MSNBC: Internet providers want to meter usage

http://www.msnbc.msn.com/id/30229181/

By Dan Richman
msnbc.com contributor
updated 7:02 p.m. ET, Wed., April 15, 2009

Internet service providers are currently considering a new kind of monthly bill. Instead of a flat rate, providers like telecom and time warner want put a cap on the amount of bandwidth used by an account and charge when users exceed that amount. some think that "metering could have broad societal effects, including disenfranchising the poor, retarding network growth and discouraging innovation." the reason for the new billing style is because "Cable companies are getting worried that more people are watching TV over the Internet" and consumption-based billing is more equitable. They also say : “The Internet is not yet a utility, defined as a vital service or substance like electricity, water, and heating gas or oil. In a tough economy, it can be eliminated or cut back.”

This new method of charging for internet use could be good for some and bad for others. The article says a bandwidth cap of 20GB would only cost $19.95 per month but a 150GB cap would cost $65. If you happen to be someone that only uses the internet for emails and web browsing, without music and video; a twenty dollar internet bill could save you a lot of money. However if you are someone, like me, that downloads a lot then the even larger subscription might not be enough. If subscribers go over their limit, “the excess usage [is]charged at $1 per gigabyte. AT&T and telecom claim it is to “preserve network quality” but it is transparent they are trying to get the most for their services. As video can be streamed faster through the internet, cable providers are seeing a decline in subscription; this shift in the terms of payment is an attempt to charge users that are getting television content through the web.