Bandwitdth Caps Called for by American Cable Association

DLS2008 - May 4, 2009 03:14PM in Internet

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.