Running on bravado

all talk and no action

Wednesday, April 12, 2006

Free internet access (again)

So Carphone Warehouse is offering free broadband to customers of its TalkTalk service. Fantastic news and it'll no doubt shake the industry up. Here's what I predict will happen:

1. Carphone Warehouse announces free broadband. Loads of people sign up.

2. A bunch of other service providers shout "me too!" Loads of people sign up to them, too.

3. The remaining service providers keep their prices the same and claim that extras such as web space, unlimited email addresses and a fantastic home page which offers weather forecasts and cinema times more than compensate for the monthly fee. Customers leave in droves and eventually the service providers abandon their monthly fees.

4. Industry watchers question how the free broadband providers can make any money. Providers stroke their chins and mutter about premium content such as movie and music downloads.

5. Only a tiny percentage of people pay for premium content and everyone else continues to get it free elsewhere on the net.

6. Service providers introduce caps on data use with a per megabyte charge for extra usage.

7. Customers get totally confused by the new billing model and complain loudly at unexpected high bills.

8. An innovative service provider says "hey, we'll drop the per-megabyte fees and charge you a single flat rate per month and you can use the net as much as you like!"

9. People like the "new" flat rate pricing and flock to the service provider. Other providers follow suit.

10. Go back to step one.

2 Comments:

How did one so young become so cynical?

You're right, of course.
In internet years, I am 108!

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