Congratulations on your Big Win today, AT&T, Verizon, Comcast, Cox, etc!

[onenote]

4. If the internet access service market is as inelastic as you assume

why wouldn't Comcast simply raise prices for everyone rather than go to the expense and risk of creating and marketing a bunch of different options, some of which apparently would be offered below cost (it costs money to license content for movie and music services and those content owners aren't going to give it away to Comcast for their service at prices below what they're getting from other services).

A far more realistic scenario -- and one that also harms consumers -- is that Comcast goes to Netflix, Amazon, FB, etc. and says, "Hey, you guys are making money hand over fist using our internet access service to reach your customers (who either pay you a subscription fee or make you money through ad sales or commissions on product sales). We want a piece of that action." Comcast won't even threaten to block these services if they don't pay. Rather, they'll use their controls over bandwidth and speed to offer these services pay to play deals that ultimately will raise the cost of those services to consumers (and still give some competitive advantage to Comcast with respect to the content services it makes sense for them to provide to consumers).