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Camelot One
Premium,MVM
join:2001-11-21
Austin, TX
kudos:1

If they would just be reasonable about it........

Everyone knows the overages shouldn't cost as much as they do. I'm not a fan of caps, but I do see that in certain cases there is a need for them. They are doing this to make more money off of the people who use more bandwidth. Fine. But be reasonable about it. Limit the overage charges to say, 200% of their cost per GB. (which is still an insane profit margin)
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jmn1207
Premium
join:2000-07-19
Ashburn, VA

said by Camelot One:

Everyone knows the overages shouldn't cost as much as they do. I'm not a fan of caps, but I do see that in certain cases there is a need for them. They are doing this to make more money off of the people who use more bandwidth. Fine. But be reasonable about it. Limit the overage charges to say, 200% of their cost per GB. (which is still an insane profit margin)
I'd settle for a 1000% markup over their costs for bandwidth. I'd be willing to pay 10 times what it costs a cable giant to provide and maintain each GB of transferred data. And I would even pay by the GB from zero to whatever they can handle.

Even with a minimum payment of $10 each month to go along with my "pay-only-for-what-you-use" plan, just about everyone would see lower bills each month with this payment scheme.

If they want to go the metered billing route, lets do it in earnest. You can only get so much juice from a lemon.

fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3

reply to Camelot One
In all honesty.. they should not be able to charge for overages except under certain circumstances.. and this also requires the FCC to use that gush in their head they call brains.

1) DSL Providers: Overages fees are charged based on an over all system-wide capacity issue. ie: their entire system has to be negatively impacted over all. If their network is over sold AND over utilized (which it isn't) then they can take the overages, as audited by an outside firm, and charged on a per gig bases system wide. This would require some common sense though.

2) Cable: Same principle, however, it would require a maximum homes per node situation. (250 to 500 homes at most based on capacity/technology used) And same thing.. system wide, is the utilization causing the provider overages? If not, no overage. If yes, then they can "enforce" a cap and penalty ($$ per gig that is, over) based on system wide purchasing of bandwidth.

They need to protect their systems and they can do it with out impacting all users in the form of rate increases. However, they need to be honest about this and mean what they say.. they're saying it's a capacity issue.. so prove it. Once you prove it, and it can be verified by an audit, then you can have your rate increase.

.. oh wait.. this is what they do to power and gas companies already.


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