The bandwidth congestion excuses that telcos give are mostly exagerated rants to increase their profits.Some news that clarifies some truth:
Cable Industry Finally Admits Caps Not About CongestionPoint 1:Cable operators also paid countless think tanks, consultants and fauxcademics to spin scary yarns about a looming network congestion "exaflood," only averted if cable operators were allowed to raise rates, impose caps, eliminate regulation or (insert pretty much anything here).
Point 2:It only took the better part of a decade, but the cable industry has apparently realized they can no longer pretend that caps are really about congestion. Speaking at a meeting this week, former FCC boss turned top cable lobbyist Michael Powell finally acknowledged caps weren't about congestion, though he did continue pushing the myth that caps are about "fairness"
If usage caps were about "fairness," carriers would offer the nation's grandmothers a $5-$15 a month tier that accurately reflected her twice weekly, several megabyte browsing of the Weather Channel website. Instead, what we most often see are
low caps and high overages layered on top of already high existing flat rate pricing, raising rates for all users.Comment: Did you know that if telcos get away by undoing true UNLIMITED plans undirectly gives them the greenlight to raise subscriber fees?Does raising rates on a product that already sees 90% profit margins sound like "fairness" to you?
Point 3:Another favorite industry argument is that providing broadband is so expensive for a carrier, the flat rate pricing model simply isn't sustainable, but that's also debunked if you eyeball quarterly earnings from any of the major broadband players.
Comment: How come telcos are still reporting fat revenue margins every quarter until now? Maxis and TM still reported revenues over a billion for 2012??What the industry's really doing is using the benefit of uncompetitive markets to price gouge customers..
http://dslreports.com/shownews/Cable-Indus...ngestion-122791