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. identicon
    Anonymous Coward, 22 Oct 2009 @ 7:45am

    Oversubscription is the real problem.

    ISPs are like airlines they oversubscribe their channels and that is why is bad for them to let people use bandwidth. They sold more then they can deliver.

    That is why they are trying to fool people into thinking that because someone is a heavy user is bad. In reality soon we all will be using the internet for very intensive tasks so any caps will only reduce creation of services in those countries that cannot legally provide them.

    In the beginning, the internet was metered, it didn't work remember AOL sending all those shine plastic discs to everyone?

    In Japan, South Korea, Taiwan, Hong Kong there is 1 Gb connections with no caps, the rest of the world is one generation behind asia and there(asia) they don't need metered and to be truthful they wouldn't dare put something like that on the table because people would just flock to another ISP. In asia the physical cables are separate from the ISP's, no ISP owns the cables but they all use the same infra-structure so they all pay to construct that infra-structure and compete with services, in every small town in an asia country there are 10-20 ISP's competing. Why it doesn't happen in other places?

    There was a time when European and American companies where competitive but they are sissy's now. They wouldn't last a day in a real open market they don't know how to. They got lazy with legal crutches and government aid and that is why workers everywhere in america are hurting.

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