Time Warner's Consumption Based Billing Trials Off

Mike Licht/flickr

After much resistance from the four cities where the download cap trials were to take place, Time Warner and NY Sen. Chuck Schumer announced today that the planned trials are off -- for now.

Time Warner released a statement saying they "would alter plans to test Consumption Based Billing, shelving the trials while the customer education process continues." The cable company will go ahead with the "gas gauge" idea to illustrate how much bandwidth households are using, but local households won't be charged for excess usage.

Rochester's U.S. Rep. Eric Massa (D) still plans to push through his proposed ban on downloading caps. Rochester was to be one of the four trial cities, along with Austin. Unless this proposed legislation goes through, it seems that Time Warner is still working to come up with another angle to use consumption-based billing.

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By Elizabeth S. in News on April 16, 2009 3:15 PM 0 Comments

Comments [rss]

YoYoMa

Another recent article on ars technica shows that TW's own financial statements show they pay very little for their bandwidth in the first place. It's the 2nd smallest expense they pay and is slightly over 1% of their expenses for cable programming for 2009.

http://arstechnica.com/tech-policy/news/2009/04/twc-without-data-caps-internet-upgrades-now-in-doubt.ars

sheeshoo

Troubling update... the trials may be off, for now, but according to this report, TWC is cutting off customers in Austin who "use too much" bandwidth now:

http://stopthecap.com/2009/04/23/hissyfitwatch-cutting-off-customers-who-use-too-much-in-austin

sheeshoo

Troubling update... the trials may be off, for now, but according to this report, TWC is cutting off customers in Austin who "use too much" bandwidth now:

http://stopthecap.com/2009/04/23/hissyfitwatch-cutting-off-customers-who-use-too-much-in-austin

sheeshoo

My trust in Time Warner Cable is blown. I’m cynical enough to think that “shelving the plan” just means not talking about it and that they’re moving forward with their plans anyway. If that’s the case, I expect this to all come back to life in October of this year when the capping was/is supposed to kick in or January of next year when the overage charge billing would begin.

davetx

I think you're absolutely right, and all TWC is doing is trying to figure out how to re-market the new plan to cause less outrage - or more to the point, to make those who complain about it into the bad guy.

It's not going away, you can be sure of that. There's too much money for them at stake.

ttlms

"The cable company will go ahead with the "gas gauge" idea to illustrate how much bandwidth households are using, but local households won't be charged for excess usage."

There is no excess usage. I don't have a cap on the amount of internet I can use.

I'm waiting for that Grande salesman to come knocking on my door. It will be the easiest deal he ever closed.

tim

Yes. Please do roll out the "gas gauge" on the bills, so that people can see how much they are using. Once people are educated they will realize just how bad this plan is for them and Time Warner can shelve it permanently.

I can't figure out how educating more of their consumers could possible make this better. The only hope they had for getting this through was ignorance.

shunter

Nice quote "...shelving the trials while the customer education process continues." Please educate me on how you want to raise my bill on your already substandard internet service.

I also like this one, "Time Warner is still working to come up with another angle to use consumption-based billing." because I am still working on an angle to leave Time Warner.