Many people want flatrate internet in South Africa where we pay about $36 US for each GB we use. Flatrate broadband is being offered by the likes of IS; at a price. (about $300 US per month, with high latencies and restrictions on P2P)
Imagine the following scenario. You and your mate go to the local shopping mall. He buys a pair of sneakers, a new DVD player, a present for his girlfriend and 3 books at the bookstore. You buy some new socks.
Both of you pay a flatrate of $500 per month for your shopping mall "subscription". I.e. you've just subsidized everything your mate bought. Do you think consumers and shopowners would buy into this concept of shopping mall subscriptions? Of course not!
So why on earth would you want flatrate internet, where the majority of users are subsidizing the excesses of a minority?
It used to be that the internet was about reading emails and surfing the web. These days it's about VoIP, IPTV, streaming audio, podcasts, YouTube and Web 2.0 applications. One person could be getting a lot more value out of an hour on the net than another!
It makes sense to me that the more you 'buy' at this new 'shopping mall', the more you should pay. Of course you should qualify for bulk discounts, but why a flat rate for unlimited usage?
I envisage a world in which everyone is online all the time. There's simply no point in charging for the time you are online. You'll be online from birth. Therefore, Skyrove charges per Megabyte. It's a natural differentiator.
There's a pretty much direct correlation between the value-add of most online services you use and the amount of bandwidth it consumes. Web 2.0 apps use more bandwidth than surfing, VoIP uses more bandwidth than Web 2.0, video uses more bandwidth than VoIP etc.
One of the main reasons we are given is that consumers simply don't understand the concept of MB. The sooner internet operators realise that consumers aren't idiots and that "Megabyte Education" isn't impossible, the sooner we're going to see more affordable internet access.