AT&T Begins a Trial To Cap, Meter Internet Usage 421
An anonymous reader writes "On the heels of Comcast's decision to implement a 250-GB monthly cap, and Time Warner Cable's exploration of caps and overage fees, DSL Reports notes that AT&T is launching a metered billing trial of their own in Reno, Nevada. According to a filing with the FCC (PDF), AT&T's existing tiers, which range from 768 kbps to 6 Mbps, would see caps ranging from 20 GB to 150 GB per month. Users who exceed those caps would pay an additional $1 per gigabyte, per month."
Cappings effect on net neutrality... (Score:2, Interesting)
... I wonder if this is an easy way of coming down on net neutrality, under the guise of being "rational".
Software updates (Score:5, Interesting)
Cost effectiveness (Score:5, Interesting)
So now they will need to monitor the amount of bandwidth you use, set up a database to keep track of it, change their billing software so it can deal with variable billing, and verify that the customer actually paid the (variable) correct amount. All to collect a few bucks from a few customers.
There's a reason the phone companies go to unlimited calling plans. It means they save big bucks on the hardware and software needed to keep track of your usage. Those systems are not cheap and they eat into the computing power that could be used for routing calls. So instead they jack up your bill by the average amount you would spend, and let you go to town. They still get the money, but they don't have to maintain (as much of) a billing system.
AT&T will try this for a while, realize it's a losing proposition that annoys their customers, and go back to the way it was.
(This assumes rational behavior, of course. That is definitely not a given)
So how much data is that (Score:2, Interesting)
If you could sustain 1Mbyte per sec that's not a bad rate. One would think that if the system was overloaded, you would fall below that. So what technical purpose can such a limit have? It doesn't seem like it has anything to do with demand management. Realistically its for creating tiered pricing structures - that's the only purpose for which it makes any sense.
Upside: Incentive for botnet cleanout. (Score:5, Interesting)
One upside to a unilateral application of bandwidth billing by the ISPs: The implications for Botnets and other malware.
- It provides a financial incentive to users to get their machines cleaned out and keep them that way.
- It provides an easily measurable cost of the traffic imposed by malware, which can then be used in prosecutions against those who deploy and use it.
Which brings up other issues:
- Will AT&T bill for incoming packets? Even those not solicited?
- If you're charged for all incoming packets how do you STOP somebody's botnet from sending you packets? DDoS attacks could become Distributed Denial of Funds...
- Will they charge for ICMP packets?
- How about the packets they use to communicate with and control their modem (which don't even get to the customer's interface)?
If you don't qualify for the faster packages there (Score:3, Interesting)
If you don't qualify for the faster packages there should be no higher then the next level bill. as if you only qualify for 768k and you do 80GB of usage ($80) over instead of the $5- $20 more for the higher levels. They should make it line max with prices levels for how much download that you want. As well having roll over like there cell phone plan has.
Re:Cost effectiveness (Score:3, Interesting)
Ah, but the software modifications are a one-time cost. And the additional metered usage is a revenue source.
They may size the caps so everyone exceeds it a little, thus a subtle price increase to pay for it.
It's not particularly expensive to have software automatically add fees.
Historically, the manual human work required in usage billing was costly.
Now the telcos have it down to an art: due to the advent of cell phones.
Nickel and diming customers for things like $0.10 a text message and $.20 a minute over the monthly minutes is standard fare: they already have software to (in general) handle usage billing.
Extra usage fees for internet will just be an extension of that.
$80/month DSL "Includes 100gb of monthly transfer!" (* fine print: $0.10 in overage fees per kilobyte usage over the monthly usage included with your plan)
Re:They should do it right (Score:2, Interesting)
New Zealand implements a system that seems to work well although the prices are still a little too high for my liking...
You have a published cap, and if you exceed that, you either pay for additional traffic or are throttled to dial-up speed for the rest of the billing period (usually month).
Prices vary a lot for additional traffic and some ISPs do gouge quite deep...
