On Friday, May 16, 2014 08:47:53 PM Blake Hudson wrote:
How residential ISPs recoup costs (or simply increase revenue/profit) is another question entirely. I think the most insightful comment in this discussion was made by Mr. Rick Astley (I assume a pseudonym), when he states that ISPs have several options to increase revenue A) Increase price of their product, B) Implement usage restrictions, or C) Charge someone else/Make someone else your customer. I think he successfully argues that option C may be the best. As we've seen, the wireless market in the US went for option B. We've yet to see where the wireline market will go.
Some of the operators, here in Africa, who are venturing into FTTH, are continuing on with their data caps. I suppose if you're primarily a mobile carrier who uses data caps to charge for access (and makes lots of money in the process for, pretty much, selling nothing), the model becomes attractive regardless of the medium. New providers who are not encumbered by this type of thinking, obviously, have a more flexible and forward- thinking business model. Mark.