If Per Byte Pricing Is 'Only Fair' Why Have Telcos Ditched It For Mobile Data Plans?

from the hypocrisy-in-action dept

For the past couple of years, telcos and cable companies have been pushing for metered broadband, usually with the bogus claim that "it's not fair" for a light user to be subsidizing a heavy user. This is a neat little disingenuous trick that implies "light users" would see their bills decrease under metered billing plans. However, the same telcos pushing for metered broadband on connections are the same telcos who have wireless operators as well... and for mobile users, they're doing away with the metered billing option at the lower end, forcing everyone into a much higher priced all-you-can-eat model. Oops. Metered billing has nothing to do with fairness. It's an attempt by telcos to squeeze more money out of customers in a market where they often have little in the way of competitive options. Because, as we've seen, when there's real competition, it's a lot more difficult for providers to offer such plans.

Filed Under: metered billing, metered broadband, telcos


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  1. icon
    kirillian (profile), 22 Oct 2009 @ 7:37am

    Re: RE: AC Post 1

    I think he meant to say that, in other countries, the average connection is provided with higher bandwidth and at a lower cost premium...in the US, most people who live in major cities have an edge over the rest of us by quite a bit. You might be able to get your FIOS connection for $35 a month...but I am stuck with DSL or Cable, which both provide a 1-1.5 Mbps connection at almost $40 a month...

    Refraining from using anecdotal evidence to make a universal negative will help. You might have a good connection for a decent price, but even if you are out in the boonies somewhere...study after study has shown that the US is VERY behind in bandwidth speed per cost ratio.

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