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New Rate Structure for 2011 ======================== Since we launched Hillcountry Networks two things changed that cause us to rethink our rate structure. If you don't want to read further and want the bottom line. It is that some customers will have a slight rate increase and a few customers will have a larger monthly cost increase but also a faster connection. Some special case customers will continue to have their same monthly rate. All customers will have the option of paying for service in "real money" in the form of silver coins. There are two drivers of our changes.... Netflix and the Federal Reserve. Netflix ( and Blockbuster, Hulu, I-Tunes, and other online video entertainment sources) have turned the internet and our wireless network into a cable entertainment network, where the amount of data flowing to some users is 100 times greater than the data usage of other users. Our expanded connection to the internet is required to support those "moviewatchers" who use our wireless network as a cable or TV entertainment source. We have to come up with a rate structure that passes the expanded bandwidth cost to those who use the additional bandwidth. The Federal Reserve with QE , QE2, and the likely QE3 has caused even more rapid devaluation of the Federal Reserve Note ( what most people think of as the Dollar). When we started the Company, we pegged the cost of a base level service at 3 dollars ( silver real money Dollars ). In Federal Reserve notes back in 2001 the conversion of 3 Dollars to Federal Reserve Notes ( FRNs ) was based on $14 per oz silver. So, 3 Dollars was equavilent to ( 3 x 14 ) $42. We have actually reduced our Base rate now to 2 Dollars. But with Silver at $30 per oz, two (2) Dollars cost 60 FRNs. We will not be able to further reduce our base level service below 2 real dollars per month. So the bulk of our customers will be paying around $60 a month for base level service. We have had a project with AT&T underway since mid 2010 which will give us a 5 X increase in the size of our "Pipe" to the internet. This project required fiber optic cable to be run down Hamilton Pool road and up to our central hub. The additional bandwidth should be in place by April of 2011. We will be spreading the cost of the new faster infrastructure across those who choose to use our network as a movie channel by offering some slightly modified classes of service when the new bandwidth comes on line. This will be done by offering service at near the current cost for those who download less data -- which would be the case for those who do not watch internet movies or videos. Those of you who have requested higher speed in the past year will be assumed to want less restrictions on the amount of data you can download, indicating that you would like to be able to watch movies and videos. With the base level non-movie watching service you will have a faster speed than the 512K contracted speed up to the point where you download a certain quota amount of data. Then your speed will drop to the contracted 512K speed. The details of the cost and service structure is still being worked out. You can check our Service Rates web page for he latest structure.
There is an obvious problem with paying for something in physical coins. That is you can't pay online, but we do not have an online payment process anyway. We do not suggest mailing coins, so we are left with setting up a method to allow payment in physical coinage here in Dripping Springs. That process is something we have to and will work out. For now if anyone wishes to pay in silver dollar coinage, you may call either of the Ricks and meet in the area. Paying for several months at a time will be an advantage requiring fewer meetings.
We will be moving most of our $50 to $55 users to $60 or 2 ( two ) real (silver ) dollars for our base 512K rate. This rate will actually run at 1 Meg until the user downloads 800 Meg bits of data, with the data flow measuring being reset at midnight each night.
We are iniating a moviewatcher service plan which will provide higher speed for downloading movies. This level service will have a large allocation of dataflow that will allow multiple movies to download at the fast speed before reducing speed. We will still allow speeds greater than our contract rate of 512K for users who do not download much data , which is what you would want if you are mainly sending and recieving email and checking a few web pages.
Watch our website page showing SERVICE RATES for details. Watch your statement for any rate increases.
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