a density of about one per mile, to provide complete coverage. The limit on speed right now is the ADSL backhaul of 2 Mbps per base station. The service switches to GPRS when out of range of WiMax bonding three GPRS devices. Only one train out of 15 is equipped so far. T-Mobile will charge £5 per hour or £13 per day for service starting in June....

WiMax


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Wireless Internet access about to go extra 5 miles: We had WiMax-like service here in Sioux Falls as a test market for Monet Mobile. You could surf the Web from a laptop in the back seat of your car driving down the interstate.

Sadly, it looks like Monet was a bit ahead of their time. If they had only made it one more year, they'd have hit the coming WiMax craze.

WiMax is essentially high-powered Wi-Fi, the kind of wireless Internet now common in coffee shops. Wi-Fi's range is much shorter, usually enough to cover only one or two buildings.

[...] Intel is working on a future chip that will go into laptops allowing them to hop onto a WiMax network anywhere there's a signal. WiMax may also incorporate Internet phone-calling technology, turning it into a land-line and cellular-like phone service.

And here's a benefit we've talked about before: less stuff.

[...] there's a good chance WiMax will be a hit, especially because it saves carriers the trouble of laying cable.

A tsunami can't break a WiMax connection, provide the sending and receiving points are intact, right?


WiMax: Where and When


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Parks Associates senior analyst Michael Cai's recent report on fixed broadband wireless technology may offer a more realistic view of the future than that painted by some vendors: He studied developed and developing countries around the globe and while he found that each region is on a slightly different path, he doesn't expect to see volume commercial deployments of WiMax until 2006. Those deployments will be mainly in Europe and Asia. That timeframe is slightly behind the second half of 2005 timeframe that the WiMax Forum and some vendors are hoping for. While the standardization process is on schedule, the processes for certification and interoperability are likely to slow down progress. "Who knows where conflicts emerge as they go down the process," Cai said. Even if commercial products come out in the second half of 2005 on schedule, carriers will likely want to test products for three to six months before rolling out a commercial network, he said. Cai doesn't expect large scale demand for WiMax networks in the United States until 2008 or 2009, though he cautions that there are so many uncertainties here that it's difficult to predict. The deployment of WiMax here may depend on changes the FCC may make to its spectrum policy for the 2.5 Ghz bands. But in the meantime, Cai expects existing wireless ISPs to migrate to WiMax using the unlicensed bands. "All they care about is cost," he said. Such operators don't have the resources to test equipment or support trials so they're interested in standards-based products that essentially guarantee good performance. Cai also has some interesting theories on which areas of the world will have the most WiMax users in the near future. While many observers suggest that the developing nations that don't yet have strong telecom infrastructure will make up the largest markets for WiMax, Cai says that developed markets will at least initially account for the highest number of subscribers. "Even if [WiMax reaches] 20 percent of the underserved market in the U.S., that's way larger than the total market in a lot of developing markets," he said. He believes that over the next few years, most of the developing countries will continue to lack demand, lack PC penetration, and lack the disposable income to support WiMax. "At least until 2009, we'll probably have more WiMax subscribers in the underserved markets in the developed countries compared to emerging markets...

TI Doubts WiMax


TI Doubts WiMax 09/21/2004 06:29 PM
TI, which is not heavily into WiMax like its competitor Intel, says WiMax won't be very effective at bringing broadband to the home: It's true that it's far from certain that WiMax will be anywhere near the success that Intel promises, but most of the reasons TI gives here are pretty weak. Because China hasn't jumped on the bandwagon and because broadband wireless standards have failed in the past doesn't prove that WiMax will fail. If WiMax products have a lower price tag and are more robust than previous attempts at broadband wireless, the technology has a chance of success. WiMax can be far easier to deploy than most wireline technologies and appears to offer a good alternative to wireline especially in developing regions of the world. But there are plenty of reasons that WiMax could fail, which aren't mentioned by the TI executive. In the United States only a few spectrum holders own the licenses that would be ideal for a WiMax deployment and it's not clear that they're interested in the technology. One of those companies, Nextel, has expressed interest in using other proprietary technologies in the spectrum. Other large operators that don't own such prime spectrum are unlikely to want to execute a major deployment in unlicensed frequencies. The TI executive suggests that a portable or mobile version of WiMax might have a better chance of success. While future iterations of WiMax may sound more promising than the initial fixed version, it's very difficult to know today what the market will look like by the time a mobile or portable solution becomes available. By then, other technologies may have leapfrogged WiMax. It's also not clear that WiMax will indeed result in low-cost equipment for operators. Some wireless ISPs have said that vendors they've spoken to have said that the first couple generations of their base stations won't be interoperable with clients from any vendor. That lack of interoperability may not be very attractive for many operators and may prohibit prices from dropping. Ultimately, there are plenty of forces working against WiMax but much of what the TI executive says here sounds to me like sour grapes....

Then There's UWB, WiMax, wOzNet


Then There's UWB, WiMax, wOzNet 02/19/2004 08:41 AM
Business Week Feb 19 2004 1:27PM GMT

WiMax From WalMart?


