RE: BitTorrent swarms have a deadly bite on broadband nets

["Rod Beck" <Rod.Beck () hiberniaatlantic com>]

On 24-okt-2007, at 17:39, Rod Beck wrote:

> A simpler and hence less costly approach for those providers  
> serving mass markets is to stick to flat rate pricing and outlaw  
> high-bandwidth applications that are used by only a small number of  
> end users.

That's not going to work in the long run. Just my podcasts are about  
10 GB a month. You only have to wait until there's more HD video  
available online and it gets easier to get at for most people to see  
bandwidth use per customer skyrocket.

There are much worse things than having customers that like using  
your service as much as they can.

Oh, let me be clear. I don't know if it will work long term. But businessmen like simple rules of thumb and flat rate 
for the masses and banishing the rest will be the default strategy. The real question is whether a pricing/service 
structure can be devised that allows the mass market providers to make money off the problematic heavy users. If so, 
then you will get a tiered structure: flat rate for the masses and a more expensive service for the Bandwidth Hogs. 

Actually, there are not many worse things than customers that use your service so much that they ruin your business 
model. Yes, I believe the industry needs to reach accomodation with the Bandwidth Hogs because they will drive the 
growth, and if it is profitable growth, then all parties benefit. 

But you are only going to get the Bandwidth Addicts to pay more is by banishing them from flat services. They won't go 
gently into the night. In fact, I am sure how profitable are the Addicts given the stereotype of the 20 something ...

- R.