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 @ 11:04am

    Re: 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."

    Yes, that is how it's done. But it is without a doubt the most appropriate way to plan/capitalize/deploy a communication network. Similarly, we don't build every street in the country big enough to handle every car in the country at one time. We know that not everyone will ever drive each street, and those that do will not do it at the same time, so we build a certain number of lanes, based largely on our expectation of traffic load at peak times.

    If you have a better way of planning and deploying a comm network, please submit it. You could be as famous as Alexander Graham Bell.

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