Criticism prompts Time Warner to tweak metered broadband plans[SIZE=-1]
Time Warner Cable (included in our Ratings of Internet providers, available to subscribers) said it was expanding a pilot program started in Beaumont, Texas, to four other cities: Rochester, NY, and Greensboro, NC, in August, and Austin and San Antonio, Texas, in October. Rates would be based on the amount of data a customer uploads and downloads: from $29.95 for 5GB a month to $54.90 a month for 40GB. Each additional gigabyte used would cost $1. Costs would also vary by speed of connection.
Customers and bloggers protested the rates, noting that users downloading PDFs and streaming video could pay hundreds of dollars a month.
Reacting to the criticism, TWC quickly announced some changes. It said it would add a basic $15-a-month option (1GB of usage with a slow connection speed) and a $150 monthly rate for ?virtually unlimited usage? at fairly quick speeds. In addition, the gigabyte overage charge would be capped at $75 per month.
The company said it will not immediately begin charging customers in affected markets for overages. For two months, it will notify customers of how much data they are uploading and downloading. In the third month, it will note overages on customers? bills but not charge for them.
TWC said it is being forced to move to the new pricing scheme to keep up with maintenance and upgrades to its broadband network. ?Rather than raising prices on all customers or limiting usage, we think the fairest approach is to move to a tiered model in which users pay more if they use more,? the company said in a statement last week. It hinted that other Internet providers will eventually be forced to follow suit.
AT&T is already conducting its own trial of consumption-driven pricing and data caps in a couple of markets, although those tests are much more limited in scope.
What do you think of the prospect of consumption-based broadband service? ?Bob Williams
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