Should broadband providers be permitted to charge by usage?

An article in the New York Times (June 26, 2012) describes plans by some internet providers to use usage based pricing. Under this model usage for regular subscriptions will be capped or discounts provided for lighter usage. But content providers claim that this will hurt their business and should not be permitted. Should pricing based methods to ration content remain the prerogative of the internet provider ? Should a desire to enable job creation by content providers suggest blocking such pricing as uncompetitive ? Or is the problem a lack of sufficient competition in the internet provision market ?

About aviyer2010

Professor
This entry was posted in Service Operations and tagged , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s