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Why Not To Meter Internet Access

A reader writes: "Many experts, especially pundit Bob Metcalfe, have argued that Internet access should be metered so that light users don't have to subsidize flat rates for heavier users. John Levine, author, expert and sewer commissioner, argues that this idea of metering the Internet flies in the face of 100 years of history."

265 comments

  1. British Telecom meters the Internet by mancuskc · · Score: 1

    By not rolling out ASDL - bastards.

    --
    When I were your age, all round here were fields...
  2. And how would you go about this? by markbark · · Score: 1

    Would you charger per bit.... per byte?
    Would you charge for useage or perhaps throttle back those who used too much bandwidth?
    (Jon Katz leaps to mind for some reason )

    1. Re:And how would you go about this? by ChopChopMasterOnion · · Score: 2

      U PUNCTUATIN': BAD

      U SPELLIN': AWFUL

    2. Re:And how would you go about this? by icqqm · · Score: 2

      Yes, actually. My cable provider (thankfully not @Home yet) charges $0.02/MB over the 6GB limit. But essentially it's still a flat rate of $30/month.

    3. Re:And how would you go about this? by Xenu · · Score: 3
      For most communications systems, costs are determined largely by peak usage, not total usage. A telephone system is engineered to provide a certain quality-of-service during peak usage periods, often defined as the busy-hour. That drives the requirements for switch capacity and inter-office trunk lines. Similarly, a dialup ISP has to buy enough modems and phone lines to meet its quality-of-service standards during peak usage periods. One of the justifications for charging more for business subscriber lines is that the business subscribers are the main component of the system's peak usage. Residential users have a different usage pattern, using what would otherwise be idle capacity in the system.

      The tricky part is how do you charge for this? There seem to be two schools, the "cost plus markup" and the "value" school. The telephone companies like the "value" approach, as it generates larger profits. One possibility is to meter usage, but make the rates time dependent. Charge full-rate during peak usage periods and much cheaper rates during off-peak periods.

    4. Re:And how would you go about this? by jguthrie · · Score: 4
      markbark wrote
      Would you charger per bit.... per byte?
      Would you charge for useage or perhaps throttle back those who used too much bandwidth?

      Being in the ISP business, I have a slightly different perspsective on the matter, although I intend to read the full paper, once I get a chance.

      The reason that we've never offered a metered service, even though a few people have asked for one in order to reduce their bills, is because we've never considered the work needed to keep track of users usage for billing purposes to be worth the effort.

      Two answer your question, there are two broad schemes used. The first is the peak bandwidth scheme (used by those who sell "burstable bandwidth") where you pay for the peak data rate you use usually with some averaging and time dependance. (In the most recent deal proposed to me it wasn't clear to me what the penalties were for exceeding the base rate.)

      The second is to simply charge by the bit, possibly with a certain amount provided at the base rate. For example, for 1.5 MB DSL service, you might be given, say, 50 gig per month (which corresponds to a utilization of about 10% of your line's capacity) at the base rate (maybe $10 per month for the bandwidth only.) plus, say, $1 per gig after that. I wouldn't meter outbound traffic at all. There's no point. I also wouldn't meter the traffic from your premise to my equipment, so you can check your mail as often as you'd like or load the Web page that shows your current month's usage without fear that that will put you over your quota.

      I'd suspect that even heavy-duty Web surfers and email addicts would have trouble getting anywhere near the base rate, and I'd offer fixed-rate service (maybe $20 per month) for the Napster users and guys who browse the binaries newsgroups.

      In my opinion, the key to customer acceptance of this mechanism is twofold. First, you need to offer a fixed rate for those people who want it. As the article points out, many people will pay substantially higher for a fixed-rate service than a variable-rate. Second, you have to make it easy for people to know what their usage rate is.

      One reason why people who have cell phones will pay extra for a large flat-rate plan instead of choosing a metered rate plan which might actually cost them less money is uncertainty in their usage. When starting out, most people don't have any idea how much they're going to use their phone. Once they now, then it isn't worth the bother to make the change. Take away that ignorance any fewer people will make that choice. Make it easier to switch and people will.

      I will tell you that although I worked out this scheme in some detail, it's not likely to be put in place. That's because the largest part of the cost of providing the service doesn't have anything to do with the upstream bandwidth, which is all this scheme meters.

    5. Re:And how would you go about this? by Chainsaw+Messiah · · Score: 1
      One of the justifications for charging more for business subscriber lines is that the business subscribers are the main component of the system's peak usage. Residential users have a different usage pattern, using what would otherwise be idle capacity in the system.

      Gotta disagree here. I recently sold my small ISP and what I saw was that I had to plan my capacity based on Residential use, ie. peak times were 7-11pm. I would have loved to have had more business users. They would be online from 9am-5pm when line use was low sparing me from paying for more phone lines. Businesses are charged more because a business would (theoretically) get more value out of the service. And simply because businesses can afford to pay more.

    6. Re:And how would you go about this? by Asgard · · Score: 1

      What about when a script-kiddie who is on a unmetered connection floods your customer; how do you prevent someone else's attack from costing the user money? It is not like they can choose to not receive the traffic.

  3. Just another opportunity for taxation by baywulf · · Score: 1

    If they start metering internet access, next thing you know, they will start adding this, that and another tax to it and *everybody* will start paying more!

  4. Who pays by tetrad · · Score: 1

    Why pay for internet access, when you can get it free? Ok, it's not exactly a T3, but still...

    1. Re:Who pays by icqqm · · Score: 2
      Why pay for internet access, when you can get it free?

      Same reason I don't use CueCat. There are things (like domain names and internet access) that you should pay for even if you could get for free.

    2. Re:Who pays by Anonymous Coward · · Score: 2

      I tried out the Altavista service for a few weeks on my Windows 2000 machine. The thing is, it wasn't just the annoying ad bar across the top that thay seemed to inist on running. A few weeks after I started running their client, I discovered strange log entries on one of my NetBSD machines (located on a 192.168.x.x subnet that the W2K machine is also connected to) that the Windows 2000 machine, with the IP address Altavista was assigning it, was sending some sort of packets to the NetBSD machine. They were probing out and around on other machines on my home network. I started getting a bit more paranoid and decided to set up a non-Administrator account on the W2K machine and only use that to connect to the Internet (I no longer make any connections to the net with Admin level accounts). The Altavista dialer wouldn't work. Apparently they require more access to the machine's resources. I quickly quit using the Altavista account.

      Just thought some of you might be interested. If you're curious and want to make waves against AltaVista, and you are a bit more technically advanced than I am, set up a 'Sacrificial Lamb' machine running NT or Windows 9x and sniff around. I think you'll find that the AltaVista client is poking around where it has no business. Could be a money-making opportunity for a young Linux-head willing to make some waves.

  5. I personally believe... by B00yah · · Score: 1

    In the whole "Netzero" belief. While not being one of their customers, I still believe that the internet should be provided free, not at $20 a month, or 8cents a minute, or whatever the current rate may be.

    1. Re:I personally believe... by icqqm · · Score: 2
      I still believe that the internet should be provided free, not at $20 a month, or 8cents a minute, or whatever the current rate may be.

      And when you can find a web provider who's going to provide service for free and take a loss out of the goodness of their heart (and not go out of business like most dotcoms), let us know.

    2. Re:I personally believe... by dabadab · · Score: 1

      I think he is right.
      We don't pay (at least not directly) for a lot of things - these are paid from our taxes.
      I believe that in a technically sufficiently advanced society free internet would be as natural as, say, free freeways are.

      --
      Real life is overrated.
    3. Re:I personally believe... by bigfunman · · Score: 1

      The problem is that freeways aren't free. You and I are paying for them with our taxes. Big trucks pay a LOT more for their licenses that we do for our light trucks and cars because they use more of the resource in terms of wearing out the roads and requiring stronger foundations, bridges, etc. To argue that it is free is to ignore how it came to be "free".

    4. Re:I personally believe... by walnut · · Score: 3

      Lets discuss free services shal we?

      I currently pay a phone bill, an electrical bill, a wireless bill, cable, rent, my car, buy groceries, and put fuel in my car. I choose not to pay for internet access (lunchtime/morning workbreak instead). I also do not pay for water or heating - two common bills which are covered by my landlord.

      Personally, it would be ideal if I did not have to pay for any of this, but that is equivalent to wishing money grew on trees.

      I classify bills into two types: essential and non-essential. Essential bills cover any survival based service: Water, Electricity, heating, grocery, and housing (rent). Non-essential bills include Phone, Wireless, Cable, a car, gasoline, and ISP access.

      The government subsidises most essential costs for families who are low-income. They do not pay it outright, they do however cheapen or give tax credits for these costs.

      It *could* be argued that all of these bills are non-essential, as there are people who chop their own wood for heating, do not use electricity and grow and hunt for their food. Quite literally I spent the weekend with friends who do this. They have a phone (for business actually), and gas power. If they need electricity *for his laptop* they use car batteries. Soon they will be adding solar to their cabin and actually charge batteries that way. They have gas lights, gas stove and a gas refridgerator. Their house is amazingly warm from the woodstove (though I hear it gets a little nipply during a cold snowstorm if the fire goes out.) Quite honeslty they are making little impact on the environment (they would be getting Nuclear Power - which they are against, and the addition of the solar/wind powers will increase their self-sufficency). Lastly their water is gravity fed not pumped - what exactly that means I am unsure.

      While I grew up in rural Maine, I now live in Boston and I am afforded an amazing amount of conveniences. I however, envy every aspect of that house - it is an engineering dream. They built a nearly autonomous home and are expanding its autonomy from overpriced utilities further.

      But I digress....

      Internet access is so survivally trivial that to even consider that it, of ALL bills, should be free is ludicrous(spelling?). You have no RIGHT to be online. You have no RIGHT to own a computer. You made the decision to purchase a computer, you made the decision to purchase an online service. There was never a question of your survival if you did not.

      I will consider my friend an exception to the system and maintain the "essentiality" of the services I qualified as essential before. Proposal of free online service is silly - as there are many services necessary to survival in modern society which should be free long before ISPs are.

      An ISP is a "PROFFIT" based company. They have every right to charge whatever the hell they feel like (within reason).

      I work for a research engineering firm and to even consider charging half of what we do (let alone offer it for free) is completely ludicrous.

      ---

      --
      You say you want a revolution?
    5. Re:I personally believe... by ahodgson · · Score: 1

      And of the course the government should steal another x% of the GDP in taxes to pay for this in their usual incredibly efficient manner.

      Give me a break.

    6. Re:I personally believe... by Spectre · · Score: 2

      Your friends have to understand their choice of living arrangements may suit them, but they are being very hard on the environment with some of their choices.

      As an example, heating with wood causes far more pollution than using gas or electricity for heat (especially if the electricity comes from a hydroelectric, solar, wind, or nuclear sources). Unfortunately, I don't have the data to compare heating with electicity generated from a coal- or oil-fired plant vs heating with wood.

      On solar power: Unfortunately, solar power costs far too much to generate electricity practically. The only time it is worthwhile to generate electricity from solar power is when the location is too remote to run power lines to from a more conventional source. Unless your friends live in an area unserviced by power lines, their choice of solar power will be a costly one. However, it is their choice, and I am glad they live where they have the freedom to make that choice!

      --
      "Flame away, I wear asbestos underwear"
    7. Re:I personally believe... by mrfunnypants · · Score: 1

      Read Popular Science. New solar panels are coming out which allows solar power to be very viable. In fact they are only able to process a very low % of the power that these panels can collect. With this in mind it is stated by the research scientist that if these panels where placed in Nevada covering I believe 1/4 the state you could power the current worlds need of electricity.

      --
      "Real knowledge is to know the extent of one's ignorance" -Confucius
    8. Re:I personally believe... by alexjohns · · Score: 2

      I agree with your estimation that things like heating, food, and lodging are essential while phone and internet access are not. There are however, many fallacies in your little post.

      Heating with wood is far more detrimental to the environment than most of the other methods. Including nuclear power. As someone who worked in the nuclear industry for 10 years, you're just going to have to take my word on that. (Yes, there are some dirty reactors still in operation but we actually know how to build them right these days. The fact that no one is doing so is unfortunate. Coal fired power plants are even worse on the environment. Ever visit a strip mine?)

      Your friends have a lot of money. Adding solar power to a house is expensive and probably not worth the money in most states in the US. The southwest, Texas, Florida perhaps. Not many other places. Gas stove? Gas costs money. They hunt for their food? On their own land? What would happen if all 300 million of us had to hunt for our food. Your friends' lifestyle is only sustainable because the rest of us live differently.

      The fact that you can survive without phone or internet access doesn't say anything about your quality of life.

      First let's look at lifestyle. If you're the loner type, then moving to a house in the woods might be the thing for you. Man (and woman) is a social animal. Most (>70% I believe) of the US lives in an urban area. We want to be around other people. We want to communicate. Picking up the phone and calling any one of my friends at any time is a convenience and definitely improves the quality of my life.

      Secondly, let's look at money. If you're not rich, how do you achieve a lifestyle of no phone/net access. How many professions (or ways of making money) are left without using the phone or harming the environment. Damn few. You can live in your shack in the woods and proclaim you're not harming the environment, but what do you do for a living?

      And lastly, I believe you're incredibly shortsighted. Right now it's not necessary to have net access. I'm not sure that's going to be true in 50 years. You'll likely get everything but the essentials via the net. Music, books, entertainment, interactive games, etc. You'll be able to get by without it, just like you can get by without a phone today. The Amish do so. Doesn't mean the rest of us want to live that way.

      Perhaps in this day and age online access shouldn't be subsidized, but I see a point in the not too distant future when it becomes necessary. I know that phones are still subsidized for low-income families. I believe that will happen for 'net access also.

      You can proclaim your friends as having less kharmic debt to nature than most of us but the only thing that allows them to do so is the rest of us living differently. 100 million people hunting and searching for fire wood for their families would shortly deplete our forests and game.

      Your friends are not living an ideal life in any absolute sense. Just in your estimation.
      --
      Looking for a job

  6. It already is for some... by GreenCrackBaby · · Score: 1
    I don't know if this is unique to us here in Alberta, but some of us already have metered access. For those of us with cable modems, we get x/y bytes of upload/download per month, and pay metered access afterwards.

    It was just in our paper a few days ago...some poor sot started up napster for the first time, grabbed 100's of songs, and then left their computer on for the rest of the month. $1800 bill at the end.

    Ouch

    --

    "The market alone cannot provide sufficient constraints on corporation's penchant to cause harm." -- Joel Bakan
    1. Re:It already is for some... by Abcd1234 · · Score: 1

      Holy hell! When did they start doing this? I had a cable modem in Edmonton up until this past April (moved to Ontario to do an internship :)... IIRC, it was a flat rate payment plan. Was this with a particular company? I was with Shaw, so maybe they weren't instituting this... Or maybe I just wasn't using enough bandwidth... :)

    2. Re:It already is for some... by ckedge · · Score: 1

      The cable co should have provided a tool (on by default) that warns you every time you use an extra $50 of bandwidth. Or they should e-mail you every $xx or so. Then they just need to allow users to disable these warnings in their account/profile or something...

      Yeah yeah, 'they should know better', but the problem is the *average* person, you know, your mother or grandfather, don't have anywhere near enough techie knowledge. We can do better for them.

    3. Re:It already is for some... by icqqm · · Score: 2

      Note that with the cable service, it's still a flat rate, but there's merely a punishment for abusing the system. It's like getting a ticket for speeding. Someone who transfers 1GB still pays the same as someone who barely uses the service.

    4. Re:It already is for some... by Kwikymart · · Score: 1

      I live in Delta, British Columbia. I have pretty much the same plan as you (for my cable modem). Its 5 GB d/l and 1 GB u/l. If you go past that you are royally screwed over with fees!

      --

      Buying a Dell computer is equivalent to dropping the soap in a prison shower.
  7. John is too modest by Russ+Nelson · · Score: 3

    John is too modest -- he was also involved in creating AIX for IBM. He's much more technical than he's usually portrayed as being (particularly when he writes Dummies books for Windoze lusers).
    -russ

    --
    Don't piss off The Angry Economist
  8. That's nonsense by Dreamland · · Score: 5

    You pay a flat rate to be able to be online 24/7 if you so wish. There's no logic in charging per megabyte to lower the rate for the casual user. Besides, many Ethernet networks are switched these days, so every user has a nominal capacity no matter how much/little bandwith he uses.

    1. Re:That's nonsense by levik · · Score: 2
      The whole point is that it's NOT nonsense. Some people may be willing to pay more for th same internet access, which is precisely what the article says.

      And some people would pay less with a metered plan. Byt a lot of people (includeing me) don't like the restrictions of those, where you will be charged extra if you go over a certain limit. It's nice to no there's no such limit, even if I would have never gone over in the first place. And they always make it seem like it's only a few bucks more...

      --
      Ñ'
    2. Re:That's nonsense by Dreamland · · Score: 3

      You didn't get my point. If you're on a switched Ethernet, and pay per megabyte, you would be paying the ISP for utilizing bandwith which you have already payed for, and noone else can use anyway. Sort of like buying a book, and then paying the publisher for every minute you're reading it. That's nonsense.

    3. Re:That's nonsense by mindstrm · · Score: 3

      Sure. That makes great sense. That's what @home tries to do.
      EXCEPT: they tell you NO SERVERS, it may use too much bandwidth.
      NO UNATTENDED USE. This is for casual web surfing only.
      WE RESERVE THE RIGHT to terminate your connection if you exceed 5GB/month.

      So yes, I'd much rather pay for my bandwidth per byte and have them fuck off and quit telling me what to do.

    4. Re:That's nonsense by Dreamland · · Score: 1

      In Sweden, I don't know any ISP that charges extra money for bandwith usage; they all offer flat rate (usually it's a 10MBit/s connection) and unlimited usage. Wouldn't you rather have that instead of paying for bandwith usage? I don't know about the US, but if i could choose between flat rate, no restriction, and flat rate, restricted, i'd choose the former.

    5. Re:That's nonsense by mpe · · Score: 2

      And some people would pay less with a metered plan.

      Depending on the cost of the overheads involved with metering...

    6. Re:That's nonsense by Col.+Panic · · Score: 1
      usually it's a 10MBit/s connection

      That does it - I'm moving to Sweden :)

    7. Re:That's nonsense by alhaz · · Score: 3

      You are sorely mistaken with regards to the purpose and functionality of switched ethernet.

      Being "switched" does not guarantee you any ammount of bandwidth. Nobody ever even claimed it would, except maybe you.

      It's like this. A switch prevents traffic which does not need to be broadcasted from being broadcasted. By broadcasted i mean, on an unbridged, unswitched network, that is, an ethernet network with only repeaters, when machine E communicates with machine W, all machines from A to Z get a copy of what they said.

      A switch minimizes that so that only traffic which is of unknown destination or that is specifically broadcasted (ARP requests, etc) get repeated to every station.

      A switch is useful in only two situations. One, where you want to be reasonably assured that morons won't be able to sniff other peoples traffic, and Two, where you wish to minimize the ammount of broadcast radiation between segments of a network. But don't be suckered into believing that it is a panacea for either application.

