Metered plans will replace flat-rate wireless broadband plans soon.
Flat-rate plans create artificial market conditions. Users who consume the smallest part of the resource are subsidizing users who consume the most. Given these conditions, the “hogs” have only an incentive to consume more until the network is congested for everyone. The economic term for this is the “Tragedy of The Commons.” In addition, different carriers are strongest in different geographic areas. For a familiar example, while you’re on the move, such as during a commute to work, you can traverse one or more carrier dead zones. Furthermore, most users don’t consume anywhere close to the 5GB limit on their single-carrier data plans today. If the option existed, most broadband customers would prefer paying less per month for less bandwidth spread seamlessly across more carriers.
Hobnob makes smart devices that aggregate multiple carriers and technologies and expand the market for carrier service. When you aggregate multiple carriers you become a customer for every carrier whose service area you cross. You buy the megabytes you need from a diversified portfolio of carriers at a lower cost per month than you pay now for a single data plan. Since you’re no longer subsidizing the network hogs, your monthly rate drops significantly, even though your effective per megabyte rate increases. These new conditions allow the carriers to charge full and fair wholesale prices and make back their infrastructure investment.
