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Time Warner Cable is lying through it's teeth about the reasoning for imposing caps on their internet

Phokus

Phokus

Lifer
http://www.dslreports.com/forum/r22213854-

The bandwidth crisis Hobbs is talking about is their own problem because they won't upgrade to DOCSIS 3. TW could upgrade to DOCSIS 3 at the rock bottom price of $20-50 per subscriber, that cost would be immediately recouped by the profit they make off their RR service. The real problem is that TW doesn't want to spend a dime of the $4 billion in profit they are already making each year on RR customers... they want to create a new profit stream that will support their upgrades to DOCSIS 3, so it doesn't hurt their current financial profit margins. For a little more on that, continue reading...

So I looked at TW's 10-K form and noticed something interesting... their cost to provide broadband service has decreased about 11% since the year before. Yes, you heard that right.

In 2007, TW made $3,730 Million, on high speed data alone, and then had to turn around and spend $164 Million to support the cost of the network. 2007 total profit on high speed data: $3.566 Billion

In 2008, TW made $4,159 Million, on high speed data alone, and then had to turn around and spend $146 Million to support the cost of the network. 2008 total profit on high speed data: $4.013 Billion

It cost TW 11% less money in 2008, to keep their network running, than in 2007. Their cost to deliver network connectivity to each user has dropped as they highlight here:

"High-speed data costs consist of the direct costs associated with the delivery of high-speed data services, including network connectivity costs. High-speed data costs decreased primarily due to a decrease in per-subscriber connectivity costs, partially offset by growth in subscribers and usage per subscriber."

TW had 7,620 Million customers in 2007, and now 8,444 Million customers in 2008. An 11% growth with an 11% decrease in network and support operating expenses. Not too shabby TW! Anyone with half a brain can easily tell from those numbers that TW is not only doing well, but they are doing better than ever.

So... tell me TW, how is flat rate (unmetered) service no longer financially viable if you're making more profit now than ever before, as your cost to provide service continues to decline?

TW can't deliver hard numbers because there aren't any that support their BS plan to meter and bill overages. Simple as that.

Think of all those users out there that have been downloading files and streaming movies off netflix in 2008 and using "more bandwidth than ever before" according to TW. Yet all the while TW's bottom line cost to support the network has dropped 11% while profits are up 11%. They should be overjoyed, not crying poverty. Why not use some of that healthy profit and actually upgrade the network for your subscribers needs, instead of forcing us to take 10 steps back and live in the virtual stone age.

Even bankrupt Charter has an upgrade plan in place for DOCSIS 3... and they aren't in anywhere near the financial standing that TW is.
Click to expand...

Someone from the SA forums got screen caps of their 10-K's

http://kalleboo.mirror.wafflei...50d6e632464920016f.jpg

http://kalleboo.mirror.wafflei...3d187ee53299ff4dcb.jpg

edit: in case the above 2 links don't work:

http://img509.imageshack.us/im...354c1123622130e645.jpg

http://img401.imageshack.us/im...3b56176464abb5f353.jpg


So they made more money on their cable internet yet it costed 11% less than the previous year to deliver it.

HMMMM, i'm almost certain that the #1 reason for the caps is to protect themselves from Hulu/Netflix and the profit gouging angle is secondary.

DEATH TO TWC!
 
Thats not true, the poor cable internet providers need our help/money and all you greedy people using torrents are the problem.

/spidy
 
Originally posted by: DisgruntledVirus
Originally posted by: Marlin1975
Thats not true, the poor cable internet providers need our help/money and all you greedy people using torrents are the problem.

/spidy
Click to expand...

*waits for Spidey to come into this thread*
Click to expand...

i wonder if his sense is tingling?

sucks this is the case, but for those where time warner is a monopoly, what are they supposed to do?
 
This whole Time Warner fiasco is getting to be big enough for me to switch to DSL when bandwidth caps come to my area. I currently pay $60/month for 10/1 service, a little expensive, but I like the speed. It would suck to go to a crappy DSL speed of 3/256 or whatever is offered in my area, but I'll do it, and I'll make sure to tell Time Warner that I won't be taken advantage of.
 
Originally posted by: Phokus
http://www.dslreports.com/forum/r22213854-

The bandwidth crisis Hobbs is talking about is their own problem because they won't upgrade to DOCSIS 3. TW could upgrade to DOCSIS 3 at the rock bottom price of $20-50 per subscriber, that cost would be immediately recouped by the profit they make off their RR service. The real problem is that TW doesn't want to spend a dime of the $4 billion in profit they are already making each year on RR customers... they want to create a new profit stream that will support their upgrades to DOCSIS 3, so it doesn't hurt their current financial profit margins. For a little more on that, continue reading...

