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.