Friday, May 6, 2016

Usage-Based Billing Removes One ISP Concern About Growing OTT Video Consumption

Advocates and suppliers quite often differ about the need for usage-based billing of Internet access services. Some argue all usage should be unlimited. Suppliers often argue that is an unsustainable policy.

MoffettNathanson analyst Craig Moffett argues that usage-based billing is important for Internet service providers in one sense because it removes one reason for ISPs to “fight” over the top video apps.

The reason is drop dead simple: ISPs make more money, almost on a linear basis, as more OTT video is consumed by their customers. That aligns usage, network investment and revenues.

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