there lies the problem. if majority of your users end up consuming more, you are going to make a loss. and this is where these companies thought about fair usage policies because a noticeable number of users were becoming loss making.
the concept i support today is such that the company has simply no excuse not to offer plans like these. because every customer pays for what he use and he remains profitable for the company. no complications. no worries about FUPs in the future. and as bandwidth prices goes down, the charges for the services goes down and not up.
+1 in a nutshell. Some ISPs have priced themselves in to a corner so much so that I would suggest the higher plan users are subsidizing the lower plan users.
Mobile phone market has proven you wrong
6 months back I was paying 1p/6sec , now i am paying 1p/sec
GPRS was Rs48/month 1GB
now its Rs48/3weeks
Missed call service was free, now its Rs7/month
I guess its the same story with all operators
Bandwidth prices HAVE dropped sharply, but part of the reason for recent tariff hikes that *I* could figure out would be that operators simply weren't charging enough at 0.5p/sec or 1p/sec or anything. Moreover, most have had things like 3G spectrum to pay for, which comes with more expensive towers, more backhaul, and so on. Those things ain't cheap, ya know, and even if the tariffs have been hiked by a few percent here and there (even if they were hiked by 50%), India still has the cheapest mobile tariffs in the world.
It makes me sick when I have to go back to my country where we still pay well above Rs15/min (some providers charge up to Rs35/min on prepaid), no per second billing, and SMSes cost around Rs7 each (although most people who do SMSes buy packs of like 2,500 per month for around Rs300), data costs a minimum of Rs600/GB. And before we make monetary comparisons, in terms of income percentage spent on mobile service it's still significantly cheaper here.
mobile companies were operating at a loss when the price war was on after the new players like uninor and docomo arrived and shook the market.
now that things have settled down, airtel increased their prices. and a lot of other companies followed them.
there is no such price war in the broadband market. every single plan is apparently massively profitable for the few companies that have a nationwide or wide presence.
indian mobile market is very very mature today. indian broadband market is still an infant in comparison.
metro cities have like 7-8 options when it comes to mobile services. but no one would have as many ISP options anywhere in the country.
These "averages" seem rather interesting
Light Reading Cable - IP & Convergence - Suddenlink Goes Live With Metered Broadband - Telecom News AnalysisI fully agree about the broadband market, and I think that half the issue is that there is no LLU. If LLU were to happen, then ISPs don't have to each have their own cables. And as such, they're all forced to compete on the same platform on the same infrastructure. ISPs that suck lose customers, ISPs that rock gain customers, ISPs that do the best marketing gain even more customers.