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Ars Technica | Netflix: ISPs who charge by the gigabyte are ridiculous
By Nate Anderson for Ars Technica
Some ISPs want to start charging customers by the gigabyte, or they want to set low data caps and charge overage fees. Netflix has a word for this idea: ripoff.
In the company's most recent financial report (PDF), released today, Netflix made clear its view that the move to usage-based billing is about ISP profit, not actual costs.
Wired ISPs have large fixed costs of building and maintaining their last mile network of residential cable and fiber. The ISPs’ costs, however, to deliver a marginal gigabyte, which is about an hour of viewing, from one of our regional interchange points over their last mile wired network to the consumer is less than a penny, and falling, so there is no reason that pay-per-gigabyte is economically necessary. Moreover, at $1 per gigabyte over wired networks, it would be grossly overpriced. Read more »
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Read more at arstechnica.com
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I was thinking about that a while ago. If this UBB thing goes on, Netflix will probably lose a lot of money from cancelled subscriptions.
I hope more peoples will wake up and see how destructive this UBB decision will be on Canada's future of Internet!