Time Warner to begin internet billing based on usage in SA (updated title) (Austin: law, FIOS)

[ang3ldu5t]

This is the official press release they sent out recently:

Statement from Landel Hobbs, Chief Operating Officer, Time Warner Cable RE: Consumption based billing trials
4-9-09

Some recent press reports about our four consumption based billing trials planned for later this year were premature and did not tell the full story. With that said, we realize our communication to customers about these trials has been inadequate and we apologize for any frustration we caused. We've heard the passionate feedback and we've taken action to address our customers' concerns.

With the ever-increasing flood of content on the Internet, bandwidth consumption is growing exponentially. That's a good thing; however, there are costs associated with this increased Internet usage. Here at Time Warner Cable, consumption among our high-speed Internet subscribers is increasing by about 40% a year. As a facilities based provider, we've built a network that must be maintained and upgraded. We have increasing variable costs and we have to continue to invest in the network itself.

This is a common problem that all network providers are experiencing and must address. Several other providers have instituted consumption based billing, including all major network providers in Canada and others in the U.K., New Zealand and elsewhere. In the U.S., AT&T has begun two consumption based billing trials and other providers including Comcast, Charter and Cox are using varying methods of monitoring and managing bandwidth consumption.

For good reason. Internet demand is rising at a rate that could outpace capacity within a few years. According to industry analysts, the infrastructure may not be able to accommodate the explosion of online content by 2012. This could result in Internet brownouts. It will take a lot of money to fix the problem. Rather than raising prices on all customers or limiting usage, we think the fairest approach is to move to a tiered model in which users pay more if they use more.

If we don't act, consumers' Internet experience will suffer. Sitting still is not an option. That's why we're beginning the consumption based billing trials. It's important to stress that they are trials. The feedback we've received from our customers has been very helpful. We've made changes to the terms in our current and upcoming trial markets as follows:

To accommodate lighter Internet users and those who need a lower priced option, we are introducing a 1 GB per month tier offering speeds of 768 KB/128 KB for $15 per month. Overage charges will be $2 per GB per month. Our usage data show that about 30% of our customers use less than 1 GB per month.

We are increasing the bandwidth tier sizes included in all existing packages in the trial markets to 10, 20, 40 and 60 GB for Road Runner Lite, Basic, Standard and Turbo packages, respectively. Package prices will remain the same. Overage charges will be $1 per GB per month.

We will introduce a 100 GB Road Runner Turbo package for $75 per month (offering speeds of 10 MB/1 MB). Overage charges will be $1 per GB per month.

Overage charges will be capped at $75 per month. That means that for $150 per month customers could have virtually unlimited usage at Turbo speeds.

Once we implement this trial, we will not immediately start billing customers for overage. Rather, we will first provide two months of usage data. Then we will provide a one-month grace period in which overages will be noted on customers' bills, but they will not be charged. So, customers will have an opportunity to assess their usage and right-size their service packages before usage charges are applied.

Trials will begin in Rochester, N.Y., and Greensboro, N.C., in August. We will apply what we learn from these two markets when we launch trials in San Antonio and Austin, Texas, in October, but we will guarantee at least the same level of usage capacity in these trials.

As we launch DOCSIS 3.0 in the trial markets, we plan to offer a 50/5 MB speed tier for $99 per month.

Again, the Internet is dynamic and continually evolves, so our plans will evolve as well and aren't set in stone. We appreciate the feedback we've received. We'll look forward to more dialogue as we progress in these trials. You can send your comments and feedback to us at realideas@twcable.com.

Landel Hobbs
COO
Time Warner Cable

[Deep Forest]

Where are the bandanas ??? Don't robbers normally wear them ???

[Deep Forest]

Originally Posted by dendox

supposedly TWC has decided to postpone this until october - with a roll out for everyone in January.

I would love nothing more than to see very TWC subscriber run like the wind. I hate them and their business practices.

I'm waiting at the door....

[tekka-maki]

LOL, Landel Hobbs is such a douche bag. Although a different ISP, this article really hits the nail on the head:

Cogeco: Metered Billing 'Not About Making Money' - Editorial: It's about helping children, puppies and the downtrodden... - dslreports.com

I was particularly amused by the 1st comment:

"Yea dude, ill sell you unlimited water usage, oh wait I forgot to tell you if you use more then 2 gallons each other gallon costs 5 dollars ok, yea its not about making money its just to "control the flow". Man and people thought Comcast was bad, I don't think Congress will allow Timewarner to do this, people would hella complain and move to something else in the area mostly DSL probably."

And here's some further insight on Landel Hobbs' BS:
Time Warner Cable 'Delays' Texas Metered Billing - Austin, San Antonio will join the fun later on... - dslreports.com

BTW, I think another reason Landel is waiting would be because of collusion w/ATT. I read somewhere the other day ATT be introducing something similar. So I'm sure they need to grease a few more political wheels with their lobbyists... too bad Ted Stevens isn't still around, he could be their spokesperson, explaining to Americans how the series of tubes are all clogged up, LOL.

While I find it unfortunate that TWC isn't implementing caps now because I relish the idea of their customer leaving in mass exodus, I will enjoy going back to dial-up (last ditch effort of course) before I give these slimy snake oil salesmen the satisfaction of such outrageous markup. Better yet, this may finally help me to justify the cost of unlimited (i.e. 5GB) 3G and just tether the phone to the 'cornputer, with dial-up as a backup.

[scuba steve]

So how do the options play out, if bad comes to worse and others join in? I know nothing of any of the dish companies... what compares to U-Verse 200 (with HD)? From what I know TV comes over the air, from AT&T, Time Warner, Dish companies and Grande in certain areas. ISPs are AT&T, Time Warner, DSL (thru AT&T?) aaaaand whatever dialup is out there?

[Spock's Beard]

TW is full of lies. For one thing, taxpayers either subsidize or fully pay for the lines, so TW's costs involved are almost nothing. Secondly we don't get use of new lines. TW is gonna make us pay more for 10+ year old lines that are already profitable.


They're doing this for the profit, and nothing more.

BTW, I think another reason Landel is waiting would be because of collusion w/ATT. I read somewhere the other day ATT be introducing something similar.

Cartel agreements are supposed to be illegal, but like our worthless anti-trust laws, the government just isn't gonna do anything about it.



Speaking of AT&T, here's their version of upgrading lines for better service at taxpayer expense:


You've Already Paid $2,000 For A Fiber Connection You'll Never Get | Techdirt

[budjb]

Is that press release seriously supposed to make anyone change their mind about leaving? He reiterated everything that's already been said.

[Spock's Beard]

Originally Posted by budjb

Is that press release seriously supposed to make anyone change their mind about leaving? He reiterated everything that's already been said.

The heart of what he's saying: "You cannot leave because the competitors are doing it too, so you have no choice but to accept what we're doing."


Gotta love illegal cartel agreements.

[budjb]

Originally Posted by Spock's Beard

The heart of what he's saying: "You cannot leave because the competitors are doing it too, so you have no choice but to accept what we're doing."


Gotta love illegal cartel agreements.

Yes, obviously. I just hope the bill gets introduced, is passed, and is effective in outlawing usage caps.

[Spock's Beard]

Originally Posted by budjb

Yes, obviously. I just hope the bill gets introduced, is passed, and is effective in outlawing usage caps.

So do I. They're not paying for the new lines nor did they pay for any pre-existing lines. The taxpayers did, so they're full of cr*p to act like they have these costs for new lines that they need to pass along to customers. In AT&T's case it's downright fraud and theft of taxpayer money.