The FCC should not prohibit Internet service providers from implementing innovative pricing plans.
Compared to the wireline and wireless phone industries, there is a relative paucity of different pricing plans in the broadband industry. Many Internet service providers have discounts for service that is bundled with other services (e.g., TV and/or phone). And some charge less for service with lower speeds. But no company appears to sell low-cost plans based on limited use. Yet, for many consumers, particularly lower income consumers, having access to a plan that is priced on the basis of limited bit use might be quite attractive. Likewise, some consumers might be more willing to adopt broadband if a computer was included for free (just as consumers today subscribe to cell phone plans and get a free phone). Yet Internet and cell phone providers have been criticized in the past for experimenting with pricing plans. For example, cellular providers have been criticized for providing long-term contracts. If providers believe they are able to offer a better pricing option they should be free to do so without worrying they will be subject to regulatory uncertainty.