<div dir="ltr"><div class="gmail_default" style="font-family:verdana,sans-serif">Data caps/data franchise are an active debate around the world. They are certainly unnecessary for an ISP to be very profitable. In almost all cases, instituting a cap is a disguised price increase or an attempt to force you to choose the carriers video package instead of a competitor. To the operator, data isn't free but it's <u>darn cheap</u>. </div><div class="gmail_default" style="font-family:verdana,sans-serif"><br></div><div class="gmail_default" style="font-family:verdana,sans-serif">Any cap below about 700 gigabytes in the U.S. and Europe has no cost justification. (Details available if helpful. I've been reporting costs for the industry, including bandwidth, for over a decade.) </div><div class="gmail_default" style="font-family:verdana,sans-serif"><br></div><div class="gmail_default" style="font-family:verdana,sans-serif">Backhaul to Brazil is somewhat more expensive, but for carriers large enough to control their own fiber the added cost is only modest. If you could get the actual costs for Telefonica or American Movil in Braxil, you would see their arguments are ridiculous.</div><div class="gmail_default" style="font-family:verdana,sans-serif"><br></div><div class="gmail_default" style="font-family:verdana,sans-serif">In New York, neither Verizon or Time Warner Cable has a cap. My partner Jennie does video for a living so we move terabytes of data some months without any additional charge. Verizon and TWC are among the most profitable companies in the world, so that proves there is no requirement to cap. </div><div class="gmail_default" style="font-family:verdana,sans-serif"><br></div><div class="gmail_default" style="font-family:verdana,sans-serif">In the U.S. and most of Europe, the cost to a large operator per subscriber per month is about $1, 2-5% of what the customer pays. It's much less than the cost, for example, of marketing. <br></div><div class="gmail_default" style="font-family:verdana,sans-serif"><br></div><div class="gmail_default" style="font-family:verdana,sans-serif">At some level, a cap - or more efficient tool, based on actual congestion - makes sense. A few years ago, I actually wrote an item, <i>Comcast's Reasonable Data Cap</i>. Beyond 250 gigabytes back then, users did impose extra costs and a 10% or 20% surcharge made sense. </div><div class="gmail_default" style="font-family:verdana,sans-serif"><br></div><div class="gmail_default" style="font-family:verdana,sans-serif">Since then, Moore's Law has brought the cost of routers and switches down at 25%-40% per year. So a reasonable cap today would be ~700 gigabytes in the States. It will be over a terabyte in two more years.</div><div class="gmail_default" style="font-family:verdana,sans-serif"><br></div><div class="gmail_default" style="font-family:verdana,sans-serif">I have loads more data if it's helpful.</div><div class="gmail_default" style="font-family:verdana,sans-serif"><br></div><div class="gmail_default" style="font-family:verdana,sans-serif">Dave</div></div><div class="gmail_extra"><br><div class="gmail_quote">On Wed, Mar 16, 2016 at 11:54 AM, "João Carlos R. Caribé" <span dir="ltr"><<a href="mailto:joao.caribe@me.com" target="_blank">joao.caribe@me.com</a>></span> wrote:<br><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex"><div style="word-wrap:break-word"><div>Data franchise = data cap</div><div><br></div><br><div><div><div class="h5"><div>Em 16/03/2016, às 12:41, João Carlos R. Caribé escreveu:</div><br></div></div><blockquote type="cite"><div><div class="h5"><div style="word-wrap:break-word">Dears,<div><br></div><div><span lang="en"><span>In Brazil</span><span>, telco operators</span> <span>want to</span> <span>deploy</span> <span>data</span> <span>franchise in</span> <span>fixed</span> <span>broadband access</span><span>, I am</span> <span>analyzing</span> <span>and</span> <span>this has serious</span> <span>negative implications.</span></span></div><div><span lang="en"><span>It would help me</span> <span>a lot</span> <span>whether this</span> <span>aberration</span> <span>exists somewhere</span> <span>else in the world, also the negative implications, arguments, etc...</span></span></div><div><span lang="en"><span><br></span></span></div><div>
