People seem to have a sense of entitlement to unlimited Internet access through their local Internet service providers. But like it or not, bandwidth caps and metered Internet are on their way.
Right now, ISPs are groping for a way to control usage. Comcast Corp. (Nasdaq: CMCSA, CMCSK) recently revealed its intent to limit Internet users to a generous, but arbitrary, 250 Gbytes per month. After a single warning for exceeding this limit, Comcast says it's prepared to drop service to a customer. Comcast has also admitted to restricting peer-to-peer utilization on its network, another highly controversial practice.
Comcast isn’t the only provider imposing these limits, but it's one of the first to be challenged by the Federal Communications Commission (FCC) , which is responding to the real concerns that limits on Internet usage could impede the development of the Internet as a platform.
We should expect to hear a lot more back-and-forth between ISPs that want to limit their customers in one way or another and groups like the FCC that are working to protect the open nature of the Internet. But we’re at a turning point: It’s time to stop thinking of Internet access as an all-you-can-eat buffet and to start thinking of it as a utility. By changing to this paradigm it’s possible to look out for the needs of the consumer while giving the providers incentive to improve speed and maintain reliability.
The easiest comparison is to electrical service. If you take a close look at your electric bill, you’ll probably see two types of charges: a fixed charge for your base service and an additional charge per kilowatt you’ve actually used. In most cases, the base charge is probably based on the maximum amount of power (in amps) that your power hookup allows you to use at once.
Using the utility model, an ISP could charge for the maximum bit rate available (many already offer several maximum bit rates at graduated prices), then a reasonable price for each gigabyte used. To simplify the user experience and reduce concern about overages, it makes sense to include a generous amount of leeway with the service -- say, 200 Gbytes -- but it will be essential to give the user a way to monitor how it's consumed.
Ideally, enough bandwidth and storage would be included with the basic plan to more than satisfy the typical user, including allowance for downloading a reasonable amount of video and audio. (For reference, movies available on iTunes tend to run just a bit over 1 Gbyte.) With packages in the hundreds of Gbytes, the average user’s Internet experience and usage pattern is unlikely to be affected at all. But customers should not hesitate to stay up to date on their system updates and virus software.
On the other hand, heavy users who are exchanging very large amounts of data will encounter additional fees for their usage. The fees should not be (and don’t need to be) exorbitant; rather, they should be a reasonable overage fee, like 10 cents per Gbyte. This type of charge would be enough to deter excessive use by the few users now consuming the bulk of Internet bandwidth, while costing legitimate users who may occasionally go over the minimum a nominal fee.
These cheap, but not negligible, charges will encourage users to limit, or at least consider their utilization. They should not discourage legitimate users from freely consuming Internet content, even in multiple-computer households. To the ISP, these charges offer a way to control growth and recover some additional revenue from those who are using their services most.
Unlimited Internet access has allowed both consumers and content creators to explore different uses and directions for the Internet, but it’s time to get away from the “one size fits all” service model. Expecting your ISP to provide unlimited bandwidth for one price is like expecting your electric company to provide unlimited power for one price. Though not in shortage, bandwidth is a finite resource, and we need to take responsibility for what we use and the impact it has on the providers.
You are right, they are misleading - but we know that, the ones they are selling the service don't understand what's going on.
But a change in the contract must happen at some point. DSL services can guarantee a service level better than cable companies since cable companies share the line from a suscriber's house to their office, hence share the bandwidth.
But those changes imply changes everywhere else. Netflix, iTunes, YouTube, Hulu and every other streamer and content provider will have to rethink their business.
Consumers have got to change their expectations on this issue which is exactly what the writer was first suggesting here.Its the end of ample data/24/7 downloads as we know it.Staggered data or charging differing rates for peak and off-peak Data Transfer make a lot of sense and the way I see it,This Infrastructure already exists with the ISPs(They anyways measure how much Data you download/upload;so I am sure they can give the User a Reading for Download and time when its done.)This will not only prevent wastage and excessive usage but also curb the spread of botnets as users will be able to instantly point out-Hey wait a sec,I never used my PC for downloading 2GBs of data on the 19th,my PC must be infected!!
I agree with you that Comcast's ads are misleading,but the fact of matter who watches ads nowadays?Don't we all use TiVo? The main reason being ads all lie or come with those microscopic disclaimers.....remember the Subprime Lending ads ,low 0% Housing loans,Want to get out of your Bad loans,Bad credit,etc,etc(not very long ago as a matter of fact).
I know it sounds boring and long-winded but whenever I make a big-ticket or recurring purchase(like buying Cable/Internet),I tend to read the fine print before i sign anything.It saves me a lot of trouble in the long run always.
Comcast can write new contracts for new customers and buyout or grandfather its current customers contracts.
Will Comcast guarantee the speed and also refund those peak usage times that a user doesn't get the guaranteed service speed?
My local electrical company allows a lower rate for those clients that are willing to have a remote disconnect on their water heater, freezer etc to keep the devices from running during peak demand. Maybe Comcast should investigate staggered timing of internet access.
Whatever they do, they need to change the ads they send out. the ads are misleading considering the internet curtailment they are proposing.
I agree with you Ashish. ISP's (or service providers in general) are seeing how their revenues are decreasing (or not increasing as planned) because internet companies - who use their backbone - are offering competing services, piggybacking their networks.
The utility format, imho, should work - and if iTunes complains, they could reach an agreement with Comcast (to name one) and make any download from their site out of the bucket count.
There are many ways to solve this problem - and like always, there'll be at least one group who is not satisfied.
I have to admit that the ISPs are right on this one.Its a different matter that most Internet Users don't trust their ISPs,especially the most educated and knowledgeable ones.
It costs money to build,maintain and run this infrastructure.Somebodys got to pay for it.What about all those Data centres that store all this data that is exploding out there?
And the ISPs see companies like Google,Facebook,myspace getting rich of the content that passes of their Data pipes.Obviously they want in on the pie.
But then the debate has only just started and has a long way to go.Its also true that Internet charges are reasonable(I won't say cheap but they are'nt exorbitantly priced either).
If ISPs want to charge their services like electrical service, this is not not a big problem provided they provide customers what they agree to. Most of the times we are been given less than what we subscribe for.
I'm just not sure I trust ISPs to refrain from gouging... And I'd like to get at least my guaranteed minimum bandwidth. I'm supposed to be getting 7Mbps, but when I test it, I get only about 2~3Mbps. That's like only being able to run half the electrical appliances in my house at one time, when I've been promised to be able to run all of them (why I'd want to, I don't know, but I should be able to if they promised it).
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