On the ISP-Bandwidth list in April, I posted some comments from Om Malik on bandwidth pricing (under the headline "Om Malik supports throttling, gets flamed"):

http://gigaom.com/2008/04/22/shocking-new-facts-about-p2p-and-broadband-usage/


On fixed and mobile broadband networks where consumer services are provided
(i.e., NOT interprovider or typical dedicated Internet access for commercial
enterprises):

10 percent of subscribers consume 80 percent of bandwidth.
0.5 percent of subscribers consume about 40 percent of total bandwidth
80 percent of subscribers use less than 10 percent of bandwidth


This supports the arguments made by some of the larger ISPs, including
Comcast. In a recent interview, Comcast Cable CTO Tony Werner told me his
company would try and deal with the tiny number of subscribers who use most
of the bandwidth by slowing down their connections during peak times.
(Personally, I find that to be a distasteful solution, and I believe that
folks should learn from newer ISPs like Free.fr and better architect their
networks so they can provide more bandwidth for all - without imposing any
penalties.)

 

 

A week later, the replies keep coming in. ISP owners would like to advertise a flat fee with a monthly limit, but fear that consumers don't know that the cablecos and telcos are lying to them when they advertise unlimited bandwidth. Even if the cablecos and telcos were fined by the FTC or FCC for false advertising, the dollar amount of the fine would not change their behavior.

The legal system is structured to punish family businesses and to insulate large corporations from the consequences of their own actions.