BBC flat rate story.

Dangger

Jane Wakefield of the BBC has written a follow up to her earlier flat rate story on the BBC news technolgy site.BBC news technolgy site

Mr Long is confident that the newly available unmetered services will kick-start fast net access as well.

"It will be a catalyst for operators to deliver broadband," he said.

But Ian Fogg, an analyst at Jupiter Research is not so sure.

"Normally those countries without a strong cheap unmetered product adopt broadband much quicker but in Ireland consumers simply haven't been offered it," he said.

With the new, cheaper dial-up services coming online, the incentive to upgrade to broadband might be removed.

"The really interesting question is whether the introduction of unmetered in Ireland will actually slow down the adoption of broadband even more?" he asked.

flav0rflav

I've seen this scenario mentioned in at least one other report on broadband take-up across the world.

I'll try retrace my steps, and see where I last saw it.

MDR

Mr Ian Fogg,

I regret to has never been at the coal face, and frankily is rehashing the type of ill conceived garbage I would expect form Eircom.

His is ignoring basic ecomonic rules (which Ray has been reading up on lately), there will never be a demand for something that has never been supplied.

Lets say a pizza is €15, a person who has never had pizza before, would say screw it, I amn't paying €15 for something I may not like. However lets say that same person is offered a slice of pizza at €2, he will be much more willing to shell out €2 to try pizza, then he discovers he likes pizza and is more willing later to shell out €15 for a whole pizza.

Its all about building demand ....

Trebor

but surly we knew this was going to happen?

people will try the flat-rate internet connection and then six months down the road when they become reliant on using the internet they will then want to upgrade to a faster connection.

hopfully by then the prices of broadband will have come down and they will realise that they can afford to upgrade

SkepticOne

Originally posted by Trebor
but surly we knew this was going to happen?

people will try the flat-rate internet connection and then six months down the road when they become reliant on using the internet they will then want to upgrade to a faster connection.

hopfully by then the prices of broadband will have come down and they will realise that they can afford to upgrade

Yes, I think Jupiter research are failing to take into account how ground down things have been here over the years. They may be thinking of britain, where flat rate is literally dirt cheap and has been for years with true unmetered off-peak access at around 10 euros. But in Ireland the products are in the 25 to 30 range, are not true unmetered. A lot of the people signing up will be in the market for broadband anyway and those that aren't won't have much of a jump to make.

Broadband has only been available to any extent for over a year. Most of that time it has only been available in a few exchanges mainly in Dublin with a high rate of line failures and a load stupid criteria. Not to mention the laughable price. So the message remains:

1. Make it available.
2. Get the bleeding price down.
3. Advertise properly.

flav0rflav

I started eating pizza after a friend recommended it.

I started eating pizza when I saw a friend eating it.

I started eating pizza when a friend gave me a taste.

I started eating pizza when I was abroad and saw them eating it.

?

MDR

But when pizza is so expensive very few people have tried it ...
therefore its difficult to spread the word ....

SkepticOne

Yeah. It's like you go into your local pizzahut and ask for pizza. At first they don't know what you are talking about and keep offering you garlic bread and stuff that you don't want. After a some years they bring out a very basic pizza and charge 107 euros (incl vat) a slice for it and only make it available in certain outlets. Also, you have to fulfil various condititions, like you need to live a certain distance from the restaraunt and the roads have to be of a certain quality.

Then they go to the government asking for money talking about the need for "stimulating demand".

MDR

Then they go to the government asking for money talking about the need for "stimulating demand".

thats the funniest thing I have heard in ages

LFCFan

Originally posted by MDR
Mr Ian Fogg,

I regret to has never been at the coal face, and frankily is rehashing the type of ill conceived garbage I would expect form Eircom.

His is ignoring basic ecomonic rules (which Ray has been reading up on lately), there will never be a demand for something that has never been supplied.

Lets say a pizza is €15, a person who has never had pizza before, would say screw it, I amn't paying €15 for something I may not like. However lets say that same person is offered a slice of pizza at €2, he will be much more willing to shell out €2 to try pizza, then he discovers he likes pizza and is more willing later to shell out €15 for a whole pizza.

Its all about building demand ....

Exactly! There's also the fact that €ircom will no longer be making a fortune from Dial up so they may see more incentive to upgrade exchanges for ADSL and jump in there before NTL and the wireless companies grab the headlines. They may also see the need to reduce prices and make it more attractive. Of course we are talking about Ireland and Eircom here so the normal rules of business may not apply here.

ps. I'm ordering a full pizza tonight because I know I can have a slice now and have more when I want it.

vishal

I agree that was very funny. I am in the mood for pizza now