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I don't think this argument is analogous.

With a CATV subscription, you can hook up an essentially unlimited number of TVs. You could in theory watch every channel 24/7 for the same basic rate. The basic costs associated with cable are related to the infrastructure to bring the signal to your house, plus whatever licensing fees for content that are essentially passed through.

With Internet plans, we are charged repetitively for multiple devices, and in essence you are basically discouraged (throttling, excess usage fees) from actually using the service to 100% of the contracted rates over the billing period.

For example, I have on my account 2 iPhones with data plans (mine, wife's), 1 with tethering (mine), and 1 4G USB dongle. I went over the 5G limit on the dongle, but both of the basic data plans on the iPhones were under budget for the month, and I hardly used the tethering. Do you think I'll get a break from Verizon, or any kind of 'net usage' billing for the overage on the 4G dongle?

As others have pointed out in other threads, the mobile Internet space is ripe for disruption. It's not going to come from 2 college drop-outs on a $15,000 Y Combinator budget, but it's going to happen as soon as the economy lights up a little bit and we get some real infrastructure investment rolling.



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