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Sin_Vraal · 10-04-2008, 01:29 PM

Quote:

Originally Posted by Quagmire

To be honest, my first thought when seeing the lawsuit article yesterday was that they went down that road to prop up a 'below cost' business model.

So would you say that this scareware fiasco is due to greed rather than necessity?

I'm just looking for honest opinion here and wondering if I was the only one thinking that...

Yea I think Greed definately plays into it. Its not like he was the only person who can sell at 4/mbit, he was merely one of the few people willing to sell at 4/mbit.

When Cogent first came out, I dropped my prices from 450/mbit to 60/mbit. I went from pushing 300mbps making 150/mbit to pushing 3gbps making 50/mbit. Meanwhile everyone else spouted doomsday prophesies about cogent etc till they jumped on the bandwagon.

AR similarly took advantage of the recent changes in the market and kicked ass.

I'm sure he was supplementing AR with scareware dollars to some degree... But then again most of the hosts here have something similar going on (not illegal operations part lol) like side business , someone to fund them, extremely large customer paying above market rate, etc. It helped their business along , but it didnt make it.