First of all, did you actually think I was not going to post today. Check your calendars.
I’ve been telling people about this when I heard that Cox was actually thinking about doing this back in 2007. People told me I was nuts.
Time Warner then went out and actually did it in January 2008 in Beaumont, TX. And now they are rolling it out in four new cities. (DSLReports.com, The Consumerist.com, BusinessWeek, Austin360.com)
Metered Billing Internet is here.
Basically this means that you pay a set price and you are only given a pre-determined amount of bandwidth. More likely it will range from 5 to 40GB per month. If you go over that you will pay an additional $1 per each GB you go over.
Why is this such a bad thing? With the advance in video streaming and especially high definition streaming, your bandwidth will continue to go up and you will pay dearly for it.
Right now, the iTunes HD movies are about 3GB each. Think about it. If your ISP caps you at 40GB for $50/month that means you can only download 16 movies before you are charged extra. That does not count whatever bandwidth you use for regular surfing and email. You will begin to see some serious bandwidth overage charges coming real quick.
Why are they doing this? As my Cox contact told me, ISP have realized that people cannot do WITHOUT their internet and will pretty much pay anything to keep it. Bandwidth is the new Gold and they know it. We have become so hooked on our Internet habit that we cannot imagine being without.
From what I have been told, AT&T is next and Cox is ready with a plan but will wait to see how the others do with their rollouts. I can guarantee that Comcast will match any competitor’s caps or rise their prices if their caps are higher than the competition.
BTW… This is NOT an April Fool’s Joke.