After Outcry, Time Warner Cable Ditches Bandwidth Cap Trials

Authored by Mark Hefflinger on April 16, 2009 - 10:14am.

New York - After hearing complaints from customers and having a hard time finding many willing to participate in trials, Time Warner Cable (NYSE: TWC) has shelved plans to expand testing proposed bandwidth caps on customers' Internet accounts. "It is clear from the public response over the last two weeks that there is a great deal of misunderstanding about our plans to roll out additional tests on consumption based billing," said CEO Glenn Britt. "As a result, we will not proceed with implementation of additional tests until further consultation with our customers and other interested parties, ensuring that community needs are being met."

The company has been testing new pricing that starts at $15 per month with a 1GB cap, while unlimited bandwidth -- currently available under a $40/month plan -- would be hiked to $150 per month.

Bandwidth caps have been criticized by lawmakers including Sen. Chuck Schumer (D-N.Y.) and Rep. Eric Massa (D-N.Y.), the latter of whom earlier this week announced plans for a bill that would prohibit bandwidth caps set by ISPs.

Time Warner Cable maintained that it "continue[s] to believe that consumption based billing may be the best pricing plan for consumers."

It added that it plans to soon release measurement tools to "help consumers understand how much bandwidth they consumer and aid in the dialog going forward."

Related Links:
http://snipurl.com/g1m9q

http://snipurl.com/g1mbo (DMW previous coverage)

Published in DMW Daily, April 16, 2009

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tags: Law | Policy | Time Warner Cable | Bandwidth Caps |

Comments

Translation... "Dang... you

Submitted by anonymous (not verified) on April 16, 2009 - 10:33am.

Translation... "Dang... you caught us!"

yup, it's the CONSUMER'S

Submitted by muskratboy (not verified) on April 16, 2009 - 11:53am.

yup, it's the CONSUMER'S fault for NOT UNDERSTANDING. obviously they want to HELP us... by tripling the cost of bandwidth. "best for consumers" ... yup, i'm SURE that's why they started this plan. so nice of them! it's one thing to screw us over... but then to blame the consumer for not understanding enough to welcome the screw? and i'm thinking that last quote must be a typo.. because it doesn't make any sense at all. just like consumption billing! :)

What part of "price hike"

Submitted by Bob F (not verified) on April 17, 2009 - 1:22am.

What part of "price hike" doesn't Time Warner understand? Their customers surely understand!