Interesting piece today by equity analyst Scott Berry on a site called seekingalpha.com. Addressing the ongoing Comcast-Bittorrent imbroglio, he argues that ISPs are have promised an all-you-can-eat “broadband salad bar” at a fixed price. But that the model, he points out is breaking down due to increased demand. As he puts it:
…the growth of video is stealing the condiments, and file sharers are sneezing in the salad”.
ISPs have a choice, he says: “Limit how many trips each patron can make for salad. Or charge them for each trip. Comcast has tried the former. My bet is on the latter.”
Not very appetizing, but well put. Once again, it turns out there is no free lunch. Or at least one that hasn’t been sneezed into.
James Gattuso / James Gattuso is a Senior Research Fellow in Regulatory Policy in the Roe Institute for Economic Policy Studies at The Heritage Foundation. Gattuso also leads the Enterprise and Free Markets Initiative at Heritage, with responsiblity for a range of regulatory and market issues. Prior to joining Heritage, he served as Vice President for Policy at the Competitive Enterprise Institute and also as Vice President for Policy Development with Citizens for a Sound Economy (CSE). From 1990 to 1993, he was Deputy Chief of the Office of Plans and Policy at the Federal Communications Commission. From May 1991 to June 1992, he was detailed from the FCC to the office of Vice President Dan Quayle, where he served as Associate Director of the President's Council on Competitiveness. He lives in Alexandria, Virginia with his wife Dana, 8 year-old son, Peter (whom he relies upon to operate his VCR), and his four year-old daughter Lindsey (who does the DVD player.) He has no known hobbies, but is not nearly as boring as he seems.
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