Well, I’ve blogged a number of times before why I think usage-based pricing would be a mistake and an innovation killer. The reality is that bandwidth tech is doing very well now, even better than Moore’s law, and you can stuff a terabit down a fiber and a a growing number of megabits down twisted pairs of copper, and there’s gigabit free space optical going to get cheaper, etc. etc.

So actually, I predict costs will fall for ISPs, as they provide more and more, just like computer vendors have done. Usage based pricing only makes sense if the resource is getting more and more scarce.

As P2P matures, a lot of its bandwidth will be one customer feeding the data to another customer on the same DSLAM. Are you out of internal bandwidth on your DSLAMs? (Yes, today you may not route within them, but this is certainly not out of the question.)