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'Internet Metering' And Its Implications

Should those who use more bandwidth pay more per month for Internet service? The New York Times points out that Internet service providers are currently exploring the idea; Time Warner Cable is conducting an "Internet metering" test in one Texas market, while Comcast has said it would expand its strategy to slow down the Web traffic of so-called bandwidth hogs at peak consumption times. AT&T, meanwhile, said it was considering consumption-based pricing last week: "Based on current trends, total bandwidth in the AT&T network will increase by four times over the next three years," the company said.

The three companies claim that capping broadband use ensures fair Web access for all users, but the Times points out that the tactic "is a throwback to the days of dial-up service" and that "the experiments could have huge implications for the future of the Web," particularly as consumers ramp up their consumption of bandwidth-sucking entertainment.

For one thing, critics say that Internet metering could hold back the convergence of television, computers and the Web. As Jim Louderback, chief executive of Web video provider Revision3, says, "(the Internet) is how we deliver our shows. If all of a sudden our viewers are worried about some sort of a broadband cap, they may think twice about downloading or watching our shows." He worries that consumers might curb their usage just because a cap exists-even if the cap is significantly more than the average users' consumption.

Read the whole story at The New York Times »

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