To sustain investment in their networks, Internet service provide...
To sustain investment in their networks, Internet service providers must charge subscribers based on bandwidth use, Maggie Wilderotter, Frontier Communications’ chairman, said at the Progress & Freedom Foundation’s Aspen conference. “Unlimited usage pricing is not a sustainable business model,”…
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she said, citing other ISPs’ experiments with metered service offerings. But providers must make their terms clear to subscribers and provide tools to monitor bandwidth use, Wilderotter said. “We don’t want those who use less [bandwidth] subsidizing those who use more,” she said. Frontier broadband subscribers’ Internet use doubles yearly, she said. “Customers want speed,” she said. “And more speed promotes more usage.” Frontier has avoided partnerships with online content providers besides ESPN and Yahoo, Wilderotter said. “We're not in the content business today,” she said, calling Frontier a content “conduit.” Nor has Frontier tried online behavioral advertising, Wilderotter said. “I understand the opportunity, but it has to be put in place in a way where the customer is in control,” she said. If she overhauled the Universal Service Fund, she would have the fund appropriately help providers of last resort, said Wilderotter. “But you have to close the loophole on the cost structure analysis,” she said. Wireless carriers shouldn’t be compensated based on the cost structure of wireline, she said. And subsidized carriers should have to serve the entire community, she said. About 10 percent of customers in her service area live in places where no broadband service feasible financially, Wilderotter said. The fund could be used narrowly to promote broadband deployment in places like that, she said.