Is Unlimited Bandwidth Going Away? Verizon thinks so…

I heard some scary news today – it seems that Verizon has announced that they may be making some dramatic changes to their pricing policy in the future. The change would be to introduce metered bandwidth – a concept found all over the world but that the U.S. has escaped for some time now. How does this work? It’s simple – you pay for the amount of bandwidth that you use. It’s a bit like buying a cellphone plan – as a consumer you would have to guess how much bandwidth you plan to use each month and if you go over the limit…you pay the price.

Have you ever gone-over your allotted minutes on your cellphone? We’ve all been there and the bill can sometimes be outstanding – well the same thing could happen to your broadband connection and sooner than you might think!

So what is causing this move in what would seem to be the opposite direction? With more and more people using the Internet and each for a longer period of time we are starting to produce less revenue for the cable and DSL providers. For those thinking this will just affect DSL – think again – the cable company is happy to make this change too. With streaming video services like YouTube and Hulu becoming increasingly popular by the day that valuable bandwidth is becoming commercialized.

Now the magic question – will this affect Domaining? Yes! It’s too early to understand exactly how this will change the Internet but it will definitely have a ripple affect on the Domaining world. So enjoy the bandwidth while you have it because in the future you may need to limit your Internet addiction!

{ 3 comments… add one }

  • Michael October 2, 2009, 12:27 am

    Do you have a link to the Verizon announcement?

    Michael

    Reply
  • Pimp Jason October 5, 2009, 11:56 pm

    Time Warner is trying to come up with similar policies in regards to bandwidth usage. The problem stemmed from the amount of traffic being consumed by torrent users. The initial response to this was to throttle the bandwidth of a customer who downloads torrent files. Right now they are testing this in a couple of different cities across the United States.

    In reference to unlimited bandwidth and metered bandwidth there is a large gray area which some say can be quite confusing. The confusion comes from the fact that ISP providers, even hosting companies tend to use these terms freely. Some advertise services as if there is such a thing called unlimited bandwidth when indeed there is no such thing. Most unlimited bandwidth providers are really just capping a connection, if you are paying for a 2mbps connection and try to consume more they will simply just cap you. An example is you might be on a 5mbps port. They might give you the feeling that you can consume more than 5mbps, but in actuality if you try to burst at 10mbps you will not be able to. 🙂

    The average consumer does not see what is going on, they will only notice that the connection slows down at times. Providers are now trying to be a little more transparent with there advertising methods and are now letting you know that if you pay for 2mbps you will get 2mbps and if you pay for 10mbps they will give you 10mbps. They are doing this to control the bandwidth structures a little better and in the end increase profits.

    Reply

Leave a Comment