Summary

1.     As a couple of comment posts point out, the source article is rather “superficial” in its analysis. 2.     If the title of the piece is true, then why is Verizon pushing against net neutrality as much as any company? 3.     The idea that the coax networks “were not built to truly handle video” is silly.

Analysis

Some of the flaws in the piece are so obviously wrong they are not worth addressing.  However, Verizon is going to want, and should have the right, to capping regardless of the speeds it can offer.  The FiOS network is the property of the RBOC.  Verizon should be able to charge as much as the market will bear to large users.

Let us assume that the ridiculous suggestion that Verizon is offering unlimited capacity is true for today’s needs.  What about in the future?   There will be applications consuming extremely high amount of bandwidth that are beyond our current imagination.  And service providers should be free to adjust pricing accordingly.

Samuel Greenholtz consults with leading institutions through GLG

Samuel Greenholtz, Principal

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Principal, Telecom Pragmatics

 
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.