[ NNSquad ] AP: AT&T trying to preserve their revenue stream via bandwidth caps

[Lauren Weinstein <lauren@vortex.com>]

AP: AT&T trying to preserve their revenue stream via bandwidth caps

http://j.mp/gaRWWE  (AP / USA Today)

     AT&T portrayed Monday's announcement as an attempt to curb "data
     hogs," but it could help the company preserve a revenue stream in
     the long run as people shift to Internet-based TV services.
     ...
     Analysts view usage caps and overage fees as a way for cable and phone
     companies that sell TV services to defend the value of their network.
     If households move their TV watching from such services to the
     Internet, the Internet service providers will still get paid through
     overage fees, analysts reason.  AT&T's move provides "air cover" that
     makes it easier for the rest of the industry to follow, Sanford
     Bernstein analyst Craig Moffett said.

--Lauren--
Lauren Weinstein (lauren@vortex.com): http://www.vortex.com/lauren
Co-Founder: People For Internet Responsibility: http://www.pfir.org
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