Tuesday, July 20, 2010

Should broadband data hogs pay more? ISP economics say "no"


Just over a year ago, Time Warner Cable rolled out an experiment in several cities: monthly data limits for Internet usage that ranged from 5GB to 40GB. Data costs money, and consumers would need to start paying their fair share; the experiment seemed to promise an end to the all-you-can-eat Internet buffet at which contented consumers had stuffed themselves for a decade. Food analogies were embraced by the company, with COO Landel Hobbs saying at the time, "When you go to lunch with a friend, do you split the bill in half if he gets the steak and you have a salad?"

In the middle of the controversy, TWC boss Glenn Britt told BusinessWeek something similar, though with less edible imagery. "We need a viable model to be able to support the infrastructure of the broadband business," he said. "We made a mistake early on by not defining our business based on the consumption dimension."

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[link to original | source: Ars Technica - Law & Disorder | published: 7 hours ago | shared via feedly]


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