p2p Capital Group

June 14, 2008

The End of Unlimited Bandwidth

Filed under: Technology — p2pcapitalgroup @ 1:53 pm

Om Malik recently highlighted AT&T’s moves to eliminate unlimited bandwidth for their DSL customers. AT&T will become the third major provider to eliminate unlimited plans in an effort to push their more lucrative services such as AT&T’s U-Verse.

In my opinion, consumers will eventually have no unlimited options as each of the other providers jump on the bandwagon. Consumers have already experienced the elimination of unlimited plans for wireless 3G plans as Sprint recently became the last provider to limit bandwidth to 5GB. It’s only a matter of time for all the cable co’s and telco’s to follow.

clipped from gigaom.com
“A form of usage-based pricing for those customers who have abnormally high usage patterns is inevitable,” according to an AT&T spokesman, though the company does not yet have a specific plan or policy. AT&T said the Top 5 percent of its DSL customers use 46 percent of the total bandwidth, which is consistent with cable industry experience.

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