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]

After a small but vocal amount of Netflix users got the world thinking that it was pulling a Comcast and putting caps on computer-based Watch Instantly users, the outfit's Chief Product Officer Neil Hunt has come forward to clear the air. He makes clear that Netflix's aspiration is to "deliver to everyone the best bitrate that their broadband connection can support," also noting that congestion "could affect some users, but not others, at some times, but not always." He also notes that different titles and encodes for different playback device types "may come from different CDNs or different servers at a particular CDN, so they may have different paths and different bottlenecks." We'd encourage you to hit the read link for the full explanation, but we're already seeing enraged Roku users bark back by his dodging of the so-called out-of-sync audio issue that's evidently still present. We'll go ahead and warn you, Netflix -- you can't please 'em all.

It's a sad day for Cox internet subscribers, 'cause if the FCC or some other almighty agency doesn't step in soon, your traffic could be slowed. The carrier has just announced a rather significant update to its data management policies, as it lays out plans to test a system next month that will "give priority to Internet traffic it judges to be time-sensitive, like web pages, streaming video and online games." We're also told that "file downloads, software updates and other non-time sensitive data may be slowed if there is congestion on the local network." Thankfully, "streaming video" was listed in the category that'll supposedly get first dibs on available bandwidth, but one always has to wonder what kind of juju is going on behind closed doors when a plan such as this is announced. If all goes well in the Kansas / Arkansas test markets, the system could be rolled out to all Cox internet customers (business users notwithstanding) by the year's end. Lovely.

[Via HotHardware]

The pessimistic among us will insist that Netflix is implementing this change in order to avoid acquiring more new releases and ditching the infamous throttling process, but we still maintain that it's better than nothing. For absolutely zero dollars more per month, Netflix has committed to shipping the next "Available" movie in your queue from a local distribution hub as well as the number one unavailable title in your list from another hub (when available) in order to better meet demand and keep subscribers happy. In essence, this change gives users a free (albeit less desired) flick while a more highly sought after disc gets shipped from somewhere else. Netflix only recently announced that this process was in effect, though it was supposedly put into place a few weeks ago -- so, has anyone benefited yet?

If you thought Comcast's alleged data throttling caused a ruckus, get a load of this. Reportedly, Time Warner Cable (partly owned by Time Warner, parent company of AOL, which owns Engadget) is gearing up to trial "consumption-based billing with subscribers in Beaumont, Texas later this year," which it hopes will "reduce congestion of its network by a minority of consumers who pay the same monthly fee as light users." According to a company spokesman, just five-percent of TWC customers suck up "more than half" of the bandwidth, but such a billing scheme could have some very nasty consequences. It's no secret that fetching television from the 'net is becoming entirely more mainstream, and with Apple pushing out "HD" rentals through its Apple TV, streaming video becoming more viable and Netflix freeing up its Watch Instantly feature, even consumers not considered lords of P2P could be hit with unexpected fees. 'Course, no prices have been divulged just yet, but seriously, does this not reek of paying for mobile time by the minute during the early 90s? Talk about taking two steps back.

[Via The New York Times, image courtesy of JupiterImages]