      Furthermore, on homogenous switched networks, ANY one user can prevent ALL OTHER users from communicating with upstream parts of the network by flooding the uplink.

      Guaranteeing bandwidth on ethernet based networks is exceptionally difficult and involves exotic, expensive hardware.

      ATM PVC's used by DSL lines are an entirely different situation but I fear that i would be casting pearls before swine to attempt to explain it.

      --
      This is just like television, only you can see much further.
    8. Re:That's nonsense by Dreamland · · Score: 1

      A switch prevents traffic which does not need to be broadcasted from being broadcasted. And you are claiming that this does not lower the effective bandwith available to a user on a non-switched Ethernet? If that is true, then available bandwith would be independent of the traffic on the line. How convenient, maybe you can use the same reasoning to prove that the risk of getting in a traffic jam is not related to the number of cars on the road?

    9. Re:That's nonsense by MikeTheYak · · Score: 1

      Some people would pay less. Others would pay more. On average, people would probably pay more because of the extra overhead of monitoring bandwidth. There are also the issues of having to pay more money because somebody else wants to ping you. I think the fairest approach is to pay for the width of your pipe, the way most DSL companies work.

    10. Re:That's nonsense by tzanger · · Score: 3

      It's like this. A switch prevents traffic which does not need to be broadcasted from being broadcasted. By broadcasted i mean, on an unbridged, unswitched network, that is, an ethernet network with only repeaters, when machine E communicates with machine W, all machines from A to Z get a copy of what they said.

      You are correct, but the net effect is that it can seem to bring more bandwidth to the individual users through reducing and/or eliminating collisions. If I have a 100Mbps n-way switch, users A and C can talk at 100Mbps while users B and D talk at 100Mbps. The net effect is that there is approximately 200Mbps worth of traffic flowing in that network. If both these same four users tried to do the same thing on a hub they wouldn't get anywhere near 200Mbps total throughput, as the collisions and resultant delays would kill the transfer speed of both "transactions" to well under 100Mbps.

      So yes, you are technically right, but the original poster also has a point, at least in n-way switched LANs.

    11. Re:That's nonsense by jafac · · Score: 1

      How about charging people more for using incorrect grammar and spelling?

      --

      These are my friends, See how they glisten. See this one shine, how he smiles in the light.
    12. Re:That's nonsense by jafac · · Score: 2

      The real danger here is when they charge for hours online, then the ISP has an incentive to provide crappy service - slower connections, slower servers, longer authentication protocols. They can even claim it's in the name of security, but the end result is, revenue goes up.

      --

      These are my friends, See how they glisten. See this one shine, how he smiles in the light.
    13. Re:That's nonsense by slim · · Score: 3

      Unless you're only transferring stuff to and from services at your ISP, all this is moot: it still comes down to the capacity on the ISP's pipes to their peers. These are the expensive links they have to keep upgrading every time RealAudio decide that streaming (insert high bandwidth streamable media) is a good idea... and that drives costs up for *every user*. Will the Quake players still be happy with unmetered access when they suddenly realise they're subsidising Video On Demand users?
      --

    14. Re:That's nonsense by rodgerd · · Score: 1

      That's pretty much my take; my cable provider in New Zealand (I'm stuck in the backward hellhole of the .uk at the moment) will hook me up to a metered ISP or a flat rate one. I took the metered. They give me a static IP and basically have no restrictions on what I do - after all, if I were to run a popular server or gnaptser, I'd just make them richer - they're incented to give me as much connectivity at as high a quality as I can pay for.

      The nz comp newsgroups, OTOH, are full of morons whining about the flat rate service with its huge range of restrictions and poor performance - and I call them morons because they seem unable to grasp that a flat rate incents a provider to provide as little as they can get away with - of course they're going to place restrictions on servers, total usage, etc, etc.

    15. Re:That's nonsense by dbrutus · · Score: 1

      Try Telocity instead. I've gotten a much better deal from them.

      DB

    16. Re:That's nonsense by FunkyDemon · · Score: 1
      I'm on @home and the only restriction I have is the no servers. I have no cap. (I would be screwed if I did with all the ISO's I download).

      The @home service has been so slow lately however that I am switching to DSL where I CAN run servers, but a 5 GB cap if I don't use the proxy (unlimited otherwise). Besides, it's only +$10 per extra gig.....

      FunkyDemon

    17. Re:That's nonsense by tage · · Score: 1
      That does it - I'm moving to Sweden :)

      ...only that the information Dreamland gives is not entirely correct.

      When using a modem connection to the Internet in Sweden, you very much use a metered service. Ths ISP doesn't charge you for time or amount of downloaded bytes, but the phone bill keeps ticking. All the time. No exceptions (except for the toll-free modem pool of the ISP Telia, but then again, they do charge a minute rate equivalent to the phone rate anyways).

      On the broadband market, there are no metered charges. But only two of the broadband ISP:s offer more than 1 Mbps connections: Bredbandsbolaget and Utfors. Both these ISP:s connect only groups of condo's, and require that a cat5 10baseT network is already installed in the building(s). Bredbandsbolaget offers 10 Mbps, while Utfors has several services with connection speeds between 256 kbps and 10 Mbps. Most broadband ISP:s have a service with around 512 kbps connections. Telias ADSL service (the only ADSL service in the country) is 512 kbps, too (mostly because they also own a Cable TV company that offers cable connections to the 'net at 512 kbps and they don't want to use one of their businesses to kill another).

      So far, as far as I know, less than 10.000 swedish households can be connected to the 'net with a 10 Mbps connection. A few hundred thousands of households can be connected through their cable TV operators at 521 kbps. Most everyone can connect through ADSL, but the service was just rolled out and the expected deliverytime for ADSL is between 3 and 18 months.

      /Tage

    18. Re:That's nonsense by Col.+Panic · · Score: 1

      Thanks for all the info. I haven't been there in almost 20 years and when I hear stuff like this I really want to visit.

    19. Re:That's nonsense by mindstrm · · Score: 2

      Perhaps it's regional, but it is there.

      And that's 5GB/month outgoing, not incomingl.

    20. Re:That's nonsense by mpe · · Score: 2

      A switch is useful in only two situations. One, where you want to be reasonably assured that morons won't be able to sniff other peoples traffic, and Two, where you wish to minimize the ammount of broadcast radiation between segments of a network. But don't be suckered into believing that it is a panacea for either application.

      It is also useful if it can allow more than one pair of machines to communicate at once. Which is far more likely to be possible in a purely peer to peer setup. Which is unlikely to be the case with an ISP connection anyway.

  9. Phone Companies by mgriego · · Score: 5

    Local phone companies don't charge metered rates for phone access, why should internet access companies? I'm a real light phone user, but I don't complain about paying $30/mo because someone else is on the phone 24/7 tying up more phone bandwidth.

    --Mike

    1. Re:Phone Companies by jmccay · · Score: 1

      I wonder where you are. Those in the Verizon area do. You are metered and pay for your useage over your aloted time. You can pay extra for unlimited use, but you are still metered. You are just not charged for it.
      Either way, what you pay has accounted for metered rates. They count on people taking the unlimited time and barely using it.

      --
      At the next eco-hypocrisy-meeting, count the private jets used to get to the meeting. Should be interesting to see that
    2. Re:Phone Companies by Junks+Jerzey · · Score: 3

      Local phone companies don't charge metered rates for phone access, why should internet access companies? I'm a real light phone user, but I don't complain about paying $30/mo because someone else is on the phone 24/7 tying up more phone bandwidth.

      These schemes were cooked up based on an average call length which is no longer valid. Telephone exchanges were originally designed to handle a particular load, assuming relatively short average call times. That is, if you assume an average call length of three minutes, you can get by with a much smaller exchange than if you have to assume an average call length of two hours.

    3. Re:Phone Companies by Psmylie · · Score: 1
      You're completely right there. Local calls are "free" (In the US) after you pay your flat monthly fee. For long distance, there are about a thousand different plans to sign up for, dependant on your needs. The same goes for ISPs. If "light" internet users aren't happy with how much they are paying, they should switch to another ISP, or use the local library to check e-mail for free.

      It's not as if there is a problem with bandwith, typically. If there were slowdowns due to high user traffic (over the whole internet, not just a few sites) then I could maybe see a metering system like they have for long distance calling.

      Besides, I have DSL, and I'm already paying more for my connectivity and heavy usage. So there.

      --

      psmylie's dictionary: Godzillion (noun) Any number large enough to destroy Tokyo

    4. Re:Phone Companies by timcuth · · Score: 1

      You are wrong.

      I recently switched from BellSouth metered access because, even though I was on the lowest rate basic plan, I found that flat-rate service had become lower than what I was paying for the metered service.

      I am sure that this was because I was on the phone too much using the Internet, but when I had originally signed up for the metered plan, they had told me that it was capped to never be more than the flat-rate. I guess something changed.

    5. Re:Phone Companies by buck-yar · · Score: 1
      I too live in the U.S. and I've been forced to pay metered service for the past 15 years.

      5 cents a minute peak, 2 cents offpeak outside my exchange

      .5 cents a minute peak, .02 cents offpeak in my exchange

      Luckily FCC caps the local phone bill at $28 a month per line. 8000 minutes a month, metered, is not pretty.

    6. Re:Phone Companies by Meg+Thornton · · Score: 1

      Local phone companies don't charge metered rates for phone access,

      Well, that rather depends on where you are. In countries outside the US, this is pretty much par for the course. Certainly in Australia, we pay a certain amount for the service of having the phone available (about $12 per month) and then we're charged for each individual call we make. Further, for calls outside our local call area, we have metered charges (and this can mean you're paying for a metered call within the same capital city) which are metered by the minute.

      On top of this, there are a lot of ISPs over here which charge either by the hour ($X gets you Y hours per month) or by the megabyte ($X gets you Y megabytes per month) for internet access. Yes, it gets expensive if you're a heavy user (or even a moderate one - I once went over my 100MB limit through a combination of newsgroups, IRC and a little bit of web browsing).

      The world is a very big place, and there's a lot of it which isn't in the USA.

      Meg Thornton.

      --
      Perkin's Postulate: Online tech support is designed to provide everything short of actual help.
    7. Re:Phone Companies by mpe · · Score: 2

      These schemes were cooked up based on an average call length which is no longer valid. Telephone exchanges were originally designed to handle a particular load, assuming relatively short average call times.

      Except that the expensive bit is making the call in the first place. Maintaining the connection is less resource intensive, even when using electronics rather than relays.

    8. Re:Phone Companies by dmforcier · · Score: 1

      Untrue. Most phone companies do have a metered rate plan. E.g. With BellSouth I pay about half the unlimited usage rate which includes 30 local calls. For every call over 30 I pay $0.12.

      --
      You can't take the sky from me!
  10. It is..... by tolan-b · · Score: 1

    In the UK at least, well it used to be... erm...
    Don't AOL charge per minute? Well they used to here at least, and as local calls have never been free in the UK we've virtually had metering through the phone bill (there are 0800 - freephone providers now, but that's only happened in the last year or so).
    Did I make a point just then or just blather?

  11. How very Ameri-centric. by Moderation+abuser · · Score: 1

    In most of the world, Internet access *IS* metered.

    Just because you are in in America doesn't mean that I am. This is the Internet you know.

    --
    Government of the people, by corporate executives, for corporate profits.
    1. Re:How very Ameri-centric. by Christopher+Bibbs · · Score: 2

      Yes, and like the article says that's one of the reasons adoption of the Internet has been slower there.

      Everything is written from a clearly American perspective. They aren't "consumer" but "American consumers". Why try and bash it for this?

    2. Re:How very Ameri-centric. by mikael_j · · Score: 1

      I saw some statistics on how large a percentage of the population that had broadband access at home, the US came in fourth (after Sweden,Norway and Finland i think)
      That's right, the rest of the world isn't just developing countries...

      Mikael Jacobson

      --
      Greylisting is to SMTP as NAT is to IPv4
    3. Re:How very Ameri-centric. by Anonymous Coward · · Score: 1
      Indeed. And I'm a Labrador Retriever, and irritated that the Internet is so human-centric.

      Deal with it. . . .

    4. Re:How very Ameri-centric. by barooo · · Score: 1

      And the rest of the world does a lot of other stuff different from America, as well. Sometimes they're right, but a lot of the time they're downright bass-ackwards, in my American view.

      The article was making a statement about the way things should be, not about what is, and is backed up (seemingly) by some numbers, research and thought.

      --
      One more drink, and I'll move on. --Dave Matthews Band
    5. Re:How very Ameri-centric. by StormReaver · · Score: 1

      It may be true that most of the world's (geographically speaking) Internet access is metered, but the vast majority of Internet users are in the United States. The article is saying that this is in no small part do to flat rate Internet access, a position with which I entirely agree. I would never have signed up for Internet access if I had to pay a metered rate. In fact, the flat rate is largely responsible for the decline in large national BBS providers such as Delphi and Compuserve (which got the name Compu$pend for its high cost due to metered service) because the Internet was a flat rate and these services were metered. The vast majority of users of those systems were spending MUCH more per month for access than they would have to spend on the Internet. Plus, the Internet offered much more to users than the other services. A flat rate and better reach was an unbeatable proposition.

      Americans would never accept metered Internet after having gotten used to unlimited access for a flat monthly fee anymore than we would accept metered telephone service after having taken flat local service for granted. There would be riots and violent protests. It doesn't surprise me to see Bob Metcalf argue in favor of metered service. He intentionally spouts the most inane and stupid things in order to get hits from his articles. A guy has one good accident (Ethernet), and suddenly people think he knows something about what dribbles out of his mouth (or out of his keyboard).

    6. Re:How very Ameri-centric. by Mignon · · Score: 3
      "American consumers"

      That's redundant.

    7. Re:How very Ameri-centric. by ichimunki · · Score: 2

      Americans are more than able and willing to understand metered service, we have it for everything from electricity to water to cell phones. In fact there are lots of ISPs that offer a variety of plans based on peak time usage (which affects the cost of a modem pool) which consumers can use to reduce the cost of having an internet connection. Finally, by saying the usage is "unlimited" this really twists the sense of the word. I do not have "unlimited" bandwidth if I'm connecting 24-7 through a 56k. I have 24*7*56k total available to me in any week (the formula is off, but you get the idea). It is up to me as a consumer to maximize my bandwidth usage so that I take advantage of that (unlikely that I'm going to saturate my modem line like that, no matter how hard I try). If I want more connectivity than that (per month total) or want to achieve higher transfer rates on a more discrete time basis I have to pay more for something like cable, DSL, T1, or some other better service. So really, usage is already metered. I'd say the biggest reason not to try to whittle down the $20/mth for the average 56k dialup is that I'd have to start religiously avoiding web pages with a lot of graphics, and things like that in order to end up going over my total monthly bandwidth allowance... and frankly, it's worth $20 a month to me to not have to do that. And if I had an even faster connection, I'd have to be even more careful not to run up a bill since I'd be able to download larger files much faster-- I'd rather pay the $40-$70/month for a cable line or DSL on the basic assumption that I'm going to let most of my available bandwidth go to waste-- the same assumption I make when I buy flat rate "unlimited" local service for my home phone (even though there is metered phone service available, which is much cheaper).

      --
      I do not have a signature
  12. Stamps by gattaca · · Score: 5

    The cost of letter-delivery used to be calculated according to the distance the letter was going to go. One of the first things that Babagge did (way before he designed the difference engine) was point out that it cost more to do the calculation than it did to deliver the letter. Hence the flat rate stamp was born.
    I would have thought that the same sort of thing is probably true for Internet access - especially since sending data down a wire is just as expensive as not sending data down the same wire, once the wire has been laid.

    1. Re:Stamps by billybob2001 · · Score: 1
      So why can't I send a package (say around 50-100 pounds in weight) using a letter flat-rate stamp?

      You mean there's a cut-off in a kind of band-width-analogy-type-of-way?

    2. Re:Stamps by gattaca · · Score: 1

      Yes -exactly...
      :-)

    3. Re:Stamps by fatphil · · Score: 1

      "
      The cost of letter-delivery used to be calculated according to the distance the letter was going to go.
      "

      Am I missing something, or am I being ripped off?
      I seem to remember that things cost more to send internationally.

      "
      especially since sending data down a wire is just as expensive as not sending data down the same wire, once the wire has been laid.
      "

      Total garbage.
      What land are you in? Switched data or packet data?
      Switched: You try condensing 180 64K timeslots onto a T1 link. Thats' why standards like V52 have been invented.

      Packet: You try multiplexing 70 streams of 28-2048Kb/s onto a single 2M line. Is it easier when every line has a 90% duty cycle or a 1% duty cycle? (I'm sure every connectivity provider does this, I know that mine (www.dna.fi) does)

      Oh, looks like my compile has finished, I must go and check the functionality of the V52 user ports on that shiny piece of nokia equipment sitting in the lab where I work...

      Or have I just been trolled?

      FatPhil

      --
      Also FatPhil on SoylentNews, id 863
    4. Re:Stamps by gattaca · · Score: 1
      Sorry I wasn't trolling, although I realise I could have been a little more explicit in my original post...


      >Am I missing something, or am I being ripped off?
      >I seem to remember that things cost more to send internationally.


      I don't know how much international post there was from the UK when they did that calculation... I think I could have expressed myself if I'd said 'flat rate throughout the UK'. ... I guess charging more to read Slashdot down an expensive transatlantic link would be analagous to charging more for international mail.

      As far as the comment about wires is concerned, I agree that different types of network infrastructure cost different amounts and so on, but that isn't my point.

      My point is that it costs nothing to actually send a byte down a wire, the cost is in putting the infrastructure in place and keeping it going (or am I missing something?). So calculating a 'cost per byte' for a metering system is a bit odd, because it's totally dependent on the number of bytes being sent.

    5. Re:Stamps by gattaca · · Score: 1
      A wire can only carry so much data.


      When it's full, everyone else has to suffer.



      I totally agree - that's not my point. Once you've paid for your wire and your electricity bill, the cost of sending data is free. Sure, charge per minute, or byte to stop people forcing you to buy a fatter cable, but I'm under the impression that that's going to be less and less of an issue in the future.

    6. Re:Stamps by SuperKendall · · Score: 1

      Gee, almost similar to how using bandwith that went off-planet (sy to mars or a moon base) would probably cost more than sending bits around the planet. You are just not matching scale correctly.

      --
      "There is more worth loving than we have strength to love." - Brian Jay Stanley
    7. Re:Stamps by Fizgig · · Score: 1

      I would have thought that the same sort of thing is probably true for Internet access - especially since sending data down a wire is just as expensive as not sending data down the same wire, once the wire has been laid.

      Setting aside the possibility that they can charge you more (maybe they can't, or it would be too difficult, as you point out), you still have the "tragedy of the commons". If there's no incremental charge for bandwidth, there's no incentive not to use as much as you possbily can, leaving Napster on, running a warez ftp site, etc.

