[bestbits] Brazil to deploy data franchise in fixed broadband

[Dave Burstein]

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 *darn cheap*.

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.)

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.

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.

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.

At some level, a cap - or more efficient tool, based on actual congestion -
makes sense. A few years ago, I actually wrote an item, *Comcast's
Reasonable Data Cap*. Beyond 250 gigabytes back then, users did impose
extra costs and a 10% or 20% surcharge made sense.

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.

I have loads more data if it's helpful.

Dave

On Wed, Mar 16, 2016 at 11:54 AM, "João Carlos R. Caribé" <
joao.caribe at me.com> wrote:

> Data franchise = data cap
>
>
> Em 16/03/2016, às 12:41, João Carlos R. Caribé escreveu:
>
> Dears,
>
> In Brazil, telco operators want to deploy data franchise in fixed broadband
> access, I am analyzing and this has serious negative implications.
> It would help me a lot whether this aberration exists somewhere else in
> the world, also the negative implications, arguments, etc...
>
> --
> João Carlos R. Caribé
> Transdisciplinary Consultant - Wazushi
> NETmundial Initiative Counselor
> ICANN NCUC Executive Committee member
>
> http://about.me/caribe
>
> Skype joaocaribe
> +55(021) 9 8761 1967
>
> ____________________________________________________________
> You received this message as a subscriber on the list:
>     bestbits at lists.bestbits.net.
> To unsubscribe or change your settings, visit:
>     http://lists.bestbits.net/wws/info/bestbits
>
>
> --
> João Carlos R. Caribé
> Transdisciplinary Consultant - Wazushi
> NETmundial Initiative Counselor
> ICANN NCUC Executive Committee member
>
> http://about.me/caribe
>
> Skype joaocaribe
> +55(021) 9 8761 1967
>
>
> ____________________________________________________________
> You received this message as a subscriber on the list:
>      bestbits at lists.bestbits.net.
> To unsubscribe or change your settings, visit:
>      http://lists.bestbits.net/wws/info/bestbits
>



-- 
Editor, Fast Net News, Net Policy News and DSL Prime
Author with Jennie Bourne  DSL (Wiley) and Web Video: Making It Great,
Getting It Noticed (Peachpit)
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://lists.igcaucus.org/pipermail/bestbits/attachments/20160316/16793737/attachment.htm>