Time Warner Cancels Bandwidth Cap Tests

Bowing to public pressure, internet provider Time Warner has canceled its plans to expand trials of metered internet usage, reports The Wall Street Journal.

The program, which establishes a hard limit for bandwidth usage and charges users if they go over that limit, was set to hit Rochester, N.Y., and Greensboro, N.C. in August, and will expand to San Antonio and Austin, TX in October.

Many were concerned about impact this could have with the growing popularity of digital distribution and internet streaming technology in games and game-related services.

However, a trial in Beaumont, TX, underway since last year, will continue, with the company claiming that only 16% of users in Beaumont were affected by the caps.

Furthermore, the company will still pursue the concept, which it argues is vital because "Internet demand is rising at a rate that could outpace capacity within a few years."

"While we continue to believe that consumption-based billing may be the best pricing plan for consumers, we want to do everything we can to inform our customers of our plans and have the benefit of their views," said Time Warner executive Glenn Britt.