      A lot of people here tend to say "I paid for it; let me do what I want", but in the all-you-can-eat plan, you're not really paying for unlimited bandwidth. You're paying for your share of the bandwidth and happen to receive unlimited bandwidth. The two ways to prevent abuse are incremental charges or just going after abusers explicitly ("Stop that! No bandwidth for you!") Are there any other good solutions for preventating bandwidth-hoarding under an all-you-can-eat plan?

    8. Re:Stamps by jafac · · Score: 3

      If only that kind of logic held true for Income Tax. . .

      --

      These are my friends, See how they glisten. See this one shine, how he smiles in the light.
    9. Re:Stamps by egburr · · Score: 1
      Am I missing something, or am I being ripped off? I seem to remember that things cost more to send internationally.

      What's happening here is that you are paying the post office of each country your letter has to go through. Your country's part of the postage is probably the same flat rate, but that only gets you to the border. Then the next country's post office has to deliver it from there, and they're not going to do it for free.

      Edward Burr

      --

      Edward Burr
      Having a smoking section in a restaurant is like having a peeing section in a swimming pool.
    10. Re:Stamps by Tony+Shepps · · Score: 3
      I can't decide which irony-n-sarcasm-filled reply to use here, so you decide:

      • Luckily, since Babbage's day, we have made some progress in the amount of time needed to calculate things.
      - or -
      • If only Babbage had made such a statement after developing his engine.
      - or -
      • What a wonderful idea: let's model the Internet after the Post Office.

      --
    11. Re:Stamps by PiEquals3 · · Score: 1
      The first thing to do is validate the assumption that bandwidth-hoarding is really a problem.
      i.e. Are there really enough people (down|up)loading craploads of .. uh.. crap all the time such that the other users' access is significantly impaired?

      It's true that flat-rate charges don't discourage bandwidth hoarding, but does it need discouraging? My experience has not been that it does.

      I hope I can do this politely.. your attitude annoys (not offends) me. I prefer that someone know that I am abusing some resource before they limit my use of it on the grounds that I might. Human beings (even internet users) are savages, granted, but most of us are not infants. We are nobody's charges but our own.

      --

      --

      --
      Pay no attention to the errors in my post. I am the great and powerful Oz.

    12. Re:Stamps by plunge · · Score: 2

      No one is limiting your use. They're simply asking that you pay for it. The whole problem with a flat rate is that it ends up being calculated by the average amount of bandwidth use. And as you must understand- supplying bandwidth costs money. But therefore, people who use that bandwidth only minimally are essentialy subsidizing users who use lots more bandwidth- it isn't an issue of hoarding, but rather one of different people needing different things. If I only want to use a tiny amount of bandwidth to check my email twice everyday, I should be able to pay a much smaller price than someone who wants to leave napster on 24/7. And this is a good thing! Because it means that people with very little money will still be able to afford SOME access, rather than a monthly bill to high for them to pay. Plus, it means that high load users can, if they want, buy more. What shouldn't be charged for on the net is distance. That concept is obsolete even for the phone companies (it's just that they are required by law (and telecom law is the most byzantine and insane of all industry regulations) to charge you for distance, even if you travel entirely in, say BEll Atlantic's network). One thing that COULD happen, however, is metered charges depending on volume of traffic over a certain line. So looking at a site in Japan might cost more not because it's far away (meaningless) but because at the hour you used it, tons of other people were jockying for that same amount of bandwidth to Japan. The REAL importance of market metering, however, is that it allocates resources properly. Instead of everyone trying to slashdot a site all at once, and no one getting anything worthwhile, when the bandwidth to that site is metered, people as a group will spread out their use to avoid extra charges for trying to access already crowded pipes. This efficiency not only helps allocate resources better, but is better overall for the net, bringing down the aboslute cost of bandwidth as well.

    13. Re:Stamps by oh+shoot · · Score: 1

      One thing you are forgetting is that time spent online is one of the many stats that ISPs keep (or can easily calculate) anyway. Also, counting seconds is far easier than calculating distance. Besides, my computer can calculate more in one second than the average city could in Babbage's day.

      --Jeff

    14. Re:Stamps by Fizgig · · Score: 1

      I'm not sure what about my attitude annoys you, but I'm sorry. You seem to be attributing to me opinions I didn't express, or at least exagerrating them.

      At my school Napster takes 70% of outbound bandwidth at peak times. The rest of the 30% is taken up for other uses, such as say, email and regular file transfers. I don't use Napster, so all of this use is hurting my relatively meager bandwidth usage.

      They currently don't limit bandwidth use at all (it's not particularly feasible, anyway), but if they did (saying, for instance, you will be charged appropriately if you're uploading more than a half gig a day) would that be wrong?

      Nowhere did I say that charging was preferable to explicitly limiting abusers, but I was saying that people on slashdot don't tend to like either solution. On the one hand they say they won't pay usage-based fees. On the other hand, you have people complaining that they can't host commercial websites over their flat-rate @Home connections. You're certainly free to have both opinions at the same time, but it doesn't make any economic sense.

    15. Re:Stamps by maraist · · Score: 2


      A wire can only carry so much data.

      When it's full, everyone else has to suffer.


      Not necessarily true. You offer Quality of Service to your high-paying customers. Filter out a percentage of packets from your variable rate customers. POTS Telephone lines (like modem connections) have a fixed channel rate, and could seriously disrupt things if sample-packets are periodically dropped. ISDN, DSL and T1's however are all digital, and entire frames are droppable since the end points can recover.

      The carrier marks your Point-to-Point interface with a QOS which ultimately determines the drop-rate. The average user would be tied down during peek-hours. They'd have to spend more for peek-hour use just like current long-distance services.
      Long distance carriers can afford to do 24/7 same-pricing only because they're gambling that people make mainly regional calls. With the internet, that's not the case. We're all over the world and back several times in an evening.

      Monitoring that BW at every point and probagating trunk charges would be insane. Major trunks or backbones couldn't keep up with the volume of charging data (especially in light of their having a fixed cost no matter who sends to whom). It's only the ISPs with hundreds of home-connections and one or more major trunk connections that would have any incentive for this. And that's what we see today. For anything higher than a fixed cost modem-line, you pay proportional to the BW.

      --
      -Michael
    16. Re:Stamps by stripes · · Score: 2
      What shouldn't be charged for on the net is distance. That concept is obsolete even for the phone companies (it's just that they are required by law (and telecom law is the most byzantine and insane of all industry regulations) to charge you for distance, even if you travel entirely in, say BEll Atlantic's network).

      What makes you think a "long distance" packet doesn't really cost more money to send then a "short distance" one? If you send a packet up your ADSL line to someone down the block (who is signe up with the ISP) the packet will go up your ADSL line, maybe across a DSLAM, into some manner of router, maybe to another router in the same hub across a relitavly cheap gigabit ethernet (or maybe just 100Mbit).

      If you send the same packet from VA to NJ you also involve one or more long haul links which have a large monthly cost. Sure you use a tiny bit of it, but if you packet it part of the peak demand, then it is part of what causes the next round of expansion (if it is off peak then it is essensally free).

      If you send the packet from VA to Europe there are even more expensave links involved. (very very costly undersea links...expensave links in countries where the PTT has a monopoly, or effectave monopoly on data lines...)

      If you cross from one ISP to another you have the cost of the links, and you have the cost of whatever polotics needed to be run through to get peering, or dollars to be a "wholesale reseller", and monthly rent on more space in the middle of some telco facility, and...

      I don't think it is a good idea to charge for long-distance Internet traffic, but the idea that distance is free is just wrong. I think the cost of even finding the cost for IP packets would excede the cost of the packet, let alone the cost of recording it! Even if it didn't nobody would want to pay.

    17. Re:Stamps by sjames · · Score: 2

      What makes you think a "long distance" packet doesn't really cost more money to send then a "short distance" one? If you send a packet up your ADSL line to someone down the block (who is signe up with the ISP) the packet will go up your ADSL line, maybe across a DSLAM, into some manner of router, maybe to another router in the same hub across a relitavly cheap gigabit ethernet (or maybe just 100Mbit).

      Have some fun with traceroute. I have sent packets to a location only a few miles away that got routed (in several hops) across several states and then back down (through different states) only to arrive a short distance away. If it really cost much more to do that, I'm certain that the various providers would have made sure that such routes didn't happen.

      The real costs are based on peak usage. The equipment needed to maintain 10Gb is much more expensive than that needed to maintain 28Kb. The long route I saw will be eliminated when enough packets take that route to require equipment upgrades. At that point, the cost of adding a peer route locally (possably as cheap as 20 feet of Cat-5, possably as expensive as laying several miles of new fiber and 2 new switches + rack space) will be compared to the cost of upgrading the existing route.

      In the cost equasion, there is never any benefit to carrying less than peak traffic (though in reality, that happens all the time). So, someone sucking up an extra Mb at peak time on a network running at capacity costs real money. The same person doing the same thing at 3:00 A.M. with a network at 10% capacity costs nothing.

      Costs also involve a lot of other factors such as the difference between simply charging everyone in the user database the same thing and not worrying about invoices vs. actually measuring the average peak used for each user, producing an invoice (electronic or paper), charging the various amounts, and fielding questions from customers who don't understand why they got a high bill this month, or who feel that they were over charged. Include in the latter category those who feel certain enough (right or wrong) to actually refuse to pay.

      To top it all off, there's the guy down the street who's just getting started and charges a flat rate to entice your customers away.

    18. Re:Stamps by plunge · · Score: 2

      You are right, so am i, and the guy above you and below me is wrong.

    19. Re:Stamps by sjames · · Score: 2

      You are right, so am i, and the guy above you and below me is wrong.

      Actually, I was just providing information one could base an opinion on. Personally, I feel that in many cases the issues in the last paragraph can be expensive enough to make adding a bit more pipe or just clamping bandwidth during peak hours cheaper than metering.

      That includes low usage customers. You'd never notice the clamps since you're not a big consumer. High usage customers would likely use cron jobs to do their transfers at 3AM or just attribute the slowdown to heavy traffic (somewhat true no less). Any savings you might see based on your low usage would be eaten up paying for the overhead of actually measuring your low usage and billing every customer a different amount.

      There is a good arguement for simply offering broad categories of usage and using a traffic shaper to enforce it. Low use for the person who is primarily interested in email and light surfing, moderate for most people at about 33Kb and a high usage bracket providing DSL like limits. Possably a HAWG usage for people who do Napster 24/7. For the person who really is only interested in email, an email only account is also a possability.

      A well configured shaper would allow any category to burst to full capacity briefly and only clamp it down as it approaches the usage pattern of the next category. In the best case, the shaper would only go into effect if the usage would push the ISP's average peak higher or starve other users' bandwidth.

      Short summary: I believe there probably is room for multi-level flat rate service, but metering is probably too much of a pain.

      It is also worth noting that most ISP's now don't have any traffic shaping provisions. You'll notice that dialup users don't get committed rates at all.

  13. Ok. And? by Nidhogg · · Score: 4
    What the article fails to point out is the benefit to the company on having a flatrate billing plan. You have an account. You pay this much. We care not what you do with it.

    Instituting any metering system will raise the operating costs due to the trouble it takes to track usage.

    And how exactly would you do that anyway. Total bits per month? Total online time?

    Too many variables and way too open for abuse by unsavory providers. There's little wrong with a flat rate system IMHO.

    1. Re:Ok. And? by jejones · · Score: 1

      Well, yes, but...one of the things that is wrong with a flat rate system is that it encourages abuse. A metered system would have stopped spam right away, by making it cost something proportional to the amount sent.

    2. Re:Ok. And? by Nidhogg · · Score: 1
      Hrmm. Good point.

      My only response to that would be the fact that the number of 'average' users is way above the number of spammers out there. And I've never been a fan of punishing the majority because a minority of idjits ruin it for everyone. But that's just me.

      Thanks for the reply.

    3. Re:Ok. And? by ackthpt · · Score: 2

      Instituting any metering system will raise the operating costs due to the trouble it takes to track usage.
      ... ..too open for abuse by unsavory providers.

      Since you didn't spell it out, once they are logging the use, they also can log what we do, where we link, etc. and sell it. Yeah, bug ol can of worms.


      --
      Chief Frog Inspector

      --

      A feeling of having made the same mistake before: Deja Foobar
    4. Re:Ok. And? by Nidhogg · · Score: 1
      Well I didn't mean that specifically but that's true.

      What I had more in mind was 'You downed 7.8G last month. You owe $foo.00'. I wouldn't know if that was true or not. I just don't track my usage that closely. And I have no desire to.

      Under a metered system what's to prevent them from inflating the usage statistics? Logs? Please. All of us on here know about the reliability of logs.

    5. Re:Ok. And? by bigfunman · · Score: 2

      Having a flatrate account is a great thing from the billing side (I am an ISP) in that it makes things easy. However, we reserve the right to boink users who think $39 will get them a T1's worth of unique incoming bandwidth, meaning stuff I can't cache locally. Even with local caching the cost of the telco ATM connection becomes an issue if one user is hogging the resource. If all of the users are reasonable (we have a wide range for reasonable) then there is no problem. We have only boinked one user because he thought it was his constitutional right to consume $12oo of service while paying me $69. It is all about economics, some use more and some use less but the average works out where I get enough money to pay my employees and the house payment and that is good enough for me.

    6. Re:Ok. And? by sulli · · Score: 3
      Instituting any metering system will raise the operating costs due to the trouble it takes to track usage.

      I work for a major national ISP, and this is absolutely true. Metering usage requires large amounts of engineering, significant new equipment, support systems, etc. - and leads to vast amounts of customer support calls for a few bucks in service charges. Just not worth it. Even in dial-up service, you only meter usage if you have to - e.g. 800 dial-up, where costs are fairly high - not in basic service.

      Also, it's a competitive market, and customers want flat rate, so that's what we give them.

      It's interesting: every couple of months, some fancy-pants vendor sends me a package in the mail promising "You can charge for usage! Make money on QoS! Decommoditize Internet access with VPNs, traffic shaping, etc.!" I don't have a single customer willing to pay for such a thing, so into the can they go. So the vendor names keep changing, and not because they sell out to Cisco.

      The old KISS rule makes the most sense in the ISP biz. Avoid confusing your customers and they'll be more likely to buy and upgrade.

      --

      sulli
      RTFJ.
    7. Re:Ok. And? by mks113 · · Score: 1

      I'm happy with my ISP. I get 5 Gig transfer a month on my ADSL. For an extra $15/month I can get 20 Gigs. I can run a home network or a server within the AUP -- as long as I don't resell bandwidth. Every month on my phone bill I'm told exactly how much bandwith I've used. In fact I can look it up daily on their website.

      Metering isn't a technological issue, it is a psycological issue.

      I've never come close to my 5 gig limit, except when I first installed Gnutella and let it run for a few days!

      I for one will not be switching over to @home when they become available. The AUP would shut down my server and home network. I'll take the bandwidth restriction any day. After all, somebody has to pay for the bandwidth, why shouldn't the very heavy users have to pay their share?

      Now if they'd only give me a static ip for less than $30/month!

    8. Re:Ok. And? by KenSeymour · · Score: 1

      The ideal system from the ISPs perspective would be one which monitor TCP/IP traffic against each user.

      The "high-traffic" users could be marked and you
      could have the router start dropping packets for those users.
      The one or two abusers would decide "this ISP sucks" and switch to another.

      So you modify a Radius deamon to provide a map of IP numbers to users and mod the routing code on a Linux box doing your routing.

      A piece of cake!

      --
      "We can't solve problems by using the same kind of thinking we used when we created them." -- Albert Einstein
    9. Re:Ok. And? by bigfunman · · Score: 1

      Actually, I never advertised unlimited usage and no, I'm not an asshole, except of course when dealing with anonymous cowards. When we offer service to our clients we explain the pro's and con's to each of our plans and let the user choose. We allow a very wide range of tolerance within each of those plans because I have found that a user may do a considerable amount of downloading on month trying to get the perfect linux distro installed with all the goodies, and the next month have significantly less usage. What I will not ever support is a client who thinks he can set up his system to continuously download warez from the newsgroups a 1.2 mbits/sec but not pay for bandwidth required to support that level. If you think that you should be able to do that at a fraction of what it cost then in reality you are the asshole, but you have already established that with your initial post.

    10. Re:Ok. And? by plague3106 · · Score: 1

      Well do you advertise unlimited internet access? If so, he's entitiled to use all the bandwidth he wants. It sounds more like the ISP you work for needs to implement bandwidth throttling per user. But if you don't, and you didn't state anywhere then he has the right to use as much as he wants. I don't recall in my isp contract them saying 'now try not to hog it all.' Actually i know my ISP prevents this.

  14. I thought everybody knew this by OlympicSponsor · · Score: 2

    In packet networks (postal system, internet, etc) the cost to transmit doesn't rise proportional to the number or size of the packets but as the number of switch point.
    --
    An abstained vote is a vote for Bush and Gore.

    --
    Non-meta-modded "Overrated" mods are killing Slashdot
    (Hey Ryan! Here's your proof!)
    1. Re:I thought everybody knew this by fatphil · · Score: 1

      If you excede capacity of your current connection and buy a new connection, then it costs twice as much.
      Therefore usage and cost are correlated.

      --
      Also FatPhil on SoylentNews, id 863
    2. Re:I thought everybody knew this by rtaylor · · Score: 1

      Arguably that would be a change in switch point positioning or addition of a switch point which makes it assosciated with that cost rather than the bandwidth it carries.

      --
      Rod Taylor
  15. Why Not by timwynne · · Score: 1

    It seems pretty clear. Get what you pay for.

    --
    -- Profound quotes need not apply
  16. Do it like business phone service by NetFu · · Score: 1

    This should and probably will be handled like business phone service -- we (businesses) pay much more for all phone services than residential customers because we are subsidizing residential users. At least that's the way it is here in the U.S., but I think it's different in some other countries.

    Because it is this way here in the U.S. you rarely, if ever, find an existing apartment or house without a phone line. Go to Spain or France (for instance) and that's far from the case. One customer of ours told me that she had to pay over $1000 to get a phone line installed in her apartment, not to mention paying per-minute charges for all phone calls including local calls. (residential customers in the U.S. typically pay maybe $50, at most, to "turn on" phone service and local calls are always free)

    So, I think the best way to get the internet into as many homes as possible is the way we got phone lines into every residence here in the U.S. -- have business subsidize it as much as possible because they are heavier users, generally. In fact, do that and cut my home connection fees in half, please (I have my wonderful cable modem in my house and regular modem dial-up for my laptops).

  17. The Internet is not a monopoly by CaseStudy · · Score: 1

    If Internet usage should be metered, you'd think that an ISP would offer such a pricing plan, and that it would be more popular for those light users, making the ISP more successful than its competitors until they too changed their plans. It's been tried (by the hour, AFAIK not by the byte), and it wasn't. People generally preferred the flat rate. Personally, I'd prefer a reasonable flat rate for other utilities as well. The reason there isn't one (aside from oligopoly/cartel theories) is that those resources are in more need of conservation, and a flat rate would encourage overconsumption. Overconsumption of bandwidth is not a problem in the same sense that overconsumption of fossil fuels is.

