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Big broadband users: Get ready to pay more

Friday, April 3, 2009
(Updated 8:03 am)

GREENSBORO -- Looking to save money? Turn down the thermostat. Don’t leave the water running. And, starting this fall, watch your Web surfing.

Time Warner Cable has made the Triad a test market for metered Internet service — a plan to monitor customers’ broadband data use and charge heavy users extra fees.

Cable customers who have a specially priced deal, like an introductory plan or other promotion, will see no immediate change.

But when those contracts are up, they will have to choose a plan ranging from $29.95 to $54.90 a month. Plans will cap usage at 5, 10, 20, and 40 gigabytes of data per month. Customers will pay an extra $1 for every extra gigabyte they use.

“Video is where we see the most online data usage,” said Melissa Buscher, director of media relations for Time Warner Cable’s Carolinas region. “When we set up our infrastructure and our pricing plans, we couldn’t have anticipated what’s happened in online video. Hulu, Netflix, streaming television shows on Web sites — we’re seeing an online data increase of 50 percent every year.”

Buscher said to make sure everyone gets the Internet speed they’re used to, some heavy-use customers will have to begin paying more.

“This will really give people the option of deciding how much they want to pay for the service they actually use,” Buscher said.
“With these new plans, no longer will people who aren’t downloading heavily have to subsidize Internet use for those who are heavy downloaders.”

But customers used to unlimited data at a flat monthly rate said they were offended by the change.

“To say other people are subsidizing me is ridiculous,” said Jay Montlo, 23. “They sold me an unlimited plan and I bought it because I watch a lot of online video and I’m an online gamer. Now, they’re going back and saying it’s not fair for me to use so much of something that’s unlimited for everyone.”

Buscher said the new price structure may be a hard adjustment, but the company’s months of testing in Beaumont, Texas, lead him to believe most customers won’t see much of a difference.

“We estimate 86 percent of our customers will see no change in price,” she said. “And like with their cell phone plans, some may realize they don’t need 40 gigs of data every month, and they can drop down to a cheaper plan.”

In Beaumont, about 14 percent of users went over their data cap.

Additional fees averaged $19 a month.

But Beaumont, Texas, is different from Greensboro. It’s smaller, has an older population, fewer college students and doesn’t have the vibrant online community that once earned this city the nickname “Blogsboro.”

“I don’t have any idea how much bandwidth I use right now,” said Roch Smith, a local Web designer and blogger. “I don’t really think of it that way.”

There will be a three-month “education process” before the pricing shift, Time Warner said. Customers can log in to their accounts to track their usage before choosing their new plan in the fall.

But Smith said making customers more wallet-conscious about the way they use the Internet will stifle creativity and keep them from embracing new video and audio products online.

That could be part of the motivation, several customers suggested, because Time Warner has seen increased online competition for its cable TV and movie-on-demand products.

Smith said whatever the reason, the move will mean less innovation.

“I think it’s just a terrible thing for the city to have our highest-speed broadband priced in a way that’s unlike every other city our size,” Smith said. “Making us a 'test market’ makes people on the cutting edge pay more and discourages people from discovering new things, things that are going to be very important in the future.”

Contact Joe Killian at 373-7023 or joe.killian@news-record.com

Accompanying Photos

File photo (News & Record)

Photo Caption: The state sales tax would be applied to more items including software downloaded over the Internet.

1 GB Equals...

70,000 e-mails

1,344 hours of Web surfing

569 photos

277 music files

7 hours of low-resolution video (average YouTube resolution)

3 hours of standard definition streaming video

45 minutes of high-definition streaming video

Source: Time Warner Cable

Comments

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biru32

April 2, 2009 - 1:52 pm EDT

Time Warner Cable can SMD! This is the last straw. I pay almost $60 per month, and that includes internet and 12 channels, of which only about 5 are worth watching. I'm not a boxhead, but I am a web designer and use the internet in all kinds of capacities. The usage caps they've announced are nothing short of clueless. Obviously they either set those numbers out of complete stupidity in what equals reality amoung users of the internet, or they fully intend on ripping off their customer base more than they do today.

Time Warner, EMA! You guys suck!

lwwilli

April 2, 2009 - 2:00 pm EDT

Well i was going to change to TWC. But there is no way in H that im going to now. They are just like the Banks. They are finding ways to steel you blind. GREED GREED is the theme of TWC.

mjude79

April 2, 2009 - 2:14 pm EDT

I wish I knew why they were doing this...it's not as if they need the extra money to pay people to uphold their 'excellent' customer service standard - unless of course, they've set the high bar as a 45 minute hold time. Between crappy customer service, horrible internet service, and now to pay for usage...I've dealt with it enough! Off we go!

