Netflix CEO: Broadband caps are a money grab by ISPs

[ShareShiz]

Netflix CEO: Broadband caps are a money grab by ISPs
John Callaham

Even as more and more Internet access providers put in data caps for their customers' broadband service, the head of the movie and TV show streaming service Netflix is trying to tell US lawmakers and Canadian regulators that such caps are merely money grabs by those ISPs. GigaOM reports that Netflix CEO Reed Hastings wrote a letter to US House of Representatives members Fred Upton (R-Mich.) and Henry Waxman (D-Calif) to explain his views.

The letter included a report that was commissioned by Netflix for Canadian regulators that tries to dispel the belief given by ISPs that when tons of their customers stream video and TV shows via Netflix it costs the ISPs lots of extra money. In fact, the report states that "the average incremental cost of Internet traffic by 'heavy users' is likely 1 cent or less per GB.". In his letter to the US lawmakers, Hastings states, "Moves by wired ISPs to shift consumers to pay-per-gigabyte models instead of the current unlimited-up-to-alarge-cap approach, threatens to stifle the Internet.?

This week AT&T put into place some very stringent broadband caps on their DSL and U-Verse customers. DSL subscribers reach their cap after just 150 GBs while U-Verse customers reach the limit after 250 GB caps. Moreover, AT&T is now charging overage fees for customers that go over those caps to the tune of $10 per 50 GBs. That's 20 cents per every extra GB, well beyond what Netflix's report says the actual price cost to ISPs really is.

ShareShiz Reviewed by ShareShiz on 14th May 2011. Netflix CEO: Broadband caps are a money grab by ISPs Netflix CEO: Broadband caps are a money grab by ISPs John Callaham Rating: 5

[Jesse]

We can all agree on that.

[ShareShiz]

my ISP limits me to 40GBs a month... and they are now offering some type of on demand streaming service.

i ignore the limits cuz well ive told them that its bullshit and that i can easily chnage to a new company. they just take it up the ass and dont worry about me.

but its not like im downloading a TB a month like i use to

[Cory]

I'm actually on AT&T and I've already switch from AT&T to AT&T (Small Business) because of this issue;

People might think it's bull crap, but the caps are real they even have a Usage Manager for AT&T Customers.




583.38 + 505.68 + 752.62 + 620.9 = 2462.58 GB

150 GB * 4 = 600 GB (Cap)

2,462.58 GB - 600 GB = 1862.58 GB

1862.58 / 50 GB = 37 (Rounded)

$10 * 37 = $370 Extra, Slightly greedy?

Luckly, They can count from May on and not back months. (Confirmed)

and the reason fro AT&T to AT&T (Small Business) was because, Small Business don't have any caps, cool huh?

I was able to keep my number, e-mail and no techs had to come out, just a matter of paper work and now I'm fully upgraded without being offline or without a phone.