AT&T eyes usage-based Internet pricing

New AT&T CTO John Donovan tells Wired that AT&T will begin trials of usage-based pricing for its broadband Internet service this fall. What would have seemed shocking just a year ago comes off as pretty much par for the course now, as Time Warner Cable and others are experimenting with metered or usage-based pricing. It could be only a matter of time before we hear of other service providers, both telcos and cable TV companies, making similar moves.

Donovan tells Wired it makes sense to move in this direction because "one percent of the company's customers account for 20 percent of the network usage; the top five percent account for 40 percent of the usage"--and you probably know where he goes from there because these sort of stats are pretty much what we have come to expect from the broadband Internet business at this point. Though, Donovan of course notes that AT&T's is not mulling the change just to turn Internet usage facts into revenue. You have to wonder if AT&T would be talking about this now if others had not already broken the taboo.

For more:
- read this story at Wired Blog Network