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Time Warner adds tiers to new Internet pricing plan

Friday, April 10, 2009
(Updated 12:42 pm)

Time Warner Cable released a few modifications Thursday evening on its plan to charge customers by their Internet usage in the Triad.

In a statement from Chief Operating Officer Landel Hobbs, the company said it will expand the tiers under which customers are charged. Details from the statement:

  • To accommodate lighter Internet users and those who need a lower priced option, Time Warner will offer a 1 gigabyte  per month plan with speeds of 768 KB/128 KB for $15 per month. Overage charges will be $2 per GB per month.
  • The company will increase the bandwidth tier sizes to include 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.
  • The company is adding 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.
  • Time Warner also will cap overage charges at $75 per month. That means that for $150 per month customers could have virtually unlimited usage at Turbo speeds.
  • The trial will begin in the Triad in August.

"Again, the Internet is dynamic and continually evolves, so our plans will evolve as well and aren’t set in stone," Hobbs said in the statement. "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."

The entire statement is online at http://a.longreply.com/109511 

Comments

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biker

April 9, 2009 - 9:57 pm EDT

Time Warner sucks!!!

wreck86

April 10, 2009 - 12:20 am EDT

"We appreciate the feedback" my foot. Do these guys actually believe the garbage that comes out of their mouths? I'm sick of the constant lies that these guys say. Why can't they just tell the truth? "We're greedy SOB's, and we know we've got you where we want you, and now you're going to pay."

garyofseven

April 10, 2009 - 6:39 am EDT

I know how to stop them dead in their greedy tracks..........drop their service. I've already gotten rid of their tv service, guess what is next.

Norm*

April 10, 2009 - 7:11 am EDT

I guess July will be the time to find a new ISP.

mikesus

April 10, 2009 - 8:16 am EDT

So not only are they going to limit you on bandwidth, but speed too? How is this ANYTHING other than a money grab? We need to get our representatives involved and stop this, or get them thrown out as a cable provider here. For them to do this during an economic downturn is going to take net away from folks, not enable more to get it.

ATT is offering dry loop service and there is Sat TV. They continue on this track, and that is where I am going in August.

And for the record, I only use around 15gb a month, but the bulk of that is phone service. How in the world do these folks get away with using terms like Unlimited, when in fact it is not, is beyond me.

Panacea

April 10, 2009 - 8:54 am EDT

TWC thinks it has most people by the short ones because there ARE no alternatives for some people.

Most apartment dwellers can't get satillite because the landlords won't let the companies fix the dish to the building.

AT&T doesn't reach many areas, nor does North State.

I'm thankful I was able to kick TWC to the curb last August. AT&T too, if they're going to go with this nonesense, and they are talking about it.

What's frustrating is in some places you literally have no choices in providers. I'm happy with North State--but happy or not, they're the provider I have to use for phone services and Internet unless I go back to TWC.

There needs to be more competition. Break up these monopolies!

mattbrown1977

April 10, 2009 - 8:59 am EDT

This is an insult, TWC seriously believes we are stupid to believe all their talking points. We need to push for AT&T U-Verse and/or Verizon FIOS in this area immediately. Then we can see how fast TWC will drop the caps when real competition is in the area.

bottechia

April 10, 2009 - 9:29 am EDT

This is what happens when you only have one cable company to choose from.
I will be switching to DSL myself.

Illiterati

April 10, 2009 - 10:37 am EDT

Wired analyzed and graphed Time Warner's 2008 over 2007 broadband revenue and expenses. The data came straight from TW's own 2008 financial report. Not surprisingly, TW's broadband revenue and subscriber base increased while its broadband expenses decreased. This tiered pricing scheme is clearly TW's attempt to increase revenue as people drop cable and watch video online.

See Wired's analysis and graph here:
http://blog.wired.com/business/2009/04/time-warner-cab.html

OldManMerritt

April 10, 2009 - 11:59 am EDT

It is too bad that people take for granted that you truly do get what you pay for. TWC is trying to supply its customers with lower rates if they don't use as much bandwidth (isn't that a good thing?) and charge more for people who use a great deal of service. This appears to be the wave of the future, so get used to paying for what you use.

arnham

April 10, 2009 - 10:53 pm EDT

If you're in their absolute lowest tier, which has a 1GB cap, simply updating windows could put you over it - for example, Windows Vista Service Pack 1 alone is about 700MB (1GB = 1000MB). Do some email, surfing, and maybe a video or two on youtube, and it would easily make up that 300MB difference. Also by default windows will download these updates automatically and in the background, so less technically inclined people simply won't even know about it until it's already completed downloading. You'd just get hit with overage charges in your next bill.

