TWC moves consumption-based internet billing to more markets
No, folks -- this is no prank. Time Warner Cable really is throwing caution (and public opinion) to the wind and moving forward with its evil consumption-based internet billing. If you'll recall, we heard that the operator was trialing the method -- which imposes premium rates on big broadband users -- back in early 2008, but now it seems it's quietly hoping to roll it out into more major markets. Starting this month, TWC will start gathering information on its customers' internet use in Austin, TX, San Antonio, TX, Rochester, NY and Greensboro, NC; if all goes "well," consumption billing will hit those markets this summer or sooner. We'll point you to the read link if you're interested in just how outrageous these capped plans look (particularly for internet TV viewers), but we'd be remiss of our duties if we didn't share this gem of a quote from TWC CEO Glenn Britt: "We made a mistake early on by not defining our business based on the consumption dimension." Thanks for clarifying, Glenn-o.[Thanks Kevin, image courtesy of Corbis]
Reader Comments (Page 1 of 1)
Julio Napoles @ Apr 1st 2009 3:10PM
total BS. I hope the user call and complain about this.
Jeebus @ Apr 2nd 2009 1:21PM
Yeah, paying for actual consumption is totally evil.
You're all fucking free loaders!
Rick Winkler @ Apr 1st 2009 3:14PM
If the major providers move to this model, it will open up a huge market where providers charge using the old methods.
The Fuzz 53 @ Apr 1st 2009 3:43PM
I hope every single customer in those areas cancels their service, not just internet, but phone and TV as well.
UnnDunn @ Apr 1st 2009 3:45PM
The solution is simple: switch to FiOS or similar phone-company fiber-based solutions. Those providers will never charge by the byte because they simply don't need to.
Nathan Henderson @ Apr 1st 2009 4:06PM
That's what's so sneaky about this move. TWC is making these changes only in markets where there isn't a viable competitor.
Rochester, for example, doesn't have FiOS. The only competition is Frontier DSL, which already has a 5GB monthly cap.
kevin @ Apr 1st 2009 6:48PM
Nathan: Frontier DSL does not have a 5gb cap. We have subscribed to them for years, and this statement is frequently misstated. Last year, they attempted to apply the cap, but failed after massive negative press persuaded them to think otherwise.
Rochester is also serviced by Earthlink, which claims "up to 7mbps" for about $40/month. While the situation here isn't pretty, it could be worse.
Dan S. @ Apr 2nd 2009 11:48AM
North Carolina, despite being home to Verizon's largest segment of its business division, outside of Austin, does not have FIOS, nor has Verizon announced any plans to deploy it here.
The tenth most populous state, with three major research universities, the highest per-capita concentration of PhDs in the world (the RTP) and the leading tech community on the east coast (RTP) is being denied FIOS because the state won't cave to Verizon's demands for exclusivity agreements.
And, now, there's a move in the state legislature to ban municipalities from installing high-speed residential broadband and FTTH: http://www.indyweekblogs.com/triangulator/2009/03/30/anti-muni-broadband-bill/
jrmtz @ Apr 1st 2009 3:45PM
I'm from San Antonio, and I plan to cancel. Any suggestions for other High Speed Internet providers in SA?
Oh FIOS, where art thou?
Gary Givens @ Apr 1st 2009 9:57PM
I'm in San Antonio too and had AT&T U-Verse. I liked it better than Time Warner myself. Only reason I switched was because I can't get it where I moved and now have Grande, which I don't like at all. Hoping to get U-Verse again the next time I move.
Dallas Knox @ Apr 1st 2009 5:05PM
I think this was just a matter of time. In the past with Broadcast Televeision, the consumption based model was relevant because their really was no alternative to where you consumed your entertainment. Today we live in a different market where over the air feeds are in HD and Cable programming can be viewed (All though a day late) on the internet, all of which are FREE. This level of choice in your entertainment leaves the cable companies defenseless when it comes to working over their customers.
This is not the case for most Internet service consumers. Their only leverage is to switch providers, which Time Warner is leveraging that their model will become an accepted business practice and in a short time the consumption based model will be industry wide, thus leaving the consumer defenseless and the cable company in a position to impose what ever outlandish fees they like to continue to grow that profit margin. Were going to pay it, because the internet is seen as a necessity for most, especially those reading this forum.
Sean @ Apr 1st 2009 4:04PM
If TWC pulls this crap where I live I'll be on directv so fast, even if it means I have to get a local phone line. Believe it.
Bailers @ Apr 1st 2009 4:30PM
I'm not in the "test" areas, but I'm already looking to cancel. F-you TW, you've lost a customer.
Luffy @ Apr 1st 2009 5:13PM
I live in Raleigh/Durham area. If or when they do it. I will cancel all of my services. Hopefully Directv and Tivo will have there DVR worked out by then....
