Time Warner to try basing Internet fees on Usage

[Tom Snyder]

Time Warner Cable will experiment with a new pricing structure for high-speed Internet access later this year, charging customers based on how much data they download.

http://biz.yahoo.com/ap/080117/time_warner_cable_internet.html?.v=2

[klwillis45]

[jkane]

I was gonna ignore this, but I have to agree to the media question about motive.  This is a direct attack against feeding HD content to the masses over the internet.  Not that I think the infrastructure is ready for such a feat, but this is nothing less than a way to make money on video feeds one way or another!

[picopir8]

Thank goodness I switched to U-Verse.  I suspect there will be a mad migration when this goes into effect.  They will retain some customers since DSL requires an active phone line, but those who maintain a phone line could switch easily.  Still many more will switch to uverse because it does not require a home phone line so TWC will not only loose data customers but TV customers as well.

BTW, I read in another article that most customers will not notice a difference.  That leads me to believe that they will only raise prices for heavy users and not lower prices for light users.

[bubbaridesfast]

I wonder if this is their approach to solve the same problem re:bandwidth that Comcast has been taking some grief on.

Comcast has been cutting off accounts that are high users then telling them they are exceeding the bandwidth limits but when asked what the limits are they state that they cannot tell them that. They also use software called Sandvine to cut off connections.

TWC's approach would seem to be more fair.

[Doug Mohr]

I wonder if this is their approach to solve the same problem re:bandwidth that Comcast has been taking some grief on.

Comcast has been cutting off accounts that are high users then telling them they are exceeding the bandwidth limits but when asked what the limits are they state that they cannot tell them that. They also use software called Sandvine to cut off connections.

TWC's approach would seem to be more fair.

That depends on what you consider "Fair" For years TWC, Comcast, and others have directly or indirectly used the unlimited access as a marketing tool. First to run the Mom & Pop ISPs out of the business in the mid 90's, then to compete against DSL in the late 90's.

Now that they have not invested in infrastructure to keep up with the increased customer use, but instead delayed maintenance and growth projects to keep the profit numbers looking better, now they are crying that they need to protect their bandwidth?

I say, "Too Bad. So Sad". They chose the delayed maintenance business model, they can let their numbers look bad to recover the infrastructure now or lose customers to the competition.

The problem is that being a major player, other corporations will follow TWC's lead in a skate-around the market manipulation laws so that in a few years, no one will have a choice other than a pay as you go service.

Just my opinion, feel free to ignore if you don't agree.

If you don't believe in the "Catch 22" of the Delayed Maintenance business model, do some research on the demise of The Milwaukee Road and you will see how propping up numbers for now will come back to bite you in the butt. The only difference is that the Road's customer's jumped ship quickly, today's Internet users are slower to jump ship and lose their Email address and will put up with the price for longer.

Doug

[Matt Heebner]

I never want to be tied to a particular provider for email which is why I went with Gmail, and Yahoo. Internet based mail for me is the only way to go.

[oz]

I think I'm a "heavy user" and I'm interested to see how this plays out.

[murdoc]

This really isn't groundbreaking news.  AT&T and Verizon Wireless are doing the same thing for their cell phone data plans.  The plans say "Unlimited Internet Access" but both companies have a soft 5GB cutoff.  This does not affect me personally but someone with a smart phone running windows mobile is able to stream internet radio and also have access to their slingbox to watch shows on the run.  It's very easy to run up a 5GB download history doing this.  Verizon has said that users who go over the 5GB cap will have their bandwidth reduced to 200kbs, and repeat offenders will have their data plans suspended.  AT&T has not said what they plan to do (new data plans go into effect 1/20).  It sounds like existing users with "Unlimited Internet" will be grandfathered in, but any new users will have to abide by this new policy.

[Bebop]

Here are some more details, but no pricing yet.

http://www.multichannel.com/article/CA6523660.html