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Bandwitdth Caps Called for by American Cable Association

Category: Internet
Posted: 03:14PM

At the recent summit of the American Cable Association (ACA), many cable company executives expressed that bandwitdth caps are a necessity of the future. Matt Polka, ACA President, compared broadband billing to his heating bill. It would be nice to pay a flat rate hearing bill, but it clearly requires more energy to heat a home in the winter; therefore, that is not a sound business strategy. Following this line of reasoning, it is not a sound business strategy for broadband companies to continue to charge a flat rate for Internet access. He stated that broadband providers will need to implement bandwidth caps and tiered pricing to maintain a sound Internet infrastructure. New services, such as Netflix and other streaming services use much more bandwidth than browsing websites.

Patrick Knorr, general manager of Sunflower Broadband, said his company has offered tiered biling for four years. This service is offered because in Sunflower's opinion, a person checking email should not be subsidizing a user downloading multiple movies. While many broadband subscribers are upset by this, the providers claim that tiered billing is the way of the future.

Would tiered billing affect a person's Internet usage? I know it may affect mine depending on what the charges include.

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geek3k on May 4, 2009 03:48PM
i think tiered billing is a bad idea. the fact that gas is a completely different infrastructure dealing in a tangible good and providing a service to in an intangible way works. in terms of proadband it is an intangible asset built upon an unlimited usage from the start. its bringing bak days of dial up and u knw how hard it was not to exceed those limits!!! i think they trying to make a money machine here its a growing market. fair enough but why ruin customers experience by doing so as well. use the different speed strategy instead of cap strategy which works best which is done in the u.k. otherwise its just crap business and watch the customers starting a frenzy on it
malmsteenisgod on May 4, 2009 04:27PM
I agree with you completely, it's a dumb idea. But, Americans won't start a frenzy over this. Americans will be upset for maybe a week and then forget about it entirely.
NCC10281982B on May 4, 2009 04:45PM
agreed. and in today's world it would be way to easy to exceed say a 10 gig cap.
nickosha on May 4, 2009 04:51PM
I think they are just using bandwidth issues as a reason to increase prices. More than likely their lowest package will start at a $5 or $10 below what unlimited is now, and the other packages will quickly get very expensive.
SMeeD on May 4, 2009 05:02PM
TWC couldnt do it on their own so they've got to get everyone else on the bandwagon so nobody has a choice. IMO Comcasts 250gb cap is reasonable but do we really need another reason to make our internet even worse compared to the rest of the world?
Guest comment
capthowdy575 on May 4, 2009 07:13PM
what about game downloads. games are only getting bigger even when compressed. this is just a way to suck more money out of people.

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