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
    Derek Kerton (profile), 24 Oct 2009 @ 10:57am

    Re: RE: AC Post 1

    Funny mistake you make. You argue YOUR own personal situation as if it is representative of the USA in general. This is a very common mistake for marketers and product developers, but less so for market researchers.

    1) FiOS rocks, but do you know how many Americans have FiOS as an option?

    2) Do you purchase any other Verizon service over that FiOS line, which is actually an integral part of the service? Think phone service, TV content, etc. If so, your Internet price may be subsidized by one of the other services.

    I just checked here: http://www22.verizon.com/residential/fiosinternet/Plans/Plans.htm
    and a 20MBps FiOS INTERNET ONLY connection is $54.99 a month. So, your entire argument above, based on your claim of $35, is bollocks.

    To paraphrase your comments: I believe you're confusing reality with fiction again. "So please...don't just make vague pronouncements...because with a couple of Google searches I've just disproved your theory on price" from your own ISP.

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