The problem with health insurance as a metaphor is they have real costs… The insurance company does pay out real money every time you use your policy, and that makes it easy to muddy the issue
Let’s take the coffee metaphor further. They say “you can drink up to 400ml of coffee, past that we’ll add an extra fee. But don’t worry, no one does that”. Then they refill your coffee without saying a word, they won’t tell you how much you’ve used unless you ask, and they won’t stop refilling it unless you tell them not to
The reason the coffee metaphor is great is because, while it’s a real thing, it costs them basically nothing. Just like the extra electricity to send your data costs basically nothing
The cost is the number of coffee pots, the labor, the restaurant - all things that don’t change in cost no matter how much coffee you drink
Coffee works because the nature of the transaction is the same
The problem with health insurance as a metaphor is they have real costs… The insurance company does pay out real money every time you use your policy, and that makes it easy to muddy the issue
Let’s take the coffee metaphor further. They say “you can drink up to 400ml of coffee, past that we’ll add an extra fee. But don’t worry, no one does that”. Then they refill your coffee without saying a word, they won’t tell you how much you’ve used unless you ask, and they won’t stop refilling it unless you tell them not to
The reason the coffee metaphor is great is because, while it’s a real thing, it costs them basically nothing. Just like the extra electricity to send your data costs basically nothing
The cost is the number of coffee pots, the labor, the restaurant - all things that don’t change in cost no matter how much coffee you drink
Coffee works because the nature of the transaction is the same
ISPs have real costs too
Infrastructure costs. Their costs don’t change with how much data you use, they change with how much data they can throughput