  18. metering is dumb by AiY · · Score: 1

    Does it not seem obvious that flat-rate access is what powered the internet growth in North America? Europe has never seen the same internet growth because of metered local phone lines. The rebutal in the article made a good arguement and I agree with it. Companies will see a profit with fewer users if they use a flat-rate model. This in turn will lead to more people using the internet.

    --
    "You need a license to buy a gun, but they'll sell anyone a stamp." - Red Green
  19. Why is this an issue? by p0d · · Score: 1

    Flat rate dialup is cheap (20 a month), with DSL/Cable being between 30 and 90 a month...are computer users that poor that they can't cough up a twenty for the access? US/Canada only of course...I can understand metered access in say Europe or Asia...with the gov't telcos and all..but for US users, I really don't understand why this is a big deal...

  20. 1.5mb DSL = 512k DSL? by Limecron · · Score: 1

    Recently, I have been considering getting a DSL connection from a non-telco provider. This article raises some issues for me. If I get a 1.5mb/sec DSL connection, I don't have any guarantee of getting 1.5mb/sec of useable bandwidth. Likewise, if I get a 512k DSL, will I even be guranteed that much?

    I should just cave a get a T1 from UUNet... I mean it's $2000/mo vs $200/mo but I bet I could pull way more off of UUNet... Someone should do
    some tests and comparisons on this stuff.

    1. Re:1.5mb DSL = 512k DSL? by aufait · · Score: 2
      Recently, I have been considering getting a DSL connection from a non-telco provider. This article raises some issues for me. If I get a 1.5mb/sec DSL connection, I don't have any guarantee of getting 1.5mb/sec of useable bandwidth. Likewise, if I get a 512k DSL, will I even be guranteed that much?

      The same holds true if you get a T1. All ISPs oversubscribe their bandwidth. If everyone maxed out their T1 connection at the same time, the ISPs connection would be saturated and individual customers would get less then they are paying for.

      The ISPs can do this because most T1 users do not use their full bandwidth at the same time: Law of Large Numbers. The difference in quality between ISPs is the amount that they will oversubscribe the available bandwidth.

      --
      I feel like picking a fight with everyone who thinks they are right. - Rainmakers
  21. So? by Placido · · Score: 1

    It might fly in the face of 100 years of history but that doesn't mean
    a) it's wrong
    b) it won't work.

    My ten cents.

    --

    Pinky: "What are we going to do tomorrow night Brain?"
    Brain: "I would tell you Pinky but this 120 char limi
  22. Let the free market sort it out! by NineNine · · Score: 1

    Let the free market sort it out! This is along the same lines of the Impending Internet Traffic Jam of Doom that was prophesized years ago. Of course, market forces made the big pipes bigger. No problem. No, market forces will continue to guide Internet access. AOL users are generally light users. They pay for x number of hours each month. DSL users pay a larger, flat fee for a amount of bandwidth, for unlimited hours. There's nothing to do about this. It's not even an issue. The market will work it out.

  23. Sounds like a salesdroid speaking.. by _Mustang · · Score: 1

    This makes economic sense even if the cost of providing the service to both is the same, although, ironically, consumers tend to feel cheated if they find out.

    Why are these people always surprised when this type of behaviour backfires? The role of sales seems to have shifted; from filling needs customers have, we instead have this constant bombardment of useless don't need crap which sales invariably passes off as absolute necessities. And how do they do it; by lying to customers and telling them that the Customer is #1 and that each customer is AS important as the next, at least until the sale is made. Naturally the definition of important is based largely on how expensively a good/service costs- the lower the price the more important the customer, right?

  24. You should still be able to get a flat rate by Greyfox · · Score: 3
    MCI'll be happy to lease you an E1 for $2000 a month. As packed as places like London are, I'm surprised people aren't slinging ethernet out their windows and setting up Microwave links.

    Anyway, I suppose that really was your $.02.

    --

    I'm trying to teach myself to set people on fire with my mind... Is it hot in here?

    1. Re:You should still be able to get a flat rate by Pope+Slackman · · Score: 3

      I'm surprised people aren't slinging ethernet out their windows and setting up Microwave links.

      Me too. Community networks seem like a really cool idea for a situation where lower bandwith links are expensive.
      Maybe it's just that there's not usually a 'critical mass' of users that have the time, expertise, and money to start a community net.
      I wonder if it will start becoming more popular to build small local nets now that RadioLAN cards are becoming cheaper and more available...

      --K
      Just my (unmetered) .02
      ---

  25. Oh Great.. by mp3car · · Score: 4

    Now I need to decide if its worth .05 cents to refresh slashdot to see if there are any new items of interest! Yes, lets destroy a system that works well for the masses to benefit those who cannot use AOL correctly.

    1. Re:Oh Great.. by bv3nut · · Score: 1

      I think you have forgetten that those who cannot use AOL correctly are the masses.

    2. Re:Oh Great.. by erotus · · Score: 1

      I agree with your sentiments wholeheartedly. However, this only applies in the US and a few other countries. Many countries charge per minute phone charges for local calls and this could cut down costs for these types of users. I really don't like the idea of metering in general, however it may have some applicability in certain situations.

  26. Metering is stupid for home users by ZanshinWedge · · Score: 2
    If you're serving and/or using tons o' bandwidth, then maybe it's time to charge by the megabyte per month.

    However, for the end user, connecting through an ISP and simply surfing et al this is just downright dumb. For one, it would require additional cost to monitor users. Second, it would discourage people from surfing as much. Third, you can say bye bye to banner ads (though maybe that's a good thing), if people have to pay for every bit of those pieces of trash they see they are going to block them. And finally, it would be moving away from closing the "digital devide". If little Timmy can't do something internetish because his parents need to spend their money on food instead of for the excess usage, then little Timmy is at a disadvantage.

    Also, once you break down the essential "everyone pays the same" wall, what's next? If you access certain "more expensive" sites, will you be charged more. Might things begin to revert to the long distance phone call paradigm? I doubt it, but it's a very very chilling thought.

    Flat rates are simpler, easier to use and understand, and make a lot more sense in the semi-egalitarian environment of the internet.

    1. Re:Metering is stupid for home users by Luminous · · Score: 2
      If you access certain "more expensive" sites, will you be charged more.

      This would make for an interesting stratification of the web. Only the rich can afford streaming video and audio.

      --
      This is not the way to build a lasting empire.
  27. I pay now. by TheTomcat · · Score: 3

    I pay on my DSL connection right now.

    I get 5 gig/month (which is ACTUALLY 5,000,000,000 bytes, not 5 gig). As the base package, and after that, I pay 7cents per megabyte(1,000,000 bytes).

    So, if I download in excess of 5 gigs, it costs me an additional $70 per pseudo-gigabyte. Fortunately, I don't use that much, but my ISP offers a larger package of 20 gigabytes for an additional $20/month, but you must already be on the plan to take advantage of the package.

    Why don't I use another ISP? NBTel is the only ISP in the province that will provide DSL.

    (note: 7c/meg WAS the rate, I'm not 100% certain that it's still that high, but I haven't heard otherwise).

    1. Re:I pay now. by JanKotz · · Score: 1

      I suppose it doesn't matter when those gigabytes are used, either? You could download Red Hat, Mandrake, Debian, and Slackware over the course of a few nights without chewing up anyone's bandwidth and still use 60% of your quota.

      I have been an advocate for DSL over cable not because of its perceived networking advantages, but because of its choice -- it's very unfortunate that you don't have any.
      --

      --
      "A witty saying proves nothing" - Voltaire
    2. Re:I pay now. by DrEldarion · · Score: 2

      5 gig/month? Wow. That's not very much at all. I've gone through 5 gigs in a single NIGHT before ;)

      -- Dr. Eldarion --

    3. Re:I pay now. by smnolde · · Score: 1

      Heck, I downloaded 1.8 Gb the other day trying to get FreeBSD 4.1.1.

      When RedHat and FreeBSD were released in the same week we could all suffer on download limits. I'd rather pay the flat-rate with unlimited use of my line than be bounded by cost.

      But then perhaps, consider if your local DOT/DMV would let you pay an additional $49.95 so you could legally go 90+ mph on your favorite stretch of interstate. How many of us would do that?

    4. Re:I pay now. by Sloppy · · Score: 2

      The real problem I see with that type of billing is that you're paying to receive instead of to send. That means you pay for spam or unsolicited packets. What if some asshole sends you 20 Gig of ping packets overnight? Ugh.

      If metered billing is done, costs need to be payed by sender. Alas, that means that servers will have to bill users to cover bandwidth costs. Still, it's the only way that's fair.


      ---
      --
      As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
    5. Re:I pay now. by SETY · · Score: 1

      You should have also mentioned that NBTel offers way better service, is cheaper, and they don't really bill you for 5 gig/month.
      I have had DSL in three provinces (NS,NB,ON) and cable in two (NS & ON) and Vibe for sure is the best service. 250 K/s from rpmfind.net is unheard of on other services and when you check your daily usage. Try d/l three iso's in a day and seeing how much they think you d/l, it will be no where near. I'm guessing they only track certain ports or something.
      And for everyone else:
      I believe the cost is still $C 39.95 /month for 5 gigabytes++ and 250 K/s bandwidth. Thats an unreal deal. And teh only reason its that slow is reserving bandwidth for the TV box that comes over twisted pair.

    6. Re:I pay now. by TheTomcat · · Score: 2

      Good point. I can often pull down 1/4 meg/sec from menace.csd.unb.ca (linux site 150km away (in F'ton), which I'm sure you're aware of). And I don't think I've ever been charges extra usage for DSL, but my point was that they ARE monitoring our usage.

      And I've never had DSL in those other provinces, but is it normal that service just dies for 1/2 hour at a time once a week or so?

    7. Re:I pay now. by kanelephant · · Score: 1

      Quite right. Universities in the UK currently pay for their trans-atlantic traffic (approx 2p a MB). Somebody in the US tried to hack into one of the machines in my university and were sending in excess of 5GB of ICMP packets a day. That can get expensive! In this case I believe that the university didnt get charged but with wider metering the potential would be there.

    8. Re:I pay now. by SETY · · Score: 1

      Rogers cable dies all the time for a few seconds at a time in Ontario.
      DSL dropping once a week isn't normal, you could be towards the end of a loop. I had that problem with MTT DSL. no way to fix it unfortunatly without them going to all kinds of trouble rerouting wires.

    9. Re:I pay now. by TheTomcat · · Score: 1

      uh.. I can look up the street and see the telco. (-: so I doubt that's ther problem.

  28. Eircom do both... by cowboy_small · · Score: 1

    Eircom, Irelands telecom / largest ISP provide two alternatives :

    1 Free access / calls charged at local rate

    2 Flat rate / toll-free number

    Every type of user is catered for.

  29. Metering _is_ applied by kyz · · Score: 1

    Just you try setting up a DVD-warez server and offer 500GB a day, and see how long it takes for your ISP to whup your ass and charge you for the bandwidth. The point is that _most_ internet users use a small amount of bandwidth, which doesn't cost the _provider_ money beyond his connectivity rental. That's why you get a flat rate.

    It's much the same in the telecoms industry, where the cost of providing a local call is less than the cost of metering and billing those calls at a competitive rate. Obviously uncompetitive bastards like BT will suck their captive audience dry of money with by-the-second metering.

    See the Campaign for Unmetered Telecoms for more such arguments.

    --
    Does my bum look big in this?
  30. It's like food by RhetoricalQuestion · · Score: 4

    If you had a choice between an all-you-can-eat buffet, and an a la carte restaurant, both of which served the exact same food, and had the exact same level of service, what would you choose?

    Sure, some people would say that they the buffet isn't worth it because they don't eat very much, but 90% of everyone I know would hit the buffet. And even light eaters binge sometimes, or go for the buffet because they don't know how much they're going to eat.

    So the buffet restaurant makes major profits and the a la carte restaurant goes out of business (or starts offering a buffet, to stay competitive), which forces everyone to go to the buffet if they want to eat.

    And then the light eaters of world whine about how buffets just aren't worth it for them, and want a la carte restaurants. But the restaurant owners already know that a la carte just isn't profitable enough, so they continue to stick to the buffet.

    Who has the .sig "kids love the rich taste of content?" (or something like that) It's so appropriate here.

    --

    I can spell. I just can't type.

    1. Re:It's like food by Tony+Shepps · · Score: 2
      Your post makes perfect sense. But have you noticed that the market doesn't work that way?

      If your area is like my area, there aren't many buffet restaurants around. And the ones that are around serve cruddy food.

      And so, for some reason, the market has demanded and gotten buffet service, and the "food" is correspondingly cruddy. Lower bandwidth than expected, 3-4 month install times for DSL, incompetent service, etc.

      We should be demanding restaurant service, so that we could get better food.
      --

    2. Re:It's like food by birder · · Score: 1

      Buffets are very expensive to run. You have to have all your food types prepared hoping someone will come and eat it all. There is a lot of waste too.

      If its a good buffet it will do well, if it stinks it will go out of business. Same with an ISP.

  31. Microcharging. by fatphil · · Score: 1

    I used to work for a Telecomms consultancy in Cambridge (the original one), and several companies approached us for our input on the metering issue.
    Charging fractions (we were talking thousandths) of a penny per k makes as much sense as telephone call charges, pay per view telly, and prostitutes. Pay for what you use.
    However, in a free market there will be as many variations on the charging scheme as there are companies in the market. Some will opt to meter, others not.
    One anti-metering argument is that you don't know what you are going to receive when you ask for it. It could be small, it could be big. So you don't know how much the download is costing you.
    The counter to this argument is that when I phone a company which uses a telephone queing system I haven't got a clue how long I will be holding before my call is being answered. I don't like having to pay 50p/min in order to listen to a tinny version of Vivaldi's 4 Seasons.
    So it's not a new argument against microcharging internet access at all, but a broader one applying to many media.

    God I'm being incoherent today, sorry.

    FatPhil
    Oh - people won't think shockwave and animated GIFs are such a neat idea an more...

    --
    Also FatPhil on SoylentNews, id 863
    1. Re:Microcharging. by deanc · · Score: 1

      >The counter to this argument is that when I phone
      >a company which uses a telephone
      >queing system I haven't got a clue how long I
      >will be holding before my call is being
      >answered.

      Aha... But most places that put you on hold (companies) in the USA have 1-800 numbers, which you don't pay for. Also, in the USA, local calls are included on your monthly phone charge, so services account for the fact that you might not know how long you will be on hold. The fact is that we have so much telephone bandwidth available that we can get away with it because it's simpler. I wouldn't be surprised if someday even domestic long distance gets charged at a "flat rate".

      -Dean

  32. Price Structure by bungalow · · Score: 1

    An ISP I know must pay extra $$$ for burst traffic. I would assume (perhaps correctly) that many, if not most other ISP's do the same, because it makes sense.

    They must find a way to recoup that expense.

    Some ISP's may have tried, or may try, to meter calls and charge higher $/minute rates during these peak times. This would make perfect sense, but breaks the goodwill between ISP and customer. A number of consumers would feel offended that the ISP is 'gouging' them a la long-distance companies.

    Wise ISPs would continue on with flat-rate charges. If I had to choose between an extra $6 / months flat rate and metered usage, I would probably choose flat rate, even at a higher price.

    1. Re:Price Structure by Rasvar · · Score: 1

      An ISP I know must pay extra $$$ for burst traffic. I would assume (perhaps correctly) that many, if not most other ISP's do the same, because it makes sense.
      They must find a way to recoup that expense.


      I disagree with the 'recoup' part. If an ISP is paying for a level of "burst traffic" they are already saving money by not going with a higher guaranteed bandwidth. This is actually a savings. If the cost of the burst traffic exceeds the cost of the savings, the ISP needs to readjust its commited level of service. It is a simple expense of operating and should be recouped naturally by growth and proper network management.

  33. It's gonna be the same for music by eclectro · · Score: 1

    From the article;

    Odlyzko shows that the phone industry is not only bigger, it's growing faster than "content" industries. Movie theaters sell nearly $10 billion of tickets a year, but that's only two weeks' revenue for the phone industry. Similarly, the revenue of the recorded music industry is dwarfed by that of Fed Ex and the U.S. Postal Service. Even meterists such as Metcalfe believe point-to-point communication is the most likely type of traffic to be metered because that is what customers are willing to pay for.

    The pressure for flat rate music is going to grow. It's just that the RIAA can't give up their $20+ CD prices. So they are going to nuke the internet instead.

    Too bad that they can't get a brain transplant. One can only wait for the mighty to fall.....

    --
    Take the cheese to sickbay, the doctor should see it as soon as possible - B'Elanna Torres, "Learning Curve"
  34. Ignorance is obviously bliss... by The+Dodger · · Score: 2

    ..because here in Europe, we know what metered Internet access is like and we don't like it!

    D.

    1. Re:Ignorance is obviously bliss... by Baki · · Score: 1

      Indeed, even most Cable/DSL providers charge by the megabyte (after a certain amount). E.g. here in Switzerland it is quite common that you get 800MB free, above that you pay as much as $0.10 per megabyte (which is an outrageous megabyte price).

      Luckily a DSL provider whose POP is just 1km from my home has just arrived, which offers flat rate. But alas, only 256kbit (for only 1 km, much faster should have been possible).

  35. Capitalist society. by Moderation+abuser · · Score: 2

    Unfortunately most of us live in capitalist societies where the price of something is based on the market demand for that something and has very little to do with the actual cost of that something.

    --
    Government of the people, by corporate executives, for corporate profits.
    1. Re:Capitalist society. by gattaca · · Score: 1
      Errrmmmm.... I don't understand what you mean. Agreed, capitalism doesn't force people to sell things at a particular price, instead, it lets people charge what they can get. Alongside that are laws that try to maintain enough competition to allow competitors to try to make a similar thing, but cheaper.


      If you consider people as a valuable resource (more valuable than things, IMHO) then the whole 'cost' thing gets much harder to work out. But, IMHO, a free market is much better at getting the price of things right than any other system.

    2. Re:Capitalist society. by 0xdeadbeef · · Score: 1

      Except that computer in THX-1138. It had the cost of everything, even people, figured out, maximizing utility down to the second. I know it's supposed to be a dystopia, but man, that was so cool. If there really was such a thing as objective value, (a myth even some died-in-wool capitalists believe), it would be possible, but it ain't, which is why our hero hates his society while everyone else thinks it's just peachy-keen.
      --

    3. Re:Capitalist society. by plunge · · Score: 2

      Technically, capitalism should, in the long run, drive the cost down to roughly the cost of "that something." Only when you have a monopoly situaiton, like rights to a recording artist's work, do we generally see prices much above the cost of production. What most people fail to realize is that the cost of production for "something" ISN'T just the worth of the materials used and the machine and people that put them together. It now also involves cost of advertising, marketing, research to design new iterations of the product, etc. All these things cost money and manpower to, and drive up the "real" cost of "something."

