We shouldn’t be buying the operator’s arguments at this point. The foundation of the internet is the economics of plenty. For many years network operators have built businesses on rationing supply to a scarce resource. To argue that it’s scarce now is utter hogwash.
My biggest fear is that as these companies try and protect their video revenues, they are
doing more harm than good, and putting roadblocks in the way of interesting services
that make broadband worth having. When I asked Dudley if his company was putting innovation at risk by limiting flat-rate broadband — if they might be throwing the baby out with the bathwater — he noted that many of these startups and services are built on their infrastructure.
The bottom line is that broadband providers need to focus on increasing the use of broadband, not artificially limiting the use so they can eek out short term profits. Another example of big companies moving a little too slowly toward the inevitable future.