The standard was the uncapped one (and it was pretty cheap, even compared to other ISPs), but you could save 5 EUR/month if you went with the capped one.
Hence, speed-based pricing is not necessarily the best way to price Internet (it just happens that people who use the Internet a lot tend to like higher speeds).Īn ISP in Germany used to offer regular Internet, and Internet with a data cap. Which said frat house is doing, and if a lot of customers are like the frat house, the ISP will have to put down fatter lines than if everyone behaves like grandma. What costs money is filling up the bottleneck. If all people one one street tried to use their full bandwidth at the same time, it wouldn't work (everyone's Internet would become slow). At the same time, "100 Mbit grandma" is going to need less upstream bandwidth provisioned than "100 Mbit stream and torrent 24/7 frat house". Yet, pages will probably load noticeably faster on 100 Mbps. While I still think that data caps as usually deployed are horseshit, I suspect that providing grandma 100 Mbps probably doesn't cost much more (edit: looks like this may not be 100% true) than providing her 10 Mbps, assuming the additional bandwidth doesn't change her usage habits.
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