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Time Warner Field Testing Metered Internet Plans; 5GB Min/40GB Max Cap, Overage Charges

by Nick Breckon, Jun 03, 2008 12:42pm PDT
Related Topics – Internet Rage

Time Warner Cable, the second largest cable internet provider in the US, has announced that it will begin field testing a new plan to meter internet usage.

The plans will introduce various choices of bandwidth caps and per-gigabyte overage charges to its customers in Beaumont, Texas. Time Warner executive Kevin Leddy told the AP that the metering will be rolled out in Beaumont starting this Thursday:

Tiers will range from $29.95 a month for relatively slow service at 768 kilobits per second and a 5-gigabyte monthly cap, to $54.90 per month for fast downloads at 15 megabits per second and a 40-gigabyte cap. Those prices cover the Internet portion of subscription bundles that include video or phone services. Both downloads and uploads will count toward the monthly cap.

"We think it's the fairest way to finance the needed investment in the infrastructure," said Leddy, who noted that 5 percent of Time Warner subscribers use up 50 percent of the company's available bandwidth. The company will charge customers $1 per every gigabyte used over their cap.

Bandwidth caps are a concern for gamers using services such as Microsoft's Xbox Live, where demos of titles can run in the multiple-gigabyte range. Valve's Steam service allows gamers to purchase and download PC games that can exceed 4GB.

The advent of internet metering can also be worrisome for digital entertainment providers. High-definition movie rentals typically weigh in at 4.5GB on Xbox Live, with low definition movie titles running at around 1GB on Apple TV.

Time Warner isn't the only company considering widespread bandwidth restrictions. Comcast recently announced that it will experiment with a 250GB cap, with plans to charge $15 for every 10GB used beyond the limit.




Comments

54 Threads | 146 Comments

  • Netflix stream + 4 computers in the house + 3 XBox 360s and 1 PS3...

    40GB ain't spit.

    People nowadays stream music, watch trailers online, play video games. As a professional in the media field, I upload spots, watch tutorials and stream all types of videos online, from work as well as from home. I can do 40GB in a heartbeat.

    5% my ass... it's a lot higher than that. They just want to make you think its less so they can actually implement the plan then reap the overages.

    If TW in my area goes that way, then I'm on DSL or something else.










  • 40 Gigs in days where some off-the-shelf PCs come with half-terabyte HDD sizes? Once again not only in music but also in digital media distribution the big production and distribution companies are far behind. About 10 years ago, everyone would have said 40 gigs is no problem at all. Nowadays this is just a joke. Music and movie industry are too sluggish for the fast paced IT / digital media / gaming industry.

    Also this will mean that more than the 5% of the users will be aware of and strive to fully use their "right" of 40 GB transfers - downloading much move movies/music/files/pr0n than ever before. Grats TW!









  • Few scattershot comments on this

    All you that think digital downloads are the wave for games/software which will replace retail purchases well sucks to be you enjoy repaying for that d/l and cry some more

    All you that think you need p2p to d/l ripped content, sucks to be you.

    Not really new really, signed up with shitty cox cable 5 years ago and found they had monthly caps at the time but buried in their sub info. Dropped that account inside of 2 days since whats the point of high speed if your back to the days of dialup monitoring your bandwidth?

    It's a cable connection it's crap to start with..





  • Time Warner is just wanting to put a dollar amount on data transfer. From what I've read, they believe 1GB of data is worth $1. This is a horrible idea; however, the average customer could probably care less about this right now.

    Thing change. If you haven't noticed, more and more people are making use of the Internet every day. Netflix, iTunes, Microsoft Marketplace, etc. etc. Why drive to Blockbuster when you can stream the movie in a matter of seconds? Not only is it an instant gratification but you save money as well. How much gas would you use to get to the store? Time Warner has decided to be the new gas bill of the virtual drive to Blockbuster. They've put a price on the byte and it's $1 for every 1,073,741,824 bytes. What a deal you say? That's a lot you say? Well, Bill Gates once said, "640K ought to be enough for anybody." Will they make change to the value of the byte once more people make use of the Internet? How often do you see gas prices go down and how often do you see them go up?

    I hope you understand what I am trying to say. If Time Warner makes this change, there is no doubt that companies will follow. Who wouldn't? It's more money for them! Furthermore, I'm sure online based companies are upset about this as well. I'm sure they'll have to make changes if this takes effect nation wide. Will Netflix reduce the price per movie to help ease the extra $1 the customer must now pay their ISP for downloading it?

    I'll stop there... although I have plenty more to say. I only hope those in Texas take action right away. Call - COMPLAIN! It's your American duty. Don't let them rape you so that they can rape the rest of us. Although, there really isn't much else you can do. Greed is a powerful thing.





  • So, they're going to ensure they receive the same overall revenue for the same amount of service provided, right? I mean, they'll charge the same *total* amount to all their customers combined for the amount of bandwidth they're currently providing, right? Which means that the group using half the bandwidth will foot 50% of the bill. Since they're footing 95% of the bill now, they'll see a reduction in their monthly bill of nearly half, right?

    I mean... This *is* an effort to ensure subscription fees accurately reflect costs, and not some cheapass plan to increase revenue, right? Right?!

    ... (sighs) Gawd dammit.