Metered Internet: Should we be worried?
Most of us have been watching the Time Warner “consumption-based” billing Internet trial closely taking place in Beaumont, Texas. The ruling on this trial will have long-reaching effects on deciding the next steps for Time Warner to move to a “price locked” Internet usage system.
Currently the monthly limit in Beaumont - which applies to new customers - is 5 gigabytes on the low end, 20 gigabytes for the mid-level speed, and up to 40 gigabytes for the 15 Mbit/s modem service. Time Warner is charging $1 per gigabyte if a customer exceeds those prescribed levels.
The kicker is the $1 per gig over the allotted amount. Think back to when cell phone minutes were meager and running over your plan meant skipping that month’s electric bill. Now take that and apply it to something that has never been restricted before, and you’ve got the controversial consumption-based billing.
From the initial look of it, Time Warner’s consumption cap is much lower than its competitors. Cable Digital News wrote an article stating that the initial Time Warner levels are:
Dwarfed when compared to what some other operators are considering or about to implement. Comcast Corp. is believed to be mulling a threshold in the neighborhood of 250 gigabytes. Meanwhile, BendBroadband of Oregon is elevating its cap to 100 gigabytes per month.
But I’m still concerned and think the idea of a metered Internet system is doomed. Here is why:
- People will be watching the clock. No one wants to pay overage fees, and guess what that means: less people browsing the Net at night. Internet usage WILL GO DOWN.
- “Metered prices may chill innovation in cutting-edge applications because consumers will have a disincentive to use them,” explains Ben Scott of Free Press. “Viewed in the context of our long-term national goals for a world-class broadband infrastructure, telling consumers they must choose between blocking and metered pricing is a worrying development.”
- The gap will once again increase between those who can afford the Internet and those who cannot. Especially in light of the market slump, people will be forced to opt for the lowest price option, giving them poor bandwidth.
- It opens up doors for the operators to abuse their already longstanding monopoly. Essentially, we will be forced to comply with their rules. And in the end, we will be paying and unbelievable amount while they make record profits.
As for the trial in the Lone Star State, all eyes will be on the ruling. I’m afraid most Web surfers aren’t going to be very happy with it.
