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In reply to the discussion: The Summer That Will Change the Internet Forever [View all]mbperrin
(7,672 posts)Economically, the reason those lines are unused is because the owners do not feel that what they can charge for them is worth it, that is, there's a surplus on the market depressing prices.
The only way to bring more onto the market is when the price rises enough to make it worth the owner's while (in the owner's view).
That means that the action being taken will lead to higher prices to get this additional capacity online - the reason prices are lower now is because it is illegal for companies to differentiate their product - sell you something so-so and offer to upgrade it for more money. This new action will allow just that - what you have now may not be quite as reliable, quite as fast, just not quite as good as it is now, but for JUST A BIT MORE MONEY, you can have the new and bright shiny fast and oh-so-reliable new thing!
That's just straight microeconomics, which I've been teaching for some time now. My training was at Texas A&M during the early 70s, and my advisor was Robert Ekelund, now the department chair at Auburn and author of a couple of dozen books, including the best selling one on money and banking. I'm just trying to establish a bit of credibility here, not trying to beat up on anyone - I'm not a chicken little; this is a game changer.
But as you say, we'll find out, and it won't take more than 6 months, unless I miss my guess.
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