An Attempt at Economically Rational Pricing: Time Warner Trial

Sun Jan 20 17:38:17 UTC 2008

Matthew Moyle-Croft wrote: 
> As long as the companies convince people that the "cap" is large 
> enough to be essentially the same as unmetered then most people won't 
> care and will take the savings.    The other angle is to convince the 
> 95% of customers that caps will actually deliver them a faster speed 
> as the "evil 5%ers" won't be slowing them down by hogging the bandwidth. 
> Having a cap and slowing down afterward (64kbps or 128kbps are 
> typical) is what worked here in Oz.   It also removes a whole lot of 
> credit related issues. Consumers get a product where they know what 
> they're getting - it's fast upto a point and then it slows down.
This makes a lot of sense. And if it worked in Oz...

--

Taran Rampersad
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