Metering is not a new idea. It was tried by many ISP's who are no longer in business.
Verizon just raises their rates for everyone to compensate for the bandwidth usage. They do have an edge over cable companies. They are part of the telecommunications base that runs the equipment which the Internet uses. The cost of bandwidth for them is going to be less than than the cable companies.
Cable companies only own their network and have to buy bandwidth from Tier 1 ISP's to be on the Internet.
When Verizon needs to bridge to another ISP's network, they can make peering arrangements which are far cheaper than having to buy the bandwidth outright.
The cable Internet business plan has been doomed from the start. @Home was the worst beginning the cable industry could have for Internet service. They opened it up far too cheap to ever be profitable and everyone else followed suit. There is no way the cable companies will ever be able to match what the phone companies can offer for Internet, for the same price and still maintain a viable business. They are struggling as it is.
The problem we will be facing in the near future is a phone company who wants to own it all. Verizon has and continues to use some very underhanded methods to kill its competition. I know, as I was a victim of those methods. Nothing can be done as they are protected by the State of Texas. Texas does not want to lose a large employer such as Verizon, so they not only turn their collective cheeks to what is going on, they also provide protection through the Texas Public Utilities Commission.
Verizon got a new one passed on the people of Texas just recently. It is a fee based on non-usage of long distance services. That's right. If you are a Verizon customer in Texas, you now have to pay $3.50 a month for non-use of long distance service. If you are in Verizon territory, you have no choice on phone service any longer.
As FIOS is wholly owned by Verizon, they are not required to share it with any other phone company. So they are turning down the copper where it goes in and voila; you no longer have a choice in phone service.
People do not see this coming, until it is too late. Of course, this will happen in Texas. It may not happen in other states, if the PUC at other states is on the ball, but in Texas, the PUC is Verizon's ball.
I digress. I suspect the cable companies are simply making noise about the usage fee to gauge reaction and then determine if the Internet portion of their service can remain viable. Time will tell.
