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openbox9
Premium
join:2004-01-26
Germany
kudos:2

Caps and overages are different than metered billing

said by Karl Bode:

Moffett's been hoping for caps and overages for as long as this website has been around, and now that he's finally getting them he's complaining that a government investigation into caps and overages will result in -- caps and overages?

Seem to me that Moffett (and Kafka?) is suggesting that if regulators dissuade ISPs from capping service, that the ISPs will migrate toward metering service. Such as, if you don't like paying $60/mth for up to 250 GB of data, then get ready for something like $40/mth for service with 0 GB of and then $2/GB over that.
said by Craig Moffett :

“Additional scrutiny from the DOJ would likely definitively end caps … and instead usher in a regime of [usage-based pricing] that would ultimately be even more threatening to online video providers than caps themselves.”

said by Peter Kafka :

Broadband providers are already moving away from broadband plans that charge everyone the same price, as long as their use stays under a certain cap, and toward usage-based pricing. That move has been blessed repeatedly by federal regulators.


Wilsdom

join:2009-08-06
No problem regulating that too. Electricity companies would surely love to charge $2/W, but the government actually forces them to just pass on their cost from the generator and limits what they can add on for delivery based on their actual overhead. The ISPs are making a lot more money with flat-fee unlimited plans than they would with true metered service, regulated by market competition or monopoly oversight

openbox9
Premium
join:2004-01-26
Germany
kudos:2
I doubt that ISP capping/metering will be regulated any time soon...at least as long as the ISPs don't go totally insane with pricing structures and rate increases. Raising rates incrementally over time seems to only mildly irritate consumers, not regulators.

Kearnstd
Space Elf
Premium
join:2002-01-22
Mullica Hill, NJ
kudos:1
I think we would only see full head on regulation if the ISPs went to a completely metered system with no initial cap.

usage based billing will completely destroy rich media internet advertising. not that such is a bad thing but nobody will want some web site's video ad chewing up their bill.
--
[65 Arcanist]Filan(High Elf) Zone: Broadband Reports


Alex J

@apexcovantage.com
reply to openbox9

Seem to me that Moffett (and Kafka?) is suggesting that if regulators dissuade ISPs from capping service, that the ISPs will migrate toward metering service.

The ISPs are already migrating toward metering service, in no short part due to investor pressure from guys like Moffett. Moffett predicts everything will lead to metered usage, because he wants metered usage.

Besides, the feds wont' do anything. Ripping people off without empathy and sticking a knife in the side of your competitor (often with the help of the government) is the very bedrock of this great nation.

Cobra11M

join:2010-12-23
Mineral Wells, TX
reply to Kearnstd
and thats prob why they wont, cause most of them make side money threw that.., but they are playing a very risky game with the internet in time it will bite back and hard, this will more than likely go to usage based completely but no flat fee, instead you pay by the gigabyte maybe a little over but still.. now that alone would crush the cable industry they would become full out dumb pipes. As we see now their trying to do whatever they can to stop that but the more they push the more the internet and the people will push back and eventually it will come to reality I personally do not see the cable companies being so called bundle everythin companies in the next 10 years, they will only be offering internet service maybe tv still but wont be as a big push as it is now cause it will be completely over the internet

now of course the infrastructure to support that idea isnt quite their so maybe 10-15 years but either way their models will have to change weather they like it or not, all of them keep crying for more money and lower caps just wait and see what happens in the future!

Sammer

join:2005-12-22
Canonsburg, PA
reply to Alex J
Metering requires standards that are verified by an independent standards organization or the government. ISPs who don't like regulation are not ready for that.


88615298
Premium
join:2004-07-28
West Tenness
reply to openbox9
said by openbox9:

then get ready for something like $40/mth for service with 0 GB of and then $2/GB over that

That's a bit hyperbolic don't you think? $2 per GB? Comcast's proposed overages and at&t overages are $10 per 50 GB. So it would be something closer to that. But it would mean people like me who use over 100 GB and sometimes 200 GB a month would pay more.

openbox9
Premium
join:2004-01-26
Germany
kudos:2
reply to Alex J
Most of the ISPs are implementing caps with somewhat metered overages. That is not the same as metered service.

openbox9
Premium
join:2004-01-26
Germany
kudos:2
reply to 88615298
The numbers weren't meant to be accurate, rather they were to demonstrate a potential scenario. I don't know what the numbers will be, but just like the new VZW plans, whatever new pricing structure comes about, it won't lower costs for most consumers.