Thursday, September 26, 2013

Bayonette (Norway) abandons the artificial scarcity model for broadband

We have written about artificial scarcity in the broadband market before and are happy to see an operator addressing the issue quite so literally - Norway's Bayonette:

"Networks make a lot of money by selling stepped internet connections. We think differently, and don't want to milk customers by offering different service levels that are only marginally cheaper to produce."

What needs to be added here is that a lot can be saved on costs, if an operator abolishes throttling ('stepped connections'). The number of propositions goes down dramatically (to one), with obvious implications for sales & marketing, as well as billing.

Bayonette's offerings is much like Google Fiber's: 1 Gb/s for 500 NOK/mo and there is a free service (3/1 Mb/s).

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