Uncommon Wisdom

Oct 24 2008   2:22PM GMT

Metered Internet use causing a stir

Tom Nolle Tom Nolle Profile: Tom Nolle

October 24 2008 regarding metered Internet trends.
Metered Internet usage is stirring comment in the UK and the U.S. trials of the idea, put on hold by the hurricane season, are now expected to get underway shortly at TW Cable.

The notion of reducing capacity growth and slowing the decline in revenue per bit has become more and more popular globally as providers throw up their hands on the issues of monetizing their networks. We have already noted here and in other publications that operators are universally at risk to squeeze in margins because traffic increases are not compensated by revenue increases with classical Internet pricing models.

We believe that unless service-layer improvements add revenue to the pot, spending on transport capacity will begin to slump as early as 2010.

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