Verizon CTO sees eventual move to metered broadband

Verizon Communications Chief Technology Officer Richard Lynch told a 2009 FTTH Conference & Expo press conference that the broadband industry "will see a pricing paradigm shift" because Internet service providers (ISPs) "cannot continue to grow the Internet without passing the cost on to someone." His comments are believed to mark the first time a Verizon executive had publicly supported metered billing at some point in the future. Lynch said that it is Verizon's hope that the Federal Communications Commission's current consideration of Network Neutrality rules as part of a national broadband policy doesn't result in rules that limit ISPs' ability to offer premium bandwidth offerings, while maintaining open access to the public Internet. When asked how Verizon would meet the burgeoning demand for bandwidth for Internet video and other services, Lynch admitted "the concept of a flat-rated infinitely expanding service for everyone just won't work." "We are going to reach a point where we will sell packages of bites," Lynch said. "Now I'm not announcing a new pricing plan. But we have already gone this way in wireless because that is where the resource is most constrained."