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
    chris (profile), 22 Oct 2009 @ 9:55am

    Re: @dorp:

    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.

    DING! we have a winner.

    data caps are the new tiered internet. ISPs want to offer voice and video products, but have to compete with pure play prividers like skype and hulu.

    so, if using skype, or vonage, or whomever applied to your cap, while using cable company phone did not, then you have your preferred tier. sure you can use vonage, but if you go over your cap it will cost you dearly, better play is safe and use our phone service instead.

    monopoly anit-competition at it's finest.

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