How bandwidth caps will hurt the economy more

I remember the days of dialup networking well. I don’t mean the old AOL/Geni/Compuserve dialup service, I mean “put your funny shaped, wire tethered phone headset down in a cradle and listen to the funny tones squeal while you wait for a handshake” dial up. When network connectivity was difficult, you saved it for important things. You did not squander precious bits without putting thought into it. Modems evolved, and then became incorporated into computers. It was easier to connect, so we shared small pictures,backgrounds for webpages ( usually tiled), animated images and silly sounds. But the connection was still slow and we paid by the hour. Some people even paid twice.. once to the service/ISP and then again in cost per minute to the phone company for the connection. Things like video and online shopping could not take off because the overhead of paying for the connectivity, and the worry that you would run out of minutes and not be able to continue with basics like email. Then came always on, unlimited bandwidth. No longer did I have to dial up to the ISP, wait for the connection and then carefully count the minutes I was online.
With a bigger pipe and free access, the business model for the web changed. Want to share all 1200 pictures from your last vacation with me? Cool. I have all the time I need to sit and admire them, and I know I will still have bits left over to read my email. Someone put videos on thee web? holy crud. Let’s sit and watch, who cares if there are advertisements on the page, these are funny videos!
Busy at work? Need to get birthday presents for your grandma who lives on the other side of the country? Here.. order flowers online- you can page through the images and select one. Not flowers? How about any one of a million other products you can order online and have easily shipped to her? Maybe you would like to buy her one of those nifty products you saw advertised while you were watching the funny videos.
Like to play games> No need to get up from your computer and go to the store to buy and install discs, just buy them over the internet and download them directly to your PC. Why not to your wii? your PS3? Your Xbox? Download them to your console and then move them to your DS or your PSP.
Too busy to go to the store, buy CDs, load them in your computer and then copy them to your mp3 player? No matter. We have many different services where you can buy music directly over the internet and then just download it. You like to buy music? how about music videos? TV shows? Movies? Don’t download it- you can just stream it. Heck, stream it in high definition- why not? Your bandwidth is virtually free!
Soon, it became easier to shop online than to get in your car, drive and interact with grumpy, rude people at the mall. The price of gas went up- you are saving money by staying home, so you can buy more. Right?
The internet is the ultimate impulse buy.
What happens when we go back to that old dial up mentality and we are worried about how many bits are flowing to and from our houses again? Will you let Spore waste your bandwidth uploading and downloading creatures? Will you continue to directly download audio books from the likes of Audible.com? How many ad-supported video podcasts will you download and watch? Will you let your video game console communicate over the net?
Last month, I spent hours and hours looking at images of dresses on the internet while I was shopping for a wedding dress. If I had a cap on my DSL, I never would have done that. Nor would I have bought the dress online from the merchant I did. What will happen to iPod hardware sales if people are concerned about how much they are downloading from iTunes or Amazon.com to put on it? What about your cell phone that uses a wifi connection when you are at home to save on your cell phone minutes? Will you still let that connect? If not, will you talk less or will you spend money on your cell phone bill instead of something else from a store in your home town?
Personally, I work a lot from my home office. Bandwidth is cheap, I can VPN into the corporate network and do my teleconferences. It saves me gas money from the commute and time to stay caught up on things like laundry. If my bandwidth gets capped, I will be driving into the office again every day to use their bandwidth instead. The money I have to spend on gas will take away from things like eating out, seeing movies, or buying new wii games for the kids.
What other gadgets and habits do you have that eat away at the bits you consume every month. How many purchases will you forgo, if you are worried about being able to read your email at the end of the month? how many youtube or 12second videos will you upload? How many will you watch? Will you Hulu? How useful is that iPod touch if you are not connected to the internet?
Will your highspeed bandwidth provider become the gas companies of the next decade, making big profits to give you virtual mobility at the expense of other businesses and sectors?

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