Michaels

April 2, 2009 - 2:16 pm EDT

The only thing that makes TWC worthwhile (in my opinion) has been their relatively good internet service. Their customer service is TERRIBLE, they are rude, and treat their contracts like garbage. The only service I have through TWC is internet and I don't live in Greensboro, but I fear for this to expand to my city.

To FORCE this new policy on it's customers is just another indicator of what they think of you. With any luck, a viable alternative will present itself and you can get clear of TWC once and for all. I'm not sure anyone else has the infrastructure is in place to allow that to happen, but one can always hope. I would ask why they don't make this new policy optional, but we all know the answer to that.

I feel for you - and good luck standing up to this tyrant.

lowboy

April 3, 2009 - 8:34 am EDT

TWC disconnected us for non-payment. This after my wife had called to ask why we had not gotten a bill for 3 months. As it turned out, TWC had switched our billing address from our PO box to our physical address without telling us. So even though it was their fault we hadn't been getting invoices, the customer service reps refused to accept any responsibility for TWC. We are now on DSL through Earthlink; and I am pleased to say that we haven't noticed much difference in download speed. Which, according to some friends who should know, means that we weren't getting all we should have been getting from cable internet in the first place.

wbivie

April 2, 2009 - 2:38 pm EDT

Nice job, TWC. I understand the need to begin monitoring bandwith usage and charging those of us who use a lot (and I understand the stats that say the minority use the majority of bandwith), but considering the highest level cap is a mere 40gb is absolutely ridiculous. In the digital age, with streaming tv and movies through the internet, sites like youtube and online gaming, people like myself can go through 40gb in a few days.
I use my xbox 360 a heck of a lot for online gaming, watching netflix and downloading tv shows or other movies through there.

And I'm sure alienating a few users is what they're going for. If they can get all their heavy users to switch to a different company then they only lose a small percentage of subscribers, but free up a lot of bandwith. I'm just wondering why TWC set the bar so low considering how much digital content has become available? I'm sure most of the heavy users are 30 or younger, because we're the ones who are growing up with expectations of high transfer speeds and lots of content at our fingertips in seconds. Are they really willing to risk all their younger users, the users who in the years to come will be the only customers available?

mattbrown1977

April 2, 2009 - 2:51 pm EDT

You actually answered your own question with regards to why TWC has set the bar so low for the amount of digital content that has become available. The reason the bar is so low is all this content on Hulu, Netflix, Youtube, etc. is direct competition for traditional cable provided programming. By setting such a low data cap they are trying to prevent users from watching movies on Netflix instead of TWC Movies-on-Demand. Let's also get one thing out in the open as well. This is not a bandwidth cap. Bandwidth refers to data amounts transferred over time. I could in theory put a very low stream on their network of 50kbps and cause no strain on their network at all but exceed the data cap. I for one will be leaving TWC for AT&T. It may be slower but at least there is no data cap.

wbivie

April 2, 2009 - 3:03 pm EDT

Right, I meant data cap, of course. Thanks for the correction! Twas a simple brain fart.

holland4

April 2, 2009 - 4:00 pm EDT

This new tier plan is not about speeding things up for everyone or punishing heavy users. It's about clamping down on their media (not ISP) competitors. TWC and other cable providers have finally figured out that the pipeline they've been selling us has inadvertently allowed other media providers into our house. Thanks to Hulu, iTunes, Apple TV, MLB.tv, Netflix streaming, Youtube, etc., we have media choices. We're able to "cut the cable" and TWC doesn't like it. What better way to exert control than by trying to turn off the faucet? TWC wants to back out of the deal.

And 40 GB of data per month is a joke. They know that a tech-savvy family of four can use that up in two weeks with normal (and non-pirating, legal) use. This new tier plan will dramatically change consumer internet behavior that has developed over the past decade. It will impede the development and adoption of new technologies and will help TWC maintain their market power. Without competition, there's not much we can do except go without.

hardcashe

April 3, 2009 - 11:21 pm EDT

I think your right - there is a point of abusive use of a shared bandwidth - server farms and the type of bandwidth used in massive media piracy rings... but 40g a month is normal usage these days. This is a violation of net neutrality. Congress was lobbied hard by telco & cable that they would never do exactly what they are all doing now. So - net neutrality should be passed.

kikablue

April 2, 2009 - 4:03 pm EDT

I've got TWC here in Greensboro, it's the one the Apartment complex has. It says in the article that those of us that have a guaranteed price lock window will not be charged till our time window is up then we will be charged like a new customer. With the service they do it's a joke. I could do as good with pony express as I do with their (fast they call it) it's as slow as dial up. So when my time window is up, SO IS YOURS TIME WARNER. I will not be using any of the bundle I am paying for now. It takes two or more to play poker. Deal me out. At least I know what the big VIRUS to hit the computers was TIME WARNER CABLE.
They will lose so many customers you'll think the Blue Grass Festival has taken over Greensboro and North Carolina. Want to hear the Blues, wait till you start hearing CANCEL, CANCEL,CANCEL. I have had TWC for 6 years. I've got 1-1/2 years left on my guaranteed window. After that I have another Guarantee you lost another customer that's $1407.72 a year you lose. And I mean it in every sense of the word Y O U L O S E. ADIOS AMIGOS NO MAS! By the way before any of you get your feathers ruffled I'm a 61 year old widowed white woman .

akristel

April 2, 2009 - 4:34 pm EDT

This is absolute bull.

