by
dane » Wed Jul 18, 2012 4:22 pm
tbessie wrote:dane wrote:tbessie wrote:My dad lives in France, and he's on Free - next time I'm visiting him, I think I'll check out his FreeBox setup and see those ipv6 addresses myself!
- Tim
Fusion itself is inspired by Free, FYI.
What about it was inspiring?
- Tim
The business model, which is: everything, unlimited, for one price. Sounds like Fusion, doesn't it?
This model has become the dominant model in Europe today, and it makes sense. It costs no more to deliver 20Mbps than 10Mbps over the same copper pair - it's just a setting in the DSLAM. Similarly, voice features and voice usage are marginal costs, and declining, so they should be included as well. Same goes for static IP, web hosting, etc. It's this philosophy that drives the Fusion product road map.
The other end of the business model spectrum is the tiered, "$5 more to go faster" configuration, and with features such as voicemail, caller ID or a static IP all offered as add-on costs. The goal in that model is to drive up average revenue per user per month (ATPU) by segmenting the market, artificially limiting the service. In broadband access, speed limiting or usage caps are the examples, in voice service it's features like voicemail or caller ID, or expensive long distance calling. When these are offered at a high monthly rate, they are not being provided at prices which are in line with their costs today, and they end up supporting a higher ARPU which allows for an apparent low price on the main offering, but no one really pays that rate because most want a feature or two.