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Time Warner Internet to begin charging per/GB, tiered pricing, $1/GB over your cap

post #1 of 21
Thread Starter 
Wasn't sure whether to put this in Chewer Tech or here, but I figure more people read this subforum:

http://www.dslreports.com/shownews/T...Billing-101655

http://www.austin360.com/blogs/conte....html#comments

Quote:
(UPDATE #4: bit more detail) TWC/Road Runner tiered Internet pricing coming to Austin/San Antonio

By Omar Gallaga | Wednesday, April 1, 2009, 06:21 PM

Updated, 6:15 p.m.: One more update before I leave the office. In answer to the question about whether current contract customers will be able to get out of their contract based on this change, Time Warner Cable spokeswoman Melissa Sorola said via Twitter, “too early to tell - we’re still in the data collection phase of this.”

Updated, 5 p.m.: I just spoke to Alex Dudley, vice president of public relations for Time Warner Cable. I’m working on a story for the print edition, but here are the quick highlights of our conversation:

* No plans for rollover bandwidth from month to month. Use it or lose it.
* “86 percent of our customers at least have nothing to worry about,” Dudley said, “That’s the percentage of customers that will be left unaffected by the trial.” I asked if that’s in comparison to Beaumont and whether that’s a very different market. He replied, “Internet usage is a lot like television viewing. It doesn’t vary from geographic area to geographic area.”
* While this will affect customers in real dollars in San Antonio/Austin, this is still considered a trial in terms of whether it will continue to other TWC markets.
* The three-month grace period will begin in early summer.
* A gas-gauge-like Internet usage monitor will be on the TWC Web site. Customers will also get info on their usage in their monthly bills.
* The 100-Gigagyte “super-tier” will be “significantly more expensive” than the $55/40 GB a month tier mentioned in the BusinessWeek article. However, “We haven’t settled on a price yet,” he said.
* I’m waiting to hear back about customers under contract and how this will affect their terms.
* Dudley cited bandwidth-hogging things like HD video and BitTorrent as reasons for the change. “It’s not about trying to limit anyone from doing anything. It’s trying to provide a business model that allows them to do what they want to do for the foreseeable future,” he said.
* Final thoughts from Dudley: “We know we’re going to learn a lot in this trial. We will listen to feedback from our customers. We’ll make decisions based on what we learned.”

Thank you for all your comments. Keep them coming.

Updated, 3 p.m.: Time Warner Cable has released this statement about the tiered pricing rollout. News in there includes a 100-Gigabyte “super-tier,” but no mention of price. It also says that customers will have three months to adjust to the change before tiered billing starts and that a “Gas gauge” will tell them how much bandwidth they’ve consumed. It also says the prior pricing experiment in Beaumont was “Successful,” but does not specify if it was successful for customers or for the company. We’ll post more info as we find it.

According to an article in BusinessWeek, Time Warner Cable will begin charging customers of its Road Runner Internet service based on how much bandwidth they consume. By phone, a Time Warner Cable spokeswoman confirmed to me this afternoon that it will happen “sometime this summer.”

We knew this was a possibility back when the company tried it out in Beaumont, but it looks like it’s becoming a reality. What this means is that depending on how much you pay for Internet service, you would be held accountable for going over a predetermined download limit.

According to the article, the Internet cap would depend on the level of service, ranging from from $29.95 to $54.90 a month with caps ranging from 5 to 40 Gigabytes of data a month. Customers would be charged $1 for each additional GB of data.

Who does this hurt? Anyone who plans to download HD video from services like iTunes, Vudu or even satellite providers like DirecTV who use a customer’s Internet connection to deliver Video On Demand.

HD video takes up a big chunk of bandwidth. One HD movie might consume as much at 8 GB of data alone, the article says.

Time Warner says that the top 25 percent of downloaders in its Beaumont trial consumed 100 times more data than the bottom 25 percent. But this seems like a shortsighted view — more people will be consuming more bandwidth as online video, music and gaming services expand.

