Question: to tier or not to tier? (Data Over Cable).(data service)(Brief Article)
Multichannel News, May, 2002 by Stump, Matt
NEW ORLEANS -- Cable-modem penetration is exceeding expectations, panelists on the Cable & Telecommunications Association for Marketing's National Show opening-session panel agreed. But they differed on whether the cable industry should tier data service -- or sell connections at various bitrates for different price points -- in order to generate higher take rates.
Tiering may indeed make sense in the future, Comcast Corp. executive vice president of sales, marketing and customer service David Watson said at the May 5 session. But it's "premature to go to a lower speed and lower price," he said. "The demand is very strong." Comcast's weekly demand is as strong in markets with penetration rates of 20 percent or greater as in systems where...
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