AUTOHOME, Inc Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : AUTOHOME, Inc

ATHM 24.95

-0.7%

Nov 4 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Ahda who wrote (29811)	12/6/2001 3:09:09 PM
From: GraceZ	Read Replies (1) of 29970

No matter how much you beef up bandwidth, use will expand to fill it. If a small percentage of users are using most of the bandwidth it only makes good business sense to tier the service, you don't steal from the bulk of your customer base to give to the few. The few users who use most of the bandwidth may in fact find that they don't want to do what they are doing if they have to pay for the real cost. They may find that it is more cost effective to drive to the adult video rental instead of downloading all those movies. The reason there is such a price difference between a service that is geared towards residential use and one that is geared towards business use is that business is expected to pay for 100% of their use, while with residential you price it low enough so that you have a large number of users, some of which under use, some of which over use and it balances out over the whole base. If there is a totally disproportional use by one small subset of users this throws the business plan completely off. You have to charge those users a different rate because this allows you to give a higher level of service to the bulk of your customers at the same price.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next