AT&T Says 5% Of Users Use 46% Of Bandwidth

Posted by on Jun 13, 2008 | 14 Comments

Over at the Associated Press they have a report from AT&T which the leading ISP states that 5% of their users, use 46% of the bandwidth. AT&T is now considering charging these folks a higher fee or penalty for excessive usage. It also seems that most of the cable companies have similar plans to charge more for users who eat up bandwidth. In the article it states:

The top 5 percent of AT&T’s DSL customers use 46 percent of the total bandwidth, Coe said. Overall bandwidth use on the network is surging, doubling every year and a half.

AT&T doesn’t have any specific plans or fees to announce yet, Coe said.

Most cable companies have official or secret caps on the amount of data they allow subscribers to download every month. Time Warner Cable started a trial earlier this month in Beaumont, Texas, under which it will charge subscribers who go over their monthly bandwidth cap $1 per gigabyte.

Cable companies are at the forefront of usage-based pricing because neighbors share capacity on the local cable lines, and bandwidth hogs can slow down traffic for others. Phone companies have been less concerned about congestion because the phone lines they use to provide Internet service using DSL, or Digital Subscriber Line technology, aren’t shared between neighbors, but AT&T is evidently concerned about congestion higher up in the network.

It appears that those who merely surf or send email have little to fear. Those who download large amounts of data or movies appear to be the target group.

But I guess the big question will be, will these pricing schemes work?

What is your opinion?

Comments welcome.

Source.

  • http://wp3.lockergnome.com/nexus/theoracle/ the oracle

    This is a self fulfilling prophecy. The idiots at TWC and Comcast started this, and then all the sideliners started with the talk about how it’s coming to an ISP near you.

    It will only be that way if tolerated by the public – as each ISP puts up their changes, the customers move on to the next provider smart enough not to play that game. In the end, the last ISP standing wins, and has money to more than build out its network, while the cappers and moaners wither and die. However, this only works if the customer base is not lazy, and takes the time and effort to switch.

  • George

    this is bad for me. i fall into that 5%!!! also, i have dsl through at&t! i dont want hidden fees

  • http://wp3.lockergnome.com/nexus/theoracle/ the oracle

    Almost forgot – if metered and punished service starts, along with everything else destroyed …there goes ‘cloud computing’.

    Everything will go back to the little world of the local desktop and intralan – the exchange of information will slow to a trickle

  • http://wp3.lockergnome.com/nexus/blade/ Ron Schenone

    Heh Marc,
    Good points. Netflix movie rentals as well.

    Sorry George. I hope it doesn’t come to pass.

  • George

    the real problem is that bandwith is a big issue. my dad used to work for an isp, and of course bandwith is the number 1 reason things have to be choked like p2p. if the internet ever becomes like tv on a subscription service, ill be mad. but worse, I would never want to “pay as i go” i would be dead. a flat monthly fee is just perfect for me, and i hope it stays that way

  • Martin Kruse

    It’s obvious that the other 54% of their users are getting ripped off and paying too much. TWC and ATT love little old ladies who just check email. ;)

  • http://wp3.lockergnome.com/nexus/blade/ Ron Schenone

    Hi Martin,
    I like your thinking! :-)

  • Denny

    ————–AND————-

    Of Course Californians Will Have Special , ,
    Enviromental . BROAD-BAND…

    Which Will Cost More . . Us Californians . R . so Lucky :-) ^^^

  • Nelson

    This story is being played universally with a copyright / media-thief orientation. I’ve even seen the term bandwidth pig also being used. These bad people who download stuff all day that they shouldn’t be downloading anyway.

    Well take a look at a typical monthly download volume for someone who properly maintains windows XP pro or Vista home premium. Look at how big Microsoft patches and service packs for office and XP can be. The current Windows XP service pack 3 is 316.4 MB. Try installing Linux across the net this also takes a lot of MB. Look at the trends where Microsoft and most other vendors deliver their media by download rather than by CD. Look also at the amount of multi-media content, increases in streaming video on sites, even for commercials. The web 2.0, hype and application serving is being treated like everyone in the world is on a T3 line. I personally want my applications on my own computer. The problem isn’t that not too many people will be hit by higher prices now, it’s that with the way technology is moving the bandwidth hog today may be next years average user.

    Are these ISP’s in their attempt to reduce broadband traffic actually contributing to un-maintained systems, easy prey for mal-ware hacker’s looking for their use as zombie computers? I think so. I think they are just being greedy and are significantly miss-leading the public about how many mega-bytes of ads, banners and other nonsense that is so ubiquitous on web sites today will contribute to their monthly bill. Including those media pages originating from the ISP’s themselves, like Comcast’s FAN. Let’s see, I can either watch the winning play of the super bowl, or protect my computer with an update. Wonder which one most guys will pick when they are low on remaining metered internet time?

