For the past 15 years, the Internet has been an amazing all-you-can eat buffet. Not only have Internet access plans offered unlimited usage but the proliferation of free online services has thrived because there have been no concerns about how much bandwidth is being used.
The salad days, I’m afraid, look like they’re about to be a thing of the past. As consumers use more online services and, in turn, more data, ISPs providers smell money; a lot of money. To them, broadband services is the razor; the razor blade is the data that consumers need to satisfy their need to access online applications, games, video, telephony, storage, music, etc. According to someone on Twitter, ISPs are charging $1/GB of extra data – something that costs them one cent/GB.
The more that things move into the cloud, the more data we use and need. The cable and telephone companies have taken a long time to act on the new data reality but that’s about to change. Consumers should get ready for tiered services not so much based on speed but on data consumption. If you want to use online services, just be prepared to pay for the privilege. And boy you will pay because once ISPs have their hooks into data, they will squeeze this golden goose as hard and often as they can.
In Canada, ISPs have been playing this game with broadband access for the past decade. There’s no competition so prices keep going up. It’s a far cry from the sweet days of dial-up when there were hundreds of ISPs battling it out on price and customer service. Today, there are limited options so if you want broadband service, you pay for it.
The question facing consumers is whether they’re going to accept bandwidth caps without a fight. It’s important to remember that free and unlimited access to the Internet has been a key principle of its growth. The idea of actually paying for bandwidth AND access was never part of the mix. If ISPs are allowed to make bandwidth caps stick, the danger is innovation will be neutered because consumers will think twice about using new, high-data services.
It’s bad enough that there isn’t more incentives by the federal government to have more broadband competition. But the idea that bandwidth caps could become part of the landscape is troubling for a lot of reasons. My fear is bandwidth caps are here to stay. ISPs love them because it is another major source of revenue, particularly among telephone companies who have seen their local telephone business erode over the past five years.
So what are we going to do, take it on the data chin or fight?
More: If we’re looking for a friend to fight bandwidth caps, NetFlix looks like they’re gearing for major battle.
Tweets that mention The Looming War About Data Usage | Mark Evans Tech -- Topsy.com
[...] This post was mentioned on Twitter by ??, Canadian Tech News. Canadian Tech News said: Mark Evans – The Looming War About Data Usage http://bit.ly/eCVuHo [...]
What options do we have to fight back? I kinda feel like we have almost no way to combat this in Canada. My prediction is that our bw consumption will grow a lot faster than usage caps, and at 1 dollar+ per gig the margin to ISPs is insane.
My post on this:
http://www.chrisumiastowski.com/usage-based-billing-the-impact
Chris,
I’m not there is much we as consumers can do. The federal government/CRTC could intervene but given their terrible history of getting the ISPs to do anything, I wouldn’t hold my breath. In other words, I think we’ll be forced to pay, and pay some more.
mark
Specifically, the broadband ISPs are also television providers. Unlimited data means their TV services are going to go away, disappear, poof. Why pay for Rogers cable or Bell TV if you can download all the TV you want with your unlimited internet plan?
On the other hand, a 25GB cap means you can still do most internetty things, just not download any significant amount of video. You’ll still need your TV package in addition to your internet package.
And that makes Rogers and Bell very happy. Thus, bandwidth caps.
What are the Internet BWidth caps being proposed?
I watch 85% of my TV and Movies from iTunes downloads and Apple TV.
Shane,
Bandwidths are already offered by many ISPs. One of the problems is ISPs that start to selling broadband packages with low amounts of bandwidth, which basically make their services for e-mail, surfing the Web and maybe some light video watching.
Mark