Quote:
Originally Posted by llama64
I wonder if Shaw will realize that a 100GB cap on a 15 mbps connection is ridiculous - especially with the rise in video delivery services.
I get that they need to safeguard conjestion during peak times - but I really don't think data caps are the answer to this. And vastly overcharging for data overages is abusive (their data packs seem to be hitting a 30cent per GB target... why 2$ for overages?).
For the extreme package, I'd accept a return to the previous level (125GB) and a max hit of .5$ per GB.
I'd prefer that abusers just got throttled down till the start of the next billing cycle though... Maybe a combination of UBB + throttling. Course that is coming from a network health perspective, not a profit based perspective.
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While I agree that the bandwidth caps should not have been lowered, when they decided on charging for overages, I think you have missed that they actually picked a price per GB on overages that was half of their main competitor (telus obviously). Shaw's, now former(?), pricing scheme was for high speed users to be charged $2 per GB and Extreme or better users to be charged $1 per GB, with even lower rates available by buying data bundles. Telus contract says they can charge twice that ($4/$2) for similar plans.
From Shaw's perspective, I think it makes more sense to charge a small amount for overages rather than paying extra for throttling equipment and the support that equipment would require. Take your example of 50 cents/GB: If little Billy, who is downloading 400GB of anime every month that his parents have no idea about because they never heard a peep about it, suddenly will have a huge bill if Billy keeps it up. It wouldn't be a bill to break the bank ($300-600 extra under the former plan) but it would still be an extra hundred bucks, which is a huge amount to be paying.
They get the same result, but with less cost to them in the long run.
Shaw makes more money, rather than costing them more money, and it can potentially cost customers less in the long run, which they could pass along to consumers or invest to make their product better.