Metered internet services rearing ugly head |
From the this would most certainly suck department, comes news that cable and phone companies continue to be distressed by broadband internet eating into their profit margins, via the WSJ:
Large phone companies and telecom-equipment makers are developing plans that would blow up the flat-fee structure for high-speed Internet access and instead charge customers different rates based on how much bandwidth, or Internet capacity, they use.
Just imagine how much bandwidth watching HDTV over the web, something still not completely realized yet, will be like? I think it’s a future like this that scares these internet providers. Those opposed to this include VoIP like Vonage and the SlingBox which would overnight be rendered a lousy deal if the bandwidth was metered.
Some are saying that metered plans based on bandwidth usage would “kill the internet.” It would definitely change the rules and make some services, particularly video and high bandwidth apps a lot less desirable. And I wonder, would it be something only for the US or is this something that would happen internationally?
The discussion and debate is on. I’d put the chance of this actually ever happening at about 1% because there will be some holdout companies that want to stay unlimited. I’m not an attorney, but getting all the phone and cable companies to get together on something like this sounds questionable to me legally.
Or is anybody reading this — without a conflict of interest — actually in favor of metered bandwidth?
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The only reason this is happening is lining the pockets of management teams of those telcos. If this is the case, I would seriously think about antitrust suits where they don’t allow other providers in on the action, but they’re in fact a coalition monopoly.
What’s most amusing about this, is that while it will not kill Internet, a lot of people will be developing wireless methods around this. Why can’t you adhoc the US? HAM radio does. I think that they will be sufficiently shooting themselves in the foot if this happens as entrepeneurs will strive to create the next big thing with the absense of the Internet.
Since it’ll kill online gaming (MMORPGs, FPS, etc) and browsers in general, we’ll definitely see a lot more use of lynx/elinks and pine back up again. ASCII art here we come. Ahh..talk about nostalgia from the good ole’ days.
Comment by darkmoon — March 3, 2006 @ 1:59 pm PST
Adhoc the US, interesting thought there, darkmoon. Personally, think there would be wayyy too many people up in arms for them to turn back on this now. Sort of reminds me a bit of how the RIAA reacted to music (sue the customers). You can’t alienate your customer base at large and be successful. Profit margins sooner or later depend on all of us paying the $$$$. Of course look at the oil barons … they keep finding a way to stick it to us at the pump.
Comment by TDavid — March 3, 2006 @ 2:08 pm PST
True. I’m totally against the whole metering, mainly because… gee.. what is there to gain from this? Let’s put it into perspective. Verizon is currently withholding 80% of their fiber for their personal projects with video distribution. Are they going to back-charge themselves? There is no good reason except lining the pockets of the management team. I say this also, because you won’t see more jobs, or better pay at the telcos. Nothing good comes from it except on the top, getting whopping bonuses. I’ll pay for it, if they can justify the increase. So far, there is no justification that’s reasonable in the eyes of a consumer or a business.
Oil is different, since it was never flat-feed to begin with that I can remember.
As far as ad-hoc the US, Seattle is a great example. Seattle Wireless has done a pretty good job of adhocing via WiFi. True, that you have to run Internet to get Internet, but with MAKE, hackaday, and all sorts of other hobbyist sites out there… be it commercial or amateur, it will be done if forced into action.
In the end, I agree. We probably won’t need to go to the drastic measures of ad-hoc. I hope that the Internet Non-Discrimination Act of 2006, actually does something and puts them in their place. But always good to think about it, in case the Bells actually corrupt enough politicians to pass their crazy ideas.
Comment by darkmoon — March 3, 2006 @ 2:29 pm PST
It seems to me it’s supply and demand. With all the fiber optic cable that’s already in the ground, and growing wireless access availability, telcos can’t afford to price themselves out of the business. Competition is growing, not shrinking. Not a good time to raise prices in any fashion.
Comment by Sterling Camden — March 3, 2006 @ 3:15 pm PST