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Tuesday, September 30, 2008

The Real Reason For Bandwidth Caps?


Each time a new technology comes along, the old guard tries to stay entrenched, and keep the new technology from taking over. Almost always, the new, better technology usually wins out in some form. Look at the resistance to FM radio by AM broadcasters, and the resistance to cable by over the air broadcasters, etc. Well, we might be at the edge of another change, and Apple could be right in the middle of this one.

Comcast will begin implementing a 250GB monthly data cap. Ostensibly this cap is intended to curb rampant file sharing, and ensure network capacity for everyone. Maybe though, this is really intended to curb the rise of devices like Apple TV, and other competing boxes.

Cable companies are first and foremost TV providers. They do a healthy business, especially in OnDemand content. Devices like the Apple TV threaten to take away that cash cow, and to make the cable company little more than a utility provider.

At today's data rates, 250GB seems like enough, even for the most intensive Apple TV user. Look a few years down the road, though. Imagine an Apple TV that's streaming HD television and live events all day long. Now imagine two or three boxes in the house, along with increased wifi use from devices like the iPhone.

What will happen when technology reaches this cap not just for the rampant content pirate, but for the average TV viewer?
Is internet congestion a reality that will require caps, or are caps being used to suppress the expansion of services that cut into the bottom line of service providers?

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