On Wed, Apr 15, 2009 at 6:52 PM, Brett Glass
<nnsquad@brettglass.com> wrote:
This isn't actually a proposal to "cap" wholesale customers, but rather to charge them by data volume instead of by the capacity of the connection.
And we've seen how well this plan benefits customers when we look at the cellular phone situation. In my area:
Verizon's basic plan for residential service- Unlimited local calling - Unlimited direct-dialed long distance $39.99/month.
Verizon wireless - Basic plan - 450 minutes - unlimited mobile to mobile - unlimited nights and weekends - unlimited domestic long distance - $39.99 month
Add: $1.99/MB for web
$0.20/Message for text
$0.25/Message for pictures and video
$5.00/month for mobile email
$15.00/month for VPak (video/audio subscriptions)
$9.99/month for VZ Navigator (GPS service)
Verizon wireless - Select plan - 450 minutes - unlimited mobile to
mobile - unlimited nights and weekends - unlimited domestic long
distance - $59.99
Add: $1.99/MB for web
Unlimited Text and Picture/Video
$5.00/month for mobile email
$15.00/month for VPak (video/audio subscriptions)
$9.99/month for VZ Navigator (GPS service)
Verizon wireless - Connect plan - 450 minutes - unlimited mobile to
mobile - unlimited nights and weekends - unlimited domestic long
distance - $59.99
Unlimited Text and Picture/Video
Unlimited mobile email
$15.00/month for VPak (video/audio subscriptions)
$9.99/month for VZ Navigator (GPS service)
Verizon wireless - Premium plan - 450 minutes - unlimited mobile to
mobile - unlimited nights and weekends - unlimited domestic long
distance - $79.99
Unlimited Text and Picture/Video
Unlimited mobile email
Free VPak (video/audio subscriptions)
Free VZ Navigator (GPS service)
I chose Verizon because they are in my area, and to make my point. (I happen to like Verizon and believe they have a good product.) I think this example is representative across the industry. (The above data was pulled from Verizon's web site.)
However, looking at the services and the way they are bundled, it shows that they do this to charge the consumer more. When faced with a data volume for fee choice, many consumers will either choose the higher tier that meets their intended use, or they will do so after the first bill that exceeds their expectation.
I wish the ISP that are for tier caps would come out and be honest. I don't view the bandwidth caps as implemented for "network management". They are for increased profit. The first answer violates my trust of them and their motives, as well as insulting my intelligence. The second answer isn't good PR, but I would attribute it to the cost of doing business.
Basically, the consumer loses when the industry wants increased profits. That is why we need some government oversight and regulation.