& cplSiteName &
Video

CES 2011: Will Consumers Pay Per Bit?

1/12/2011
50%
50%
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
jdc55
50%
50%
jdc55,
User Rank: Light Beer
12/5/2012 | 5:15:28 PM
re: CES 2011: Will Consumers Pay Per Bit?


If the service providers want to start charging for service based on usage I would not have a problem with that. However, I woulod also expect that when they quote a speed to me I would hold them to a service level agreement that specifies a speed and not a "best effort" where nothng is guarenteed.

exaero
50%
50%
exaero,
User Rank: Light Beer
12/5/2012 | 5:15:27 PM
re: CES 2011: Will Consumers Pay Per Bit?


The respondents all seem to assume their bills will go up with usage based billing.  If the question was rephased:  "would you be interesed in a lower cost internet access package with usage limits?"  You may get different answers.    I suspect when the average user says "I use my internet connection all the time", they are referring to how much time they spend in front of a computer or smart phone, not how many HD movies they are downloading per week.   The issue for access providers is really the investment needed to support over the top video services, not telecommuting or web browsing. 

paolo.franzoi
50%
50%
paolo.franzoi,
User Rank: Light Sabre
12/5/2012 | 5:15:25 PM
re: CES 2011: Will Consumers Pay Per Bit?


exaero,


Why would a company implement a more complicated billing mechanism to lower the price?  The only sensible reason to implement this is that people then end up either reducing their service usage (which means that existing infrastructure lasts longer) for the same price OR the average consumer pays more.


 


seven


 

exaero
50%
50%
exaero,
User Rank: Light Beer
12/5/2012 | 5:15:24 PM
re: CES 2011: Will Consumers Pay Per Bit?


I agree that in a stable market where churn is low, like wired internet access, there is little motivation for carriers to reduce prices.  But AT&T did offer lower priced data plans for the iphone when they dropped their unlimited data plans.  


Internet access providers face capital investment challenges as customer adopt over the top video.  Funding for that investment will have to come from somewhere.  It could come from raising prices for subscribers, or from charging content providers for access to subscribers.   Of course if you charge the content providers, they will need to extract that revenue from the subscribers themselves or from advertisers.


This is driving the net neutrality argument.  It appears the FCC is going to forbid charging content providers for access to customers, so from my perspective, usage based access plans are inevitable.   

diogenes00
50%
50%
diogenes00,
User Rank: Light Beer
12/5/2012 | 5:15:23 PM
re: CES 2011: Will Consumers Pay Per Bit?


Perhaps if the telcos offered the information to have more educated consumers? If they came to me and said "on average you use 100 Mb/wk; would you be interested in a lower price with a 100 Mb/wk soft cap, with a additional per-bit pricing over and above that?" I'd be able to respond one way or the other. But without the critical information of how much I'm using currently, I don't see how I'd be able to respond correctly.

paolo.franzoi
50%
50%
paolo.franzoi,
User Rank: Light Sabre
12/5/2012 | 5:15:21 PM
re: CES 2011: Will Consumers Pay Per Bit?


 


The starting cost of the iPhone service dropped...as long as basically you did not use the service.  Which raises the cost of the service.  Which is my point.  The iPhone became a hit with an all you can eat plan.


All of this is what you say in your last paragraph.  The reality is they want consumers to pay more for Internet Access.


seven


 


 


 

Featured Video
From The Founder
The world of virtualization is struggling to wrench itself away from the claws of vendor lock-in, which runs counter to everything that NFV stands for.
Flash Poll
Upcoming Live Events
March 20-22, 2018, Denver Marriott Tech Center
March 22, 2018, Denver, Colorado | Denver Marriott Tech Center
March 28, 2018, Kansas City Convention Center
April 4, 2018, The Westin Dallas Downtown, Dallas
April 9, 2018, Las Vegas Convention Center
May 14-16, 2018, Austin Convention Center
May 14, 2018, Brazos Hall, Austin, Texas
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
Has Europe Switched to a Fiber Diet? Not Yet...
Ray Le Maistre, Editor-in-Chief, 2/15/2018
Will China React to Latest US Huawei, ZTE Slapdown?
Ray Le Maistre, Editor-in-Chief, 2/16/2018
IBM, Microsoft Duke It Out Over Chief Diversity Hire
Sarah Thomas, Director, Women in Comms, 2/15/2018
5G: The Density Question
Dan Jones, Mobile Editor, 2/15/2018
T-Mobile Injects AI Into Customer Service
Kelsey Kusterer Ziser, Editor, 2/16/2018
Animals with Phones
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed