The expiration date for so-called “unlimited broadband” packages is in sight, according to recent discussions.

Although many ISP users have been offering customers “unlimited broadband”, the reality is that subscriptions have always come with a “fair usage” cap on downloads. In a report on ZDNet.co.uk it was revealed that PlusNet (an ISP who bases its packages on fixed download caps) is warning that the popularity of IP television, YouTube and the BBC’s iPlayer could meant that it will be impossible for its rivals to continue using this offer as a way of enticing customers.

Speaking to ZDNet, Neil Armstong, PlusNet’s product and marketing director expressed his opinion that unlimited broadband offers were dishonest: “Somebody somewhere is going to have to pay, which is why we are very clear about what our products [involve’],” he said. “It’s not just a single-price, all-you-can-eat market any more. “

Michael Philpot, principal analyst at Ovum agreed that business models for ISPs would have to develop and change as a result of increasing internet traffic: “ It is up to you as an ISP to make the business case work by designing your network around that [least or owned] pipe,” he said. “It only makes sense if you can split the pip across as many customers as you possibly can – if end customers increase in terms of bandwidth, you can fit less customers in a pipe and you are therefore paying more per customer. If you’re charging £15 [per month] fixed then eventually your costs outweight [your income].”

The consensus is that new tariff schemes will be developed in order to cope with the new trends in online usage.

Source: ZDNet.co.uk

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