    4. Re:Capitalist society. by maraist · · Score: 2


      Unfortunately most of us live in capitalist societies where the price of something is based on the market demand for that something and has very little to do with the actual cost of that something.


      Well, once the widget has been made this is true. This is why lots of analysis is done to figure out what people might pay. If those numbers are too low, then the comodity won't be produced. Likewise, when you have an excess, and the market sale price is too low, you may opt to do something other than sell it.. For example, if I have a car, and the resale value is too low, I might strip it down and sell the pieces.

      You say unfortunately, but this is a very efficient model. In the case of essential goods, the government can step in an regulate (such as the power industry, telephone, welfare, etc). In a non-market-based society, it's like having every resource regulated, which makes most services sold at inefficient levels. Often, there are pricing departments that supposedly try and find the "right" levels, but the market is too dynmic. This year, more people will want to buy the PT cursuer than next. How can you best determine who gets what? Is it first come first serve? Or should the market price adapt based on Supply and Demand, and the very first are just lucky, while towards the end, only those that really want it (or happen to be rich) get it. The difference is that it's more difficult to determine who really deserves to get the widget a-priori. Much like it's more difficult to maintain accounting on IP or CPU traffic for the entire net.

      -Michael

      --
      -Michael
    5. Re:Capitalist society. by maraist · · Score: 2


      What most people fail to realize is that the cost of production for "something" ISN'T just the worth of the materials used and the machine and people that put them together. It now also involves cost of advertising, marketing, research to design new iterations of the product, etc. All these things cost money and manpower to, and drive up the "real" cost of "something."

      You can think of it like a B-tree. The leaf nodes are the resources. But that's not the total number of nodes in the system. You have all the connecting nodes all the way up the tree. The next to bottom level would be the workers that work the materials, then the supervisors, then the planners (who direct the supervisors to direct the workers). You break off the planners into R&D. At the very top is the executive board and finally the CEO. Every one of these guys has a cost.

      BUT, none of this has anything to do with the price. The marginal cost (which includes interest on any borrowed resources required to produce the factories) is factored into the initial price. But once it gets going and the factories are set to produce x-widgets / cycle, then the supply is set, and prices is totally based on that fixed supply and the varying demand (which is affected by competition).

      Cost only influences prices in the long run (in terms of entry or exiting a market, or in adjusting the number of manufactured widgets).

      Telephone / cable company already has your wires layed, their cost is really that of the BW on the major trunks, and the power lines. They also try to factor in the depretiation cost of the hardware, but that's only taken into consideration at initial cost time. Your rates only really change seasonally when any major changes take place (which typically affects volume or quality of service)

      --
      -Michael
    6. Re:Capitalist society. by plunge · · Score: 2

      My point was that all these guys DO factor into the price of creating a product, and they usually aren't paid attention to. That "fixed supply" can vaary wildly depending on the costs of marketing, further research to keep the industry alive (one reason pills cost so much- because the reasearch to develop them was so costly, and the research to keep developing them is also costly.)

  36. Some providers do that, and do well... by drenehtsral · · Score: 2

    One of the local providers to Ithaca, NY, Lightlink Internet does that already. They offer high speed radio, DSL, etc... and you pay a reasonably small per month fee, and you can pull the maximum bandwidth that your connection physically allows, but you pay $10/Gigabyte over 1 gigabyte per month, so that way you can get quick downloads by using lots of bandwidth in short bursts, but if you don't pull down too much, you don't pay much. If oyu want to download a shitload of stuff, you pay more. It works well, the company I work for uses the service, and it's worked out quite well.

    --

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    Play Six Pack Man. I
  37. I prefer capping by jfunk · · Score: 2

    They did it in Newfoundland when I lived there. You could pay more for a higher cap, implementing the features of the cable/DSL modem. The service got better for everybody except the warez kiddies.

    QoS is a great way to smooth out a network as well. Yesterday, I had to stop a download because our provider told us we were "bogging everyone else down." Unless I implement QoS on my laptop or our router, I can't control how much bandwidth I'm using for a download. I think the ISP should be doing it, rather than calling up people and telling them to stop using their connection.

  38. I agree totally. by MikeFM · · Score: 2

    I've always thought metered plans were stupid. For $40/month I get both a speedy cable modem connection and cable tv. My phone bill was costing me, before I cancled my phone, $50 a month (using a free Internet account I had at the University) and I don't use long-distance. The crap I was getting with the phone was random charges added on overtime for stupid things I didn't even use. That is what metered access gets you. Even if you opt out of long-distance you still pay taxes for it. With my cell-phone I pay $30/month flat fee and get more minutes than I'm likely to ever use, get caller id, voice mail, etc plus the benefit of being able to carry it with me. Oh yeh and free long-distance should I ever want it. If they start metering or taxing the Internet I'm sure myself and others will break away and make our own Internet that is free of government hassles. What they can tax they can track. I don't want any eyes watching me 24/7. The idea of charging for emails sent has always made me laugh. In the days before the Internet where they actually did charge for email I never used it. Now if they tried to charge I'd have to wonder how they'd record my Linux box sending messages. If they decided to monitor and tax just those packets people would simply change protocols. Silly wabbits.

    --
    At what price learning? At what cost wisdom? The price is a man's peace of mind, and the cost is his life.
  39. Okay..... by Highlordexecutioner · · Score: 1

    I am not sure about all ISP's but some have limited hour plans for light users (like the one I work for). There are also people who leave their computers connected 24/7 so they can get to info while they are away or at work (like me).

    --
    Where am I going and why am I in this handbasket?
  40. Metering? Pfah... by Anonymous Coward · · Score: 1

    Not a good idea. Even setting aside the practical reasons against it (the accounting alone would be a nightmare that would make a collision between the IRS and the GAO look tame), it sets a rotten precedent. Who's to say that imposing metering won't be the gateway for a whole ton of other "net taxes?"

    Metering might have been a good idea AT ONE TIME, when bandwidth was highly expensive and very limited, but bandwidth has become a lot cheaper in the last few years as old transmission facilities are upgraded, and new ones added. Doesn't it make sense that such a trend will only continue?

    After all, look what's happened to the long-distance, voice, and cellular/PCS markets. Massive competition, cheap rates, and you can now buy blocks of talk time for obscenely low cost. Why should that not be the case with the 'Net? It's still all 1's and 0's.

    If the article's author wants to meter something, maybe he should go stick a multimeter across his AC power main. Preferably with uninsulated probes...

  41. Economic ignorance by CaseStudy · · Score: 1
    Odlyzko cites a hypothetical case of two people at the end of a long road who want Internet service. One is willing to pay $10,000, the other is willing to pay $20,000, and running the line out to them would cost $25,000. If the vendor charges $10,000 to each, both will sign up, but the revenue will be only $20,000 (not enough to run the line). If the vendor charges $20,000 to each, only the second will sign up, which still won't cover the $25,000 cost. But if the vendor creates an artificial distinction and offers high-speed service for $18,000, and low-speed service for $8,000, both customers will sign up, the revenue will be $26,000 (enough for a $1,000 profit), and both customers will have service for less than they were willing to pay. This makes economic sense even if the cost of providing the service to both is the same, although, ironically, consumers tend to feel cheated if they find out.

    Odlzyko seems to assume that service is service, and the guy who'd pay 10,000 will be satisfied with low-speed service, or that the services aren't really different, in which case the vendor is committing fraud (which is why, completely ironically, the second consumer would feel cheated).

    Actually, the vendor can charge a flat rate if he chooses, anywhere between $12,500 to 15,000, and make a profit. This is because, in the artificial constraints of the long-road problem, the second person will pay the first person to sign up for the service so that he can have service as well.

  42. What about the future? by mini+me · · Score: 2

    What will happen in a few years when we have the technology to stream all media over the internet (ie. TV, Phone, Radio, etc.)? We have the power to use all those mediums however they suck up large amounts of bandwidth. Now in the future what if this "casual" user decides he wants his TV to be recieved over the internet rather than traditional means. It's going to cost him an arm and a leg to stream the TV over the net if he is paying per megabyte!

    Personally I think such a system might be cheaper for the regular user in the short term, but when all things digital are converged then I think the system will break down.

    Maybe this is just a plot by the RIAA to stop people from downloading MP3's? They might be thinking they can get a percentage of all internet traffic costs sort of like they get a percentage of blank media in Canada? Maybe I should be quiet before they get some ideas.

  43. ISP rates are still rising... by garcia · · Score: 1

    I don't understand. Bandwith seems to be getting less and less expensive (yes, here in America) yet ISP's are charging more than they were 5 years ago. Dialup users are paying almost as much as DSL users. Some places are charging as high as $22.95/mo. I pay $49.95/mo for 768/128k DSL. They really need to not do metered Internet access, I just see it as ridiculous. Reminds me a lot of AOL's olden days. Why the hell would any Internet junkie in their right mind want to do that?

    I apologize to all the non-Americans that have to pay, but unfortunatly, tough shit :)

    - Bill

    1. Re:ISP rates are still rising... by pokrefke · · Score: 1

      I currently pay $19.99 for a 56K (actually 45.3K) dial up connection. Next week I start my 6 month trial period of @home for ($19.99, after the 6 months, $29.99).

    2. Re:ISP rates are still rising... by British · · Score: 3

      Did you ever look at CompuServe's prices back in the '80s? They were charging(IIRC, someone correct me) 6 bucks AN HOUR, and that's with 1200 baud access.

      C'mon we have it good!

    3. Re:ISP rates are still rising... by garcia · · Score: 1

      bah, CompuServe. They are dead, along w/their rates ;)

      - Bill

  44. On a Humourous Note by envisionary · · Score: 1

    "I think this is a rights issue"

    Not really, but I mean come on... What's up with this idea that it's my right to have free such and such? There are exceptions, but when someone has an original idea or provides a service [ie- Internet Access](if the idea or service is good) don't they deserve to be compensated? Or, in the case of offering a service, deserve to be compensated for their efforts (as long as extravagant compensation is not expected). Not mentioning any names *cough* RIAA, MPAA *cough* *cough*

  45. Why argue? by Rainy · · Score: 1

    Why argue when you can test it? If metcalfe's sure, why don't he start an ISP that charges rate of um, $.10/hour, or something like that? If he's more profitable than flat rate competition, everybody will eventually switch to that system. Frankly, I think flat rate is a bit of a gimmick: it assumes that most people won't take advantage of what it proudly proclaims: as many internet time as you want. The idea is just that even people who use it for 3 hour a month get a bit nervous (hey, what if I do want alot of time one month.. this gives me upper limit of what i'll pay in any case). So, psychologically, if not logically, flat rate is better. But then again, doesn't AOL have $5/month/5hour plan? I do think it's kind of biased, I mean, alot of idlers on irc spend 6-8 hours online every day and they pay $22 for aol and down to $10/month for some other isps, while use.. about 50-60 times more dialup time than users of that aol plan. Well, whatever. As I said, the guy can easily go and start a new isp, he's got
    the money. If he's successful all of us internet junkies will be sorry :-)

    --
    -- ATTENTION: do not read this sig. It doesn't say much.
  46. Metering will never work..... by diacritical · · Score: 4

    unless I can get a rebate on every byte/time unit spent downloading spam, cookies, and other advertizing I didn't want to transfer in the first place. :)

  47. Re:It says "Users love low flat rates" by Prior+Restraint · · Score: 1

    It says "Users love low flat rates"

    Try again.

    Something like Users love free access.

    Last time I checked, "free" was a low, flat rate.

  48. Metering stunts internet prosperity!!! by MikaHaakinen · · Score: 1

    Metering your usage of the internet will both hinder the effort you spend innovating the net as well as narrow the scope of the internet that you will uncover. Metering internet usage just breaks down what the internet stands for(freedom) and oppresses something that has brought this world into the next millenium. FREE THE INTERNET!!!

  49. Now THIS is a scary thought by Mtgman · · Score: 1

    Similarly, the revenue of the recorded music industry is dwarfed by that of Fed Ex and the U.S. Postal Service

    Does this mean Fed Ex, UPS and the USPS are going to come together and put the bitchslap on e-mail? (We will firewall e-mail and source, we will firewall it at blah blah blah) Before you laugh, think about it for a second. The advent of the "3D printer" is pretty much a joke, but we can already send a large amount of things which used to require physical transport over electronic mediums. Once we get some kind of way to send patterns of physical objects over a communications medium and some way of re-constructing those patterns on the other end, then UPS, Fed EX and the USPS will be totatlly obsolete, won't they? A business model which believed(as the recording labels did) that it was immortal will be challenged again. This could get ugly. Especially since the USPS is a government branch.

    Steven

    --
    -- I have marked myself unwilling to moderate-- I don't have other accounts to artificially inflate the karma of
  50. This is a silly article. by adipocere · · Score: 3
    Let's listen to some of his brilliant logic on why we should not have metering.

    "Users love low flat rates". Gee, what a shock. People like free almost anything but herpes. Of course they want it for free. I'd like my car to cost $50, too. So what?

    "...nearly all users pay flat rates regardless of their usage..." Not exactly. Dialup has an absolute bandwidth limit, there is only so much I can download over a 56k per month. ISDN has a higher limit, cable higher still, DSL, T1, T3, and up to OC48 (I suppose something exists beyond that). The rate I pay per month determines a ceiling on my usage.

    "...metering would fly in the face of hundreds of years of history..." like metered mail (or stamps), pay by minute for long-distance telephone calls, and that is in the communications arena alone. We still have metered gas, electricity, and so on. Sounds like history is on the metering.

    I don't even know where he was going with this content thing. It doesn't appear to be relevant. Maybe I'm wrong.

    "Price discrimination..." way to coin a phrase that will automatically bias you against metering! Maybe he should have just used "Nazi Price Fixing" and been a little less subtle.

    "...residential telephone users can get flat rate plans with free local calls..." Said flat rate varies wildly. How much you want to bet that if everyone got on the phone and began babbling 24/7, our "flat rates" would suddenly undergo an upwards shift?

    "...one can add extra fiber capacity without limit..." conveniently ignoring the cost of the fiber, installation, repeaters, etc. That money has to come from somewhere. Until Slashdot posts a nice biotech story on trees engineered to grow fiberop, I won't be holding my breath on adding fiber for free.

    "...When necessary, ISPs can discourage camping via monthly caps, limits on session length, or limits on peak time usage..." Oh, I see. So, instead of having the amount of time you spend on the net affecting the cost, you're going to use the cost limit the amount of time you have. Sounds a lot like metering to me.

    "...As retail users move to DSL and cable connections, where each user pays for their dedicated connection, the pricing is invariably flat rate..." for now. It's a new technology. Examine the history of the catalytic meter in electrical service here. Once we have discovered the carrying capacity, you don't think this will change?

    Aside from the huge problems above, this guy fails to look at what drives economies: limited resources. The world has limited resources. I cannot convert the entire bulk of the Earth into fiber optics. Electricity costs to make. We simply cannot take the current backbone, give everyone an OC48, and have them load up as much as they like. We will run out of our finite resource, the backbone (which is more like a backweb, I guess, given the multiple spines). All of these things cost. Adding new capacity costs. Lines can be saturated. It's just like bread ... it costs to make, and only so many can use it before it is all gone. Money is an abstract method by which we allocate our finite physical resources. Just because we would like a free meal doesn't mean that the universe is obliged to give us one.

    I realize I should be addressing this Andrew Odlyzko, instead of the reviewer of the article, but, geez. I feel like a troll now.

    1. Re:This is a silly article. by CaseStudy · · Score: 2
      "Price discrimination..." way to coin a phrase that will automatically bias you against metering! Maybe he should have just used "Nazi Price Fixing" and been a little less subtle.

      That phrase certainly wasn't coined here. It's the standard term for charging people different prices for the same good. (It also wasn't quite as loaded when it was coined as it may be now.)

    2. Re:This is a silly article. by Borogrove · · Score: 1
      >"Users love low flat rates". Gee, what a shock. People like free almost anything but herpes. Of
      >course they want it for free. I'd like my car to cost $50, too. So what?

      Remember, that's _low_ flat rates. Nobody said anything about free. As he pointed out, the companies like this plan because it can net them more money from typical users, and consumers prefer it because it eliminates hassles.

      >"...one can add extra fiber capacity without limit..." conveniently ignoring the cost of the
      >fiber, installation, repeaters, etc. That money has to come fromsomewhere.
      >Until Slashdot posts a nice biotech story on trees engineered to grow fiberop, I won't be
      >holding my breath on adding fiber for free.

      Who ever said it would be free? He was just saying there is no _physical_ limit on adding new fiber. This in contrast to the physical limit of the limited Electromagnetic spectrum.

      >like metered mail (or stamps), pay by minute for long-distance telephone calls, and that is in the
      >communications arena alone.

      How much do you pay to send mail (in the US)? I pay 33 cents no matter how far I send things. Sounds like a flat rate to me. If you send something big they meter it, but priority mail seems to be a trend of using flat rate for bigger items. Long distance rates are tending toward flat rate, in that you can now get rates that don't change based on the time of day. As mobile phone plans that give many of the advantages of flat rates proliferate, it's been predicted that long distance as we know it will fade away.

      You seem to be suffering the misconception that he's advocating giving away internet service for free. He's not. He's saying that flat rates benefit both consumers and providers, and that the fee for service model doesn't apply well to the internet.

      Borogrove

    3. Re:This is a silly article. by Palin+Majere · · Score: 4
      Disclaimer: I work for an ISP.

      "Users love low flat rates". Gee, what a shock. People like free almost anything but herpes. Of course they want it for free. I'd like my car to cost $50, too. So what?

      Um, where exactly did the word 'free' come into play here? He never mentions how much the flat rate should be. Pricing specifics don't enter into the picture here. You're using the exact same tactics you accuse him of using (see below).

      "...nearly all users pay flat rates regardless of their usage..." Not exactly. Dialup has an absolute bandwidth limit, there is only so much I can download over a 56k per month. ISDN has a higher limit, cable higher still, DSL, T1, T3, and up to OC48 (I suppose something exists beyond that). The rate I pay per month determines a ceiling on my usage.

      Thank you for having missed the boat completely. The point here is to let the _technology_ determine you bandwidth technology, and to charge equally across the board for it. Thus, for (pulling a number out of a hat) 29.95 a month, you get all the bandwidth your DSL line can handle. Just like a phone line and local calls. The whole point is to argue for the removal of arbitrarily-induced bandwidth limits.

      "...metering would fly in the face of hundreds of years of history..." like metered mail (or stamps), pay by minute for long-distance telephone calls, and that is in the communications arena alone. We still have metered gas, electricity, and so on. Sounds like history is on the metering.

      No. You've again demonstrated that you've missed the point. There are things that *have* to be metered. Electricity and gas are one of them, because the costs associated with allowing a flat-rate fee for these services is astronomical. This is not true with bandwidth.

      "Price discrimination..." way to coin a phrase that will automatically bias you against metering! Maybe he should have just used "Nazi Price Fixing" and been a little less subtle.

      You've just used the same tactics by pointing out the "Nazi Price Fixing" comment. Also see above, where you begin dragging the concept of "free" bandwidth into a discussion that had nothing to do with things being "free".

