{"id":4765,"date":"2011-04-27T06:13:06","date_gmt":"2011-04-27T10:13:06","guid":{"rendered":"http:\/\/mhgoldberg.com\/blog\/?p=4765"},"modified":"2011-04-26T15:16:50","modified_gmt":"2011-04-26T19:16:50","slug":"why-not-charge-by-the-gig","status":"publish","type":"post","link":"https:\/\/mhgoldberg.com\/blog\/?p=4765","title":{"rendered":"Why not charge by the gig?"},"content":{"rendered":"<p>An OpEd in the Financial Post by UOIT professors\u00a0<a href=\"http:\/\/bit.ly\/f6V1R2\" target=\"_blank\">Chirag Surti<\/a> and <a href=\"http:\/\/bit.ly\/eW7wL8\" target=\"_blank\">Jeff Moretz<\/a> asks &#8220;<a href=\"http:\/\/bit.ly\/eVlSal\" target=\"_blank\">Why not just charge by the gigabyte?<\/a>&#8221;<\/p>\n<blockquote><p>Presently, a healthy yet misguided debate rages on about UBB versus unlimited Internet plans offered by third party resellers. Few have either recognized or even discussed a simple solution to the problem. Why not just meter the use, no matter who uses it, without tiers?<\/p><\/blockquote>\n<p>I have a feeling that these professors may not have been listening to folks who are not crazy about usage sensitive pricing. We have a number of political parties saying that they will regulate usage sensitive prices, we have a movement that wants all pricing to be unlimited and yet they conclude that few have &#8220;recognized or even discussed&#8221; such a simple solution!<\/p>\n<p>I suspect that in this multi-gazillion dollar internet access business, that at least one ISP somewhere in the world has done market research into how consumers respond to flat rate versus usage sensitive prices.\u00a0As many of us have come to learn, as expressed by Andrew Odlyzko (U Minn) in a paper [<a href=\"http:\/\/bit.ly\/gP1BEM\" target=\"_blank\">pdf<\/a>, 158KB] about a decade ago: &#8220;Users value simplicity, and in particular flat rates.&#8221;<\/p>\n<p>I recommend the Odlyzko piece to all &#8220;<a href=\"http:\/\/bit.ly\/gP1BEM\" target=\"_blank\">Internet pricing and the history of communications<\/a>&#8220;. He provides pricing examples &#8220;based on two centuries\u2019 worth of data on the evolution of mail, telegraph, telephone, and data services.&#8221;<\/p>\n<p>Users value simplicity, and in particular flat rates. That is why ISPs won&#8217;t charge by the gigabyte.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>An OpEd in the Financial Post by UOIT professors\u00a0Chirag Surti and Jeff Moretz asks &#8220;Why not just charge by the gigabyte?&#8221; Presently, a healthy yet misguided debate rages on about UBB versus unlimited Internet plans offered by third party resellers. Few have either recognized or even discussed a simple solution to the problem. Why not &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/mhgoldberg.com\/blog\/?p=4765\"> <span class=\"screen-reader-text\">Why not charge by the gig?<\/span> Read More &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","two_page_speed":[],"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4765","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Why not charge by the gig? &#8226; Telecom Trends<\/title>\n<meta name=\"description\" content=\"An OpEd in the Financial Post by UOIT professors\u00a0Chirag Surti and Jeff Moretz asks &quot;Why not just charge by the gigabyte?&quot; Presently, a healthy yet &#8226; April 27, 2011\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/mhgoldberg.com\/blog\/?p=4765\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why not charge by the gig? 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Few have either recognized or even discussed a simple solution to the problem. 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