I know that in my own experience with Road Runner, I’ve never had to worry about how much media my family consumes or to stress out about downloading online content I’m already paying for. I’ve been paying about $46 a month for Road Runner for something like 10 years.

Will I stay with Road Runner if tiered pricing becomes a reality? No. Even the 40 GB cap is too little for the way my family consumes Internet content and I don’t want to have to keep checking a meter to see how we’re doing. I have enough stress in my life. The only way I’d find it palatable is if I received a discount for months when I went under the cap. It doesn’t sound like things will work that way.

But then, what are the other options?

Road Runner customers — does this kind of pricing work for you? Post in the comments.

And no, it’s not a bad April Fools’ joke. I wish.

Edited to add, 1:28 p.m.: Time Warner Cable spokeswoman Stacy Schmitt told me by phone, “We’re in the early stages,” and that the company is currently collecting data and determining what pricing will be. However, she didn’t deny any details in the BusinessWeek article and said, “We will be doing it sometime this summer.”

More links: Consumerist and DSLReports.com have more info. DSLReports notes that the cities getting tiered pricing are ones in which Verizon FIOS service is not available.

Edited to add, very late at night: If you want to see one of my spectacularly wrong predictions, read what I wrote about TWC’s tiered pricing 14 months ago. Ha. Heh. (Sigh…)
They have just lost me as a customer. Those caps are ridiculous for anyone streaming HD Netflix regularly, or for those, like Devin, who are trying to move to a cable TV-free, on-demand life.. I never use Bittorrent or download huge files, so for me it's more about the principle.

There are far too many tech savvy nerds in Austin for this to just go over quietly. Hopefully they will see a mass exodus of subscribers and rethink this ridiculousness.
post #2 of 21
Are there other options in Austin? I feel like we have provider monopolies in most areas.
post #3 of 21
I couldn't even begin to tell you what my usage is per month. I have to admit, I'm a little fuzzy on what exactly counts towards the total. Is it downloading/streaming, or does the mere act of browsing the web or playing a game while connected to Xbox Live also count?
post #4 of 21
Anything you do on the internet.
post #5 of 21
There's going to be a whole lot of people who shrug and figure this won't affect them only to get nailed with overages.
post #6 of 21
My understanding is that this bullshit only applies to Time Warner Road Runner internet service. When I was cursed with Time Warner Cable, my internet was actually being provided by Earthlink via Time Warner's coax - I was given the choice when I signed up. Earthlink has apparently stated that they're not going to be capping regardless of what Time Warner does with Road Runner (though that's second hand info that I can't verify). I know first-hand that Time Warner shutting down their Usenet servers didn't extend to my Earthlink internet connection over their wires - my Usenet kept right on trucking. It seems likely that this is a similar situation. So, if you have Road Runner but can switch to Earthlink, you might be just fine.
post #7 of 21
I just fired off an email to my local Time Warner provider, informing them that if this gets rolled out in my area, they will lose me as a customer. Furthermore, I will urge everyone I know to drop Time Warner as their provider. Will this affect anything? Will it stop Time Warner implementing this around here, if they so. Probably not, and I don't even know if there are any other providers who offer high speed internet around here, but I couldn't just sit by without letting them know how I feel about it.
post #8 of 21
Thread Starter 
Quote:
Originally Posted by devincf View Post
Are there other options in Austin? I feel like we have provider monopolies in most areas.
In Austin, your options are pretty much TW or AT&T DSL. AT&T is building out their fiber-optic U-Verse service, which I'm like 100ft too far from the junction to get. It looks promising, but AT&T is looking into this kind of pricing scheme as well.

If you live in South Austin, there's a local Texas company called Grande Communications (www.grandecom.com) which has a very good rep and good prices. Unfortunately, I'm North.