    You know they can’t have it both ways. In recent Television Advertising one of these ISP’s portrays a middle aged man bragging to his son about the “hot new” system. He gets all the jargon wrong and then goes to download something using dialup speed. Broadband is so much better, so come get our service today, by the way….. You’ll soon be getting 5 times the speed for 25 times the cost. You know, that doesn’t sound like such a good deal after all.

    Free market is great, but since when is a cable company a free market. Cable companies get to be something like a monopoly while they have a local municipal contract. Not much competition there. I can’t choose to use a different cable company than the one that servers my town, can I. Most people are not close enough to DLS phone stations (DSLAM) to be able to use this slightly more competitive technology. Such lack of free market and competition drives the prices up and leads to the potential for greedy moves like metered service all with the approval of government through the way cable is regulated as a closed line. Look at other countries approach that has much higher availability of broadband.

    As a starting point though slightly behind the times,(2005), I suggest taking a look at: http://biz.yahoo.com/special/broadband05_article1.html

    The big down side of this issue is how such practices are placing the US further and further behind in the area of information access availability. I frequently have said that the internet is today’s version of the Library at Alexandria perhaps the ancients’ greatest (free) intellectual resource. Most agree that the building and its contents were destroyed by fire though it is not clear which of several different groups are actually to blame. It seems that our access to today’s technological equivalent has similarly been under attack from hackers, virus writers, and credit card and identity thieves. To that you can now add the greed of the internet providers themselves.

  • Stuart Kahler

    That’s pretty good usage statistics for an unlimited usage program (in ISP’s favor). I probably only use 20% of my cell phone minutes. I only use my various season passes about 3-5% of the days that I could, though I’m certain there’re lots of people who are there several times a week. I pay property taxes for schools that my kid isn’t old enough to attend yet and then shell out of pocket for pre-school at $5k/year. Meanwhile other families have 2-5 kids in school for free. I might actually be an average user for my cable TV service. But I use the heck out of my internet service. The truth is that anything you sell on an unlimited basis will be half used up by a minority of users.

    I think the ISPs are just feeling out the market to see if they can get people into more draconian service plans like what the cell phone market has. ISPs have no ultra-high margin add-on services they can upsell like texting packages, ringt0nes, photos, extra minutes or unlimited calling to certain numbers. Just about all they can do is increase the mbps.

  • http://wp3.lockergnome.com/nexus/blade/ Ron Schenone

    Thanks for the comments everyone and for the information. It is appreciated.

    Regards, Ron

  • Exothermic Reaction

    This is just an example of AT&T’s and most ISP’s practice of only building infrastucture to handle 10% of it’s customers at any given time.

    This policy was fine in the days of land line telephone service, At most the system only needed to be able to handle talk paths for a small portion of the service area at a moments notice. But as emergency events happen, the system quicky crumbles under the sudden demand.

    In the early days of dial-up, the telco’s were complaining that too many people were using modems at the same time, consuming valuable talk paths for hours on end, when they were still using infrastructure allocated under the voice model.

    The ISP’s need to realize that multimedia content and file sizes are only going to continue to demand larger and larger pipes for delivery. Never mind P2P, everyday there is a new service like netflicks movie downloads, youtube video of the week,…

    ISP’s have attempted to cache content, but today’s dynamic database driven websites, tend to serve content that breaks under cached conditions.

    ISP’s need to plan their infrastucture to handle a Maximum demand at a specified minimum service level, and maintain it as customers are added. Attempting to jack with TCP/IP and UDP connections as comcast has recently ben found doing, only makes the problem they are trying to solve worse, because the protocols will resend the packet. Instead of one packet, you now have two or more making the underlying problem worse.

    I personally do not care to purchase my bandwidth from an ISP, I do not use ISP services, not even their spam infested e-mail. I even use third party DNS, because of the ISP redirecting of failed lookups going to a defective search page.
    I’d much rather have my own direct T3 or OC3 connection to one of the major backbones, but the local teco’s and ISP control the last mile.

    Exo

  • 5% using 50%

    This is not atypicaly, but you have to look at the upstream. The whole pricing model is based on oversubscription, and that top 5% has always been the issue – even back in the dial-up days. From the inside, if you could find a way to keep the folks that would lock in a modem port 24×7 offline some, you could up the number of customers you served and generally drop the price for everyone.

    I have to agree with some of the comments – the folks that casually use are the ones “overpaying” – I have that problem with my cell phone, and my TV service. I don’t use as much as many, but the few features I need make me pay the “premium prices”. Look at the AVG LinkScanner article here – Web sites pay per gig of transfer, not by link speed. The idea of “per meg” service has been around for a while, it’s just pushing it to the consumer. Even “cloud computing” and “gaming” uses nothing compared to the file share sucking dry ideal.

    Point is – if they made the data transfer 150, or 200, gigabytes of data, I don’t think anyone would scream. I’m sure they’ll screw it up and and make it 5gig or something, though.

  • http://twitter.com/YBrammer Will Bramlett

    I recently closed down my old AdSense account so I could get the $81.72 off of there and then tried to open a new one with my Google Apps domain.. I was turned down.