Written By: Shannen Doherty
In the past, broadband internet has been commonly provided under terms to which the industry refers as 'unlimited'. That is to say, you pay your ISP, usually per month and you're then free to do as you will, accessing the net as you please, although a bandwidth cap may be in place in some cases. This is all well and good, but it's an unfortunate fact that while some people will get a great deal of use from this service, others will use it far less intensively. As a result, some net users are paying more than others pro rata.
There is a solution, an alternative to unlimited internet access that may begin to feature in broadband offerings in the not-so-distant future. The term pay-per-use broadband has been widely discussed and as we head into 2012, it seems that this approach may become increasingly popular with ISPs. Some wireless broadband providers have already begun to explore pay-per-use pricing schemes or are experimenting with tiered pricing options for customers.
The idea behind pay-per-use broadband is that customers only pay for the resources that they are actually using. For lighter users, this may be a sensible consumer choice, since they're no longer paying over to odds. However, for heavier users who currently enjoy flat rate access, pay-per-use broadband may understandably seem less appealing.
There is a widely held belief that as more and more wireless broadband providers look towards pay-per-use broadband deals, current schemes that involve flat rate internet access will become increasingly expensive, as consumers gradually move from the latter to the former. The result will be a gradual price increase for plans offering unlimited internet access as pay-per-use packages see increased take-up. Pricing, however, will be by no means the only effect of this shift in pricing models.
Consumers will be able to get an idea as to exactly how much they're spending through visible metering. Wireless providers will be able to provide consumers with access to detailed information and reports, almost certainly through their own consumer portals. As the association between use and cost becomes clear, this may drive consumer behaviour in an attempt to minimise costs by reducing and optimising utilisation.
Wireless providers may also offer schemes wherein access will be cheaper at off peak times than at heavy usage times. Again, this will encourage consumers to minimise their use of broadband at congested times, effectively becoming a self-regulating system and assisting ISPs in bandwidth optimisation.
We may also see overall wireless net usage drop if pay-per-use pricing becomes standard practice. At the moment, consumers are not overly concerned as to their usage patterns since they are primarily on flat rate, unlimited schemes. Pay-per-use broadband could cause consumers to re-think behaviour and, indeed, overall bandwidth consumption.
Pay-per-use broadband deals may thus represent a far more fundamental change than the introduction of a new pricing model alone. It is arguable that on-going improvements to infrastructure may offset some of the bandwidth constraints inherent in the current climate. However, growing demand for rich media resources such as video streaming and the additional pressure on networks driven by the explosive growth of the smartphone sector are likely to see continued pressure on peak time bandwidth.
As such, a behaviourally-driven pricing model may yet prove extremely welcome for provider and consumer alike.
About the Author:
The above article is composed and edited by Shannen D. She is associated with many technology and designing communities including Broadband Expert as their freelance writer and adviser. In her free time she writes articles related to broadband deals, technology, mobile applications, etc. For her latest article please visit : http://www.broadbandexpert.com/high-speed-internet/
