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Time Warner backs off on caps

by on17 April 2009


Tiered bandwidth plans on shelf

Time Warner Cable has apparently heard the cries of customers who are vehemently opposed to the plans that the company had to move toward a tiered pricing structure with bandwidth caps. The company has been testing the new program in Beaumont, Texas with much success, according to the company.

The company had announced that it would start moving toward bringing this tiered pricing structure with bandwidth caps to other markets. However, at least for the moment the company has shelved these plans, and a discussion between New York Senator Chuck Schumer and cable exec Glenn Britt could have a lot to do with the company now saying that it was a “misunderstanding” of the company’s plans.

Customers seem to be overwhelming opposed to the change, and sources say that the company now understands this fact. However, the company is still going to move forward with plans to roll out software that will let customers know how much actual bandwidth they are using per month.

Sources suggest that many ISPs have been hurt by the “no bandwidth limit” model and many providers are combating “bandwidth hogs” (who are a select few) that consume much of the total bandwidth that ISPs have at their disposal. Bandwidth caps are one way that ISPs are trying to battle bandwidth hogging.

However, many believe that most ISPs that want to move to a bandwidth cap pricing structure actually want to do it in order to help pay for expensive bandwidth capacity upgrades that have become necessary due to ISPs overselling the available bandwidth that they currently have. Many ISPs are in desperate need of expensive bandwidth and infrastructure upgrades, and this is one way that could help pay for the process.

Many consumers also contend that they are already paying too much for the service and speed provided by their ISPs, and while the infrastructure upgrades may be necessary, most customers are unwilling to pay more for bandwidth to help foot the ISPs bill.
Last modified on 17 April 2009
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