Bucket Pricing for Broadband gets a new twist

So, we had a talk with another telco/ISP the other night and they asked us for feedback about a proposal to offer bucket pricing on top of their existing unlimited plans. As I previously wrote here, I’m open to having more options for broadband consumers.

In my previous article, I gave out some hypothetical figures for how much the bucket pricing should be. This time, the concerned ISP gave a rough number which is something worth considering. Here’s how it might go…

Say, you are currently paying Php999 for unlimited internet with speed of up to 1Mbps. Sounds pretty standard, right?

What if, your ISP offers another package at the same price point — for Php999 you get 4Mbps but it’s capped at 15GB?

Option 1. Unlimited Plan: Php999 @ 1Mbps (unlimited)
Option 2. Capped Plan: Php999 @ 4Mbps (15GB/month)

For the capped plan, customers are given alerts (email and/or SMS) and a web interface to check their running bandwidth usage. If you reached the monthly quota, you will be able to buy more bandwidth. Something like Php100 for additional 1GB.

Customers can then choose which of the two plans they want to use — the unlimited or the capped package and then get the corresponding speed bump.

If you think 15GB isn’t enough, then you will be free to pick the 1Mbps plan. If you think you’re not a heavy user but speed is important to you for efficiency, you can choose the 4Mbps plan. Sounds fair.

Here’s the clincher — you might also be able to set your own speed and bandwidth cap as well. It should look like this:

Plan 1999: Php1,999/month for 2Mbps unlimited
OR
8Mbps at 30GB bandwidth cap (+ Php100/GB overage)

Plan 2999: Php2,999/month for 3Mbps unlimited
OR
12Mbps at 60GB bandwidth cap (+ Php100/GB overage)

Now that’s very interesting. What say you?

P.S. The issue of speed consistency was also brought up, including the practice of offering a CIR (committed internet rate). Again, no ISP would guarantee a minimum speed (CIR) unless you subscribe to a dedicated leased line (versus the shared connection on residential lines). The only way you get a consistent 1Mbps is when you get a dedicated leased line (which they say is in the range of $1,000 per 1Mbps nowadays).

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Avatar for Abe Olandres

Abe is the founder and Editor-in-Chief of YugaTech with over 20 years of experience in the technology industry. He is one of the pioneers of blogging in the country and considered by many as the Father of Tech Blogging in the Philippines. He is also a technology consultant, a tech columnist with several national publications, resource speaker and mentor/advisor to several start-up companies.

62 Responses

  1. Avatar for conventional conventional says:

    obviously like your web site but you need to test the spelling
    on several of your posts. Many of them are rife with spelling problems and I to find it very bothersome
    to tell the truth then again I will certainly come back again.

  2. Avatar for dopamine and dopamine and says:

    Thanks for the good writeup. It in truth was a entertainment account it.
    Glance complicated to more introduced agreeable from you!
    However, how can we be in contact?

  3. Avatar for Fibre Fibre says:

    To telcos, just offer us higher mbps in an affordable price, period. I dont care regards to bucket pricing.

  4. Avatar for Robin Robin says:

    @kristian

    Five hours of YouTube in the field with a mobile device?

    That is the kind of thing you should do on a fix point DSL or Wimax connection. Unlimited 3G Data connections are not meant to be your only internet connection.

  5. Avatar for kristian kristian says:

    Guys i hate globe already… iv been watching you-tube for 5 hours only… ad i cant connect to the internet because of this…

    GLOBE Advisory: Ur data subscription for today has reached 800mb. Ur remaining browsing hours will resume tomorrow subject to promo validity. U may opt to forfeit ur remaining subscription to browse for P5/15. To unsubscribe text POWERSURF OFF or SUPERSURF OFF to 8888. This promo is guided by Globe Fair Use Policy.
    Time: 27/02/2011 02:17:09

  6. Avatar for kristian kristian says:

    GUys i hate globe alredy… iv been watching youtube for 5 hours only… ad i cant coonecct to the internet because of this…

    GLOBE Advisory: Ur data subscription for today has reached 800mb. Ur remaining browsing hours will resume tomorrow subject to promo validity. U may opt to forfeit ur remaining subscription to browse for P5/15. To unsubscribe text POWERSURF OFF or SUPERSURF OFF to 8888. This promo is guided by Globe Fair Use Policy.
    Time: 27/02/2011 02:17:09

  7. Avatar for Steve Steve says:

    2mbps SDSL from Eastern telecom is $700 a month.
    2mbps leased line from Digitel is $900 a month.
    2mbps leased line from PLDT is $1200 a month.

