Usage Based Billing Rant

Peter : On Rad's Radar?
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

Usage Based Billing Rant

Occam Networks has a pretty good blog. Today's topic is usage based pricing. I disagree with the usage based pricing.

As I see it, we have had (mainly telco) rate hikes since 1999 on the promise of Broadband. In fact, in Penn. Verizon promised DS3 to the home. Where is that?

ISP's have had 10 years to figure this out. Ten years to upgrade the networks. Ten years of rate hikes and regulatory wins.

Telco ISP's don't want to figure it out, because they are minutes-munching Bell-Heads and thinking like a Net-Head is too much of a change. Switched versus packet.

MSO's don't want to cannibalize their video revenues. Unlimited gets in the way of VOD, PPV, and premium channels. Cable really wants usage based pricing. The Network DVR is supposed to keep some video revenue from sliding to the Internet, especially for less Net-savvy consumers.

How is it these same ILEC's that desire usage based pricing are now looking to deliver video and multi-media to a cellular handset? Their cell networks are more expensive, bandwidth limited, and not up to this challenge. But they don't want to deliver this same service terrestrially? Bell-heads! Go figure.

When they live up to their rate hike promises and merger conditions, they can re-examine the usage based pricing. Till then shut up and give me my broadband.

To quote John Stewart: You are hurting America. Other countries have faster, cheaper broadband - and are taking our jobs.

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