      "...residential telephone users can get flat rate plans with free local calls..." Said flat rate varies wildly. How much you want to bet that if everyone got on the phone and began babbling 24/7, our "flat rates" would suddenly undergo an upwards shift?

      And how exactly were you expecting "flat rates" to be determined? This is how "flat rates" are currently determined in the world at large, and it's the same "flat rate" that is being discussed in the article. Were you under some mistaken assumption that a "flat rate" is a price that never changes, even if associated costs rise?

      "...one can add extra fiber capacity without limit..." conveniently ignoring the cost of the fiber, installation, repeaters, etc. That money has to come from somewhere. Until Slashdot posts a nice biotech story on trees engineered to grow fiberop, I won't be holding my breath on adding fiber for free.

      Um, yes, have you been paying attention? The money comes from the flat rate fees that this paper is all about. If you set your fees properly, the number of users it takes to saturate a unit of bandwidth (like a T-3 for example) should pay for the bandwidth itself. If you have priced your flat-rate fees so that they do not pay for the resources they consume, you have priced yourself at a loss, and it's your own fault when your network can't survive an increase in load.

      "...When necessary, ISPs can discourage camping via monthly caps, limits on session length, or limits on peak time usage..." Oh, I see. So, instead of having the amount of time you spend on the net affecting the cost, you're going to use the cost limit the amount of time you have. Sounds a lot like metering to me.

      No, it's nothing like metering. There is no distinction between service levels. All users are affected by these caps. They don't pay a different price to be able to ignore them, or to be less affected by them. It's a hard limit, whereas metering represents a "soft" limit.

      We simply cannot take the current backbone, give everyone an OC48, and have them load up as much as they like. We will run out of our finite resource, the backbone (which is more like a backweb, I guess, given the multiple spines). All of these things cost. Adding new capacity costs. Lines can be saturated. It's just like bread ... it costs to make, and only so many can use it before it is all gone.

      And who the heck said anything about giving people OC48s?? The point is to charge people a flat rate fee. Nowhere either the article by John Levine or the associated research papers by Andrew Odlyzko. If we charge a flat-rate fee for those OC48s that covers their costs to produce, there's no reason at all we can't give everyone one of them. As long as they pay for themselves, there's not an issue. The backbone is perfectly capable of growing as demand requires it, as it continues to do on a practically daily basis.

      Just because we would like a free meal doesn't mean that the universe is obliged to give us one.

      Perhaps you should start the "free bandwidth fund". Nobody's mentioned free meals here but you.
    4. Re:This is a silly article. by cprael · · Score: 1
      Just to point something out, part of the reason people like flat rates (and why Metcalf is wrong, btw), is that (esp. for higher-bandwidth users) people prefer to buy "in bulk" rather than on an "as used" basis. For example - do you buy a roll of toilet paper every time you run out? No - you buy a package, or go to Costco/etc. and buy a large package that will last you for a long time.

      "Users love low flat rates". Gee, what a shock. People like free almost anything but herpes. Of course they want it for free. I'd like my car to cost $50, too. So what?

      Well, to take the metering argument a step further, why did you buy a car? You should take a taxi, or a limo, and only pay for those transportation resources you use.

      "...metering would fly in the face of hundreds of years of history..." like metered mail (or stamps), pay by minute for long-distance telephone calls, and that is in the communications arena alone. We still have metered gas, electricity, and so on. Sounds like history is on the metering.

      Not really. If I send a lot of mail, I can use bulk mail rates, which are significantly cheaper than one-stamp-per-letter. If I use a lot of long distance (say I'm a company), then I can get a better deal from the phone company by agreeing to a floor for my usage block. Gas, electricity - same deal. Think a company like Cisco buys electricity the same way you do? Wrong.

      Aside from the huge problems above, this guy fails to look at what drives economies: limited resources.

      And you have failed to look at market behavior. Except in very strange circumstances, volume purchases have a tendancy to drive down per-unit pricing. Even in metered-service environments.

      Here's another way to look at "limited flat rate" systems. If I get flat rate 56K dialup with a "no more than 16 hours out of 24" scheme, I'm effectively bulk-buying 16 hours/day of dialup. If you charge $2/hour for strictly metered dialup, and I pay $30/month for my "unlimited" dailup, I'm paying $0.0625/hour for my time, with a guaranteed min/max buy of 480 hours/month. Same kind of math works out for ISDN/DSL/Cable Modem/etc. If it made economic sense to offer strictly metered systems for "bulk" environments, some ISP probably would. How many do? Not many. By my guaranteeing to purchase X amount of resource, I'm also guaranteeing X amount of cashflow to the service provider, which means he can count on X amount of usage from me, and plan (and build) accordingly. With a strictly metered plan, he doesn't know what I'm going to do, and can't build accordingly.

      One other observation. Most advocates of strictly-metered access seem (to me) to either (a) not pay for their access (someone else provides it for them), or (b) use only very limited amounts of access - in which case they're on the "I'm being cheated by subsidizing someone else" part of the spectrum. Advocates of strictly flat-rate are in that part of the spectrum where they're (by the original argument) using enough resources that they're being subsidized by someone else. Either that, or they're using enough resources that it makes economic sense to bulk-purchase, and get into economies of scale. If you're not using many resources, though, economies of scale aren't available, are they?

    5. Re:This is a silly article. by adipocere · · Score: 1
      I disagree. "The freedom to speak out is a basic human right..." only in some countries. It's not even entirely a basic human right in the US, much less, say, China, or Serbia.

      "If you take away my internet acces I lose that right as I am being censored."

      If that were true, then:

      • Newspapers would be required to run your editorials, on anything and everything ... that's speech there. Many of them do, but it is not a requirement. Try taking up 50% of a newspaper with editorials to find out.
      • Everyone who wanted a spot on the radio would get it ... speech again. (Public service announcements don't count, some radio stations do require a minimum of time be given to "alternative viewpoints," although one radio station successfully managed to fight off a spot by the Ku Klux Klan recently.
      • Television stations would have to air any spot you produced. And I'm not talking about cable access shows ala Wayne's World.
      And so forth. The internet is a communications medium, and, if you want that "no-cost-ness" (since we have about five meanings for "free" here on Slashdot), you must logically apply it to the other existing media.

      Also, before the internet existed, were you being censored then? I don't think so. But you didn't have access. Freedom of speech covers your right to talk, not necessarily your right to be heard or on whose dime you can do it, or the method of transmission.

      Yes, our founding fathers spoke freely via pamphlets. The difference is, they paid for those pamphlets themselves. They did not tell someone else, "Hey, you have to subsidize my free speech."

      Also, cloaking free bandwidth in the name of free speech ... well, sure, I'm certain that some people out there are speaking out for our rights. I'd also be willing to lay odds that over 95% of that network traffic would still be Napster, porn downloads, Quake 3 arena, people reading CNN, people ordering shiny pots and pans. Saying the Internet must be free so it can carry speech without restrictions is a bit like saying cars should be free because you might use them to take someone to the hospital.

      The Internet isn't a stronghold for free speech now, look at the libel suits that have been posted on Slashdot, PETA taking away that guy's domain name, etc.. And it has nothing to do with corporations and everything to do with a world of finite resources. There simply is not enough bandwidth to give everyone a free OC48. Period. It's physics, not economics. The restriction of physics creates the economics via scarcity, but this is not an artificial creation.

      If you, as suggested, managed to implement higher corporate taxes, what do you think will happen? Corporations raise their prices. The cost gets passed on to the consumer, and, again, you are paying for it. This happens, time and again.

      The resources are limited. There's no way around this. We can make more bandwidth available, but it still costs. It will come out of your pocket.

      Would I like it to be free? Sure. I'd love everything to cost nothing. That doesn't have anything to do with how it will finally work out.

  51. Re:A libertarian perspective by Mtgman · · Score: 1

    "puzzling development"? I certainly wasn't suprised you had a spud up your ...

    Steven

    --
    -- I have marked myself unwilling to moderate-- I don't have other accounts to artificially inflate the karma of
  52. I only have one thing to say... by Pope+Slackman · · Score: 1

    ...What a boneheaded idea.
    I use the 'net a lot and I don't want to have to count minutes (or megs) like I have to on my cellphone or long distance line.
    I don't want to pay my ISP for the latest Slackware ISO that I d/l'ed, nor do I want to pay for playing Q3 all night...

    I've not met anyone that's happy under metered access in the US, and from what I hear, in places where it is only metered (Like the UK), people hate it.

    If my ISP started metering, I'd switch ISPs. Simple as that.

    So what if it goes against history? That's called progress, fool.

    --K
    ---

    1. Re:I only have one thing to say... by slim · · Score: 2

      I use the 'net a lot and I don't want to have to count minutes (or megs) like I have to on my cellphone or long distance line.
      I don't want to pay my ISP for the latest Slackware ISO that I d/l'ed, nor do I want to pay for playing Q3 all night...


      Well, metered access wouldn't do you any favours. However, look at it from my point of view. I (actually a hypothetical me...) transfer a couple of kilobytes of plain ASCII email every day. I don't want to pay the same monthly fee to my ISP as you do. I don't want to pay over the odds for my tiny needs, just because the ISP is installing fatter pipes and faster switches for Q3 LPBs.

      Actually, the ISP service I'm (the real me this time) crying out for is this: a persistent unmetered low-bandwidth (14.4 is fine) connection so that a small news feed and email can get through all day long, which I would hope to be pretty cheap, with the option to manually switch to a metred high-bandwidth connection for gaming and streaming media.

      I don't think anyone (here in the UK) can provide me with that.
      --

  53. Cost of billing by Taurine · · Score: 1

    With the common utilities water, electricity, gas and telephone, the cost of measuring usage, calculating the bill and sending out the bill is the largest portion of the total cost. That's why here in the UK you can get your gas from any one of a number of companies, including your electricity provider, even though they don't own any infrastructure. They pay a flat rate to the infrastructure owner for supplying you with gas, and then do the billing to you. They are betting that they can do the billing more cheaply than the infrastructure company can, and thus charge you less and still make a profit.

    And that just goes to illustrate why charging for usage for consumer Internet is stupid.

  54. Not really true by Nicolas+MONNET · · Score: 3
    I get ADSL in France, flat rate, no limitation. AOL here is pushing a flat rate phone subscription plan. That's where all the new offerings are heading.

    I see that in other countries, too.

    --

  55. Re:It says "Users love low flat rates" by Baki · · Score: 1

    Not true. In fact I could have gotten a CHF 75,- Cable subscription, but with only 800MB (above that it costs $0.10 per megabyte, way too much).

    Instead I took a CHF 180,- flat rate DSL.

    (yes such things are still very expensive in Euope/Switzerland).

    I love flat rates, and I'm prepared to pay a lot more for it, even more than I would probably pay using metered access.

  56. Already happens. Look at the costs: by Cannonball · · Score: 2

    A fella by the name of Cannibal Harry got railed by Earthlink, his website had a short movie containing some highlights of a HALO get-together sponsored by bungie...and it got a LOT of downloads. So many in fact, Earthlink billed him for close to $30,000 (US). Check the story here:http://www.theregister.co.uk/c ont ent/1/13668.html

    --
    So there I was. Naked. In a refrigerator. With a potroast on my knees. Smokin a cigar. That's when it got REALLY weird.
  57. You *can* get metered access. by DrXym · · Score: 1
    Go to the UK or Ireland and you'll have dozens of free ISPs to choose from. I say free but of course they get a cut of the phone charges.

    The longer the phone call, the more you pay. Metering in action.

    If you don't like this approach then sign up with someone like Demon for a flat monthly rate.

  58. Capping is not the answer! by Anne+Marie · · Score: 1

    Here's an analogy for you: most people do not engage in much heated political discussion, but there are some of us who do with a great vengeance. Now, some would argue that political discussions should be capped, because that would raise the quality of life for all the people who hate politics. But that would fly in the face of universal rights to free speech (as well as their local ensconcements in the American constitution).

    It's the same with network use. Think about it.

    --
    -- Anne Marie
    1. Re:Capping is not the answer! by 0xdeadbeef · · Score: 1

      Since you're so cavalier about free speech, I think you should pay my ISP bill so that I might engage in free speech too.
      --

  59. Sewer Commissioner ?!? by Eric+Seppanen · · Score: 1

    Sewer Commissioner? Is that an inside joke by the author?
    --

    --
    314-15-9265
  60. Flat rates, please... by Swift+Kick · · Score: 1

    Who decides what a 'heavy user' might be? A 'light user' could be someone that logs in once in a while to check their mail, but as time goes by, everyone will be using the 'net for *everything*, bringing everyone into the category of the 'heavy users'. Then what?
    I'm sorry, but this is not right. Everyone pays for their access; keep these kinds of fees at the ISP level, and do not burden the end users with additional taxes/costs/etc. If you are the type of person that transfers gigabytes/month, then your ISP should be putting a bandwith cap on your connection, or you should be forced to pay for dedicated access (like some of us already do). Just because joe shmoe doesn't want to pay $19.95/month for his AOL thingy, doesn't mean that bill shmoe should pay $39.95/month because he happens to run a website with moderate traffic.

    --
    "We'll need 2000 crickets, 4 cans of Easy Cheese, and the fluid from 18 glowsticks for this plan to work...." - ph0n1c
  61. Re:British Telecom meters the Internet by JanKotz · · Score: 1

    It's probably the same BT lamebrain that modded me down, too. I'd still like to find the Sony loyalist that modded me as flamebait for accurately describing the gait of an AIBO as being slower than a bowling ball rolling uphill.
    --

    --
    "A witty saying proves nothing" - Voltaire
  62. local phone is metered, not net access by Gorimek · · Score: 1

    You're right, but wrong. The local phone calls to the ISP is metered in most countries, by the phone company. That is not metered internet access, but metered phone access.

    The issue is paying for bandwidth used, so that you pay much more if you spend an hour watching streaming video than if you write a few emails. I haven't heard of that being commonly implemented anywhere.

  63. Metered vs Low Flat by honest+abe · · Score: 1

    As John Levine states:
    "In North America, almost without exception, residential telephone users can get flat rate plans with free local calls. (Internet growth has been slower in Europe where local calls are usually metered.) With great regularity, users pick flat rate plans even when their usage history shows that a metered plan would cost less. The reasons for this seemingly irrational preference appear to be twofold. By choosing a flat rate plan, users avoid an unexpectedly high bill if they make a lot of calls one month. Furthermore, most consumers don't want the hassle factor of deciding whether each phone call is likely to enrich their lives by 10 cents per minute."

    The same principle applies the other way around as well. Companies/corporations can be especially hard to sell on spending more now in order to receive future savings. They often look "penny wise and dollar foolish". It all boils down to: People/corporations want consistency and predictability above all else (much easier to plan/budget around). Change is often viewed as a bad thing.

    --
    Despite the cost of living, it remains popular.
  64. America... was for freedom, is now for money by Mario+B · · Score: 1

    America started as "The land of freedom" is now the land of money... Everytime they can have you pay for something, they will... That's sad, but that how it is now...

    1. Re:America... was for freedom, is now for money by klanza · · Score: 1

      Err... It costs money to provide Internet access. That money has to come from somewhere. If you don't want to pay for it, don't fucking order it. But don't expect my money (taxes or telecom charges) to pay for your use. You have the freedom to buy what you want. Not to force me to buy what you want.

  65. Almst been there, almost done that... by compwiz3688 · · Score: 1

    See, at University of Waterloo, everybody who lives in residence gets free Internet in their rooms. The only problem is the download limitation. Different excessive usage are handled differently (see here).

    Luckily, I didn't live in residence.
    ---
    dd if=/dev/random of=~/.ssh/authorized_keys bs=1 count=1024

  66. And a few other things... by devphil · · Score: 3

    Dr. Levine is also the moderator of the comp.compilers newsgroup, and the author of _Linkers and Loaders_, which is one of the few well-written books out there dealing with linkers and run-time loaders. (If you ever wanted to know all the fsck-ed up things with the Windows .EXE and .DLL format, read this book. :-)

    --
    You cannot apply a technological solution to a sociological problem. (Edwards' Law)
  67. Re:It says "Users love low flat rates" by billybob2001 · · Score: 1
    Thanks for agreeing with me that users would love "low flat rates" if the rate was in fact zero.

    Who in an ideal world would choose to pay instead of having free access?

    Of course, paying a flate rate to get premium access to fast, high-bandwidth connections is fine, again, preferably at a low rate.

    Obviously the key here is choice.

    Something which not everyone in the world has the luxury of.

  68. We did this in college by Spoke · · Score: 1

    At UCSD before ethernet/cable modem was available to everyone, we did string up our own network.

    You should have seen it, coax running through windows, along the roof, under ground, across paths, it was great.

    Well, it was great until the RA went around cutting the cable at 10ft intervals.

    1. Re:We did this in college by Asgard · · Score: 1

      I wonder how routing would work if everyone had ethernet strung between their houses. If enough people could run routing daemons, could internet traffic concieveably be routed major distances merely by traveling house-to-house; just going on the backbones long enough to reach another house-cluster?

  69. Packet bidding by edp · · Score: 3

    There are good ways to charge for service rendered, and we need them so long as there is network congestion. One proposal I saw years ago (sorry, too long, no pointer) is that each packet carry a bid indicating how much the sender will pay to have it sent. In each time slice, routers transmit the highest-bid packets and bill them all at the rate of the lowest bid transmitted. (Billing is accumulated and done in per-day chunks or something, not with additional packets.)

    A user would have some way of adjusting their bids, maybe telling email clients to bid nothing and telling their video streaming to bid 10 cents per megabyte. The email would go through eventually, which is fine, and the video streaming would work without annoying pauses -- or the user would choose to increase their bid to make it so, to suffer with the pauses, or to watch the video later, when network demand is off peak.

    There are other details -- packets coming back from servers might be billed to the requestor according to some token, or maybe they would be billed to the server, who would balance the charge by revenue in their own way -- ads, merchandise sold, charges to the web viewer, whatever.

    I liked the proposal when I saw it. I'm certainly happy paying a flat rate for unmetered service, and maybe I'd continuing bidding zero for my packets most of the time. But it would be nice to have the means to get some things faster when I wanted to, and it is entirely reasonable that people who want better service should pay for it. If you want to know what you're going to pay, you could set all your bids to zero, or software could help you estimate what to bid to match your budget -- and could adjust those bids as you accumulated charges to ensure that you stayed under budget.

    Note that when the network is not congested, packets are transmitted for free, even the highest-bid packets, because the router is able to transmit all requested packets in each time slice. So this system is really asking the people who want extra capacity the most to pay for it.

    1. Re:Packet bidding by Rasvar · · Score: 1

      One proposal I saw years ago (sorry, too long, no pointer) is that each packet carry a bid indicating how much the sender will pay to have it sent. In each time slice, routers transmit the highest-bid packets and bill them all at the rate of the lowest bid transmitted. (Billing is accumulated and done in per-day chunks or something, not with additional packets.)

