AT&T Responds To Netflix Op-ed Criticizing Usage Based Billing.

  • July 14, 2011 1:28 pm

You didn’t think AT&T was going to sit back and let Netflix General Counsel David Hyman walk all over them without responding, did you? Today, AT&T General Counsel Wayne Watts rebuked (subscription) Hyman’s claims about usage-based billing while also calling out this obvious bias seeing as how Netflix accounts for up to 30% of heavy network load during peak hours.

The way we see it — both sides have valid points, though AT&T’s pedestal is much smaller. Wayne argues that AT&T is doing customers a favor by only charging them for what they use. The only thing he conveniently leaves out is that the prices attached to the various tiers are grossly over priced for the bandwidth/allotment they deliver.

Netflix’s David Hyman on the other hand has got it right when he calls AT&T’s tactics “bad for consumers and bad for the economy”. We’ll add that any claims made by a land-based telco of bandwidth shortages are false. Internet speeds continue to rise, prices continue to drop (albeit slowly), and coverage continues to expand all while the same companies report larger and larger profits each year. It doesn’t take a genius to see we’re being fed a basket full of lies.

But alas, you have to justify your bloated paychecks and fancy title somehow, right?
Via: Cnet

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