Wednesday, 11 May 2011

Internet caps for the USA

The Wall Street Journal has a new piece on bandwidth caps in the US. Summary:
If not done right, consumption pricing will cripple innovation," says the respected geek site Ars Technica.

That bit of heavy breathing is characteristic. In reality, data caps are not the acts of monopolists. If every user has an eye on a bandwidth meter, Amazon, Google, Netflix, Apple and every other big Web-based company would have to rethink its business model. The reason is fear of "churn"—in a competitive market, broadband suppliers shy away from "innovation" that annoys customers.

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