UK exports bandwidth pricing with Time Warner trial
The UK may be a bit slow at adopting technologies like fibre to the home but it seems we may be leading the market in terms of how broadband is sold. Time Warner in the US is set to run a price trial in Beaumont, Texas giving consumers four price options with each price point carrying a specific usage allowance.
The Ovum analyst Mark Seery has made some comments on the proposed trial which can be read at www.InfoWorld.com. If the pricing is such that those who just do a little web browsing can pay a lot less per month, and those that have embraced video over the internet or cannot rip themselves away from online games will pay more, then some will embrace it and others hate it.
In the face of traffic management and heavy broadband users getting thrown off their services and a market that would appear to expect pricing to generally go down year on year, rather than rise to keep pace with our ever increasing usage, it is clear that providers around the world will be looking at ways to ensure that their books balance, and where investment has been made in new networks that they will get this back with profits in time.
The UK pricing model may seem attractive to those overseas, but in a market where the difference in price between a 5GB usage allowance and an 'unlimited' service can be just a couple of pounds and providers use traffic management on these unlimited packages to the extent that people find they cannot use services like BBC iPlayer in the evenings the attractiveness soon goes away.