ISPs’ costs, revenues don’t support data cap argument
Data caps and metered billing have generated significant consumer resistance not because the idea of metered billing is always bad, but because the new packages on offer feel like highway robbery. Proponents of such caps, like Time Warner Cable, often claim that people need to “pay their fair share” in order to fund future upgrades, so we rounded the quarterly earnings statements out last week from the major US ISPs in an attempt to gauge how accurate that argument might be. It turns out that just about everyone is making huge margins in Internet access, revenue is surging even as costs drop, and companies like Time Warner Cable have actually reduced (significantly) their capital outlays on infrastructure.
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ISPs’ costs, revenues don’t support data cap argument
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