WiMax From WalMart? 08/10/2004 03:53 AM
Over at the Institute for the Future, they're wondering if WalMart might end up getting into the broadband business by hooking up WiMax base stations (once such equipment is actually available) on all their stores, covering much of the US in broadband. It's an interesting theory, and gets the attention of those who think that telecoms are a dying breed. Of course, it's really not that easy. Over at TheFeature, I've written up a longer piece looking at some of the challenges a company like WalMart might face in offering broadband services. However, it's certainly not impossible to count them out. After all, who thought Starbucks would be in the internet access business in the first place? If you take that to a larger scale, perhaps Walmart could get into the WiMax business as well. A more interesting question, however, may be how the world is going to look when there are plenty of "virtual" network operators, where one company offers up their brand for others to put on a network. Virgin has built up quite a set of businesses doing this, and in the mobile space, MVNOs are a hot topic. However, could companies do this for just about any kind of telecom/broadband offering... and more to the point, is there a real benefit in doing so? It's cool for a big brand name company to think they can suddenly get into a technology services business just by licensing out their brand name, but won't there be some risks (a la AT&T' s annoyance with AT&T Wireless' trampling of the brand) and some questions about just why you want to buy your internet service from Coca-Cola?

Report: WiMax won't take off soon


Report: WiMax won't take off soon 07/09/2004 03:04 PM
Much-hyped broadband wireless technology won't break big for another five years, analysts say.

Intel's WiMax on way


Intel's WiMax on way 09/08/2004 10:27 AM
Deccan Herald Sep 8 2004 1:41PM GMT

Sprint to Get Behind WiMax


Sprint to Get Behind WiMax 02/06/2005 01:11 AM
Technocrat.net Feb 6 2005 2:25AM GMT

Will WiMax Replace DSL?


Will WiMax Replace DSL? 09/21/2004 09:08 PM
Techzonez Sep 22 2004 1:06AM GMT

4g To Be Combination Of 3g And Wimax


4g To Be Combination Of 3g And Wimax 06/14/2004 06:00 PM
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LG looks at WiMax--and U.S. culture


LG looks at WiMax--and U.S. culture 03/14/2005 04:30 PM
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WiMax in the wings


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WiMax take up could eclipse Wi-Fi


WiMax take up could eclipse Wi-Fi 09/24/2004 12:05 PM
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WiMax Gets Real


WiMax Gets Real 06/21/2004 12:05 PM
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Intel Has Its Eye on WiMax. But Why?


Intel Has Its Eye on WiMax. But Why? 07/13/2004 05:18 PM
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WiMax: Coming your way soon?


WiMax: Coming your way soon? 08/17/2004 10:55 PM

WiMAX, 3G Could Collide


WiMAX, 3G Could Collide 03/22/2005 07:29 PM
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Norson Telecom Consulting Today
Released: "Mainland Telecom Investment &
Vendor Performance, 2004-2005" Norson
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Norson Telecom Consulting Today
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Problems With Broadband Pricing

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Ipod Porn on the
Rise

Brief Abstract of
Wikipedia's
Mesothelioma Cancer
page

Get first aid
instructions in your
cell phone

IE is crap
JSPWiki gains
podcasting support

Aggressive Emails
From Colleagues
Dangerous To Your
Health

Treasury Department
Breaks Privacy
Promise Because It's
Too Inconvenient

HP's iPod Killer To
Be... The iPod

Music Download Store
Experimenting With
Demand-Based Pricing

The Storm Warning
That Wasn't

Nearly 100% Of Spam
Does Not Comply With
CAN SPAM

Morgan Freeman To
Release Next Film
Online

A Few Gentle Words
from the Club for
Growth...

Symbian/ Linux,
DoCoMo Orange Seed
Smart Phones

3G CDMA2000 1X
Network Expansion

Improved 3G Wireless
Application CPUs

Wap usage continues
to soar

New 3G Mobile News
Consortium

WAP makes resurgence
Verizon Wireless
announces nationwide
3G network

Dspfactory Selected
By Plantronics For
Its Next-Generation
Digital Bluetooth
Headset

Mobile phones, cars
and usability key at
Bluetooth Americas

Fujitsu 3G Phones
for EU in 2005

Symbian/Linux,
DoCoMo Orange Seed
Smart Phones

Wireless internet on
Emirates flights

No lines of markup
were harmed during
this process

Mars Photos Tempt
Scientists With Vast
Areas for
Exploration

New Clues Are
Detected About
Planets of Other
Stars

New-Found Old
Galaxies Upsetting
Astronomers'
Long-Held Theories
on the Big Bang

Scientists Predict
Widespread
Extinction by Global
Warming

Content is King: All
Hail RSS

blogroll visualized
Yahoo! News - Tech
Firms Defend Moving
Jobs Overseas

Hello world
XPN
Common Text
Transformation
Library

DirectConnect's Big
Brother

Prophecy MUD
WASTE (modWASTE)
Afrikaans
Localization (L10N)

whois
Actor Morgan Freeman
embraces Net

PeopleSoft wants to
interview Oracle
execs

Internet paedophile
jailed

Panasonic Vision:
Networked
Electronics
Everywhere

Verizon to spend $1B
on wireless upgrade

Microsoft places its
bets

Dell expanding its
imaging business

IBM memo advocates
move to Linux on
internal PCs

Hacker pleads guilty
to entering N.Y.
Times computers

Microsoft Announces
Revamped MSN Service

Gates Touts More
'Seamless Computing'

A hacker's
introduction to OS X

Bush Proposes Legal
Status for Immigrant
Labor
(washingtonpost.com)

Gibbs Is Back With
Redskins
(washingtonpost.com)

what is grok?