Re:Netflix Agrees to Pay Comcast to End Web Traffic Jam
by revelation on Sunday February 23, 2014 @04:06PM
(#7287600)
The idea is that usage-based pricing doesn't make sense for customers because there is a hard limit on consumption simply based on the terrible state of last mile connections. Simply put, charging 2014 dollars for usage on a line with a capacity that was last relevant in 1985 is not motivated by actual capacity limitations, but a simple money grab.
(Not to mention that there are no inherent variable costs to transporting bits. Water needs to be purified, electricity is obviously usage priced - but you can be pushing bits forever once you have the hardware setup.)
(Not to mention that there are no inherent variable costs to transporting bits. Water needs to be purified, electricity is obviously usage priced - but you can be pushing bits forever once you have the hardware setup.)