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View Full Version : Time Warner to Test Usage-Based Internet Billing


Jeremy Charette
01-18-2008, 04:00 AM
<div class='os_post_top_link'><a href='http://www.ubergizmo.com/15/archives/2008/01/time_warner_to_test_usagebased_internet_billing.html' target='_blank'>http://www.ubergizmo.com/15/archives/2008/01/time_warner_to_test_usagebased_internet_billing.html</a><br /><br /></div><em>&quot;Time Warner Cable will conduct a billing test in Beaumont (Texas) to see if it can reduce &ldquo;network congestions&rdquo; by making heavy users pay more than light users. Time Warner describes the situation like this: heavy users are 5% of the customers, but use 50% of the bandwidth. I think that Time Warner Cable is trying to improve its 6.84% profit margin rather than solving a &ldquo;network congestion&rdquo; problem that few customers, if any, complain about. What is not clear to me is what would happen to the &ldquo;light users&rdquo;. Will they be billed on usage as well &ndash; or would they stay on a flat-fee plan? As a consumer, I think that if Time Warner wants to use a pay-per-usage (or pay per Gigabytes) billing, every account should be subject to it, so that people who use little bandwidth can save.&quot;</em><br /><p><img border="0" src="http://images.thoughtsmedia.com//dht/auto/1200620856.usr17787.gif" alt="" /><br />Scary. What about customers who use VOIP phone services? Or online gaming such as Xbox Live? Or download songs from iTunes? I see a lopsided profit-driven pricing model like the one that Ubergizmo is suggesting, in which 95% of users pay the regular flat rate fee, and the 5% of &quot;heavy users&quot; pay extra per GB. Of course Time Warner could just adjust the bandwidth &quot;cap&quot; depending on how much profit they need to make each month. Sounds like the ISP makes more money while the consumer gets screwed.</p>

jeffd
01-18-2008, 11:29 AM
Ha! If 40 bucks a freaking month dosnt entitile me to maxing out my connection, then they are charging way to much.