Correct me if I'm wrong, but isn't the problem with net neutrality offering preferential services to other companies/sites? This would then make it harder on the consumer. But in this case, they're making an exception for themselves and it's beneficial to the consumer.
Actually, it isn't. Whenever choice is restricted, customers suffer...one way or another. I could probably put together dozens of examples, but here are a few:
-In the USA, government subsidies to certain key agriculture lobbies ensure that specific types of food (corn, potatoes, soy, beef) are cheap and plentiful. The result? You can buy about 525 calories worth of Big Mac for $5, but that same $5 will only buy you about 210 calories worth of apricots or cashews.*
-Wal-mart has a lot of customers. Wal-mart therefore does a lot of business with vendors. Before Kodak closed down its overnight photo labs (and while I was still working there), Wal-mart contracted with them to do their film processing. At first, they were just a customer. Within a year, they demanded (and got!) preferential treatment that mandated we process all the Wal-mart film ahead of everyone else. How did they get this? They probably accounted for 15-20% of the facility's business and threatened to pull out if they didn't get their way. But this means cheaper services for Wal-mart's customers, right?
...I suppose a really good analogy would be as follows. Let's assume I am the owner/operator of a toll bridge into town. There are others, but they're all really too far away from where you live for you to really consider using them. All vehicles pay toll based on their net weight, and once you reach a certain cargo total I cut you off until next month. Right next to this bridge, I also have a sort of duty-free strip mall set up where I have a bunch of stores. The prices are reasonable, but you are limited to stock on hand. Anything I don't carry, you will have to go into town to purchase. This is in addition to the trips you make into town for work, visiting friends and relatives, etc. Plus since I charge by weight, these trips for things I don't (or won't) have in stock make you reach your cargo total faster, and once you hit it I will deny you passage to your job, your family, etc. until the following month (if ever!). This means that you either have to give up anything in town that is not essential in order to make sure you stay under the limit, or else you have to make do with only the stuff I have available. Additionally, every year I take my profits and upgrade the bridge to be bigger, wider, and stronger, and the town grows exponentially as well, but I
still maintain my original arbitrary limit even though my bridge could obviously handle more traffic now and there is so much more to do in town than before. Plus your family is larger now, so you need more food, more clothing, more services, etc. but my selection hasn't really changed that much.
I think it would be better if the service rates were advertised based on what the company was willing to actually deliver rather than what they could theoretically deliver. If you're going to put a 250GB/month cap on your service, then don't advertise your service as 6Mb down/1Mb up, advertise it as 50kb down/50kb up like it
really is. Yes, I said
kilobits/sec. Why that amount? Because 50k/50k (or 75k/25k, or however you want to split it up) is the fastest/most data you can stream per second constantly over 30 days and still stay below the 250GB cap. Actually, that's not true, since the two numbers have to add up to 96.4, not an even 100.
Don't treat us like idiots, TelComs. We
know why you're doing it.
--Patrick
*EDIT These numbers are nowhere near exact and are for illustration only, I couldn't find the website where I first saw the breakdown per dollar before I finished composing the post.