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
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