Other than that, where I live you can feel free to dine on shitty overpriced T1 or IDSN from Speakeasy.net like it's 1997!

Also, as other commentary I've read says, you may not approach the cap now, but look at the way usage has changed in just the last 3 years. In the next few years, 5GB is one Xbox 720 dashboard update, or Windows 8 service pack, or Ultra-HD film, or a couple of hours of youtubing. It won't be long before most people will exceed 40GB in a few days, let alone a month, even if it's all legal downloading.
post #9 of 21
How will this effect cable companies to whom TW contracts?

I have Roadrunner internet service through Brighthouse cable. Like many, I pay a flat monthly fee for my internet/land phone/cable.

As someone in the video game industry, I wonder how this will effect businesses.
post #10 of 21
Quote:
Originally Posted by Eyeball Kid View Post
In Austin, your options are pretty much TW or AT&T DSL. AT&T is building out their fiber-optic U-Verse service, which I'm like 100ft too far from the junction to get. It looks promising, but AT&T is looking into this kind of pricing scheme as well.
U-Verse is pretty damn nice, and I think their caps are going to be much more lenient than TWC. I'm praying for FIOS to come to Houston soon and not be stuck with Comcast any longer. I believe FIOS is the only "nationwide" (not quite there yet) provider not enforcing caps, and Gizmodo had an article a few months back stating they were not planning on enforcing them.
post #11 of 21
"...complaints about consumption-based billing. EMAIL realideas@twcable.com - that way we can see them all in one place."
Quote:
Originally Posted by Eyeball Kid View Post
Those caps are ridiculous for anyone streaming HD Netflix regularly, or for those, like Devin, who are trying to move to a cable TV-free, on-demand life.
I wonder if this has anything to do with the inevitable future of canceled cable subscriptions.
post #12 of 21
Is there any legal recourse here since they're basically monopolies? It is so much more difficult to switch providers for high speed Internet than it is for TV services. If Comcast did this I'd be screwed with no alternative whatsoever.
post #13 of 21
Quote:
Originally Posted by devincf View Post
Are there other options in Austin? I feel like we have provider monopolies in most areas.
If I'm not mistaken, we have Cox and Bellsouth where I live (NW Florida). There may actually be one more.
post #14 of 21
I use Clearwire and have for about 3 years or so. The higher tier is almost DSL speed and the modem works pretty much everywhere.
post #15 of 21
Almost DSL speed? Yikes.
post #16 of 21
It works for just about everything shy of streaming HD. Right now, it's my dedicated PS3 network connection and I have no problems on the PSN -- and that's mostly on Euro servers since my schedule lines me right up with their leisure time.
post #17 of 21
Quote:
Originally Posted by Jared Melton View Post
I use Clearwire and have for about 3 years or so. The higher tier is almost DSL speed and the modem works pretty much everywhere.
Streaming HD on an "almost DSL" connection would look like it's being re-routed through a 1997 web cam.
post #18 of 21
BrightHouse offers RoadRunner or Earthlink, but I don't know if Earthlink here in Orlando is doing the same thing and not following the bandwidth caps. Other than that, it's BellSouth DSL and that's it. U-Verse is supposed to be coming, but it's not available yet.
post #19 of 21
Caps are the devil. Over here there is no cap on the landlines, only on HDSPA connections.
post #20 of 21
What about OnDemand services? Isn't that powered by sending a signal over your coax line? What if I'm constantly watching OnDemand movies? Will that count as air time?

I have DSL because in order to get cable at my house, I'd have to pay Comcast $2000 to install it, plus the monthly rate. And I refuse to do that. FIOS is supposed to be in my neighborhood by year's end, so I'm anxious to see how that goes. Even cell phones changed their programs and dropped roaming and include long distance.
post #21 of 21
They're capping the overage charge at $75. So essentially, unlimited bandwidth would cost $150 month -- $75 a month for the highest bandwidth package (100GB a month) and $75 in overage charges.
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