Submission + - Verizon planning metered broadband too ? (telephonyonline.com)
suraj.sun writes: "Verizon's CTO Richard Lynch told a 2009 FTTH Conference & Expo press conference today that the broadband industry "will see a pricing paradigm shift" because Internet service providers "cannot continue to grow the Internet without passing the cost on to someone." His comments are believed to mark the first time a Verizon executive had publicly supported metered billing at some point in the future.
When asked how Verizon would meet the burgeoning demand for bandwidth for Internet video and other services, Lynch admitted "the concept of a flat-rated infinitely expanding service for everyone just won't work."
"We are going to reach a point where we will sell packages of bites," Lynch said. "Now I'm not announcing a new pricing plan. But we have already gone this way in wireless because that is where the resource is most constrained."
"I think this is the first time I've heard someone from Verizon say there is a need for metered billing," said Vince Vittore, an analyst with The Yankee Group. "They were the one holdout, and certainly they are not going to move to it immediately. But their cost structure is certainly different, as a tier-one [carrier], their transport costs are a fraction of the smaller operators."
TelephonyOnline : http://telephonyonline.com/residential_services/news/verizon-cto-metering-092909/"
When asked how Verizon would meet the burgeoning demand for bandwidth for Internet video and other services, Lynch admitted "the concept of a flat-rated infinitely expanding service for everyone just won't work."
"We are going to reach a point where we will sell packages of bites," Lynch said. "Now I'm not announcing a new pricing plan. But we have already gone this way in wireless because that is where the resource is most constrained."
"I think this is the first time I've heard someone from Verizon say there is a need for metered billing," said Vince Vittore, an analyst with The Yankee Group. "They were the one holdout, and certainly they are not going to move to it immediately. But their cost structure is certainly different, as a tier-one [carrier], their transport costs are a fraction of the smaller operators."
TelephonyOnline : http://telephonyonline.com/residential_services/news/verizon-cto-metering-092909/"
