Many of you have heard of the the downloaded data caps in the test cities of San Antonio, TX (Timewarner) and Reno, NV (AT&T). Timewarners rates are much more restrictive than AT&T, but it is not the rates that are the problem; it is the concept.
Here’s my take on it. Currently most of us are paying for how fast we download our files, pages, movies, music, etc. then we are capped at that speed. This proposal would cap how much we download as well as our speed. This would be like ordering from Whataburger where you can have your internet access have a thousand combinations. Most home subscribers would not be able to tell how much they are downloading over a months time and who’s to say the providers would be honest if a subscriber wants to check how much they have downloaded. What about those households that have music and movie lovers with 2 or more children of age to download music and movies? You can easily go over the proposed bandwidth caps below.
Timewarner is proposing to charge customers 5, 10, 20, and 40 gigabytes and is between $29.95 to $54.90 a month.
AT&T is proposing to charge customers 60 to 150 gigabytes, but prices are still up in the air.
Why are they (Timewarner & AT&T), the service provider, doing this? My theories are this:
- They are losing money due the increased internet content such as Youtube, Hulu, network broadcasted internet episodes (ABC, CBS, NBC). Using the rate plans would limit on how much we could watch on the internet and would force us back to the TV so they would not loose customers.
- They are losing money to Internet video rental services such as Netflix, Blockbuster, PSN’s (Playstation Network) movie store, and many others.
What are the consequences for the providers?
- Subscribers will migrate to a provider that has a larger cap or one that does not have a cap at all.
Other issues for consumers
- Consumers would not be able host their own family websites out of their own home.
- If you download movies from Netflix, Blockbuster, Playstation Network movie store, etc. you would have to pay for the movie, which you’re doing in the first place, then you would have to pay the service provider to download the movie if you are over your bandwidth cap.
Updates will follow.