by Mike Masnick

How To Handle Capacity...

Seems like a fairly slow news day, so I wanted to point to a longer piece I wrote over at TheFeature concerning the capacity question. Whenever people talk about high prices or "pay as you go" plans for wireless data services offered by carriers, the rationale is always "capacity." The services all have limited capacity, and offering flat-rate services and opening up the capacity to to high bandwidth applications could knock those services offline. However, is that a valid excuse? The issue is real -- but it makes it a lot more difficult to compete -- especially when we hear stories about how all of these services are going to compete with DSL and cable. How are they going to do that if they don't have the capacity to handle the applications people want? In other words... capacity limitations isn't an excuse, it's a problem.

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