Pay by the Megabyte

We told you before about this new trend we are starting to see which scares us a little bit. Internet providers making you pay for usage as opposed to a flat fee. These reports say that a phone company is trying to do the same. Frontier Communications Corp. is the newest Internet service providers that are moving to make the subscribers who download the most pay more. Up until this point is was the cable companies have been talking of imposing usage caps. Frontier’s is going to allow just five gigabytes per month as a basic service. This right now is a problem for Frontier’s customers in New York. The problem will be if this catches on as the new revenue stream for the Internet providers charging heavy users more money, it will become the norm through out the industry. This would not be much different then cell phone usage minutes and getting unlimited texting, and an Internet plan. The question becomes is this happening because of a bandwidth issue, or is it a “hey we can charge more” issue so let us just do it. Frontier plans to start enforcing the five GB cap next year. Customers will get report up until then showing what their monthly usage has been. Then they will be provided information on the new premium plans with higher caps to those who use more data. Frontier has an estimated 559,300 broadband subscribers. This is another service that once you are locked into a contract you are going to be pretty much at the provider’s mercy. Here at Tea512, we hate nothing more than that.

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