The issue of metered billing has been criticized here and in other places. It makes for a pretty popular punching bag, but I don't think it's fair to dismiss it as a non-issue. The ISPs have to manage oversubscription rates. It's a real problem. Total throughput is fixed at various points along the network, and there are going to be times when the demand outstrips the available capacity.

So what should the ISPs do? Time Warner's recent foray into metered billing was obviously moronic. Customers shouldn't be penalized beyond their monthly payment for usage. Their plan also didn't do anything to reduce congestion during peak traffic hours.

I think the onus should be on the ISP to make sure that they can actually deliver the rates that they are advertising, which are clearly far too high. The customer shouldn't get screwed just because the ISP can't manage the oversubscription rate that it wishfully dreamt up.

In this scenario, advertised rates would have to drop substantially, but it means that the customer, not the big media partner, decides on his own quality of service.

This is basically how it has worked for business class circuits for all of eternity. I guess I don't understand why they can't apply the same pricing model to ordinary consumers.