Originally posted by: Kadarin
Please present some evidence to support a technical need for usage caps. From what I'm hearing, it's simply both a cash grab by Time Warner, and a mechanism to protect their cable (television) business model from competition from other online sources like Hulu and Netflix.
Real easy. Water, power all take supporting infrastructure to finally deliver it to you home, it really is much easier if you think of it as a series of tubes progressively getting bigger as you move from you house, to a modem, onto other bigger and bigger lines. Those bigger lines cost a shit ton of money in hardware, capacity and upgrade - a HUGE amount of money.
Now imagine if your house and your neighborhood doubled how much water/power it used every two years and what it would take to support that on up the chain of tubes. Imagine if every house, every neighborhood you served doubled it's usage every 2 years...just imagine that because that's reality. There has to be a way to control that (or fund the upgrades necessary, across the board, everywhere) otherwise you'd be forklift upgrading everything every 3 year and that gear hasn't fully depreciated yet. Meaning even if you replaced it you're still paying for the gear that was replaced. Now you're paying twice because the gear is still on the books.