Lake Zurich, IL
reply to Angrychair
Re: Punitive rates
said by Angrychair:It's actually quite a bit like utilities -- a fixed monthly fee + usage (but in the case of broadband it's "overage charges").
Why can't we just get a provider that actually bills rates by usage like a utility rather than this idiotic blockbuster video punitive late-fee style of provision?
POTS phone, electricity, gas, water -- they all have a base charge + usage pricing model, to varying degrees.
No, no it's not. It's much more like the old blockbuster video rental fee and late fee cost structure.
You get a certain amount up front that costs less per unit than the punitively priced extended access you can get at the back-end.
With Utilities you have regulated charges for the actual physical plant then you have regulated charges for the actual delivered product. (typically water and electrical service)
With broadband you get unregulated metered service with a certain amount as the minimum you can buy and not separated from the physical plant costs, then you get late-fee style punitive charges if you overflow the bucket that's provided with your particular service tier.