ISPs Should Stay With Flat-Rate Pricing

Analyst argues metered service will halt innovation and stunt growth
By Harry Kimball,  Newser Staff
Posted Jun 5, 2008 5:05 PM CDT
ISPs Should Stay With Flat-Rate Pricing
A Clearwire wireless network system card is seen.   (AP Photo/Marco Garcia)

(Newser) – Cable companies are wooing Wall Street by saying they’ll offset expensive implementation of a new, high-speed software protocol by metering broadband Internet access. Bad move, Om Malik writes on GigaOm. Flat-rate high-speed access has enabled recent revolutionary innovation in the telecom business, which led to almost 70 million broadband subscriptions in 2007, and a cash cow for the cable companies.

story continues below

Metering connections, where an individual customer would have a set number of gigabytes to download each month, and be charged for every gig they went over, would amount to slaughtering the “golden goose,” Malik writes. Though cable companies must deal with a more changeable demand than DSL or FIOS providers, it matters not: the inventiveness spurred by unlimited data will inspire the next bunch of paying customers. (Read more Time Warner Cable stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.