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elefante72

join:2010-12-03
East Amherst, NY
reply to cpsycho

Re: Profit concerned

Not correct. If you have a contract with the ISP, and part of that contract includes variable charges, the method in which the variable charge is based must be disclosed including times. BTW, people say no contract, but technically if you have a service while you do not sign a term-defined contract, it is considered a month-to-month contract legally.

If the ISPs are charging or capping based upon usage and over-report that opens them up to fraud. Look at what is happening to Subway over their 11 inch foot-longers (in this case under-reporting but the same idea).

So if the meters under-report while that means they are inaccurate (likely due to cost to accurately report) that doesn't open them up to fraud.

If this study comes out, and proves over-reporting that ISP is now going to be in harms way.

The whole meter thing performs only two things:

1. Behavior modification - If there is a cap, people pay attention and if actions are punitive (slap on the wrist, throttle, your out) this will scare enough people to keep usage down and of course keep profits up.
2. Additional revenue stream - If you can charge people for usage (utility model) without lowering base pricing, this is icing on the cake.

The benefits of this are of course slower router upgrades or capacity upgrades, simply CapX outlay. Time Warner has managed to stay out of the meter game for now by jacking up modem fees--ancillary fees--while seemingly small can add $500-$1b to the bottom line every year. And of course due to "technology investment" that $20 modem sitting in your house lease fee will go up every year.