stil at stilgherrian.com
Mon Mar 16 07:52:01 EST 2009
On 15/03/2009, at 8:50 PM, Kim Holburn wrote:
> BTW I don't understand why I can't get fibre to my home.
Because it is not a product being offered.
The business decision of whether to introduce a product is based on
many factors, not just whether the product can be provided
technically. And not just whether that product, by itself, can be
provided at a good price even when all the cost are taken into account
-- such as designing and planning the business processes, recruiting
and training the technical and customer support and billing teams and
working out how to market the product.
There's also, presumably, an analysis of how the new product would
affect the profitability of existing products, now and in the long
term. Providing, hypothetically, a Gigabit fibre link for $100 a month
would kill the price for 12 Megabit ADSL. Cheap fibre could well force
down ADSL so much that it's no longer profitable -- even though it
would still have to be provided to customers in areas where the fibre
wasn't available. Think: unions. This would create problems for the
staff of teams whose job was to sell and manage ADSL -- similar to
those faced by the folks at Telstra whose job was to sell poor old
ISDN once ADSL started being available.
Just because it's potentially possible for a business to sell a
product or service, it doesn't mean they "should" or "have to", even
if (some) potential customers think so.
For example, I know how to wash dishes, but I don't offer a
dishwashing service to my clients.
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