      Yow! Just the nature of this thing would lead to network congestion as the router has to process and manage queues for every packet. Sure, there is QOS; but it isn't universal. I would hate to see the cost of upgrades to routers for more processing power to support this.

    2. Re:Packet bidding by edp · · Score: 1

      Just the nature of this thing would lead to network congestion as the router has to process and manage queues for every packet.

      It doesn't require queues for every packet, and processing power increases faster than bandwidth, so this isn't really a barrier. Even if it were, there are approximations that yield the same general behavior with little processing power. For example, here's an approach that uses only one queue: Send each packet only if it bids at least the current threshold, otherwise leave it in the queue. Once a time slice, change the threshold to the lowest bid sent in the previous time slice. This will send nearly the same packets as computing which ones can be sent in the current time slice, but it doesn't require any sorting by bid. It will require a little smarts to keep the queues from growing indefinitely.

  70. Fairness in Billing Act? by CACondor · · Score: 1
    Before I click on a link, how do I know how large it is? How do I know in advance if the images on a page are small or large?

    The only fair way to make metered access work is if you know what you are downloading, and how much you will be billed, in advance. Picture browsers being required to pop up a window when you hit a link that says "This request is XXXX bytes, and will cost you YYYY to download, do you want to download this file?" Alternatively, imaging if every link were required to have something like "Click here (XXXX bytes of data) for my fun site?"

  71. Didn't AOL start this way by Score+0 · · Score: 1
    I thought that AOL had metered access back in the early 90s and changed to a flat rate plan. I don't know if it's because flat rate proved to be more profitable or if competitors started offering flat rates and people liked that better...oh, wait...this is AOL. Profitable.

    1. Re:Didn't AOL start this way by whydna · · Score: 1

      yeah... back in the day... =)

      AOL, along with almost all ISPs, had metered access. You got like 10$US hours/month and after those 10 free hours it was like 2.95$US /hour. There were also certain "free areas" for things like letters from Steve Case, etc. Of course this allowed people to write software that tricked AOL into thinking that you were in a free area...

      whatever... just thinking back...

    2. Re:Didn't AOL start this way by Score+0 · · Score: 1
      Of course this allowed people to write software that tricked AOL into thinking that you were in a free area...

      That's what made me think of it. I remember the apps that made AOL think you weren't connected unless you were actually transferring data. Didn't matter much to me as I was already on a flat rate plan.

  72. Any thought of pay-by-the-byte... by talks_to_birds · · Score: 1
    ...is utter bullshit until all the mass-market portals stop loading their web pages with banner ads and other graphics crap.

    Most people aren't *asking* for the majority of data that's pushed onto their browsers by most websites; it's just crap that some hot-shot web "designer" thinks is "way cool".

    Cut out all that bullshit and just deliver content.

    *Then* there wouldn't be any need for talk of metering.

    t_t_b
    --
    I think not; therefore I ain't®

    --
    I'm on PJ's "enemies" list! Are you?
  73. The Meter is running... by ackthpt · · Score: 2

    From each according to his ability, to each according to his need.

    This is the way it works right now.

    Basically the same as local calls, unless you get one of those cheapo deals which limits your number of calls each month. I'd hate to think I'm siding with Marx, after all the good he did the world, but I benefit from it. Granted, if I want higher throughput I do have to pay more for a better line. If I don't use it much, guess who I subsidising? Uh, huh.


    --
    Chief Frog Inspector

    --

    A feeling of having made the same mistake before: Deja Foobar
  74. REALLY bad idea by British · · Score: 2

    That has to be one of the WORST ideas I have heard of. Putting monetary squabbles into web protocols? Come on. That sounds more like CompuServe's idea. You had to pay more to play the games, etc. Look where they are now.

    There are good ways to charge for service rendered, and we need them so long as there is network congestion. One proposal I saw years ago (sorry, too long, no pointer) is that each packet carry a bid indicating how much the sender will pay to have it sent. In each time slice, routers transmit the highest-bid packets and bill them all at the rate of the lowest bid transmitted. (Billing is accumulated and done in per-day chunks or something, not with additional packets.)

  75. bandwidth != online time by Lxy · · Score: 2

    All dialup ISPs charge by connect time, not bandwidth. So what's the point in metering it? A comparison. I have a 56K modem, my neighbor ("Bob" for this comparison) has 1 56K. We both use an ISP that charges a flat rate, 20 hours/month for $10. Bob connects to check his email, read the news, and occasionally downloads some MP3s. My computer is connected 24x7, monitoring uptime by sending a ping packet to my 3 servers every 10 minutes. If a server isn't responding, it starts flashing lights and doing jumping jacks etc. Bob uses 18 hours per month, and is doing something all 18 hours. I use over 700 hours per month, and only use a small fraction of the bandwidth Bob uses. Assuming Bob is maxing out his modem, Bob is using 354 MB of bandwidth every month. I'm using under 500 K per month. My ISP charges $1 for every extra hour of connect time, so I get a bill every month for $750 while Bob pays $10, and he uses 700 times more bandwidth than I do.

    Metering would say that I should only be charged $1/month for my bandwidth, but my ISP says I'm connected 24x7 so I should be charged for every minute that I'm online. Until ISPs start charging people by bandwidth, metering simply won't work.

    "You'll die up there son, just like I did!" - Abe Simpson

    --

    There is no reasonable defense against an idiot with an agenda
    :wq
  76. Counter-logs? by Cardinal · · Score: 1

    In such a system, I'd probably track my bandwidth usage and maintain my own logs. If a given ISP comes up with significantly different usage stats for you at the end of the month, you can argue with them and try to get your bill reduced (Not unlike arguing with your telco over a phone bill). When that fails, you can always pack up and switch to an ISP that has a potential to be more honest.

    1. Re:Counter-logs? by sulli · · Score: 2
      Quelle horreur! This is precisely what ISPs want to avoid. The support calls that counter-logs, faked router reports, real router reports, cell loss on regional DSL/ATM networks not connected to the backbone, noise on the cable line, mice eating inside wire, the Napster user next door consuming all bandwidth, etc., etc. would cause are a huge disincentive to metered rate service.

      Remember when Sprint announced ION for home users, with metered bandwidth? It went over like a lead balloon.

      --

      sulli
      RTFJ.
  77. Re:It was like that in my home town by bdondo · · Score: 1

    Yeah, it was like that for me too...it's ok until you accidentally go over the time you paid for...then it was 6 cents a minute...that adds up quickly when your sister is on a chatline.

  78. Flat rate increases speed of development by EatenByAGrue · · Score: 1

    A flat rate inevitably results in more high usage users than metered service - specifically, the people who enjoy the net, but can't or won't pay higher fees. Heavy users fuel development, with online participation, advertising dollars, ecommerce activity, etc. Lowering the number of heavy users will lower the number of dollars in the industry, which in turn lowers the rate of progress.

  79. Most people are risk adverse by michael_cain · · Score: 2

    It is fairly well recognized that most people are seriously risk adverse. For example, given a choice between two bus schedules, one that makes you wait eight minutes every time, and the other that makes you wait five minutes three times and then fifteen minutes once, most people will choose the eight-minute schedule. Yes, they wait less time on average with the other schedule, but they are risk adverse and will "pay" a premium in order to avoid the 15-minute outcome.

    I myself am work adverse, and since there are four people on four computers behind the firewall server attached to the cable modem at my house, and one of the four is a teenaged boy whose downloads dwarf the rest of us, I am adverse to trying to define what each person's "fair" share of a metered limit would be, and even more adverse to having to implement it. I will pay more for the flat-rate plan just to avoid those hassles.

  80. a solution! by jafac · · Score: 2

    Maybe the solution isn't metering to prevent light users from subsidizing heavy users.

    maybe the solution is for the light users to become heavy users, so we're all getting the same for our $!.

    Duh!

    Tell gramma to log into /. and start a-trollin'!

    --

    These are my friends, See how they glisten. See this one shine, how he smiles in the light.
  81. They should have two rates by bdondo · · Score: 1

    One for smart people (a slightly higher unlimited access) and One for dumbasses and newbies: charge 'em by the minute. They'll quickly change to the unlimited fee and we'll all be right back where we started.

  82. sure. by mattdm · · Score: 2
    And you can't get a T-1 for the same price as a 28.8 dialup.

    --

  83. You're used to taxes so what's the big deal? by bbcat · · Score: 1

    In Canada you're used to be taxed to death.

    I think this kind of behavior in the US would
    kill the internet.

  84. You get screwed, that's your problem. by bbcat · · Score: 1

    It is not because others get screwed that
    we in the USA should accept to be screwed
    as well.

  85. It doe. by dmahurin · · Score: 1

    US IRS employs tens of thousands of people.

    Instead of that, if you have a flat tax or just a simple formula, then people (rich and poor) pay less taxes because they do not pay the salary of thousands of tax collecters.

    1. Re:It doe. by cburley · · Score: 1
      Actually, it not doe, it buck. ;-)

      --
      Practice random senselessness and act kind of beautiful.
  86. Metering already exists by the+eric+conspiracy · · Score: 2

    Whether or not people realize it, metering already exists in the sense that if you need a certain level of access you have to pay for a bigger pipe. The home user who is occasionally picking up email and doing a little shopping doesn't need DSL or a Cable Modem. The heavy gamer or downloader will pay for the higher throughput. Those with business level demands pay for the T-1 or OC-3.

    1. Re:Metering already exists by MasterAlex · · Score: 1

      Well, perhaps it's interesting to add here that the "Deutsche Telekom", the largest German telecom because she was (and still is, even if many politicans don't admit it) governmental-owned, turned this logical approach around: Here you have to pay _more_ if you want to get an ISDN flatrate than if you want to get a DSL flatrate.

      And btw, the Deutsche Telekom is the only flatrate provider in Germany now after they pushed all the other carriers who were around out of the market. The reason is simple: Almost all phone lines are owned by the Deutsche Telekom and they don't give it away unmetered - so somebody has to pay metered (on a per-minute basis) to the Telekom. And if you don't have to (because you use the flatrate your provider offers) your provider has to!

  87. Flat Rates by grammar+fascist · · Score: 1

    Well, one thing's for sure - if you start charging Americans by bit or byte, you'll make them angry. We're used to paying a flat rate per month for just about everything, including our cars. It would screw up our expectations completely. Anyway, if an ISP did that, I'd expect any self-respecting-used-to-flat-rates American to change ISP's.

    I spent two years in Britian, where they charge you for your time on the telephone. I hated it. And at least half the people I met didn't even have a telephone, especially in inner-city Glasgow. By contrast, almost everyone in this country has a telephone - why? Because with a flat rate, it also costs less.

    Charging anything but a flat rate will only drive people away, and widen the "digital divide."

    --
    I got my Linux laptop at System76.
  88. Re:It does.? by dmahurin · · Score: 1

    How "does" one edit a post?:)

  89. light users?? by nocomment · · Score: 1
    uhm how about if you're a light user, you pay for the limited access account? Most ISP's have them starting at $5 or $10??


    It's just so crazy it might work!

    --
    /* oops I accidentally made a comment, sorry */
    /* http://allyourbasearebelongto.us */
  90. Re:It says "Users love low flat rates" by Prior+Restraint · · Score: 1

    My apologies, billybob2001. In trying to be clever and swift in my reply, I came off sounding like a jerk. My only intention was to point out (humorously) that you seemed to see a difference between a "low flat rate" and "free", where I saw the latter as a special case of the former. Re-reading my response, though, I can see that I was actually being snide, and there were a dozen other ways I could have made my point without sounding like a smart-ass.

    In response to your new post, let me say that I definitely agree with what you're saying. All other things being equal, I'd prefer free service, or perhaps a reasonable flat rate for most services (except cable TV; I really resent paying for fifty channels when I only watch twenty to twenty-five).

    So, in summary: I'm sorry I didn't think before I posted, especially since we appear to be in agreement.

  91. It does by Tony+Shepps · · Score: 2

    Except that, in the (U.S.) government's infinite wisdom, they have transferred 99% of the cost of calculation to the taxpayers themselves. The cost of calculating your tax is not widely considered a part of your tax, but surely it is.
    --

    1. Re:It does by cpeterso · · Score: 2

      This allows politicians' rich crony friends to use obscure taxcode loopholes. The gub'mint doesn't want a simple algorithm because people might actually understand it.


  92. Good for the Goose, good for the Gander by I-R-Baboon · · Score: 2

    Well then in that case...

    Politicians should pay a $1 liars fee to each and every single person their lies affect. This way people lied to by a politician know that at least it cost THEM for a change. Then we can start metering verbal speech, by the word of course for those whom don't speak much...

    --
    -1 Overrated (Too many big words for me to comprehend)
  93. Internet usage IS metered. by Damien+Neil · · Score: 2

    I don't understand the point this article is trying to make. Internet usage IS metered, right now. If you buy an OC-48 connection, you will almost certainly be charged based on what percentage of it you use.

    It is true that home lines -- modems, DSL, and the like -- are generally not charged on a per-usage basis. The amount of bandwidth consumed by the average home line is too small to make it worth the expense of metering.

    - Damien

  94. Look at Europian Telecoms... by aralin · · Score: 1

    People, please, don't try to return back to metered access. The only who earns on this is the telephone company. The only reason that blocks the expansion of internet in Europe is that there are not flat rates for phone calls!

    Low flat rates of phone calls is something that everyone envies you. In czech republic you get aproximatelly 20 times lower income than in US at average ($2500/year) and you can pay up to $200 per month for phone in case you use internet. $30/month is dream of anyone there even though the income is much lower!

    --
    If programs would be read like poetry, most programmers would be Vogons.
  95. Cable TV by SomeOtherGuy · · Score: 1



    Why should internet access be any different than cable TV? My cable TV provider says that for $20 bucks a month I can "have unlimited access" to channels 1-36. What this means is that if I want to switch to Nick At Nite' on channel 34 and watch 23 hours of classic re-runs a day it will cost me the same $20 bucks a month as my neighbor who never watches Nick at Nite', and only subscribes to Cable so he can watch the golf channel on weekends for 4 or 5 hours, and do his workouts with Richard Simmons on channel 9 for 30 minutes each morning. And the minute that cable TV companies decided to penalize me for watching 14 episodes of "Bewitched" a day, and say that I was "abusing" the system -- I guess my whole purpase for having cable TV in the first place would be wiped out.

    --
    (+1 Funny) only if I laugh out loud.
    1. Re:Cable TV by jCaT · · Score: 2

      well, the huge difference is that if you're a lazy ass and watch TV all day, there's no way it could have any impact on your neighbors. If your isp oversold in your area and you're pegged at full utilization 24/7, that's less bandwidth for everybody else. Broadcast services don't really compare well with stuff like internet, gas, electric, water, etc.

  96. Real costs for an ISP by Animats · · Score: 3
    From an ISP perspective, the charges for the big pipe on the back side are a small part of the costs of running the business. Marketing and tech support are the big items, followed by billing and local telco line costs. Bulk bandwidth is so cheap it just isn't a problem past the local loop.

    Actually, metering tech support would make more sense. But 900 numbers have such a bad reputation (and the telco takes such a big cut) that that doesn't work.

    Metering connect time has been tried; remember AOL. That's history.

    The only way metering is going to happen is if somebody gets a monopoly. Otherwise, unmetered services will wipe out metered ones.

  97. Telekom Malaysia meters the Internet too by Xpilot · · Score: 1

    In Malaysia we only have 1 phone company. Local calls used to be flat-rate, but since we opened up an ISP here, they started metering (since the dialup service is a phone call away). Telekom profits tremendously from this, despite protests from users. Oh well... I guess that's what happens when monopolies have too much power.

    --
    "Backups are for wimps. Real men upload their data to an FTP site and have everyone else mirror it." -- Linus Torvalds
  98. Should electricity be this way? by re-geeked · · Score: 4

    Imagine if residential electrical usage were paid flat rate instead of metering. It seems to be much the same model as Internet access: everyone needs a certain amount of infrastructure to handle their needs, even though they don't often use it fully.

    The main objection would be that the cost of producing electricity is not marginal when compared to the cost of building infrastructure, EXCEPT for nuclear and renewables, where the cost of maintaining infrastructure is almost all of the production cost. So flat rate would actually encourage utilities to invest in renewables and nuclear, and discourage use of fossil fuels.

    Residential usage can benefit from conservation practices under metering, but only so much. Today, we subsidize electric utilities' conservation and education efforts. If flat-rate were the model, the advantages of such efforts would be evident to the utilities, and the efforts would increase: utilities would likely pay appliance manufacturers and home-builders to build in efficiency, rather than conservation-minded consumers having to pay a premium and hunt for such products.

    Electric use wouldn't suffer the same level of "abuse" as bandwidth -- after a certain point, you don't need any more wattage in your light bulbs. If bandwith flat-rates can survive with "campers", electric flat rates could survive with people running businesses on their residential feeds.

    Finally, we are facing an electric capacity shortage in the US today, and the article's point that metered service increases peak use is important here.

    Has anyone heard proposals along these lines?

    What would it do to the home-generation and co-generation efforts that benefit from reducing their metered usage? Could these producers simply not pay the flat rate and provide the power themselves?

    --
    "You can't get something for nothing." - my grandfather, on the stock market and Reaganomics.
  99. Smack On: Why Consumers Always Choose This by WillSeattle · · Score: 1

    Man, that was a good paper. It describes people like me exactly - I hate metered phones, even though I'd pay less if I had one. Just as I hate metered email or DSL, even though I'd pay less.

    It's emotional. Forget logic. The market reacts to many feedbacks, and one of them is the emotional reaction to pricing plans. Sure, I could switch to Sprint and save money, but I hate having too many choices. I just want to pay one flat rate and phone whenever I want and not think about it. Just as I want an unlimited account for DSL - I'll get a lower speed (256K) but I don't want any cap on how much email I can crank out.

    And I'd drop the web in a second, if I had to choose between it and email.

    Also, remember that women use the Net differently than men, and they are now a majority of Net users. Women prize email over super-duper graphics and voice streaming geek toys. And they're right.

    --
    --- Will in Seattle - What are you doing to fight the War?
  100. Related implications to micropayments by jeff_polski · · Score: 2
    The telephone studies describing consumer preferences for flat-rate over usage-blled have been out for some time and are also cited in discussions of behavioral finance. I've long thought this would be relevant to micropayment systems, as a similar economic decision exists.

    The assumption is that micropayments are so small that no one will care. But this isn't true. There is still the floating anxiety and bother of "mentally counting" each minute (pun intended) purchase. Also related, if what you are purchasing with micropayments has clearly perceiveable "high value", such a system will likely be trivially accepted by users. If your prospective users do not clearly perceive value (whatever that means to them, not to you as a marketer), either due to the type of product offered or the way you've "positioned" your product, micropayment economics will fail.

    I suspect that micropayments haven't really taken off in part because this fundamental piece of psychology was never integrated into either the protocols or the business plans of those creating micropayment systems.

