@Peter Kay
>>"1) The limits aren't clear"
I assume that's because what the practical limits are depends on what the spread of users is doing - if most 'unlimited' users are relatively light users, it's easy to carry a few heavy users, but as the customer base or habits change, what can be coped with also changes, even if infrastructure stays the same.
>>"2) The packages are, unsurprisingly, designed to provide maximum revenue for the ISP rather than convenience for the customer. Such as one ISP that has an 8.50UKP differential between packages with a 25GB usage delta, but otherwise charges each extra GB at 1.50UKP..."
Well, I'd guess that factored into their calculations is a hope (maybe based on experience) that an average '25GB' user only uses a fraction of their bandwidth, whereas someone paying for extra bandwidth clearly *is* using it.
I suppose there is some self-sustaining logic in there, since that relatively large per-GB price might end up pushing quite a few intermediate users from a 'light' package to a heavier one, and all those people could be using a fairly small fraction of the heavy package limit.
A package with a fixed basic charge and then all traffic charged at a realistic price per MB would be interesting, and possibly fairer, but I'm not sure what the takeup would be. I suspect that many people prefer a fixed monthly bill, with possible occasional extras if they nudge over a limit now and again, even if a fully traffic-related package might be cheaper.
Psychologically, it might even be easier to sell a model where people paid a fixed charge, and were then given a small rebate for bandwidth they *didn't* use than one where they paid for what they used, even if the total paid was exactly the same.
>>"3) The ISPs actively advertise their packages as unlimited and able to download plenty of media"
I suppose they are pretending to themselves that that's all going to be itunes and iplayer and videotelephony with ex-pat Granny, as well as selling the idea to people that there's all this wonderful stuff out there, and they should get themselves an unlimited package even if (especially if?) they're unlikely to be making that much use out of it.
The average consumer (who may well *not* realise that unlimited actually has limits) could easily be the same person who wouldn't know what to decide if given a choice of 2/5/10/25GB/month, so they play safe by going for the 'best' package, and in the process help to subsidise the people who try and make most use out of an 'unlimited' deal.
It's kind of ironic that if Ofcom actually did grow a pair and stop people selling unlimited deals, it may be that many users would be forced to work out how much they actually use, and might drift towards suitable smaller packages, leaving the larger ones less subsidised than at present.
>>"An undefined fair use policy does no-one any favours. It wouldn't be entirely unreasonable to put a statement out such as 'we would recommend you try to avoid transferring more than 75GB' because that at least provides a ballpark figure, but most of the time users don't even get that."
I suppose the problem is that any explicit limit might look to some people like a target, and it takes away some flexibility from the ISP - from *their* point of view, undefined unlimited might look like a better option at the moment. Set your guide limit a little low, and you might lose a potential customer to someone with a higher one - too high and some people might expect you to stick with that indefinitely.
If you're going to have a limit, it seems better to have a hard one than a 'guide' one - that way people could be confident they're not going to get hassle for using it up.
That said, it would be interesting would be to see what amount of usage has caused people to be warned or booted off from various 'unlimited' services at various times.