Time Warner to test Internet billing based on usage

[southerngale]

It looks like they'll start their testing right here in Beaumont. I have Roadrunner now, but I am probably switching to DSL whenever I move, if I ever find a new house.

Time Warner to test Internet billing based on usage
By Yinka Adegoke Wed Jan 16, 10:50 PM ET

NEW YORK (Reuters) - Time Warner Cable Inc said on Wednesday it is planning a trial to bill high-speed Internet subscribers based on their amount of usage rather than a flat fee, the standard industry practice.

The second largest U.S. cable operator said it will test consumption-based billing with subscribers in Beaumont, Texas later this year as a part of a strategy to help reduce congestion of its network by a minority of consumers who pay the same monthly fee as light users.

The company believes the billing system will impact only heavy users, who account for around 5 percent of all customers but typically use more than half of the total network bandwidth, according to a company spokesman.

Slowing network congestion due to downloading of large media files such as video is a growing problem for Time Warner Cable. The company said the problem will worsen as video downloading becomes more popular.

But the move could prove controversial. Unlike with utility bills such as the phone or electricity, which have traditionally been based on usage, U.S. high-speed Internet subscribers have come to expect a fixed monthly charge. An Internet bill typically only varies based on the speed of the consumer's Internet access.

Time Warner Cable, which has 7.4 million residential Internet subscribers, is hoping the move will not confuse consumers if introduced nationwide and is planning a trial period.

"Largely, people won't notice the difference," said the Time Warner Cable spokesman. "We don't want customers to feel they're getting less for more." News of Time Warner Cable's plans was originally leaked on an online industry forum BroadbandReports.com.

Other cable operators may follow Time Warner Cable's lead and phone companies such as Verizon Communications Inc and AT&T Inc are likely to be watching the New York-based cable operator's plans.

As U.S. consumers have become more used to streaming and downloading digital media over the Web, their Internet service providers have started to come under pressure to be able to keep up with growing demand in a cost-effective manner.

Comcast Corp, the largest cable operator with around 13 million Internet subscribers, has been accused by consumer groups of blocking Web traffic moving across its networks, prompting a notice of inquiry by the Federal Communications Commission earlier this week.

Comcast denies it blocks any Internet traffic saying it uses bandwidth management technology to help improve the customer experience but which may slow down some file transfers.

(Editing by Lincoln Feast)

[southerngale]

And here we go...

Going Medieval: Time-Warner Begins Metered Bandwidth Testing

Michael Arrington
TechCrunch.com
Monday, June 2, 2008; 6:09 PM

This Thursday, new cable Internet customers in Beaumont, Texas will no longer have unmetered Internet bandwidth - they're guinea pigs in a new pricing scheme being pushed by Time-Warner that will give users between 5 and 40 gigabytes in total monthly data usage (uploads and downloads combined). Data usage over that amount will be billed at $1 per gigabyte. Competitor Comcast is also considering metered bandwidth.

The goal is to limit average data usage, allowing Time-Warner to get more customers into their existing fiber infrastructure. Since there is little or no competition for Internet connectivity, they don't have to worry so much about losing customers.

The entire model lies in stark contrast to the competitive markets set up in South Korea and elsewhere, and it's going to hurt innovation in the U.S. Many new startups, particularly those focused on video and online gaming, rely on their customers having access to high bandwidth, all you can eat connections.

Cable companies have regional monopolies and are able to extract excess profits from these monopolies. Innovation and the health of the ecosystem is dependent on a competitive marketplace. If one part of the market falls behind (and we're already behind in broadband penetration and average data speeds), it becomes very difficult for the ecosystem to remain competitive.
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I'm almost never in favor of government intervention of markets, but monopolies are an exception. We need to encourage data usage by consumers, not the opposite. The cable companies are standing in the way of economic growth and innovation. We can't afford a decade or more of screwing around before trying to fix this. Let's start now.

http://www.washingtonpost.com/wp-dyn/content/article/2008/06/02/AR2008060202214.html

[gtalum]

I'm glad I'm switching to Verizon FiOS when we move.

