Tuesday, May 15, 2012

DATA CAPS AREN'T PERFECT, BUT THAT'S OK

Last year, The New York Times criticized usage-based broadband pricing, noting that “Moving an extra gigabyte of data at off-peak times costs virtually nothing.” More recently, a report by the advocacy group Public Knowledge suggested that broadband data caps, a form of usage-based pricing, are an inefficient way to manage congestion. These claims are correct: while monthly caps may help control congestion if they impose binding constraints on high-volume users, pricing models truly aimed at congestion would target times and areas of congestion directly. That’s why the DC Metro system…

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