[gergles]

Bingo, especially since AT&T TV (which is all over IP and therefore is just as likely to 'clog the tubes' -- actually even more so since it has better QoS) is exempt.

They are going to go kicking and screaming into the age of being a dumb pipe.

[tptacek]

AT&T's video is significantly cheaper to provision; it's housed entirely on their own network.

[A1kmm]

AT&T is a tier 1 ISP; they don't pay for traffic from outside of their network.

The 'user pays for bandwidth' pricing is fundamentally more efficient, and is a good model to move to long term, provided there are sufficient controls to prevent price gauging in areas where ISP(s) act as a monopoly or duopoly (20c per GB in the US excluding the pricing for last-mile fixed costs seems like price gauging to me - but it depends on the technologies; it is probably a lot more expensive to get extra bandwidth to a cabinet than to an exchange), and the companies don't misrepresent what is on offer to consumers.

However, all information flows should be treated equally; companies shouldn't be able to abuse their market power as network services providers to make their own information services cheaper than those of everyone else. It seems that the best solution would be for regulators to ensure that AT&T and other ISPs charge for bandwidth used by their own applications in the same way as they do for their competitors.

[tptacek]

Just because they don't pay a rate to their peers doesn't mean that it's equally expensive to serve traffic on-net and off-net.

[Bystander]

BINGO! We have a winner. If AT&T had adequately provisioned their last mile networks, instead of trying to cram 10K households in a 1K household pipe, it wouldn't matter how much bandwidth an individual used.