<span style="border-collapse:separate;font-family:Helvetica;font-style:normal;font-variant:normal;font-weight:normal;letter-spacing:normal;line-height:normal;text-align:-webkit-auto;text-indent:0px;text-transform:none;white-space:normal;word-spacing:0px;font-size:medium"><span style="border-collapse:separate;font-family:Helvetica;font-style:normal;font-variant:normal;font-weight:normal;letter-spacing:normal;line-height:normal;text-align:-webkit-auto;text-indent:0px;text-transform:none;white-space:normal;word-spacing:0px;font-size:medium"><div style="word-wrap:break-word"><span style="border-collapse:separate;font-family:Helvetica;font-style:normal;font-variant:normal;font-weight:normal;letter-spacing:normal;line-height:normal;text-align:-webkit-auto;text-indent:0px;text-transform:none;white-space:normal;word-spacing:0px;font-size:medium"><div style="word-wrap:break-word"><span style="border-collapse:separate;font-family:Helvetica;font-style:normal;font-variant:normal;font-weight:normal;letter-spacing:normal;line-height:normal;text-align:-webkit-auto;text-indent:0px;text-transform:none;white-space:normal;word-spacing:0px;font-size:medium"><div style="word-wrap:break-word"><span style="border-collapse:separate;font-family:Helvetica;font-style:normal;font-variant:normal;font-weight:normal;letter-spacing:normal;line-height:normal;text-align:-webkit-auto;text-indent:0px;text-transform:none;white-space:normal;word-spacing:0px;font-size:medium"><div style="word-wrap:break-word"><span style="border-collapse:separate;font-family:Helvetica;font-style:normal;font-variant:normal;font-weight:normal;letter-spacing:normal;line-height:normal;text-align:-webkit-auto;text-indent:0px;text-transform:none;white-space:normal;word-spacing:0px;font-size:medium"><div style="word-wrap:break-word"><span style="border-collapse:separate;font-family:Helvetica;font-style:normal;font-variant:normal;font-weight:normal;letter-spacing:normal;line-height:normal;text-align:-webkit-auto;text-indent:0px;text-transform:none;white-space:normal;word-spacing:0px;font-size:medium"><div style="word-wrap:break-word"><span style="border-collapse:separate;font-family:Helvetica;font-style:normal;font-variant:normal;font-weight:normal;letter-spacing:normal;line-height:normal;text-align:-webkit-auto;text-indent:0px;text-transform:none;white-space:normal;word-spacing:0px;font-size:medium"><div style="word-wrap:break-word"><span style="border-collapse:separate;font-family:Helvetica;font-style:normal;font-variant:normal;font-weight:normal;letter-spacing:normal;line-height:normal;text-align:-webkit-auto;text-indent:0px;text-transform:none;white-space:normal;word-spacing:0px;font-size:medium"><div style="word-wrap:break-word"><span style="border-collapse:separate;font-family:Helvetica;font-style:normal;font-variant:normal;font-weight:normal;letter-spacing:normal;line-height:normal;text-align:-webkit-auto;text-indent:0px;text-transform:none;white-space:normal;word-spacing:0px;font-size:medium"><div style="word-wrap:break-word"><span style="border-collapse:separate;font-family:Helvetica;font-style:normal;font-variant:normal;font-weight:normal;letter-spacing:normal;line-height:normal;text-align:-webkit-auto;text-indent:0px;text-transform:none;white-space:normal;word-spacing:0px;font-size:medium"><div style="word-wrap:break-word">--</div><div style="word-wrap:break-word">João Carlos R. Caribé<br>Transdisciplinary Consultant - Wazushi<br>NETmundial Initiative Counselor<br>ICANN NCUC Executive Committee member</div><div style="word-wrap:break-word"><br></div><div style="word-wrap:break-word"><a href="http://about.me/caribe" target="_blank">http://about.me/caribe</a><br><br></div><div style="word-wrap:break-word">Skype joaocaribe<br>+55(021) 9 8761 1967</div></span></div></span></div></span></div></span></div></span></div></span></div></span></div></span></div></span></div></span></span>
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