Here's what I love in all this: I called up their customer service to inquire, and the woman on the other end of the phone informed me that they don't yet know what the cap will be, but when I look at this article, it's very clearly delineated.

I play PS3 games online, and I'm pretty sure this will effectively screw me over.

celticcowgrl

April 3, 2009 - 4:29 pm EDT

Same thing here. I emailed them this morning and got a very quick answer which also said they didn't know what the cap would be. Imagine my surprise to see it broken down so well in this article. I don't know who's going to get my business yet but I'm certain it won't be Time Warner.

newkid

April 2, 2009 - 5:03 pm EDT

Having moved here from a Comcast market, I hoped that TWC would be better than Comcast. But TWC's basic internet service really stinks compared to Comcast--it's slower, it costs more. One thing that is the same: legendary poor customer service.

I hope the reporter who wrote this story forwards all these comments to the idiot spokesperson(s) for TWC...not that it will do much good.

scoobaguy

April 2, 2009 - 5:04 pm EDT

I worked for TWC Greensboro previously, and what a scam this is... What you might not know is that they tried to do this same exact thing about 4 years ago, but did not make it public. They sent letters to the users that used the most and tried to "force" them to upgrade to a higher plan. While I don't know all the details, this quietly went away and those identified as "heavy users" were returned to prior pricing plans.... One particular issue is that you will be at TWC mercy in having to accept what they say you have used... A wireless phone company sends you a bill and shows you where you spent your minutes. Do you think that TWC will do this? I agree with the other posters - this is about capitalizing on those that are using the internet for entertainment vs. using your cable services(pay per view, DVR) to generate revenue. The "vice president" of customer care for the Triad region of TWC is Diane Blackwood. Just try to give her a call and see if you ever get a response.

mwooldri

April 2, 2009 - 5:32 pm EDT

I checked out of curiosity what is being offered in the UK... Virgin Media (pretty much the only cable company there) offer 20Mbit internet, a reasonable TV service and basic phone for £30.00 a month, that's $45-$50. They have congestion issues too so to be fair, they have a daily cap: do more than X amount of data in peak time and we'll cut you down to 5Mbit. They're also rolling out 50Mbit internet service.

Can TWC provide 20Mbit internet, the lowest-level digital bundle and local phone service for $50/month? Seems like they're going to have to do some investment in their network. I thought they were an all-fiber net?

uncwgm

April 3, 2009 - 12:54 pm EDT

Why are they only doing this in Greensboro and not Raleigh?

Because that market is competitive...ours is not.

Write to your council members, the mayor, your state rep and let them know how you feel about this predatory pricing designed ONLY for Greensboro, NC and only 3 other cities in America.

myob

April 2, 2009 - 5:44 pm EDT

Call your city council member. Time Warner's monopoly franchise is controlled by the city council. Call them and tell them how unhappy you are with TWC imposing draconian pricing on only a select few markets. The city council is giving its citizens a raw deal if they allow this to go through. Demand that the city hold a public hearing which it can require per the franchise agreement about the changes in which members of TWC can be questioned by council and residents. Make the council work for YOU!

BillyBob1986

April 2, 2009 - 5:56 pm EDT

I have the TWC bundle and have used it with my wife and daughter. -But after hearing this, I'm going to shut down my land line (use only my cell phone), sign up for Direct TV, and find a DSL provider. Goodbye TWC, I wont let the door hit my rear-end on the way out.

myob

April 2, 2009 - 5:58 pm EDT

Time Warner customer should be extremely concered about this new policy. Anyone who watches shows on Hulu or listens to Internet radio is at risk to see giant increases in their bills. We'll keep links to an online petition, TW customer service and other ISP options listed at kissmy---timewarner.com. This isn't about TW conserving bandwidth, it's about them soaking customers.

(I'll keep it rated G on this forum, but I'm sure there will be no problems guessing the PG-rated three-letterer word I left out of the URL above.)

holland4

April 2, 2009 - 6:02 pm EDT

Let TWC know how you feel: http://www.twcnc.com/template/contactus.cfm

I love how the PR folks are already beginning with the "infrequent email-checkers are subsiding the video-watching whippersnappers" meme. That's complete BS. TWC's broadband has long been unlimited for EVERYONE and has long been tiered based upon SPEED. If you were an infrequent email-checker, you could buy the Lite for price of a pizza. For a little more, you can go with the Standard speed. Pay up some bigger bucks and get Turbo.