[CajunMama]

And to top it off her internet/cable keeps going out. Frack called them earlier this week and again today and the earliest they can get out to her is the 9th. Great company

[Derek Ortt]

so if one watches a live sporting event online, one can expect to pay what, $1,000 for it?

I would then switch to a cell phone based broadband service, which does have unlimited bandwidth

[P.K.]

Download/upload caps are nothing new. Some of the cheapest prices out there are only giving a 2GB limit per month! There are also companies out there that entirely base their monthly charge on the amount of data used.

[lurkey]

Some people are looking this as a monopolist move by cable. They say that the cable companies (Time Warner, Comcast and Cox) fear that more people are d/l video (iTunes and Netflix) and watching IPTV ('TV' shows watched on the 'net) over cable TV.

I have Roadrunner, but I think I can switch to unlimited Business account for the same price (employee discount - No, I don't work at Roadrunner), if it comes down to it. I need to call IT department and HR at work and double check.

[Derek Ortt]

is anyone aware if Atlantic Broadband in Miami is considering this move?

[BreinLa]

I have about had it with these cable companies, I am so happy our city will have fiberoptics real soon, dang cox can kiss me goodbye for everything plus the price will be lower. I can't wait till I call them and say turn the dang thing off I'm going with the city

[mf_dolphin]

I have been a loyal RoadRunner customer for 10 years now but as soon as FIOS is available here I'm going to switch. I really want the 50/50 Mbps connection Fortunately, my company picks up 50% of my home internet connection since I do so much after hours work from home.

[CajunMama]

I have about had it with these cable companies, I am so happy our city will have fiberoptics real soon, dang cox can kiss me goodbye for everything plus the price will be lower. I can't wait till I call them and say turn the dang thing off I'm going with the city

Unfortunately our area is the last in the city to get it. I'll be switching too.

[Meso]

This is really nothing.Here in South Africa for $100US a month you can get a 4mb ADSL line (fastest in the country available) with a 7 gig per month cap.After the 7 gigs your internet gets cut completely.

They also have pay per gig here except it's R70 a gig ($10US).Hence forth all amounts shall be referred to in American dollars

Adsl and phone prices here are :

$15 = Monthly phone line rental
$30 = 3 Gig ADSL Account (per month)
$20 = 384k ADSL (per month)

Then you have the other ADSL options (all per month)

$10 = 1 gig top-up account
$60 = 10 gig account
$180 = Uncapped account

$50 = 1mb ADSL line
$70 = 4mb ADSL line


Granted,we have a monopoly.But I'd love to be able to have internet at the price it is over there,even with this new thing

[george_r_1961]

I have Cox and although I havent heard anything about metered usage we DO have usage caps and if you go over a set amount you they can require you to be switched to a business plan.

Thinking about switching to DSL?? I will bet its a matter of time before they begin billing based on usage too. Maybe not this year or even next year but its coming. The words "unlimited" and "free" will soon no longer exist with broadband providers.

[Brent]

In a related story, LOL:

Los Angeles Sues Time Warner Cable

In the two years since becoming the major cable provider in the Los Angeles area, Time Warner Cable has drawn sometimes colorful criticism from its subscribers.

On Wednesday, the Los Angeles City attorney, Rocky Delgadillo sued the company in Los Angeles County Superior Court accusing it of engaging in “unlawful, unfair and fraudulent business acts and practices and deceptive advertising.” The suit says that the company has subjected subscribers to delayed repair appointments, deceptive pricing and Internet outages.

“Time Warner Cable must be held accountable for illegally deceiving and ripping off its subscribers,” said Mr. Delgadillo in a statement on Wednesday.

http://www.nytimes.com/2008/06/06/busin ... f=business