I don't have sources to cite on hand at the second but I seem to recall
that every time tiered pricing has been tried in the US, the low
bandwidth users never see a bill reduction; only the heavy users see any
effect on their monthly cost and that is a dramatic increase. So, great
in theory, not so much in practices thus far.

There's also a common complaint that the whole issue should be moot.
The telcos have failed to upgrade their infrastructure despite increased
prices and gov't grants specifically for that purpose. Had they done so,
the available bandwidth would have more easily kept pace with the
increased load.

I'm going off memory on this and am not an expert so if I'm wrong, I'd
welcome someone setting me straight.

Bill



On Wed, Mar 03, 2010 at 03:37:12PM -0600, Dustin Puryear wrote:
> "We" are not proposing a tiered payment structure. "They" are going to
> propose the new plan, where "they" is the company offering the
> bandwidth.
> 
> Honestly, to me, it seems like low bandwidth users are in fact
> subsidizing the people that gooble up the network. So why not have
> people pay for what they use?
> 
> ---
> Puryear IT, LLC - Baton Rouge, LA - http://www.puryear-it.com/
> Active Directory Integration : Web & Enterprise Single Sign-On
> Identity and Access Management : Linux/UNIX technologies
> 
> Download our free ebook "Best Practices for Linux and UNIX Servers"
> http://www.puryear-it.com/pubs/linux-unix-best-practices/
> 
> 
> -----Original Message-----
> From: general-boun...@brlug.net [mailto:general-boun...@brlug.net] On
> Behalf Of Karthik Poobalasubramanian
> Sent: Wednesday, March 03, 2010 3:28 PM
> To: general@brlug.net
> Subject: Re: [brlug-general] I'm not against tiered pricing
> forhigh-bandwidth users..
> 
> I am against tiered pricing and here is my reasoning.
> For ATT 3% of users use about 40% of network capacity. At a first
> glance, it would look like a lot of people will spend less money if they
> paid for what they used. Unlimited users should pay more then casual
> users. Right? If that is true, the carriers will lose money if they move
> to a tiered model. No? Then why are are proposing tiered pricing?
> Theoretically it may be true if they keep per GB cost low but
> practically what will happen the carriers/telcos/cable providers will
> bump the unlimited and per Mb usage charge way high. There will be a
> perceived value in getting the higher limit plan. It's like wine tastes
> better because you paid more for it.  For most providers doing this will
> increase their average revenue per user (AURP). Also, why are users
> forced to get data plans when they get a smart phone? Now, the carries
> have started forcing users to get data and text messaging plans because
> the cost of voice calls are going down. Okay. I will stop my rant now. 
> 
>  
> 
> 
> 
> 
> 
> --
> Karthik Poobalasubramanian
> Louisiana Board of Regents
> kart...@poobal.net
> kart...@la.gov
> (225) 341-5855
> skype: poobal
> 
> 
> 
> 
> 
> 
> 
> 
> 
> On Mar 3, 2010, at 2:07 PM, Dustin Puryear wrote:
> 
> > I know I'll catch a lot of flack for this, but, honestly, I'm not
> against tiered pricing from service providers like AT&T for
> high-bandwidth users:
> >  
> > http://www.appleinsider.com/articles/10/03/02/att_says_tiered_data_pri
> > cing_inevitable_not_rushing_towards_4g.html
> > Why should users that use little bandwidth subsidize high-bandwidth
> users?
> >  
> > ---
> > Puryear IT, LLC - Baton Rouge, LA - http://www.puryear-it.com/ Active 
> > Directory Integration : Web & Enterprise Single Sign-On Identity and 
> > Access Management : Linux/UNIX technologies
> > 
> > Download our free ebook "Best Practices for Linux and UNIX Servers"
> > http://www.puryear-it.com/pubs/linux-unix-best-practices/
> >  
> > _______________________________________________
> > General mailing list
> > General@brlug.net
> > http://mail.brlug.net/mailman/listinfo/general_brlug.net
> 
> 
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