Uncapped versus capped ADSL
Altech Technology Concepts (ATC) CEO Wayne de Nobrega said that aggressively priced high-end capped ADSL packages may make more sense than uncapped offerings.
De Nobrega explained that while uncapped is what we all want, there is a real cost of providing bandwidth and that cross subsidization is needed to make the model work.
“You have users in an uncapped space where some subscribers use between 10GB and 20GB while other subscribers consume 750GB. Why should it be that the 10GB and 20GB users are paying for the 750GB user to get the benefit? It is not a fair model,” said de Nobrega
De Nobrega added that there are no true uncapped services in the country. “They have these acceptable usage policies where if you use too much you get throttled back,” said de Nobrega.
The ATC CEO said that when a user is throttled they often complain that the ISPs service is poor, but it is actually a result of the subscriber exceeding fair usage limits.
De Nobrega said that aggressively priced capped packages makes more sense and is a fair model.
De Nobrega explained that he is not advocating small packages like 1GB, 2GB, 3GB or 4GB, but rather very aggressively priced capped packages with usage limits like 10GB, 50GB, 100GB and 250GB.
Wayne de Nobrega
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