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
Business Week: Time Warner Cable Expands Internet Usage Pricing
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
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