Update 1: Look at the end of this post.
Update 2: Colin has some interesting analysis of the number crunching in the Business Week article..and he beat me to posting about this by 2 minutes, but I believe having both posts will be good for the discussion. Perhaps we can keep mine limited to the discussion of agenda and future of bandwidth with ISP’s and Colin’s can be for data analysis of media providers on the Web these days.
Update 3: Look below for some interesting commentary from the fine folks over @ stopthecap.com
Pardon the caps, but it’s warranted. Trust me:
In April, Time Warner Cable will begin collecting information on its customers’ Internet use in the Texas cities of Austin and San Antonio and in Rochester, N.Y. Consumption billing will begin in those cities later this summer. In Greensboro, N.C., the billing changes will begin sooner. Spun off from Time Warner (TWX) this month, Time Warner Cable had been testing a plan to meter Internet usage in Beaumont, Tex., since last year.
By charging a premium to the heaviest broadband users, much the same way cell-phone providers collect fees from subscribers who exceed their allotted minutes, Time Warner would upend a longstanding pricing strategy among Internet service providers. Typically, phone and cable companies charge flat fees for unlimited access to the Web. “We need a viable model to be able to support the infrastructure of the broadband business,” Time Warner Cable CEO Glenn Britt says in an interview. “We made a mistake early on by not defining our business based on the consumption dimension.” Time Warner Cable has 8.4 million broadband customers.
FOUR PROPOSED BROADBAND TIERS
Consumer advocates and Web site owners say tiered Web-use pricing limits customer choice and could stifle innovation by crimping demand for high-bandwidth services such as online video and music. Cable and phone companies say they need flexibility in setting prices for use of large, expensive, heavily used broadband networks.
In the case of Time Warner Cable, customers will be charged from $29.95 to $54.90 a month, based on data consumption and desired connection speed. Customers will be charged $1 for each gigabyte (GB) over their plan’s cap. Time Warner Cable offers four cap levels of 5, 10, 20, and 40 GB. A download of a high-definition movie typically eats up about 8 GB. A recent report from Sanford C. Bernstein suggests that a family on the 40 GB plan that streams 7.25 hours of online video a week (a fraction of the 60 hours Americans spend watching TV in a week) could end up spending $200 per month on broadband usage fees. And that’s just for video viewing, before factoring in such Internet activities as music downloads and photo sharing. “To put it mildly,” says Bernstein analyst Craig Moffett, “the decision to limit data consumption can be expected to have profound implications for [consumer] behavior.”
But Time Warner says most people are not using that much data. The company’s trial in Beaumont, Tex., lasted several months. Of the 10,000 broadband customers enrolled—about 25% of the company’s total for Beaumont—about 14% exceeded their cap and had to pay additional fees that averaged about $19 a month. Time Warner Cable also discovered that the top 25% of users consumed 100 times more data than the bottom 25% of users, suggesting an enormous gap in usage patterns.
This is such a crock of fucking shit. What about my legit uses of bandwidth:
- YouTube, Hulu, Vimeo, DailyMotion, and every other streaming video site.
- Netflix Instant queue streaming.
- iTunes (Podcasts, TV Shows, Movies, etc etc)
and the one that gets me the most enraged…
- XBOX Live/PS Network/Wii Online (Are you going to fucking tell me I have to pay extra now just to fucking download 1 GB demos and/or content for games…or play Halo!?)
Hell, for all the shit Comcast pulls, at least they give you a 250GB cap. I mean…that’s LIVEABLE, but 25$ 30$ a month for 5GB?
ARE YOU FUCKING KIDDING ME?!
Let me hear your rage, fellow and/or former Rochesterians.
Update: Hit the jump for less anger and more rationale.
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