If Per Byte Pricing Is 'Only Fair' Why Have Telcos Ditched It For Mobile Data Plans?

from the hypocrisy-in-action dept

For the past couple of years, telcos and cable companies have been pushing for metered broadband, usually with the bogus claim that "it's not fair" for a light user to be subsidizing a heavy user. This is a neat little disingenuous trick that implies "light users" would see their bills decrease under metered billing plans. However, the same telcos pushing for metered broadband on connections are the same telcos who have wireless operators as well... and for mobile users, they're doing away with the metered billing option at the lower end, forcing everyone into a much higher priced all-you-can-eat model. Oops. Metered billing has nothing to do with fairness. It's an attempt by telcos to squeeze more money out of customers in a market where they often have little in the way of competitive options. Because, as we've seen, when there's real competition, it's a lot more difficult for providers to offer such plans.

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Time Warner Says People Want Metered Billing; Cablevision Says People Hate It

from the which-do-you-think-is-right? dept

As Time Warner Cable continues to roll out metered billing/capped broadband to more locations, the company's COO is apparently defending the practice by claiming that it's actually what customers want. That argument is easily demolished by Broadband Reports at the link... but it's great to contrast it with another story, also over at Broadband Reports, where Cablevision notes that metered billing confuses and annoys customers:

"We don’t want to give consumers more to think about. We think [broadband] is a pretty powerful drug and we want people to consume more of it."

While Cablevision has had its fair share of questionable practices over the years, one thing you have to admit, is that it's always been much better than a lot of other cable companies on these sorts of issues -- and often goes against what the other big cable companies do. Unlike Time Warner Cable, which caved to Hollywood about running a remote DVR service, Cablevision stood up for its rights and won (so far). The company also has gone against the grain in suggesting a la carte cable channels isn't such a bad idea. Plus, the company offered one of the first truly high speed broadband offerings, and then combined it with cheap or free additional services that helped build marketshare, rather than following the other cable companies in trying to offer every new service at a high price. And, now, it seems like it's taking the customer-centric approach to metered broadband as well (unlike Time Warner Cable, which just claims it is).

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