Verizon CTO says metered data pricing necessary; ‘bandwidth hogs’ should pay more

“The technology chief of Verizon Communications Inc. says wireless companies will eventually have to change how they bill customers, charging them for how much ‘bandwidth’ they use to prevent networks from getting clogged up,” Jeffry Bartash reports for MarketWatch.

Bartash continues, “Chief Technology Officer Dick Lynch said current data plans, which allow unlimited Internet access for a flat monthly fee, encourage overuse of wireless networks, mainly by a small number of ‘bandwidth hogs,’ or individuals who send and receive lots of large files.”

“Lynch said wireless companies will be able to handle increasing Internet usage over the next few years by upgrading to the next generation of wireless technology. But in the longer run, he said carriers will need additional spectrum and new ways of billing that encourage more efficient use of wireless airwaves,” Bartash reports. “‘We will end up billing differently in the future,’ said Lynch, repeating his long-held view that carriers should charge on a metered basis just like water and power companies.”

Full article here.

Source: MacDailyNews