Monday, April 20, 2009

Bandwidth Caps a Competitive Disadvantage?

Time Warner Cable has shelved its plans to shift its residential broadband customers to “consumption-based billing”, at least for the moment, as a way of controlling excessive bandwidth use by a small number of really-heavy users and maintaining quality of service for other users who share the network. Short of investing in a higher-capacity access network, it isn't clear how some way of matching consumption to cost is avoidable, long term.

But that points out one advantage Verizon Communications has: it has ample access bandwidth to provide uncapped usage, which could become a marketing weapon wherever it competes with other providers who do impose caps or other sorts of restrictions.

No comments:

Telco Role in AI or Data Monetization Seems Limited, Really

One learns over time to be skeptical about some claims repeatedly made by leaders in many industries. Consider the claim by retail telco exe...