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TWC to expand bandwidth caps

by on02 April 2009

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More markets to lose unlimited bandwidth

According to the latest news on the Time Warner Cable front, the bandwidth restriction pricing structure that was tested in Beaumont, Texas was quite successful. It was so successful, in fact, that the company plans to expand the bandwidth capping pricing tiers into other markets.

Under the new pricing structure customers will have a choice between 5GB, 10GB, 20GB, and 40GB per month bandwidth caps, with prices that range from as little as $29.95 to as much as $54.90 per month, with a $1 per Gigabyte fee if you exceed your plan. While the company has not specifically said it, it is unlikely that they will offer any type of unlimited service level.

Time Warner Cable claims that the move is necessary to support and grow the infrastructure necessary to continue to supply customers with the speed and service levels that they expect. The company continues to assert that the move is necessary to deal with bandwidth hogs; it says that 25 percent of its customers are using 100 times more bandwidth than the rest of its customers. However, so far Time Warner Cable has not provided any actual data to validate this claim.

While companies might try to put an end to the unlimited per month Internet, many households have multiple users within the household that all use the Internet, which leads to increased usage. This limitation move could lead many to attempt to lock in with providers that are committed to providing unlimited bandwidth. Many customers may be forced to consider business class or home business rates which normally provide a higher level of service, but at the same time cost much more than standard consumer rates. Right now it is viewed as unlikely that ISPs will move to cap customers that are already paying business class rates.

According to reports, Time Warner Cable plans to expand the bandwidth caps to the markets in Austin, Texas; San Antonio, Texas; Rochester, New York; and Greensboro, North Carolina; with the first three cities to start the transition by summer.
Last modified on 02 April 2009
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