From: Matthew Moyle-Croft (no email)
Date: Sun Jan 20 2008 - 07:05:51 EST
Simon Leinen wrote:
> While I think this is basically a sound approach, I'm skeptical that
> *slightly* lowering prices will be sufficient to convert 80% of the
> user base from flat to unmetered pricing. Don't underestimate the
> value that people put on not having to think about their consumption.
>
As long as the companies convince people that the "cap" is large enough
to be essentially the same as unmetered then most people won't care and
will take the savings. The other angle is to convince the 95% of
customers that caps will actually deliver them a faster speed as the
"evil 5%ers" won't be slowing them down by hogging the bandwidth.
Having a cap and slowing down afterward (64kbps or 128kbps are typical)
is what worked here in Oz. It also removes a whole lot of credit
related issues. Consumers get a product where they know what they're
getting - it's fast upto a point and then it slows down.
-- Matthew Moyle-Croft - Internode/Agile - Networks Level 3, 132 Grenfell Street, Adelaide, SA 5000 Australia Email: Web: http://www.on.net Direct: +61-8-8228-2909 Mobile: +61-419-900-366 Reception: +61-8-8228-2999 Fax: +61-8-8235-6909 "The difficulty lies, not in the new ideas, but in escaping from the old ones" - John Maynard Keynes
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