As Expected, Bill Introduced To Outlaw Tiered Bandwidth Pricing

from the this-won't-go-far dept

As was widely expected, Rep. Eric Massa has introduced a bill that would outlaw metered billing and create a bunch of other regulatory hoops ISPs need to jump through on pricing plans. We're no fans of metered broadband by any stretch of the imagination. It stifles innovation and limits the usefulness of the internet. Contrary to what some broadband providers will claim, it's not at all necessary and has nothing to do with preventing the network from being overrun or to stop part-time users from "subsidizing" everyone else. The Broadband Reports link above walks through how silly each of those arguments are. It also explains why this is a pure money grab. Flat-rate pricing has been quite profitable for the providers, but they want more. Note that nowhere in these usage plans do they talk about cheaper tiers. Beyond just being about a straight money grab, part of the desire is to use this to reduce competition for online video by making it more expensive for anyone other than the ISP to deliver video services.

That said... this bill seems laughable and is unlikely to go anywhere. The real issue here (as it has been all along) is the lack of meaningful competition in the broadband space. Get meaningful competition into the market, and this whole issue goes away. But that's not what Massa's bill does. It just adds regulatory burdens to ISPs without doing much to get at the root of the issue.

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  1. identicon
    Rob, 18 Jun 2009 @ 6:39am

    I would actually like to see metered broadband in a way -- then the telcos would have a reason to get as many bits and bytes to me as possible, and maybe even (gasp!) increase network speeds to be competitive with the rest of the world and usher in the next generation of 'net technology (better streaming video, etc.). Now, before you jump down my throat, I know that metered broadband will just result in astronomically high prices for those of use that actually use our Internet, but if the price was right, metered broadband would be the way to go for sure.

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