Originally published: November 30, 2011
Last updated: December 21, 2011 - 5:47pm
Wall Street analyst Craig Moffett said that cable and telco operators will likely soon force their heaviest Internet consumers to pay more for their service.
This would have a large impact on viewers who watch high-definition video over the Internet because HD video consumes more bandwidth than standard-def. “As more video shifts to the Web, the cable operators will inevitably align their pricing models,” Moffett told the news service. “With the right usage-based pricing plan, they can embrace the transition instead of resisting it.” Moffett, an analyst with Sanford C. Bernstein, said one major cable operator is already planning to institute higher fees next year. He added that Cox, Charter or Time Warner Cable may be the first to do so.
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