My current service would fall into their 40GB tier. I can easily exceed that with an amount of internet usage i wouldn't consider vast - watching HD movies online, for example, something I regularly do now, takes up 4-8 GB of bandwidth per movie depending on length and quality. Let's say each one is 6GB, if i simply watch 4 movies a month that's already over half my bandwidth cap taken up from that one use alone.

I take issue with their definitions of "great deal of service". Comcast, for example, has a cap of 250GB vs Time Warners 10GB for the same price.

arnham

April 10, 2009 - 11:33 pm EDT

Just as an addendum to this, 1GB = 1024MB, little error there but hardly much of a difference.

conturax

April 11, 2009 - 7:24 pm EDT

You are dillusional, OldManMerritt.

drdandi

April 10, 2009 - 1:08 pm EDT

I will change my service. Yeah time warner sucks... They will fail miserably.. whatever they are trying to do.. I am constantly looking for what others are offering. In my view we can get a reasonable speed and unlimited usage from many others providers. Direct TV is very cheap as compared to cable services of time warner. All the users need to come against it. All of us should stop using time warner.

chickenlittle02

April 10, 2009 - 3:11 pm EDT

Where is a common place that information can be posted about what alternative services and their charges can be found by all?

arnham

April 10, 2009 - 11:07 pm EDT

Your best bet in greensboro is probably AT&T DSL. They have a package deal with directv satellite as well if you want to dump time warner's cable TV as well.

Their max speeds are a bit slower than Time Warner, but there is no cap at least. And if you don't need the speed, their lower speed offerings are much cheaper.

eyesnot

April 10, 2009 - 3:59 pm EDT

I worked for these crooks for 3 years. They have had 30 some years to improve on the infrastructure. They chose to improve the ivory towers and the linings of a few crooks within. We already paid for the infrastructure. Now they are asking us to pay for fictional service. We need to pass a law and regulate these idiots. They are greedy. Period.

cspace

April 11, 2009 - 6:12 am EDT

P.S 1 GB is about 3 days worth of basic(well sorta basic) basic today is myspace , music downloads, internet gaming, picture and video sharing and instant messengers. as i was saying 1 gb is basicly 3 days of regular internet usage to charge 2$ more per gb is an insane rip off Verizon is bringing the future and its called FIOS look it up time warner will go bankrupt as soon as it hits the triad (unlimited bandwith @ speeds around 50Mbits/15Mbits for 50/month) and the rates timewarner is charging customers maybe they should go belly up.

saveus

April 11, 2009 - 6:19 am EDT

An open letter to other ISPs willing to come to Greensboro and save our citizens from TWC:
http://savegso.blogspot.com/

Paul J

April 11, 2009 - 7:06 am EDT

Just pay it they need the money. Multiple million dollar bonuses are hard to pay without rate increases.
From the land of"That can't be right"

coolhifi

April 11, 2009 - 8:24 am EDT

I have communicated with Dianne Blackwood, Regional VP at Time Warner about these issues. I called to her attention that the actions of Time Warner are implicitly illegal, based on the 1991 Telephone Consumer Protection Act, as you can see below. Her response was "thanks for your additional comments." I hope people interested in this will contact their elected representatives, and point out this proposed illegal activity of our "public" utility.

_____________________________________________________________________________________________

Thank you very much for taking the time to respond and clarify the position taken by Time Warner. I don’t hope to enter a long drawn out debate with you, but I do want to add a bit of clarity to my previous comments.

Initially, I will agree that the usage of bandwidth is increasing dramatically everywhere. I will further agree that some users are more “bandwidth intensive” than others, but all pay the same price. Were Time Warner to offer a substantial discount to the users that have little need of a high throughput, I would agree with the new stated policies. This appears to be the point where we diverge. The smallest cap appears to cost approximately the same as the current uncapped service. This new policy seems clearly designed to increase the expense to most users, as many families will be forced to “upgrade” to maintain their usage patterns long established.

I further disagree that many customers have “control” over the bandwidth used. I call your attention to services like adclick, and thousands of others, that provide unsolicited commercials embedded in every web page we view. Let’s don’t also forget the thousands of graphics-rich spam e-mails we all receive. Additionally, my cable modem is constantly responding to network traffic, 24/7, 365 days a year. I have no power to control this use of what now becomes “my” bandwidth.

