A report at BroadbandReports.com posed the question to readers regarding ISP by-the-byte billing. Currently, most ISPs provide service level agreement for bandwidth up to a certain amount. Use in excess of the contracted bandwidth triggers premium usage charges.

The discussion is sometimes raised about the feasibility of moving to a per-byte or metered use model for bandwidth purchases. Just as you're billed by the kWh or cubic foot for electricity or natural gas, some ISPs are examining the same metered model for bandwidth.

This approach is a shift from the subscription model almost universally employed, but addresses the issue of the small number of users who consistently consume all available bandwidth. The approach to dealing with these users has been to cap bandwidth usage at a particular level.

The question arises: "What's the harm in letting users consume what they would naturally consume?" The answer is that most ISPs are middlemen, who in turn purchase Internet access from a larger provider. ISP customers are limited because the ISPs are also limited.

The largest commodity access providers already charge on the usage model, offering a per-Mb price for access to NAPs and exchange points. If the model is extended downward, and ISPs can develop a credible mechanism for metering use, expect to see metered bandwidth use.

The model must shift from a committed bandwidth to a metered-use model if growth is to be sustained. Applications are calling for an increased amount of bandwidth, and the number of IP services delivered to consumers is growing. If these services are expected to take the place of traditional television and telephone providers, ISPs will need to improve their backhaul substantially or pass the metered-usage model through to their users.