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 @ 9:06am

    @dorp:

    Where is the proof please I would like to see it.

    From what I understand cable ISPs use a ring network that is susceptible to heavy usage, that is why they don't like VoIP, video streaming or P2P. Those services transfer large amounts of data for very long periods of time and they slow down the network. PONs on the other hand don't suffer from this because they can't be super oversubscribed like cable and they are deployed in a star configuration where each house have its own line to the router and don't need to worry about their neighbor habits(data stream).

    Now on a total different matter, the reason to want caps or tiered schemes may be because the end game is to force higher data prices and offer "bargain" solutions to VoIP and Video without competition from others.

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