Scott Taylor @ Apr 1st 2009 5:52PM
When they say "download", does this include streaming? I was thinking of getting a Roku box or other device to stream netflix. If that's included, my bill would be huge!!!
kevin @ Apr 1st 2009 6:49PM
Scott - yes, that would include your streaming activity.
Lazarus Dark @ Apr 1st 2009 6:58PM
and that's part of thier plan. Your free netflix streaming is cutting into thier payperview (or so they think, personally I have never used a single pay perview, I'd rent from blockbuster first) or it is giving you less reason to subscribe to all the HBO's and thousands of crappy channels.
So they want to reduce your ability to get that free streaming so you increase your cable subscription to get the content instead.
Eric Brown @ Apr 1st 2009 9:11PM
Looks like Time Warner is just begging for reasons to be dropped like a bad habit. If they institute this crap I will be kicking their butts to the curb and getting a DSL connection that is almost as fast, and not shared by all the people around me.
Lazarus Dark @ Apr 1st 2009 6:55PM
I'm waiting to see the hundreds, if not thousands, of customers get 4 digit bills because their wifi is completely unsecured. This will create some massive backlash.
Michael @ Apr 1st 2009 7:45PM
I hope this issue reaches the President, he'll be appalled by this
Jeebus @ Apr 2nd 2009 1:23PM
I think Glenn Britt already knows about this. Just a hunch.
Dan @ Apr 1st 2009 9:06PM
How about the gov takes over all the telecom lines and rents them out to companies so any company can compete for customers and there is no monopoly over cable, telephone, or fiber.
Kirk @ Apr 1st 2009 11:06PM
A double whammy. This news and my TWC bill received in the mail today with an increase for the same services – over $24.00 more a month. I heard about the increase, but this is ridiculous. My countdown to leaving TWC after ten years is on – eight weeks to go (waiting for hockey season to end). / rant
Big Sam @ Apr 2nd 2009 2:56AM
Better not do this in Dallas
sek @ Apr 2nd 2009 11:30AM
If TWC Austin implements these ridiculous caps, I may just have to learn how to do without the internet, period. Or I may just cancel service with them on principal, and switch to AT&T (who will probably implement caps, too). But I'll cross that bridge with AT&T when/if I get to it.
A 5GB, 10GB, 20GB or 40GB (or even the 100GB extreme account I've heard about) is NOT about reigning in the most excessive 'abusers' - it is about moving to a usage model so that they can maximize their revenue. I have no intention of using a service that I need to keep tabs on like cellphone minutes. We already pay for the speed we want, and hopefully a cap just won't fly with customers, and I pray that a backlash will ensue.
Orion @ Apr 2nd 2009 12:36PM
After reading this I talked to the CSR here in Austin..... as per her the "caps" will be implemented starting in next 3 months (till then its just monitoring it seems...)
Now I am in a contract with TWC for a 7Mbps download speed connection and as per her the contract price won't be affected.... we'll see...... otherwise I will have a good reason to ditch the contract and move on FIOS or similar.....
Mike S @ Apr 2nd 2009 3:22PM
Thank you for contacting us. Time Warner Cable understands and embraces the current evolution in the way people are using the Internet for things like video, music, and more. We continue to manage our network to ensure that our all of our subscribers have a terrific user experience. We also recognize that the Internet was not designed to handle the mass amounts of video that are now being consumed, therefore there is a risk that service speeds could slow to a complete crawl unless proper investments are made. We are taking a multi-pronged approach that we feel will be to the benefit of our customers. As we are in the early stages of planning, we want to keep you informed of what we are doing to ensure our subscribers continue to enjoy all of the content available on the Internet today.
Our goal is to provide the best possible Internet experience for ALL of our customers, not to let the minority affect the majority. The vast majority of our customers will see no difference in their monthly bill. The challenge is to find an equitable way to charge customers so that we can pay for necessary infrastructure upgrades. We are looking to create a business model that will allow customers to choose the speed and consumption package that makes sense for their household Internet usage. With a consumption based billing plan, all customers will have access to a ''gas gauge'' that will enable them to track their consumption against their plan. A customer will have three months to get comfortable with the gauge before the bill hits. We don't want our customers to have any unpleasant surprises. Some of our customers may actually save money by ''right-sizing'' to a plan that meets their needs. We are happy to help them do that. Included in the extended trial is Greensboro, NC. Preliminary communications regarding specifics will begin in August 2009 in Greensboro, NC. Billing will follow these communications after a three month grace period. If you would like to speak with a live agent regarding this matter, please either visit your local Time Warner Cable office, or call your local Time Warner Cable Customer Care Center at 1-800-892-2253 or 1-866-874-2389.
PatDaRat @ Apr 2nd 2009 5:47PM
comcast is worthless..... has anyone ever tried to call for asistance...... good luck..... if you ever get through you wind up speaking to some idiot who known NOTHING... then they will xfer to a dial tone... happens almost everytime i call.... horrable terriable service..... i hate comcast with all my heart and soul.... now caps on usage?!?! you kidding me?!?!