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To: Ray Jensen who wrote (1599)7/19/1998 7:33:00 PM
From: Frank A. Coluccio  Read Replies (1) | Respond to of 12823
 
Ray,

>>even more interesting is that for a cable operator, a monthly cable modem bill of $40 to $50 is more than they get from most of their video customers<<

Apparently, New Brunswick Telephone agrees with your point which is echoed in a recent CED Magazine article:

[[From an article titled "Who's afraid of the big bad telcos" at:
cedmagazine.com ; Thanks, Bernard ;-) ]]

"" "So where does distributing good, old-fashioned cable service come in? Essentially, NBTel wants to be able to sell this old technology, in order to hawk its new. "It's certainly not a big part of our revenue stream; it's a way to get the network into the home," says Mosher. "And it's a service customers want. They want choice in that, but (still) we wouldn't be doing this for cable television. There's no money in New Brunswick for a phone company being in the cable business." ""

I suppose that is due to sparse demographics? Assuming their logic is correct, where is the cross over point, do you suppose, where profitability is shared equally between cable TV and enhanced, Internet-based services? Interesting.

Regards, Frank C.