I saw this interesting analysis of US data caps and whether they make sense to ISPs…
Of the 75 million broadband subscribers in the US around 42 million, or 56%, have some form of data cap in place from their internet service provider ISP according to data from Leichtman Research Group. However, despite all the negative publicity data caps affect less than 2% of customers of those using providers who enforce data caps. This begs the question: why would internet providers pursue a policy that is such a PR disaster? Which ISPs cap data, what are the caps, and what happens if you exceed the cap?
via Do Data Caps Make Good Business Sense for ISPs? | DSLReports.com, ISP Information.
I see nothing wrong with data caps as such (except when they are too low considering what is being paid – 2GB is criminal today) as a way of budgeting the cost of providing Internet service to heavy users but I do see everything wrong in the majority way that ISPs deal with the user when they go over the limit. Most ISPs I am aware of limit the Internet connectivity when you exceed the data cap. I don’t understand this and it shows a complete lack of business sense in the ISP. What is wrong with hitting the heavy user with a charge (again not too excessive please) for additional data that is commensurate with the original charge for the service? This makes business sense. When was the last time you heard a supermarket say no to you buying more beer? All ISPs should be using this as a business opportunity.
However the key phrase though is ‘not too excessive’. Charging £20 a month for 60GB and then £10 for each additional 5GB is not commensurate, that is punitive and it turning your customer away. It should be charge £20 for another 60GB. In addition this should be applied for both fixed and wireless broadband – I see no difference. This becomes particularly important as our usage increases through our access to online video services and I would like to see more ISPs get with the business thing.



