Pay-as-you-go Internet access could affect online video industry, analysts

Pay-as-you-go Internet access could affect online video industry, analysts

The pay-as-you-go Internet access plan of the Federal Communications Commission (FCC) could stop the growth of online video industry, warned analysts.

The pay-as-you-go Internet access schemes are not illegal but were discouraged by the regulator and are apposed by public and consumer groups. However, most carriers in the country are now offering data plans for Internet service.

FCC Chairman Julius Genachowski has said that his new proposal, described as net-neutrality proposal, will restrict broadband service providers from tampering with Internet traffic and also admitted that he is open to suggestions about new charging system depending upon usage.

Analysts say that this will put a limit on how much consumers accesses Web video content has it takes up a lot of space and would carry a large price in fixed data plans. This could also widen the gap in internet use as the wealthy will be able to use more internet than others.

The chairman responded by saying that he aims to create a balance between consumer protection and promoting "network investment and efficient use of networks, including measures to match price to cost such as usage-based pricing."

The commission is set to vote on the proposal on December 21 and if accepted could a boost for cable and TV operators who are increasing loosing customers of their paid services to new intern based services.


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