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Re: An Attempt at Economically Rational Pricing: Time Warner Trial


From: Jeff Shultz <jeffshultz () wvi com>
Date: Fri, 18 Jan 2008 11:38:04 -0800


Mikael Abrahamsson wrote:

On Fri, 18 Jan 2008, Rod Beck wrote:

http://www.ecommercetimes.com/rsstory/61251.html

So, anyone but me think that this will end in disaster? I think the model where you get high speed for X amount of bytes and then you're limited to let's say 64kilobit/s until you actually go to the web page and buy another "token" for more Y more bytes at high speed? We already have this problem with metered mobile phones, which of course is even more complicated for users due to different rates depending on where you might be roaming.

Customers want control, that's why the prepaid mobile phone where you get an "account" you have to prepay into, are so popular in some markets. It also enables people who perhaps otherwise would not be eligable because of bad credit, to get these kind of services.

I'm also looking forward to the pricing, all the per-byte plans I have seen so far makes the ISP look extremely greedy by overpricing, as opposed to "we want to charge fairly for use" that is what they say in their press statements.



I think that all those people who think their kids spend a fortune on their Cell Phones are in for a very rude awakening... when their "plan" runs out of bandwidth on the 6th of the month.

Flat rate text messaging was created for a reason... this is fighting that reason.

--
Jeff Shultz


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