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In reply to the discussion: Comcast plans data limits for all customers [View all]Swede Atlanta
(3,596 posts)Providers should be able to offer and set internet service prices based on a variety of criteria and I think usage is the correct primary metric. It is the metric used for everything else. You pay for gas at the pump based on the number of gallons. You pay for your electricity based on the amount used, etc.
For example there should be a low usage/low cost offering for seniors and those who use little bandwidth. They use the internet to check a few e-mails, pay a few bills and maybe watch a few youtube videos. Then this should scale up to people who sit and watch hour after hour after hour of streaming content. They should pay more.
The only issue is there is no competition. So the few providers will engage in harmful usage-based pricing policies that hurt both small and large users. They want to avoid having internet access become a commodity the way basic telephone service has.
Industry consolidation and reduced competition is the reason 'usage-based' pricing is a major concern. If the Comcast - Time Warner Cable deal is approved we reduce competition significantly. And now ATT (U-verse) is looking to acquire DirectTV. These consolidations empower the providers and reduce competition and choice. But the Obama administration is not going to block either one of these deals. Obama is not a populist. He is very much a corporatist. He likes corporations making lots and lots of money. What few crumbs may fall to the people is just gravy.
The other bit issue is allowing the ISPs to "fast lane" and "slow lane" based on who pays from a content perspective. I fear this can be used by the 1% to throttle access to progressive content because that content may challenge comcast's interests.