Skype co-founder to offer free broad band internet

[wilburbear]

Why list this in Economics? Eternal price destruction.

Insane deals are available in the world of E-Commerce. Just bought a professional tripod (for a camera), that you normally couldn't touch for $450. My cost was $83 all-in, with shipping, everything. It's fantastic.

http://www.prnewswire.com/news-rele...-offer-free-broadband-services-135240143.html

 

[Zr1Trader]

I bet Verizon, ATT, cable and dsl companies are excited

 

[nazzdack]

Quote from wilburbear:
----Why list this in Economics?
----Eternal price destruction.
----Insane deals are available....
----normally ~$450, my cost was $83....
----It's fantastic.

Technological "progress" is deflationary. :eek:

 

[achilles28]

How is that economically viable?

 

[Zr1Trader]

They'll make you sit through a 30 second advertisement every 10 min or something similar.

 

[wilburbear]

Quote from achilles28:

How is that economically viable?

Japan had a broadband provider selling internet access at a loss on every sale. He joked that he would make it back on high volume. True story.

Somehow, the margin on these things is declining drastically.

It's better for the individual, and worse for the institutions.

 

[AAAintheBeltway]

I wouldn't hold your breath waiting for this. Lightspeed's proposed wireless service conflicts with GPS frequencies. It is very controversial, and this is no doubt an attempt to put pressure on regulators to approve it.

 

[dandxg]

It is a race to zero from a pricing standpoint. Where it will be made up is in extra bandwidth needed for all of these cloud based apps.