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freitasm

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#56504 14-Jan-2010 16:03
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From the Washington Post:


Verizon Wireless
imagines that its coming LTE mobile broadband network will run all kinds of devices such as tablet computers, home appliances, automobiles, smart phones and televisions that you may not necessarily get from a Verizon store.

And because so many devices in one household could be connected to its network, the nation’s largest wireless service operator thinks the days of flat-rate plans may be over, according to Verizon chief technology officer Dick Lynch in an interview Thursday at the Consumer Electronics Show. Instead, the company will probably charge a base rate for its users and allow multiple authenticated devices to be attached to its network. Then it will charge by how much bandwidth is used by a provider – a business model known as usage-based pricing.
“The problem we have today with flat-based usage is that you are trying to encourage customers to be efficient in use and applications but you are getting some people who are bandwidth hogs using gigabytes a month and they are paying something like megabytes a month,” Lynch said. “That isn’t long-term sustainable. Why should customers using an average amount of bandwidth be subsidizing bandwidth hogs?”



This is the reality in New Zealand, and slowly in other countries: people will use as much as they can get away with, without realising this is a limited resource - and it costs money to move bits from one side of the world to another.

Other mobile operators are moving this way (AT&T removed the unlimited option from prepay) and even cable operators in the U.S. are planning in using metered services.


I am all for cheaper and fair priced broadband, but I am not a big fan of "unlimited", because some people will just kill the fun for everyone else.







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Screeb
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  #290035 14-Jan-2010 16:31
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How is this relevant to NZ broadband? This is for mobile internet, which is a completely different kettle of fish.


I am all for cheaper and fair priced broadband, but I am not a big fan of "unlimited", because some people will just kill the fun for everyone else.


This makes no sense. If the infrastructure is good enough, then it would be possible to support everyone downloading 24/7 at max speeds. Of course, that's not the case for residential, due to over provisioning for cost reasons - but there's no reason unlimited broadband can't be offered without adverse impact on other people's speeds if the infrastructure is good enough (see: Verizon FiOS (oh look, same company - like I said, mobile internet cannot be compared to fixed line broadband))



freitasm

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  #290037 14-Jan-2010 16:34
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It's for comparison with New Zealand mobile broadband. Something for all that people who keep asking for unlimited mobile data.





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Screeb
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  #290085 14-Jan-2010 18:52
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Well this sentence "I am all for cheaper and fair priced broadband, but I am not a big fan of "unlimited", because some people will just kill the fun for everyone else." was pretty ambiguous in that regard. Anyway, I haven't seen many people asking for unlimited mobile data in NZ, just more reasonable prices.



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  #290483 16-Jan-2010 10:13
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I think the most interesting strategy I've seen used in the US is the one where mobile only data is unlimited but tethering is forbidden (so only the device can use the connection) and tethered connections are usage based. The thinking appears to be that a phone on it's own can download quite a bit, but not really a massive amount like a tethered device can.

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