Time Warner Cable shelves broadband usage billing


Source: Reuters
Author: Yinka Adegoke

Time Warner Cable said on Thursday it would shelve plans to test a system that bills customers for the amount of broadband bandwidth they use instead of at a flat fee to access the Internet from home after an uproar from consumer groups and politicians. Time Warner Cable Chief Executive Glenn Britt said the company would not go ahead with its plans for additional tests of the billing system until it has consulted more with customers and other parties. Time Warner Cable said it was working to make measurement tools available "as quickly as possible" to help customers understand how much bandwidth they use. Sen Chuck Schumer (D-NY) announced his own opposition to the plan, then spoke with Britt about the "overwhelming opposition" to the caps. Citizens of Rochester (NY) were furious about the caps about to be imposed on them, with Schumer's office describing the reaction as "outrage." Frontier Communications, whose DSL broadband service competes with Time Warner Cable's modems in Rochester, shelved its own plans to introduce metered billing. Timothy Karr, campaign director of Free Press, said, "We're glad to see Time Warner Cable's price-gouging scheme collapse in the face of consumer opposition. Let this be a lesson to other Internet service providers looking to head down a similar path. Consumers are not going to stand idly by as companies try to squeeze their use of the Internet. This is a major victory, but the fight for a fast, open and affordable Internet is far from over."

Comments

I'm not convinced flat rate Internet is a great idea. Though the cost of bandwidth has been decreasing, it has not reached zero. Additional bandwidth use by subscribers does result in increased costs to ISPs (typically through their purchasing more bandwidth). With a flat rate, some people are overpaying (those who use little bandwidth) while others underpay. I think it's reasonable for ISPs to include a specified number of GB per month for a certain price, then an additional cost for higher usage. Customers should have a choice between rolling through the limit and paying the higher price and hitting a soft limit where the bit rate is reduces as the limit is approached. ISPs should reveal what the limits and prices are, and allow customers to easily see what their usage is. ISPs may also want to consider variable pricing based on network load. Users could shift high volume traffic to lower cost periods of time.

Harold

FCC Rules updated daily at http://www.hallikainen.com .

Submitted by harold on April 17, 2009 - 11:10pm.

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