So I looked at TW's 10-K form and noticed something interesting... their cost to provide broadband service has decreased about 11% since the year before. Yes, you heard that right.

In 2007, TW made $3,730 Million, on high speed data alone, and then had to turn around and spend $164 Million to support the cost of the network. 2007 total profit on high speed data: $3.566 Billion

In 2008, TW made $4,159 Million, on high speed data alone, and then had to turn around and spend $146 Million to support the cost of the network. 2008 total profit on high speed data: $4.013 Billion

It cost TW 11% less money in 2008, to keep their network running, than in 2007. Their cost to deliver network connectivity to each user has dropped as they highlight here:

"High-speed data costs consist of the direct costs associated with the delivery of high-speed data services, including network connectivity costs. High-speed data costs decreased primarily due to a decrease in per-subscriber connectivity costs, partially offset by growth in subscribers and usage per subscriber."

TW had 7,620 Million customers in 2007, and now 8,444 Million customers in 2008. An 11% growth with an 11% decrease in network and support operating expenses. Not too shabby TW! Anyone with half a brain can easily tell from those numbers that TW is not only doing well, but they are doing better than ever.

So... tell me TW, how is flat rate (unmetered) service no longer financially viable if you're making more profit now than ever before, as your cost to provide service continues to decline?

TW can't deliver hard numbers because there aren't any that support their BS plan to meter and bill overages. Simple as that.

Think of all those users out there that have been downloading files and streaming movies off netflix in 2008 and using "more bandwidth than ever before" according to TW. Yet all the while TW's bottom line cost to support the network has dropped 11% while profits are up 11%. They should be overjoyed, not crying poverty. Why not use some of that healthy profit and actually upgrade the network for your subscribers needs, instead of forcing us to take 10 steps back and live in the virtual stone age.

Even bankrupt Charter has an upgrade plan in place for DOCSIS 3... and they aren't in anywhere near the financial standing that TW is.
Click to expand...

Someone from the SA forums got screen caps of their 10-K's

http://kalleboo.mirror.wafflei...50d6e632464920016f.jpg

http://kalleboo.mirror.wafflei...3d187ee53299ff4dcb.jpg

So they made more money on their cable internet yet it costed 11% less than the previous year to deliver it.

HMMMM, i'm almost certain that the #1 reason for the caps is to protect themselves from Hulu/Netflix and the profit gouging angle is secondary.

DEATH TO TWC!
Click to expand...


8.4 billion customers? Or am I reading that wrong.
 
They're publicly traded. If they don't show increasing profits each year, shareholders (the real customer, not the dude sitting at home jerkin to streaming porn) get upset. People lose jobs, don't get big ass bonuses, or worse -the shareholders pull out. The switch from privately traded to publicly traded makes bigwigs rich while turning the company into a soulless corporate money machine.
 
Bunch of internet armchair CFOs who don't know anything about how business works. Please tell me how many billions of dollars they spent in capital expenditures the past decade to obtain this profitability number.

TW had 7,620 Million customers in 2007, and now 8,444 Million customers in 2008.
Click to expand...

Wow, TW has 8.4 billion customers?
 
Originally posted by: JS80
Bunch of internet armchair CFOs who don't know anything about how business works. Please tell me how many billions of dollars they spent in capital expenditures the past decade to obtain this profitability number.

TW had 7,620 Million customers in 2007, and now 8,444 Million customers in 2008.
Click to expand...

Wow, TW has 8.4 billion customers?
Click to expand...

Please show me where TW is giving that for a reason for Caps and higher rates?

Everythign i see is they complianing that users are using to much and they are not making money.


Oh and here is what wiki had...

"Statistics
As of December 31, 2006, there were 13.4 million basic cable subscribers, 7.3 million Digital cable subscribers, 7.0 million Road Runner residential subscribers, 2.5 million DVR subscribers, and 1.9 million Digital Phone subscribers."

Seems to be old numbers but maybe someone else can find newwer ones.
 
Millions/Billions, whatever, the dslreport poster probably got confused, what matters is that TWC's revenues increased 12% from the prior year while their costs decreased 11%. So their argument that 'boo hoo, all these jerks with their torrents and hulu are eating into our profits thus we need caps' is full of sh*t
 
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