Research: Paying For Use Is Fair
The Free State Foundation
Perspectives from FSF Scholars
July 10, 2009
Vol. 4, No. 15
Paying For Use Is Fair
Deborah Taylor Tate
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Deborah Tate makes the argument that, “Consumers should be able to take control of their own consumption of broadband just as they have for other electronic commodities, and in some cases, they could reduce their monthly broadband service.” The argument is made that pay-for-use has been extremely successful in wireless communications and could be used in broadband access as well. In this respect a case is made for metered consumption models.
- Monopolies have not prevented customers being charged more for consuming more, and charged less for consuming less.
- Networks have substantial capital costs, and experience exponential growth which could be helped in various ways with consumptions models.
- Low-volume users like those that check email once a day should not be forced to pay the same costs as high-volume users.
Tate concludes that allowing consumers to choose their payment methods instead of the government dictating which business models are more appropriate is far more fair.
You can find the full text here.
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