Again, this is not about punishing heavy users and generating cash for their "network upgrades." It's about limiting competition between TWC and other media providers. They don't like online streaming content providers (the Hulus, the iTunes, the Apple TVs, etc.) getting a piece of the action.

jrp1

April 2, 2009 - 6:35 pm EDT

I'm hopeful that they lose at least 50% of their current Internet subscribers from this action. I know I will be one of those that they will lose. Why not try to increase revenues by improving services and attracting more subscribers. I guess they only need to do that in larger markets with competition. But since we are a test-market, I guess they want to see how this plays out and consider trying it in larger markets. They probably hope that other providers will follow suit, but I think it will backfire. Other companies will fill the void and try to pick up the lost TWC subscribers. All I can say is that I hope other providers enter this market before TWC implements this tiered-pricing in the the next three months. In the mean-time...Hello AT&T. That is until we get FIOS or other better services.

telemetryunit

April 2, 2009 - 6:28 pm EDT

As if they're not making enough money already. Boooo!

Illiterati

April 2, 2009 - 6:50 pm EDT

Here's what I wonder: My neighbor hasn't password-protected his wireless network, so anyone and his dog can hop onto his network. What if half the block streamed videos via his network? Wouldn't his usage go through the roof and he'd be charged accordingly? I could see bandwidth theft as a big problem going forward. I've been trying to convince this guy of the importance of locking down his network, but to no avail. Maybe this will be the thing that sways his laissez-faire attitude.

wbivie

April 3, 2009 - 7:59 am EDT

That's exactly right. A close neighbor somewhere in my apartment complex currently has his wireless network unsecured. While I pay for my own service, sometimes I'll realize that my ipod will jump onto his network at times, and it's his plan that is affected by that.

Warning to all those who have unsecured wireless networks: Learn how to lock it up!

dampier

April 2, 2009 - 6:59 pm EDT

Time Warner's propaganda doesn't begin to tell the full story of why Greensboro and other cities are being served up Road Runner's all-new Rationed Internet. You don't have to suffer in silence. A growing group of consumers has come together to fight back, explain the alternatives, and help put a stop to unjustified Internet rationing, which is really just an excuse to pad profits.

Learn the facts and join the fight. And we need help from Greensboro to find some folks to be a part of our Greensboro team to keep the rest of us informed. Visit: www.stopthecap.com

sdrushing

April 2, 2009 - 7:39 pm EDT

So I've never wanted DSL before but this will make me reconsider. If TW can't figure out what to charge for their service, its not my fault. I really have no idea how much bandwidth I use in a month, but it doesn't matter. they have multiple plans for the folks who want to pay less and use less vs those of us that want fast connectivity available WHEN we need it. Next they'll start charging more for 'prime time' usage. If DSL is even remotely an option for decent throughout, I'll be cancelling my TW account.

darkmoon

April 2, 2009 - 7:41 pm EDT

Joe, just fyi.... I explain how the unlimited to tiered system analogy (http://sue.polinsky.com/?p=5885&cpage=1#comment-107374) works in some comments at Sue's. As someone that has been in the communications business for the last fifteen years or so, the business model makes absolutely no sense. On top of this, TWC/Comcast/AT&T are basically trying to push this model onto consumers because they inherently lost the entire net neutrality battle where they were trying to charge the content providers.

Let's be honest here. If TWC tried to do the same thing with cable television, there would be hell to pay. Basically that's the same argument. if TWC said... hey... on top of your regular HD content, we're going to time you for all the games you watch and charge you if you go over the minutes of time. If that was the case, you'd see a tremendous push towards satellite at that very moment.

Wrote about the issue this afternoon here (http://life.firelace.com/2009/04/the-last-straw-with-time-warne.php). In any case, the entire thing leaves a bad taste in my mouth. You can guarantee that I'll be keeping my eyes open on alternatives if this even tries to rear its ugly head here.

Hoosierdaddy

April 3, 2009 - 5:18 pm EDT

"Let's be honest here. If TWC tried to do the same thing with cable television, there would be hell to pay. Basically that's the same argument. if TWC said... hey... on top of your regular HD content, we're going to time you for all the games you watch and charge you if you go over the minutes of time. If that was the case, you'd see a tremendous push towards satellite at that very moment."

See? You've hit the proverbial nail on the head here. C-O-M-P-E-T-I-T-I-O-N. They know they can do this in Greensboro because they know they have no serious competition for broadband service. Please note that all of TWC's so-called "test markets" are in areas where they have a monopoly.

jeffic_fail

April 2, 2009 - 9:29 pm EDT

Now what am I suppose to do when I call in sick to work? Jeffic Fail!

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