I wonder... (Score:4, Interesting)
I wonder if I could sue my town or state in so limiting my internet choices through government granted monopoly. Given that all of the major players (who get the government granted monopolies) all seem to be moving towards usage caps it would be nice if it was easier for competitors to enter the market. Particularly with download and upload speeds comparable to cable and without the lag of satellite services.
speaker wire (Score:5, Interesting)
Speaker wire is the reason "unlimited" will never exist in pure form. The same people who purchase $8,000 speaker wires are quite convinced that even if they were capped at 1TB/hour for their holographic porn, it would still be a curly hair shy of the real thing.
I'd have no problem with capped download if the cap decayed at a sensible exponential rate, the same way that gmail's free storage ticks ever upward. If the cap doubled every two years (corresponding to a 40% annual cost reduction in the cost of carrying traffic, which I'm certain the optical portions of the backbone achieve), then ten years from now, the current monthly cap would have evolved into the daily cap. At that rate, you're already watching a three hour HD movie every day of your life, or multibooting every Linux distro that every existed at the same time onto your 256 core processor.
Depending on the cost of your speaker wire, this might or might not suffice.
Comment removed (Score:5, Interesting)
Re:Lack of competition (Score:3, Interesting)
You are for published bandwidth caps that are substantially lower than the 'artificial' unknowns of yesterday? I know I've transfered more than 100GB a month...in fact I've transfered 455 GB this past month have have heard NOTHING from my ISP. (btw thats BYTES not bits, and which do you think the telco's will use?)
You also say not to whine about bandwidth caps for $30 a month. Well lets think about this. If you can find $4 per mb/sec connectivity from Cogent...so yea lets say $10 per mb/sec for the case that Cogent is ridiculously cheap (*cough* sprint *cough*), and given the fact that I am a relatively heavy user of bandwidth but only am averaging 1.32 mb/sec for the ENTIRE month...and yet I pay $40ish per month and that is WITH a discount today. Yet my telco is paying how much for that 1.32 mb/sec?
Do some math next time. This is 2008 sir, bandwidth and copper and dark fiber are still plentiful. Bandwidth caps are retarded and ONLY exist to make the telco's rich.
Re:60gigs in Canada (Score:3, Interesting)
unexpected bills often worse than dead datalinks (Score:3, Interesting)
Will the users have the option to choose between paying for the extra bandwidth or cutting off or slowing the data link when the cap is exceeded?
Some users prefer to know that in no event they are going to pay more and would prefer a dead datalink to an unexpected bill.
Actually many of these users prefer this because they don't trust the ISPs to do correct billing: there are many stories of companies around the world, both private and state-owned, that send massive bills at random just to collect more revenue whenever their stock price goes down and want to show better results for the next quarter investor's report.
This thing happens regularly around the world with water utilities, power utilities, telephone operators, mobile phone companies, and Internet providers, primarily in countries where political corruption is high and the law doesn't work.
I don't know whether such things happen in the US, but in other countries it is as regular as rain in the winter and many users specifically try to find fixed-price plans in order not to let providers do this to them.
So, if a company wants to attract those users who are cautious, then it should offer an option to either switch off the datalink until the next month or slow it down to 64 or 128kbps when the cap is exceeded, until again next month (or other billing period).
All's fair... (Score:2, Interesting)
$1/GB charge if I go over 150 GB, then $1/GB discount if I go under.
Re:Cappings effect on net neutrality... (Score:2, Interesting)
No, it has more to do with how much data the snoops can store per person per month, so they are trying to limit it somehow. Their copy of all your data takes a lot of disk space, even with compression. This is a sign they can't keep up.
wow. just wow (Score:4, Interesting)
Re:Software updates (Score:2, Interesting)
"Sir, we're pissing off a lot of people with our newly implemented bandwith policies.. Perhaps we should shift the blame elsewhere?
We could create some statistics blaming a very small portion of our customers for these policies. This would ensure everybody could say 'Hmm, 5% must not be me. But Bob down the street needs to stop torrenting.'
With this plan, everyone can feel blameless. They will blame their neighbor for using an 'unlimited' plan to fit their needs instead."