Time Warner Internet Tiered Pricing

[iceshots]

This just in on Engaget. The tiered pricing trial is scrapped in Rochester.

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Time Warner Cable scraps broadband capping plan in Rochester, NY

It's already delayed its controversial broadband capping plan in a number of markets, and it looks like Time Warner Cable has now gone one big step further in Rochester, New York (one of the initial test markets), where it has reportedly scrapped the new tiered pricing plan altogether. As you no doubt recall, the plan was more or less modeled on cellphone pricing plans, and had intended to cap customers' data usage at a certain level and charge upwards of $1 per GB for any overages (eventually maxing out at $150 per month). That, naturally, didn't go over so well with folks, and even New York Senator Charles Schumer eventually got in on the act and complained directly to Time Warner Cable. Of course, this still doesn't officially mark the end of the pricing plan in other markets, but it certainly seems to be getting increasingly difficult for Time Warner Cable to move ahead with it.
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[Mdlx]

:TWC takes gun away from head:

What a horrible public relations nightmare this has caused for TWC. Not like they were liked before but man, did they really think people would go along with these ridiculously low caps? Many people already voted with their checkbooks and switched services. If they go through with these tiers many more people do the same.

Edit: Looks like they have shelved their plans for all markets
http://a.longreply.com/120178

[LoveATX]

No more! Time Warner Cable shelves plan to cap Internet use - Tech and gadgets- msnbc.com

[thesonofgray]

VICTORY! ...for now.

Did you notice their press release and how it was worded?

"Time Warner Cable (NYSE:TWC) today announced it would alter plans to test Consumption Based Billing, shelving the trials while the customer education process continues."

"Customer education process" is just another marketing term for continued misinformation. They obviously didn't realize that people would be pissed when you decide to ration out the internet and that they'd demand logical reasons for doing so. The reasons TWC provided were lame and insulted our intelligence, hence their backing off but continued effort for "customer education."

And the push from politicians didn't hurt either. The government provides TWC with TAX MONEY and a preferred position in an uncompetitive market. If you **** of the government then you can say goodbye to your very comfortable margins.

DSL Reports has a good wrap-up:

Time Warner Cable has confirmed the move and issued an official statement here, though the wording continues to use the same kind of disingenuous language that helped put the company squarely in the middle of a public relations quagmire to begin with. According to Time Warner Cable, the company is stopping the trial because "there is a great deal of misunderstanding" concerning their metered billing trials, and the carrier wants to focus on the "customer education process." Says company CEO Glenn Britt:

"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..."

Of course, customers who were angry with Time Warner Cable for trying to charge them $1-$2 per gigabyte in the middle of a recession understood what was going on perfectly. Should Time Warner Cable want to re-examine what went wrong the last few weeks, executives may want to take a look first at how they repeatedly insulted the intelligence of their customer base.

According to the statement, Time Warner Cable will still be doling out usage meters to all customers. It's pretty clear from the language used that their effort to dramatically reshape broadband billing is far from over, and when it resurfaces, it will be with a better public relations campaign and a lot of selective data. However, what's also pretty clear is that the Internet gives consumers the collective power to shape company policy for the better.