  101. Re:Phone Companies - In Britain by Milo+Fungus · · Score: 1

    I'm from Utah, but I spent the last two years in England. British Telecommunications (BT) charges local phone calls at a certain rate per minute, depending on your plan and the time of day, etc. Most English people I knew were fed up with it, and I (being American and used to flat rate phone bills) was nearly beside myself a few times after a particularly high bill would arrive. I would think, "Why can't we just simplify things and pay the same price every month?" The high bill would always come exactly when you were a little short of cash.

    The general movement in Britain is towards a flat rate system. Where private phone companies have been allowed to set up business in certain counties, they invariably adopt a flat rate system. A friend of mine who came from Kingston-Upon-Hull, East Yorkshire told me that the most popular phone comany in his county charges a flat rate.

    The arguement for ISP's to charge an hourly (or bitly) rate makes sense when you first hear it, but when you think about it you realize that it's really not what people want. It was really a bother to get my silly BT phone bill every month and study my previous month's phone usage until it made sense to me. It was something I didn't want to have to think about.

    Is that what the internet is about? No! It's about convenience. It's about getting information and media as quickly and effortlessly as possible. Throughout the history of man, advancements in technology and application have been motivated by a desire to simplify life - not to give you another thing to worry about.

  102. metcalfe, on the other hand, is a twat. by Wakko+Warner · · Score: 1
    this is the same moron who cries every year that the Internet is going to choke under its own weight. I take everything he says with about a ton of salt.

    So he invented Ethernet. That doesn't make him an expert, by any means.

    --
    * CmdrTaco is an idiot.

    --
    "Remember when the U.S. had a drug problem, and then we declared a War On Drugs, and now you can't buy drugs anymore?"
  103. that's appalling. by sulli · · Score: 2
    Isn't the CRTC trying to promote competition in DSL? Aren't there other ISPs that can connect to DSL networks, or is Canada all tied up by the local monopolies?

    Yucko.

    --

    sulli
    RTFJ.
    1. Re:that's appalling. by TheTomcat · · Score: 2

      New Brunswick sucks when it comes to the net which is another reason I'm moving to Montreal.

      In NB now, we can get DSL in 3 (maybe 4 now) cities. And only in certain parts of those cities.

      Cable service is a joke. Last I checked, you needed a modem and had to use your phone line for the upstream. So, really, the only choice for broadband is the DSL I explained earlier, and it's only available through one provider, who also happens to be our ever-growing telco.

      Unless you're rich. Then you can get a T1 or ISDN or whatever for outlandish prices.

      So, as I said, I'm moving to Montreal, where at least there are more options.. but I've heard that Bell Canada likes to.. uh.. flex their power up there.

  104. Re:It says "Users love low flat rates" by billybob2001 · · Score: 1
    Hey, no offence taken, Prior. I hope my reply didn't come across as agressive.

    I'm just struggling to understand how I'd been modded down to 0, Flamebait.

    I'm glad there are open minded /.ers out there to balance out the reactionary moderators I've had the misfortune to be judged by.

    I'm at home for the weekend now, where I do have to pay (yes a fairly low flat-rate, ok capped-rate, but I still have to pay call charges) so I'll be relatively quiet until Monday.

    I shudder to think what will have happened to my karma by then if the k-police are having a slow weekend.

  105. metering by nr1 · · Score: 2

    in germany, all providers offer time metered access, while a couple also offer flat rate schemes. This way, people can decide on their online behaviour (low/free monthly charge, higher minute charge -> light users higher monthly charge, low/free minute charge -> power use) i don't see what is bad about more consumer choice. anyway, before telco liberalization we only had metered local calls. i wonder what the prices for umts service are gonna be like

  106. Metcalfe by drwho · · Score: 1
    Bob Metcalfe is an idiot. This isn't hard to determne, just go look at his public pronouncements over the past several years. I don't know why people still bother to quote him any more.


    I heard that he lives here in Boston, in the posh Back Bay. I'd like to show up and give him measured rate air.

  107. Ubitquity by oldzoot · · Score: 1

    I think an important quality of Internet access which is desirable for the evolution of society into cyberspace ( opening myself up a bit there eh? ) is that Internet access must be considered as always on, no cost and fast. It needs to be so cheap and convienient to use that there is simply no thought of not using it for whatever communication / research / play / whatever task is at hand. Ie do not want to continue or exacerbate the class dichotomy of the computer/internet haves vs. the have-nots. By charging per unit access, poor people will have less access to Internet, which will serve to keep them poor. Sounds like bad juju to me.

    --
    enough is too much
  108. Metering would be fine... by cr0sh · · Score: 3

    ...for broadband connections.

    Why? I currently have @Home service (yeah, I know it sucks, but it is all I can get right now), but in order to stay legit, I am not allowed to run servers. I am also capped on my upload bandwidth (and probably capped on the download, but at several times what the upload cap is).

    Before I signed up for the service, I repeatedly tried to get them to offer me more bandwidth and the ability to run a server (hey, I am not wanting to so I can run an MP3 or p0rn server - I just would like to host my site at home, instead of through HE), even offering to pay more for any extra bandwidth I use, etc. They suggested I look into @Work - but since this is a hobbiest site with low hit counts, I can't afford that kind of access.

    I was even willing to keep the cap, and just allow me to run a server, but they wouldn't do it (they wouldn't even let me negotiate the contract)...

    Bleh...

    Anyhow, if we could get metered service for those who want it, and allow us to run servers and pay for what is used, then maybe we can get out of these stuffy contracts that disallow you from reselling the service or using it to run a server or whatnot, and get back to just providing a pipe to use.

    I support the EFF - do you?

    --
    Reason is the Path to God - Anon
    1. Re:Metering would be fine... by cr0sh · · Score: 2

      You have a point - but as an operator of the server, it would be my responsibility to limit the number of users/bandwidth to something reasonable, so that it wouldn't be hogged. In addition, @Home should provide sufficient bandwidth at those local nodes so that such flooding is less of a problem for others, as well as providing tools to see how much bandwidth you are using out of the "pool", so that you can throttle back as needed.

      I have thought about running on high ports, but that isn't quite the same as how I have my site right now, where anyone who clicks the link above can see it, and search engines can see it easily as well. IOW, I would rather run on standard ports for http.

      Now, high non-standard ports would be OK for me to do some other work I have thought about (setting up a personal, my use only, FTP server - to xfer files between my work and home - etc), but I still would rather be able to do this legally, than skirting the edges and getting my contract canceled because I ran a telnet daemon on my box that I used occasionally...

      I support the EFF - do you?

      --
      Reason is the Path to God - Anon
  109. Give me choice or give me death by ferreth · · Score: 2

    Around these parts (Calgary, Canada) there have (over year ago last I looked) been the CHOICE of flat rate at $20/month or Small cap (5mb) for $10/month and some $/meg after the fact for phone connections.

    Same should be available for high speed, but it isn't ('cept for a cap for web hogs) because most people prefer higher but steady monthly charges. So we get $40/month cable or DSL and that's it for your 'options'.

    The water utility offers flat rate and metered, yet most people keep flat even though (they say) that most people would pay less on metered.

    Quite simply people will pay more for financial stability and simplicity of billing. BUT I wish there would be more choices for those of us who have enough of a clue factor to know their usage patterns.

    I went with a total pay-by-the-minute cel phone this year because I KNOW that my usage is low. I would never have gotten a phone at the $20/month rate for time I'd never use up.

    I can't do this for web access; Thus I stick with a cheap 56K phone rather that pay the same for a limited (but fast) high speed connection.

    Is it worth it for administration and # of customers for this option to be offered. Dunno.

    --

    W9x:Thanks for the make-work project Bill.

  110. New Script Kiddie Trick: Big Bills by BeBoxer · · Score: 5

    One of the biggest problems with metered billing is what do you do when someone decides to rack up your bill? Let's say I'm some script kiddie whose on an unmetered line (say at college.) Let's say I do a ping with 10K packet size to your home DSL address at the default frequency of once a second for a month. By my math, that adds up to almost 25GB of traffic. One ping a second won't even get noticed by 99% of DSL users, until they get that $200 dollar ISP bill.

    That's one of the big problems with metered billing. It's one thing when a script kiddie gets upset at you and floods you with traffic for a few hours. It's a whole different story if you get a huge bill from your ISP because of it.

    If everyone goes to metered billing you will see all sorts of abuses as crackers try to set up servers on other peoples machines to avoid paying the bills for their traffic. Add that up to the aforementioned harrasment traffic jacking up peoples bills. Plus the dishonest users who blame their traffic spikes on "hackers".

    I just don't see it being worth the headache for an ISP to charge by the byte. You can bet that any user that is hit by the above problems is going to run screaming to the nearest flat rate ISP. Besides, the rates are metered to a certain extent. Dialup access is not the same cost as OC-3 by a long shot. So all the dialup users are in the same cost pool. So what? They are in a different cost pool from the DSL users, who are in a different pool from the T3 users, etc.

    1. Re:New Script Kiddie Trick: Big Bills by kimihia · · Score: 1

      With DSL your data charges are calculated by where you are plugged into the DSLAM at the exchange. I can't wander down to the local exchange and stick my DSL plug into my neighbour's port, because it has a lock on the door.

      As a Telecom Jetstream customer I change my "context" on the modem so I get unmetered (though limited) 'net access.

      How it works I don't know, as the phone co. bills me for data transfers, not my ISP.

    2. Re:New Script Kiddie Trick: Big Bills by BeBoxer · · Score: 2

      I didn't say they were going to break into your local CO and physically take over your DSL line. But, if I figure out your IP address, I can ping it from anywhere in the world and you get to pay the bills for it. And depending on how well your ISP verifies the traffic and exactly what they bill on, there might not be a damn thing you can do about it. If they just count how many bytes flow to your modem from their DSLAM, I can send you all sorts of traffic and it is impossible for you to stop me. Like I said, it's an irritation if some kiddie floods you with traffic and makes your connection unusable for a few hours. It's a whole different game if they send a trickle of traffic all month long and you don't notice. Suddenly, you have a huge DSL bill, and no idea why.

  111. Europe & Japan already have metering by redelm · · Score: 2

    Europe and Japan already have metering ... it's by the local phone company who charge for local phone calls by the minute. I've lived there, and it s#x. IMHO, it has caused slower I'net adoption and reduced usage.

    1. Re:Europe & Japan already have metering by toriver · · Score: 1
      The metering is for phone connections, and possibly some other services: I have cable net access and pay a flat rate per month.

      And "slower net adaption" is hardly accurate for e.g. Norway, Iceland and Finland, all of which either are at the same percentage of internet users - or even more - than the USA.

  112. The source: Andrew Odlyzko's original paper by wayne · · Score: 2
    The /. story points you to an article by John Levine, but this is really just an analysis of Andrew Odlyzko's paper on the subject.

    You can view Andrew's paper on his website at www.research.att.com/~amo/doc/ net works.html, where you can find several other interesting papers too.

    Direct links the the Content is not king paper are: [Abstract] [PostScript] [PDF] [LaTeX]

    One interesting quote in the paper was:

    Just the spending on phone services is higher than all advertising outlays. So say good-bye to all those plans for financing the Internet through advertising! Yes, advertising can help fund some services, but it will not provide the generous revenue streams that are needed to support a communications infrastructure as large as the phone system.

    --
    SPF support for most open source mail servers can be found at libspf2.
  113. No! by Sloppy · · Score: 4

    What a horrible idea. I don't want my electric bill to go up, just because all my neighbors prefer refrigerated air over evaporative cooling, incandescent over flourescent, etc. Flat rates take away peoples' incentive to be efficient.

    The reason you can't compare bandwidth to electric is that when electricity is flowing a resource is really being used up. It's not just infrastructure, it's consumed energy too. With bandwidth, there isn't the consumption aspect of it.


    ---
    --
    As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
  114. Re:You should have to pay to read by gaudior · · Score: 1
    That's not homophobia, anymore than a link to AA is fear of alcoholics. Homosexualism IS a deviant mental disorder, and those who suffer from it need to be helped. They can be cured, just as others who suffer from mental defect can be helped to lead a normal, productive life.


    --

  115. Viva Las Vegas by sulli · · Score: 2
    As anyone who's been to Comdex knows, the buffets at all the casinos suck big time. They're designed for low, low cost per attendee, and they make their money (or break even: remember that cheap buffets bring in the gamblers) by making college dorm-quality grub in huge volume. Not so great for the gourmet.

    But ISP service is fundamentally different. Buffets offer a wide variety of food, and can charge a flat rate (and offer very skimpy table service) because they can average it all over a large number of fairly predictable users. ISPs, on the other hand, offer one thing: internet access. It's more like a cafe where you get free refills, and they know that most users don't get the refill; they can afford to accommodate the few all-day coffee drinkers, who also buy more donuts (think email accounts, listservs, that sort of thing). It all works out.

    --

    sulli
    RTFJ.
  116. Um, no by emufreak · · Score: 1

    Every Internet user in Europe would commit suicide if this happened. Not only would they have metered phone service, they'd also have metered Internet service. :/

  117. Metcalfe's Law by aozilla · · Score: 2

    Robert Metcalfe founded 3Com Corporation and designed the Ethernet protocol for computer networks. Metcalfe's Law states that the usefulness, or utility, of a network equals the square of the number of users. I believe that this is true of internet traffic. If we had metered bandwidth, less people would post on slashdot, less people would share their napster files, there would be fewer downloads of linux, fewer patches posted for linux, a dramatically, exponentially smaller free software movement. The internet would suck.

    --
    ok then your [sic] infringing on my copyright! Could you as [sic] me next time before STEALING my comments for your own?
  118. Move to New Zealand by kimihia · · Score: 1

    Hey mate, move over to New Zealand.

    DSL has very good connection speeds, and we can do what the heaven we want with our connection (with the exception of enabling bridging on your modem).

    Yes data transfers (upstream and downstream) are metered and we get charged extra if we go over 'n' megabytes, where 'n' is one of 400, 600, 1200, or whatever you signed up for.

  119. A thought . . . by Kreeblah · · Score: 1

    Voice over IP for a user in Britain with a dialup connection.

  120. Total BS by nysus · · Score: 1
    Leave it to the "free" market to find a way to create scarcity where there is none to help put a damper on things. If they could, companies would find a way to sell sunshine. You can bet your ass companies will make MORE money under this scheme and that's the only reason it's on the table.

    The way I see it, this would increase the digital divide. Let's say I'm a computer whiz kid developing the next Napster on steroids. Am I going to be able to pull together the 110 bucks per month to pull it off? Hell no.

    Just about anybody can afford $20/month. Maybe you'd have to sell an extra 3 joints or work an hour extra each week bagging groceries to pull it off, but you could do it.

    I'm all for a sliding scales for expensive items like taxes, college tuition, and heating bills, but coming with some complex and mystical formula (you thought your phone bill was confusing?) to justify saving families a few bucks a month is plain bullshit.

    Don't believe a fucking word of it. Metcalfe is a shill for the capitalists. I heard it straight from his mouth on the radio that he is voting Republican. Fuck him.

    --

    ---Technology will liberate us if it doesn't enslave us first.

  121. iFax by v(*_*)vvvv · · Score: 1

    Count out your XACCT change to merge to the Pay-As-We-Go Internet

    What an idiot. How are you going to meter "premium" internet services, when all they do is use internet access. Fax? Just send a file, and have it print. Same with anything else. Nothing a little software or hardware can't solve.

    Maybe he should start monitoring his own brain access instead.

  122. Good response, Palin. (nt) by wideangle · · Score: 1

    (nt)

  123. Tracking costs kill you by Preposterous+Coward · · Score: 1
    The big benefit of flat rate is nobody has to keep track of (and bill) your time online / bits downloaded / whatever. A few months back I had breakfast with [a very senior guy] from [a humongous telecom company]. He admitted that one of the dirty secrets of [another humongous telecom company] was that it actually cost them more to bill residential customers than they received in payments from those residential customers.

    At the risk of getting all political, this reminds me of one of the reasons that a VAT or flat tax seems so much more logical than the ridiculous tax system we currently have here in the U.S. Sure, a flat tax might be "less fair" because rich people would pay a lower percentage of their income than they do now, but there would be massive society-wide savings of money and time because of the simplification of the tax code (which currently is about the size of the Encyclopedia Britannica and is incomprehensible even to experts) and reduction in enforcement and litigation costs. Food for thought...

    --

    "Biped! Good cranial development. Evidently considerable human ancestry."
  124. Australians pay through the nose by goodie · · Score: 1

    I have a permanent modem connection (33kbps) and it cost me $500 to install, $20 per month up to 100MB and then $20/per 100MB after that. Average bill is about $70/month for a measly 350MB!!!!

    1. Re:Australians pay through the nose by jnew · · Score: 1

      It's not all bad though for dial up. I use DingoBlue...it costs me $27 Aus (about $14US) for an unlimited connection per month..

      For a 25c call, this connection has been up for 200 hours so far, and has downloaded about 900megs.

      There are plenty of unlimited ISPS out there now

  125. In Australia we already are. by PTrumpet · · Score: 1

    We also run an ISP...

    We have metered by the meg for years because our suppliers meter us - we have no choice. And get this, the list rate for wholesale in Aus for a small ISP is around AU$0.14-0.19 per meg. Of course you can get better deals than that if you shop around and sign anti competitive NDAs, but not much better, certainly not what it costs in the US. Typically a customer in Aus pays between 10-20 times as much as the same customer in the US.

    Typically ISPs here deal with it in three ways..

    1) directly charge the customer per meg.
    2) factor the average megs into an hourly rate.
    3) apply download quotas on all you can eat accounts in various ways.

    Either way, it has totally screwed up the market here in Aus.

    Having personally spoken directly to the current CEO of Australia's largest Telco (and ISP) who supply wholesale to a large chunk of the market, the word is that that's the only way they can recoup the huge cost to plug into the US backbone, carry traffic across the Pacific and then deliver it around Aus. This is the same company that makes billion dollar profits every year without fail. All the other capable telcos just follow suit and so in general the public is being screwed by such schemes.

    I can tell you it sucks.

    Technical details...

    We have a sophisticated RADIUS based usage tracking mechanism which feeds into an SQL database through to a rules based billing system. And if our system as much as sneezes, the customers are down our throats wanting refunds. The worst is when they are unware that their connection is slowly draining their quota even when they aren't apparently doing much. Imagine the financial pain when an ISP get smurfed.

    bandwidth metering... hah.

  126. Re:Phone Companies don't charge metered rates... by domebot · · Score: 1

    Maybe where you live. I have a client that pays by the minute to call across the street. They did not realize it until they analized phone bills to find their LOCAL ISP was costing $400/month in phone charges. That was for one user who did nothing much more than sit online all day just to get the email.

    --
    domebot...carpet-denim!
  127. Re:Phone Companies - In Britain by mpe · · Score: 2

    The arguement for ISP's to charge an hourly (or bitly) rate makes sense when you first hear it, but when you think about it you realize that it's really not what people want. It was really a bother to get my silly BT phone bill every month and study my previous month's phone usage until it made sense to me.

    BT is already set up to meter calls, issue variable bills and deal with queries. However this is not the case with ISP's who'd have to set up such a system from scratch, which wouldn't be cheap.