Verizon Chief Technology Officer Dick Lynch said today that in the coming years, wired broadband will likely be sold in packages based on the amount of data a person wants to consume, much like wireless broadband is sold today. In comments made to press at the 2009 Fiber to the Home Conference Expo in Houston, Lynch stressed that he wasn¹t announcing a shift in pricing for Verizon, but that: ³We¹re going to have to consider pricing structures that allow us to sell packages of bytes, and at the end of the day the concept of a flat- rate infinitely expandable service is unachievable.²
This CTO must be an MBA, not an MSEE, thinking how to extract the highest price for the worst possible product. His problem is that the service he is selling is dirt cheap and engineers are constantly finding ways to transmit more and more data for less and less money. So his job is to convince us of a lie: that bandwidth is an expensive and limited resource that has to be metered and sold by quantity delivered. In truth it is so cheap that the engineers found it was not worth the effort to meter it. It is cheaper and easier to simply increase bandwidth than it is to build out a metering and billing system. As long as there is competition on the market, metered charges won't happen. Of course if he can establish a monopoly or oligopoly, we are screwed.
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