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Thread: Time Warner Trying Usage Based Pricing For Broadband Service

  1. #1
    Member dman's Avatar
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    Time Warner Trying Usage Based Pricing For Broadband Service

    Down the slippery slope we go:


    Time Warner Cable Tests Data-Usage Rate Structure
    Thursday, January 17, 2008

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    NEW YORK 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, a company spokesman said Wednesday.

    The company, the second-largest cable provider in the United States, will start a trial in Beaumont, Texas, in which it will sell new Internet customers tiered levels of service based on how much data they download per month, rather than the usual fixed-price packages with unlimited downloads.

    Company spokesman Alex Dudley said the trial was aimed at improving the network performance by making it more costly for heavy users of large downloads.

    Click here for FOXNews.com's Personal Technology Center.

    Dudley said that a small group of super-heavy users of downloads, around 5 percent of the customer base, can account for up to 50 percent of network capacity.

    Dudley said he did not know what the pricing tiers would be nor the download limits. He said the heavy users were likely using the network to download large amounts of video, most likely in high definition.

    RelatedStories
    Netflix on the Net to Offer All-You-Can-Watch Plan Startup Aims to Give San Francisco Free Wi-Fi Plug to Be Pulled on Netscape Navigator's Life Support After 13-Year Run In-Flight Internet Might Mean More Turbulence It was not clear when exactly the trial would begin, but Dudley said it would likely be around the second quarter.

    The tiered pricing would only affect new customers in Beaumont, not existing ones.

    Time Warner Cable is a subsidiary of Time Warner Inc., the world's largest media company.

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  3. #2
    THAT'S A FACT JACK!! GAC's Avatar
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    Re: Time Warner Trying Usage Based Pricing For Broadband Service

    My brother told them to take a flying leap after they did that. For now he has their basic service; but is looking at Directv or DISH.

    Charter was starting to do the same and I just recently left them. I'm now with Directv and love it. Now Charter keeps sending me form letters asking me what it would take to get me back.
    "panic" only comes from having real expectations

  4. #3
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    Re: Time Warner Trying Usage Based Pricing For Broadband Service

    Not good.
    I hope it's never sunny in Philly again.

  5. #4
    RZ Chamber of Commerce Unassisted's Avatar
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    Re: Time Warner Trying Usage Based Pricing For Broadband Service

    Quote Originally Posted by TC81190 View Post
    Not good.
    I actually think this isn't a bad thing if you're sharing a neighborhood node with rabid filesharers. Many is the time when I had Time-Warner that my VoIP connection would suffer or my streaming videos would bog down and it was always in the evenings or on weekends when file-sharing is at it's peak. If you're not doing something illegal, you should have nothing to fear.

    T-W's competitor Comcast has begun blocking file-sharing traffic, which will have a similarly beneficial effect on neighborhood nodes that suffer from overuse by a few bandwidth hogs. Maybe T-W is waiting for enough people to complain about the metering so they can justify a move to blocking?
    /r/reds

  6. #5
    The Lineups stink. KronoRed's Avatar
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    Re: Time Warner Trying Usage Based Pricing For Broadband Service

    HughesNet/DirectWay/whatever has been doing this for quite awhile.

    One big thing DSL has over cable, your file sharing neighbor (and not all file sharing is illegal) doesn't slow you down.
    Go Gators!

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    Re: Time Warner Trying Usage Based Pricing For Broadband Service

    Anyone know how much online gaming effects you DL rates?

  8. #7
    The Boss dougdirt's Avatar
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    Re: Time Warner Trying Usage Based Pricing For Broadband Service

    If this ever gets big, I am going to be pretty upset.

  9. #8
    Baseball card addict MrCinatit's Avatar
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    Re: Time Warner Trying Usage Based Pricing For Broadband Service

    This could seriously hamper my por...celain downloads.

  10. #9
    Member SandyD's Avatar
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    Re: Time Warner Trying Usage Based Pricing For Broadband Service

    Tiered service doesn't sound too bad. Depending on the price difference and what happens if you exceed your alloted bandwidth for the month. I'm sure there would be an unlimited tier.

    There are already tiers for speed.

  11. #10
    RZ Chamber of Commerce Unassisted's Avatar
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    Re: Time Warner Trying Usage Based Pricing For Broadband Service

    The local paper had an article about this today, as T-W is starting a trial of this in Beaumont which will eventually make its way here. The manager who oversees the San Antonio office said in the article that 5 percent of T-W's customers here account for more than half of the bandwidth usage. In one case, a T-W customer used enough bandwidth to d/l 1,500 movies in a single month. That's more movies than a person could watch in a month!
    /r/reds

  12. #11
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    Re: Time Warner Trying Usage Based Pricing For Broadband Service

    I dont see how this would make them more money unless they are going to just keep the low use customers at the base price and then jack the price up over top of it.

  13. #12
    Member durl's Avatar
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    Re: Time Warner Trying Usage Based Pricing For Broadband Service

    I don't really have a big problem with this. (Probably because I'm not a heavy downloader?)

    Mobile phone rates are determined by usage so I can see where internet could be charged the same way.

  14. #13
    Be the ball Roy Tucker's Avatar
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    Re: Time Warner Trying Usage Based Pricing For Broadband Service

    I think the hidden agenda for TW is that they are scared to death of people watching streaming TV over the internet and gutting their cable TV business. Think the record/CD industry and Napster.

    I very seriously doubt this extra bandwidth is straining their infrastructure and costs.

    Pay attention to the open sky

  15. #14
    On the brink wolfboy's Avatar
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    Re: Time Warner Trying Usage Based Pricing For Broadband Service

    I don't buy the spin on this from TW. It seems to me that they see a market that is moving (albeit slowly) towards downloaded movies and other media. I don't think this is about the guy that's downloading 1,500 movies a month. If that guy were the problem, then change the language in the current contract where they can suspend the outliers. Instead, they want to tier the pricing so that they can squeeze money out of all of us when we download our movies off of itunes or netflix, and we download our games off of xbox live.
    How do we know he's not Mel Torme?

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    GR8NESS WMR's Avatar
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    Re: Time Warner Trying Usage Based Pricing For Broadband Service

    Some industry experts have predicted this will be the final generation of gaming systems that sell games via disc form... downloading is the future.
    Quote Originally Posted by Scrap Irony View Post
    Calipari is not, nor has he ever been accused or "caught", cheating. He himself turned in one of his players (Camby) for dealing with an agent to get one Final Four overturned. The other is all on the NCAA and Rose. (IF Rose cheated.)
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