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, 21 Oct 2009 @ 11:08pm

    Re: Re:

    (but in actuality I don't mind allowing ISP's do cap bandwidth PROVIDED there is perfect competition and the government doesn't do so much to limit competition in favor of big corporations at public expense. Because if they did try to cap bandwidth unreasonably in a free market then people would simply switch to competitors. But since the government does restrict competition they should then regulate the competition by disallowing caps and forcing a reasonable speed for a reasonable price, one that's competitive to deals people get in the countries that offer better bandwidth for cheaper prices).

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