Re: OT:Time Warner to test Internet billing based on usage
- From: "=SEN0UR TR0UT=" <trout51@xxxxxxxxxx>
- Date: Mon, 21 Jan 2008 15:41:47 -0600
WHY???
=SEN0UR TR0UT=
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"It is easier to obtain forgiveness than to secure permission"
"Anthony Ferrante" <ferrante276-piano@xxxxxxxxx> wrote in message
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Time Warner to test Internet billing based on usage
Wed Jan 16, 2008 10:43pm EST
By Yinka Adegoke
NEW YORK, Jan 16 (Reuters) - Time Warner Cable Inc (TWC.N: Quote,
Profile, Research) said on Wednesday it is planning a trial to bill
high-speed Internet subscribers based on their amount of usage rather
than a flat fee, the standard industry practice.
The second largest U.S. cable operator said it will test
consumption-based billing with subscribers in Beaumont, Texas later
this year as a part of a strategy to help reduce congestion of its
network by a minority of consumers who pay the same monthly fee as
light users.
The company believes the billing system will impact only heavy users,
who account for around 5 percent of all customers but typically use
more than half of the total network bandwidth, according to a company
spokesman.
Slowing network congestion due to downloading of large media files
such as video is a growing problem for Time Warner Cable. The company
said the problem will worsen as video downloading becomes more
popular.
But the move could prove controversial. Unlike with utility bills such
as the phone or electricity, which have traditionally been based on
usage, U.S. high-speed Internet subscribers have come to expect a
fixed monthly charge. An Internet bill typically only varies based on
the speed of the consumer's Internet access.
Time Warner Cable, which has 7.4 million residential Internet
subscribers, is hoping the move will not confuse consumers if
introduced nationwide and is planning a trial period.
"Largely, people won't notice the difference," said the Time Warner
Cable spokesman. "We don't want customers to feel they're getting less
for more." News of Time Warner Cable's plans was originally leaked on
an online industry forum BroadbandReports.com.
Other cable operators may follow Time Warner Cable's lead and phone
companies such as Verizon Communications Inc (VZ.N: Quote, Profile,
Research) and AT&T Inc (T.N: Quote, Profile, Research) are likely to
be watching the New York-based cable operator's plans.
As U.S. consumers have become more used to streaming and downloading
digital media over the Web, their Internet service providers have
started to come under pressure to be able to keep up with growing
demand in a cost-effective manner.
Comcast Corp (CMCSA.O: Quote, Profile, Research), the largest cable
operator with around 13 million Internet subscribers, has been accused
by consumer groups of blocking Web traffic moving across its networks,
prompting a notice of inquiry by the Federal Communications Commission
earlier this week.
Comcast denies it blocks any Internet traffic saying it uses bandwidth
management technology to help improve the customer experience but
which may slow down some file transfers. (Editing by Lincoln Feast)
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expressly prohibited without the prior written consent of Reuters.
Reuters and the Reuters sphere logo are registered trademarks and
trademarks of the Reuters group of companies around the world.
Reuters journalists are subject to the Reuters Editorial Handbook
which requires fair presentation and disclosure of relevant interests.
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