Here is the problem in a nutshell. We cannot control, to any great degree, the content that is delivered to us, but we are asked to pay based on that same content. Have you ever wondered why you never get solicitations (telemarketing) on your cell phone? It is illegal, as the solicitors would be using “your” cell minutes to further their goals. This is exactly what Time Warner contemplates, and I suspect also is illegal. Unless there is some way to totally eliminate all content besides that targeted by myself as I browse, the pay-as-you-go plan is a legal failure. Others are free-loading on my payment for bandwidth every time I open a browser window. This is, without a doubt, legally, ethically and morally bankrupt.

The 1991 Telephone Consumer Protection Act has explicit language that governs the cell-phone situation in part stating “prohibiting marketing or any other service for which the person being called would be charged for the call.” There is no difference whatsoever between that of the cell phone service, were the customer pays by the call, and the cable service, where the customer pays by the byte. Marketing using the paid bandwidth of others is illegal. See: http://www.fcc.gov/cgb/consumerfacts/tcpa.html With this in mind, I hope Time Warner will reconsider this game-changing concept of capped usage.

darkmoon

April 11, 2009 - 4:47 pm EDT

While this is true, there's one thing from a legal perspective that fails (disclaimer to not being an attorney posted here). Being that Time Warner is not a "telephone" service per say, this Act would not apply. I suppose you could chase it from the digital phone angle, but there would have to be a class action or law suit launched for this to even be chased down. Thus, that's why the executive gave you the... "hey, thx for your comments" reply.

I've written about my thoughts on this, but I think that eventually they'll be setting up for some nasty battles against much more than the consumers. Just think... this actually does hurt the profit margins of Google, Microsoft, and anyone else that has content online. I can think of a multitude of corporations that have more than one vested interest in keeping consumers on the Internet more, rather than less. Thus, in that sense, TWC would be also be in fight against those corporations.

And if ISPs can't get the major leaguers to play ball with the entire Net Neutrality thing, what's to think they'll be able to get them, and a number of other industries (for example, the gaming, and online media) to also play ball? If there's anything that will drive corporations to arms, it's actually hurting their margins. So I'm personally still waiting for corporate types to step up and ally themselves with the consumer base.

coolhifi

April 11, 2009 - 5:47 pm EDT

I might have been too subtle in my language, but the implicit illegality is that paying for cell minutes is quite similar to paying for data bytes, and unwanted marketing uses either. The explicit illegality is the use of a cell customer's minutes to market to that cell customer. The economic concept is free-loading in either case. You are quite correct to observe that the 1991 act applies to cell-phone customers, but since the concept of free-loading transcends both forms of data usage, it seems clear that the intent was to protect consumers from this form of marketing, one which costs a consumer money (minutes or bytes) to be marketed to.

I see that each week that passes shows a change in Time Warner's stance. It is my hope that the consumer's voice will be heard. Yes, cloud computing, Google's online programs for word processing, and all manner of new paradigm-shifting uses for the internet are at risk.

Thanks for the response.

LaborMan

April 12, 2009 - 7:43 am EDT

FROM USA Today----

BROADBAND: Help for rural areas

The stimulus bill includes $7 billion for broadband deployment in rural markets across the USA.

That high-speed Internet access is counted as "infrastructure" is illuminating in itself, says Gene Kimmelman of Consumers Union.

Under the Bush administration, broadband service was treated as a luxury, he says. The Obama-backed stimulus package, in contrast, "treats Internet communications as an essential service, just like our highways," Kimmelman says.

With that baseline established, Kimmelman says, he expects major public policy shifts to follow, with the goal of making broadband available and affordable to all Americans. Though final language is still being worked out, the $7 billion plan offers "grants," or funding, to companies willing to deploy broadband — wireless or wired — in "underserved" or "unserved" markets.

But there are regulatory strings attached, notes Paul Glenchur of Stanford Group in Washington, D.C.

Companies must offer broadband services in a "non-discriminatory" fashion. That's code for "open access," a politically charged notion that says carriers must treat all Internet services the same.

Likewise, trying to define "underserved" or "unserved" markets could prove challenging, he says.

Why: Satellite-based Internet services already are available in most rural markets. Phone and cable TV companies have also spent billions deploying broadband in hundreds of markets, including rural areas.

The government's plan to essentially subsidize competition in these areas through a grant program "raises a basic question of fairness," Glenchur says.

Kimmelman disagrees. Satellite-based broadband costs around $90 a month, he says, putting it out of reach of many consumers.

By Leslie Cauley

notoriousBLOG

April 13, 2009 - 10:53 am EDT

TW, not a real good time to try to rip off your customers even more. You know with the economy thing and all! It's time to open this market to competition. In this day and time we don't need monopoly business's controlling something that has become so vital in people's lives.

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