The hidden cost of paying for over the limit data transfer

by: Staff Tuesday, March 23rd, 2010

Whether you run a website or not, if you use the internet, you are consuming a certain amount of bandwidth each month. You can imagine how heavy use of services such as BitTorrent or multimedia streaming will easily consume a substantial amount of bandwidth. Be it a web host or an Internet Service Provider, it is important to know that excessive usage of bandwidth and data transfer just might come at extra price.

Unlimited May Soon be Pay as You Go

The internet is growing rapidly and offering an array of media rich content. Due to various video streaming services and faster internet speeds, surfers are naturally consuming more bandwidth. This all gets very unsettling when considering that Time Warner Cable, one of the largest internet providers in the United States, could be in the works of introducing a tiered pricing system. It is reported that the company may offer data transfer caps at 5, 10, 20 and 40 GB for a variety of different plans. This structure is already in effect in the U.K., although consumers have voiced disapproval because of all the hidden fees.

So what is one to do when a pop-up displays stating that you have exceeded your monthly transfer? As it seems now, you will probably only have two options: pay for going over the limit or cut back on your internet activity. What has many internet users concerned is the possibility of service providers manipulating transfer offerings to influence usage. Would a reputable company dare ramp up its connection speeds to encourage users to exceed their limits? Only time may tell.

Deciding the True Costs of Pay-Per-Surf

Another concern is how such overages would be structured. Would you have to pay a fixed fee or a certain variable? It would certainly be aggravating to pay $1.00 for one month and $2.00 the next. Then there is the issue of someone illegally leaching off the connection and consuming all of your transfer. It is clear to see that several kinks would need to be worked out before such a system goes into effect.

Web Hosting – A Possible Refuge

Web hosting customers are fortunate that bandwidth is widely available and relatively cheap. In fact, the costs on network capacity have been declining for several years now. With so much available, web hosting providers are able to purchase bandwidth in large quantities and distribute generous amounts to their clients. The major influence of affordable bandwidth is primarily due to the economics of the web hosting business. From shared hosting accounts to dedicated servers, plans are far less expensive than past times. Today’s web hosting companies are able to deliver packages at remarkable values, allowing customers to enjoy a considerable amount of bandwidth and data transfer at an incredibly low price.

While there is certainly no shortage on bandwidth, not all providers are offering the best rates. Several will come at you with unexpected fees for overage and an array of hidden charges. Whether it is your web host or ISP, fighting back could be a futile battle. Hosting powers the web and bandwidth is not free, thus someone has to pay for it. Because so many people have a need to use the internet and conduct business online, you are better off taking overages for what they are and dealing with them. Your best bet would be to know what is included in the contract and try to stay within the limits.

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