Bucket Pricing for Broadband gets a new twist

So, we had a talk with another telco/ISP the other night and they asked us for feedback about a proposal to offer bucket pricing on top of their existing unlimited plans. As I previously wrote here, I’m open to having more options for broadband consumers.

In my previous article, I gave out some hypothetical figures for how much the bucket pricing should be. This time, the concerned ISP gave a rough number which is something worth considering. Here’s how it might go…

Say, you are currently paying Php999USD 17INR 1,443EUR 16CNY 124 for unlimited internet with speed of up to 1Mbps. Sounds pretty standard, right?

What if, your ISP offers another package at the same price point — for Php999USD 17INR 1,443EUR 16CNY 124 you get 4Mbps but it’s capped at 15GB?

Option 1. Unlimited Plan: Php999USD 17INR 1,443EUR 16CNY 124 @ 1Mbps (unlimited)
Option 2. Capped Plan: Php999USD 17INR 1,443EUR 16CNY 124 @ 4Mbps (15GB/month)

For the capped plan, customers are given alerts (email and/or SMS) and a web interface to check their running bandwidth usage. If you reached the monthly quota, you will be able to buy more bandwidth. Something like Php100USD 2INR 144EUR 2CNY 12 for additional 1GB.

Customers can then choose which of the two plans they want to use — the unlimited or the capped package and then get the corresponding speed bump.

If you think 15GB isn’t enough, then you will be free to pick the 1Mbps plan. If you think you’re not a heavy user but speed is important to you for efficiency, you can choose the 4Mbps plan. Sounds fair.

Here’s the clincher — you might also be able to set your own speed and bandwidth cap as well. It should look like this:

Plan 1999: Php1,999USD 34INR 2,888EUR 32CNY 248/month for 2Mbps unlimited
OR
8Mbps at 30GB bandwidth cap (+ Php100USD 2INR 144EUR 2CNY 12/GB overage)

Plan 2999: Php2,999USD 51INR 4,332EUR 49CNY 372/month for 3Mbps unlimited
OR
12Mbps at 60GB bandwidth cap (+ Php100USD 2INR 144EUR 2CNY 12/GB overage)

Now that’s very interesting. What say you?

P.S. The issue of speed consistency was also brought up, including the practice of offering a CIR (committed internet rate). Again, no ISP would guarantee a minimum speed (CIR) unless you subscribe to a dedicated leased line (versus the shared connection on residential lines). The only way you get a consistent 1Mbps is when you get a dedicated leased line (which they say is in the range of $1,000PHP 58,686INR 84,750EUR 952CNY 7,278 per 1Mbps nowadays).

Abe Olandres

Abe is the founder and Editor-in-Chief of YugaTech with over 20 years of experience in the technology industry. He is one of the pioneers of blogging in the country and considered by many as the Father of Tech Blogging in the Philippines. He is also a technology consultant, a tech columnist with several national publications, resource speaker and mentor/advisor to several start-up companies.

https://www.yugatech.com

62 Comments

BeerBoyBeerTime88 says:

14 years ago

still the question lingers is the SPEED GUARANTEED? coz if I picked up the bucket pricing plan then I was promised 4mbps for example (all for the max of 15gb) but I just get 2mbps-3mbps speed then that’s another thing… I dont know when will all these stuff change.

It’s easy to put a cap or capping plan on accounts however MAINTAINING the promised speed is still a BIG issue. And I hope they advertise correctly this time.
- Reply
jun says:

14 years ago

I second the motion.. siguro sa mga wired customer pwede.. pero yung bucket pricing still dapat me minimum guarantee na speed.. or else..
- Reply
sam sung says:

14 years ago

kung ang sinasabi nila ay totoo, totoong speed at good connection, maganda to, efficiency and reliability……………………….. that remains to be proven
- Reply
domob says:

14 years ago

Andyan na naman tayo sa Mbps. If they don’t deliver the said speed, pwede bang hindi ako magbayad? I highly doubt pwede yun, pero sila ang hindi tumutupad. Worst case scenario, mabagal na nga, capped pa usage mo. FAIL
- Reply
NemOry says:

14 years ago

pwd po ba matranslate from example: 8Mbps to 8MBps?hehe. .d q talaga gets ang itsura pg mg download na yan sa browser. .for example 8MB ung size na dadwnloadin q, .so 1sec b tapos na agad?hehe
- Reply
lolipown says:

14 years ago

If the telcos do approve of this system, color me surprised. The current pricing scheme is a boatload of money.
- Reply
Pukeman says:

14 years ago

I agree with BeerBoyBeerTime88 and all the rest. However, I am only asking for 80% of the guaranteed bandwidth, and no excuses. What is my recourse if I do not get it?
Another point is that the ability to switch should be instantaneous or close to, not wait 3 days or “Please come down to the nearest office and fill out these forms”
It all sound great in theory, but can it be properly implemented in practice, that’s the question. I am all for bucket pricing, just a little wary of the implementation and execution.
- Reply
Lil says:

14 years ago

Questions is, will the speed really be consistent?
How about downtime?
They have to PROMISE consumers first there is close to zero downtime and guaranteed speed
- Reply
elmerlovesoreo says:

14 years ago

I am currently using Globelines 2MB package and I love the unlimited GB of downloads via torrents. I can’t imagine it having a quota of 15GB/month and paying extra for additional GB. I love the way it is.
- Reply
John says:

14 years ago

I think the cap is too low while the price per gig too high. Maybe if they just count the downloads and not the seeding uploads then maybe we can think about it.
- Reply