AT&T Jumps on Bandwidth Cap Bandwagon — Don’t Believe The Shortage Myth

by John Jorgensen on November 5, 2008

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  • On Nov. 1st, AT&T introduced bandwidth caps for their customers in Reno, Nevada, complete with tiered pricing.
  • Bandwidth plans range from 20GB to 150GB per month with a $1 charge for every GB you use over your max.
  • Similar cap plans have already been rolled out by Comcast and Time Warner in addition to Canada’s Rogers and New York’s Frontier.
  • Forrester Research analyst Sally Cohen says AT&T is “trying to think strategically about how to monetize the network.”
  • These service providers would like you to believe that there is currently a “bandwidth shortage,” otherwise known as an “exaflood,” caused by people like you watching videos of cats on YouTube all day which is overwhelming internet backbones and could soon render the entire net unusable.
  • Studies have shown that no such shortage exists. Research by TeleGeography, a company that monitors Internet backbones and bandwidth levels, has found that the internet “is far from reaching its maximum capacity — in fact, global backbone capacity has grown faster than Internet traffic for two years running.”

I don’t have anything against a company taking advantage of supply & demand (within the extent of the law), but please, don’t lie about it. The sky isn’t falling; these ISPs are simply looking for ways to make more money.

Deconstructing The Exaflood Myth – There is no bandwidth crunch boogeyman

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