Time Warner Cable to experiment with Internet access charges
Written by admin on January 18th, 2008 in devices and gadgets.
Time Warner Cable (TWC) believes that just 5% of its Internet connection subscribers account for 50% of its network capacity through heavy download usage. That may be a key reason as to why the ISP has decided to start trialling new subscription charges for customers based on data usage.
In the second quarter of this year, it is expected TWC will start a trial in Beaumont, Texas, where new customers will sign up to a tiered service. Rather than giving users unlimited downloads at a set download speed, these new tiers would charge based on data download limits. This means light users would pay less, whereas heavy users would be paying a premium.
Alex Dudley, spokesperson for TWC, said the trial was an attempt to improve network performance by increasing costs for heavy users.
The pricing, data download levels, and specific introduction date of the trial have yet to be confirmed.
Read more at the Associated Press article.
Matthew’s Opinion
In the U.K., we already have a similar scheme across many of our ISPs. You pay a subscription based on what download speed you want and a data cap. There are unlimited plans, but these are misleading as they still have limits.
If you are looking for a new ISP and are a heavy downloader, then you really have to be careful with these unlimited plans. Some companies will send you letters and threaten to cut you off if you go over a certain download threshold; others will just cut back your speed, but not cut your connection.
I am sure TWC’s new pricing structure won’t meet with much positive feedback. Many users really don’t have any concept of exactly how much data they are downloading and just want a connection that works when they want to use it. Being sent a bill with a premium extra charge applied if you go over a limit is going to make quite a few people very angry.
Tags: mobile phone, laptops, sat-nav, home cinema
