Posted: 23rd May, 2003 By: MarkJ
Fresh from slapping the Wi-Fi industry, Telecoms researcher Analysys has also suggested that ISPs consider flexible pricing models for broadband. It's feared that not doing so could damage the rapid growth:
The current flat-rate charging model will only result in price wars that will damage the industry and ultimately do nothing to attract new customers.
Providers should introduce pricing strategies that take into account the huge variability in the usage patterns of existing and future broadband customers.
This will require careful marketing and consumer education, but volume-based charging is likely to deliver better results in terms of penetration and spend.While we agree that ISPs, especially those that limit their services (P2P etc.), should offer additional package choices to cover heavier usage; doing away with flat-rate charging is a ridiculous notion.
Flat-rate has helped to simplify the industry and encourage competition; we didn't fight long and hard just to see metered come back. More @
VNUNet.