    At least this is what we’re paying at our office.

  8. Avatar for kiko kiko says:

    No to Bucket Pricing

    I am happy with the consistent and unlimited 2Mbps downspeed and 0.5Mbps upspeed of my Globe Broadband ADSL Plan 1295.

  9. Avatar for Robin Robin says:

    Me, I am really okay with data CAP’s. But hopefully without restrictions on use. I have a Smart Gold Data Plan capped at 1.5GB after which you throttle down.

    But the use of certain applications might result in having to pay Php10 per 30 minutes. In fairness to Smart Communications, they have been helping identify the cause of the additional data charges.

    But with 250,000 Android apps and 300,000 iPhone apps, if I download something new I feel like I am left guessing which applications I can and cannot use without being charged additional data charges.

  10. Avatar for Rian Rian says:

    Ok lang naman yung limit ng 15Gb kasi di na ako masyado nagdodownload. Kung ganun man, mabilis ko matatapos ang isang file say for example document from my boss, e 4mbps naman, basta ba siguradong yung icocommit na speed edi ok lang.

  11. Avatar for NO TO BUCKET PRICING NO TO BUCKET PRICING says:

    What’s wrong with this blogger trying to push through bucket internet plans here in the Philippines?

    MR. YOU GOT TECH, our country is lucky to have internet service providers who offer unlimited internet plans. YOU HAVE NO IDEA kung anu-ano ang pasakit na dala ng bucket data plan.

    Now let me GIVE YOU SOME.

    Take for example, here in the United States, AT&T offers $80 (about P3200) plan for 5gb of data transfer, THAT IS INCLUDING UPLOAD TRANSFERS. The bandwidth speed differs and ranges from 1-3mb/s which is a good side of this.

    Let’s say, you’re an avid YouTube watcher, or one who uses Netflix and the likes. These will all eat up your monthly allowance, sa download palang. Gaming consoles (PS3, X360) takes up a lot of upload bandwidth. An anti-virus update’s file size can take up to 1mb, now do the math if you set it up to update every hour. AND JUST LIKE YOU, web hosts there in our country will suffer.

    There are too many downsides, I tell you. Would you pay for $80 just for downloading 4 DVD rips from utorrent? How about $80 just for 2 whole days of Skyping? Or $80 exclusively for serving your blog’s visitors for 2 weeks?

    THE ADVERTISEMENTS AND REBATES are what you gotta ask to get fixed. P1000 for 512Kbps doesn’t sound bad at all.

    I’m asking you to please, please, please, stop writing about bucket pricing’s advantages. Or at least, post but include the disadvantages. You have a big voice in the tech industry. Heck, even Globe and Smart are trying to implement the method after your posts. Please stop this now or you’ll become the root of our nation’s possible additional burden.

  12. Avatar for icarus icarus says:

    Ang weird lang na nasanay tayo sa unlimited well in fact other countries are into capped plans.

    On the other hand, most of the ISP’s here in the Philippines never reach the average speed of the Internet in the World. What should these providers do is to prove to us na they are consistent in giving what speed they promised us.

  13. Avatar for Dan Dan says:

    how i wish they can make the use of internet like our electricity bills or like the home gas bills in the US, take all you want

  14. Avatar for raul barrios raul barrios says:

    The problem with telcos is that customers are not highly valued. All they need is to value the customer and everything will just follow.

  15. Avatar for domob domob says:

    I want to insert this bucket into my anus, seriously

  16. Avatar for domob domob says:

    wtf, someone’s posting comment/s using my account.

    @ TopMace: I’m not the one who posted comment #38 either. wth

    sir yuga you must be so famous trolls flood your blog’s comment section.

  17. Avatar for migs migs says:

    They can’t guarantee the minimum speed because users are sharing the bandwidth.

    I’ve tried plug-its, DSL, prepaids, postpaids, and now using leased line (E1) ng smart (not personal ha. for the company im currently connected).

    A 2mbps E1 sa smart would cost between $1500 to $2k. Globe is offering it a bit cheaper, around $900 $1.3k per month.

    Sa leased line, sayo ang mundo. walang cap, wala silang pakialam sayo.

  18. Avatar for TopMace TopMace says:

    That’s the poser at comment #27 and 28.

  19. Avatar for domob domob says:

    Hmmm. Globe anus.

  20. Avatar for Jeric Jeric says:

    Consistent 1mbps for me… Consistent ha! hindi yung 1mbps lang kapag offpeak!

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