Yeah, I'm not going to be getting myself in a flap over the media hype about some bandwidth crisis; I simply cant see it as true. If you're getting slow broadband the best thing you can do is move closer to the local exchange - or switch isp.
I have little else to add. I don't defend or attack Virgin's position. I happen to instead understand it, for reasons I'm not bothering explaining.
This is not about lack or excess of bandwidth. This is about large scale ISPs that are forced into million dollar upgrades to keep up with the rise of content broadcasters without any sizeable return of the investment. And about small scale ISPs that cannot keep up and end up closing.
As a user I'm not that quick in dismissing it as "not my problem". Maybe not now, but it will soon enough.
The return on their investment is they get to stay in business. Its a business expense plain and simple. If a car rental agency doesnt buy new cars they go out of business, but the new cars wont get any better mileage or provide any increased return. The return on the new cars is the company gets to stay in business. Just because the old equipment runs doesnt mean it will draw customers to your business. The same is true with ISP's. The new higher bandwidth equipment wont increase your profits, but if they dont make the investment, then they will lose customers to the other ISP's that do, that is why small ISP's go out of business. An ISP I was a partner in once is having that problem. The primary partner wanted to get in for the bare minimum investment, then when cable and DSL came to town he wondered why he wasnt growing at 100% a year anymore and was instead losing customers. It didnt help that he also sold everyones email address's to spam agencies and would boot people off the network if they connected for more than an hour. Hence why I cashed out when I could.