Tuesday, May 10, 2011

AT&T Starts Capping Broadband

This week, AT&T began capping Internet delivery to DSL and broadband customers. Economically, I can see how AT&T would feel the need to start this cap. AT&T analysts strategized this move, like many other broadband providers, such as Comcast. This move was set in place, in order that customers will not completely drop cable or satellite. Many customers have found that video on demand, like Netflix and Blockbuster, instead of television on demand works out perfectly for their situations. AT&T economists do not want Netflix to become a monopoly, and lose money on the cable companies. This cap was also set, because the highest-traffic users download as much as 19 typical households, on average, which slows speeds for other users, AT&T said. Personally, as soon as my family and I, AT&T U-Verse, and cellular users, heard of this news we quickly started looking into other cable, Internet, and cellular options for us. Even though in the big picture for AT&T this is a smart move, because eventually all cable providers will begin enforcing caps, in the short run, I think that AT&T will begin to start loosing many of their valued customers. Looking at the comments at the bottom of the article attached, you can see that many are very upset about this and the AT&T users will begin to decline significantly.


Sarah Allegro

No comments:

Post a Comment