In the early years of the Internet, the more time people spent online, the more they paid a provider like AOL for their connection. But as customers have shifted to always-on broadband services, many Web surfers have enjoyed all-you-can-eat Internet for a flat rate.

Some cable and telecommunications providers are trying to turn back the clock and return to usage-based pricing for Internet connections. Carriers including AT&T Inc. (T) and Time Warner Cable Inc. (TWC) say they may have to switch amid a surge in Internet traffic as more people go online to watch videos and download movies.

Recent efforts to introduce usage-based, or metered, broadband services have met stiff resistance from consumers. But a new push by the federal government to adopt rules that would force Internet providers to treat all Web traffic equally, no matter how much bandwidth they take up, could give ammunition to the broadband providers that want to change how they charge for Web access, Internet experts and consumer advocates say.

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Apple’s (AAPL) new iPhone 3G is supposedly twice as fast as the old one, and its new App Store opens up all kinds of neat new mobile Internet services like baseball video and free streaming radio. Yet AT&T says iPhone 3G users are using less bandwidth than they anticipated.

The carrier expected a 5x growth in data consumption over the old iPhone, but it’s been closer to a 3x jump, AT&T (T) CTO John Donovan said this morning at a Goldman Sachs investor conference, Moconews notes.

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Sure, most of us can get pretty fired up over the thought of a monthly 250GB bandwidth cap, but what about the companies that provide online video services? After all, as Om Malik pointed out, the cap isn’t about excessive bandwidth usage as much as it is about stymieing online video sources like Hulu, Netflix and Amazon.

Roku, which makes the Netflix player, isn’t worried about the cap. The $99 set-top box maker is more of a facilitator than a provider, but its entire business is built upon delivering video to you over your broadband connection, so a cap could impact its sales.

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There are exchanges where you can buy and sell stocks, futures, pork bellies, wine and even pollution allowances. Why not an exchange for the trading of digital bits and bytes?

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When it comes to broadband Internet access, you can have speed or large volumes of data transfer. You can’t have both. One certainty in the broadband world is that for those of us with cable or DSL modems connecting us to the Internet, there is still a finite amount of bandwidth available. When a user consumes a disproportionate and significant amount of bandwidth, it can and will slow down everyone. I hate that.

If the choice is between your being able to download more movies or other video and my getting the best possible speed from my Internet connection, I’m thrilled when you get kicked off. It can’t happen soon enough. Speed is what I need. Take all your P2P downloads and get the hell off my Internet.

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There is a dirty little secret in the cable industry. It’s being kept secret not by the cable distributors, but by the big cable networks. End this practice and the United States goes from being third world by international broadband standards to top of the charts and exemplary. Make this change and Net neutrality becomes a non-issue. There is plenty of bandwidth for everyone. What is the dirty little secret?

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Japan’s four big ISP organizations have taken a logical step toward controlling file sharing: Flagrant violators will be warned via email and then disconnected, the Yomiuri Shimbun says. Although this practice will horrify the content-should-be-free community, it’s actually a far more sensible approach than, say, the RIAA’s suing sharers. It is also, presumably, a smart step for ISPs struggling to control the exploding use of bandwidth.

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A decade and a half into the great online experiment, the last debates over free-versus-pay online are ending. In 2007 the New York Times went free; this year, so will much of The Wall Street Journal. Once a marketing gimmick, free has emerged as a full-fledged economy. … The rise of “freeconomics” is being driven by the underlying technologies that power the Web. Just as Moore’s law dictates that a unit of processing power halves in price every 18 months, the price of bandwidth and storage is dropping even faster. Which is to say, the trend lines that determine the cost of doing business online all point the same way: to zero.

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When a casual session with reporters following his appearance at the NBA Tech Summit turned to a la carte pricing and set-top box limitations, FCC Chairman Kevin Martin offered his usual example of what’s wrong: cable. But when he was reminded–OK, by me, since I have a DirecTV TiVo that’s functionally crippled–that cable isn’t alone when it comes to limiting services and access on set-tops or alone on programming prices, Martin insisted, “I’m not picking on cable. … Cable is the easiest analogy. You’re absolutely right; the same rules apply. Generically, our term is MVPD—multichannel video provider. It’s not just cable, it’s also satellite or telephone companies, whoever’s providing your multichannel video services. All these rules should be the same for all of them. … These are the rules that apply to everyone.” He also talked about the 700-MHz auction, bandwidth management, a la carte, competition and Sirius-XM.

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HBO will begin offering an all-you-can-eat buffet of its programming online to subscribers. But in an ironic twist, an HBO corporate sibling is ready to exercise portion control. Last week, Time Warner Cable disclosed its intent to experiment with a billing plan for high-speed data that charges customers based on how much bandwidth they consume. If such a model catches on in the U.S., it could have big implications for content companies trying to find traction online–like HBO.

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