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Monday, June 09, 2008

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sineswiper

Well, as speeds increase from 5 to 10 to 20 Mbps and higher, the people who pay the same amount of money will be using more bandwidth. So, the ISPs get the same revenue, but they have to spend more money to support their existing customers.

At some point, it has to come to a head. Right now, it's just hard for customers to understand this POV. And it's not going to be easy for that 2% to understand that they are paying extra fees because ISPs can no longer pay for bigger and bigger bills just for a small minority of their customers. Most customers just want to surf the web, check their email, and run some online gaming.

So, flat-fee Internet without any caps or fees is not going to work in the long run. Either web sites will provide priority traffic fees (best case), or the 2% will pay extra fees, or the entire base service will go up (worse case). Or there may be some other solution, but SOMEBODY has to pay up for the extra usage.

Wyatt Ditzler

Would Insight consider not metering or managing traffic as a marketing move to capture more business? Verizon, I think, has considered/made statements to that effect, maybe even Comcast?

Would there be such a market or do you think that a new means of ISP operations, metered or some unknown as of now, are unavoidable?

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