Imagining a future free of data caps

22.03.2012

I suggest that rather than nickel and dollaring those who exceed too-limited caps, the fee comes built in to the devices and apps most likely to take advantage of these networks. For example, if you want 3G/4G/whatever access in your car, build it in as an add-on option that makes your car a short range hotspot and give the carrier a cut. From that point forward, access is “free” for any devices you attach to that hotspot. Ditto for iOS and similar devices that take advantage of these networks.

And if you want a video or audio streaming app that can do so over a fast cellular network? You’ll pay more for it either in the total cost of the app or by subscribing to the service, but not be throttled or risk going over your cap.

A pay-upfront plan has a couple of obvious advantages. The first is that customers know exactly what they’ll pay when they acquire a device or app. If it’s worth it to them, they pay. If not, pass. If too many pass, then the carriers need to rethink their cut.

Secondly, the Way Things Are isn’t sustainable. As these networks become more widespread and more devices are capable of using them, carriers will be pressured by customers—and, perhaps, regulators—to broaden the caps. And do so again and again, with legal wrangling coming with each iteration. At some point, our governing bodies will come to realize that data service is a utility like electricity and water and needs to be treated as such. And when that day comes, caps are going to be impossible to defend.

Bow to the inevitable, get in front of the issue by offering pay-once plans, and you open the skies to this and future miracles.