ZeroRating conversations are dominating Network Neutrality issues these days, whether it is the FreeBasics controversy in India, Binge On by T-Mobile, or Verizon's recent announcement of a plan similar to AT&T's sponsored data. Here are a few thoughts to consider about ZeroRating and why it makes no sense (to me). If ISPs Zero Rate content, somebody has to pay for the bandwidth. Suppose the Content provider pays for it. Then there is a pricing problem: ISPs cannot charge the content provider a price above the price they charge consumers. Suppose they charge consumers X per MB of data, and they charge content providers X+Y per MB of data. Then, for sufficient traffic where overheads are accounted for, it is cheaper for content providers to send recharge coupons back directly to the customers who used their services. Long term, pricing above the consumer price is not sustainable. ISPs cannot charge the content provider a price below the price they charge consume
Thanks very much for this great article;this is the stuff that keeps me going through out these day. Best christian news
ReplyDeleteVery informative article!!
ReplyDeletewatch live news bbc on yupptv here watch BBC World News live