I, Cringely » Blog Archive » Bandwidth caps are rate hikes - Cringely on technology
This isn’t about capping ISP losses, but are about increasing ISP profits. The caps are a built-in revenue bump that will kick-in 2-3 years from now, circumventing any existing regulatory structure for setting rates. The regulators just haven’t realized it yet. By the time they do it may be too late.
Most U. S. broadband customers don’t get anywhere near that 250 gigabyte cap. The few who do hit those limits are big gamers or file downloaders for the most part. Maybe they do take unfair advantage of the system, but the question is whether this is the proper way to control their consumption? I don’t think it is.
In time we will all bump into these caps and our Internet bills will suddenly double as a result, circumventing competition and ending a 15 year downward broadband price trend.
ISPs win, we lose.
This isn’t about capping ISP losses, but are about increasing ISP profits. The caps are a built-in revenue bump that will kick-in 2-3 years from now, circumventing any existing regulatory structure for setting rates. The regulators just haven’t realized it yet. By the time they do it may be too late.
Most U. S. broadband customers don’t get anywhere near that 250 gigabyte cap. The few who do hit those limits are big gamers or file downloaders for the most part. Maybe they do take unfair advantage of the system, but the question is whether this is the proper way to control their consumption? I don’t think it is.
In time we will all bump into these caps and our Internet bills will suddenly double as a result, circumventing competition and ending a 15 year downward broadband price trend.
ISPs win, we lose.
