Meter’s Running In Time Warner Test

Bandwidth cap violators will pay to surf

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Beaumont, TX, earned the distinction of being the testing ground for metered Internet service for the heaviest users of network capacity.

Metering the Internet recalls a time when service providers priced connectivity dearly. Once the unlimited model set in and broadband speeds arrived, Internet growth in usage and in services exploded.

Yahoo News noted how the metered model is making a comeback. Not because of scarcity, but consumption. Time Warner claims 5 percent of users grab half the available capacity delivered via cable to broadband customers.

Time Warner will put an allowance in place for its Beaumont customers. Stay under the cap and the usual charge for service remains the same. Pull in more than the cap, and the meter starts dinging at $1 per gigabyte, the report said.

Broadband Reports said only new customers will be charged for violating the cap, but not during their first two months of service.

“You’ll notice that instead of capping just those users or forcing them to a business tier, they’re taking aim at all users,” Karl Bode noted at Broadband Reports.

GigaOm asked if Time Warner was “crazy” in implementing this program. Stacey Higgenbotham noted how the fastest available Time Warner package of 15 megabits per second with a 40-gigabyte cap would be exhausted after about 40 hours a month of watching videos, on top of regular Internet use.

The groundwork for this move has been laid in place ever since the Telecommunications Act of 1996. The Act provided billions to the telecom industry to make broadband available to the majority of the population over ten years.

Instead of 85 percent of the population seeing speeds that would make South Korea, the pinnacle of high-speed broadband availability, tear up in jealously, the telcos spent their gains on other things. With no true competition in place for cable’s speeds, such as they are, we expect other cable companies to quickly follow Time Warner’s effort.

Meter’s Running In Time Warner Test
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  • Guest

    Death nail for the cable company. If all I wanted to do was check email and web then I’d pay the 14.00 for DSL not 44 for Cable, their already getting paid for the extra bandwidth, now they want more? Good-bye cable Hello DSL.

    And good-bye to progress. What are we coming too :(

  • http://www.discount-leather.net Guest

    Seems that the Antitrust and Monopoly legislation passed in the early 20th century are all but gone. With no competition between cable companies or for that matter, telephone providers, a consumer is stuck with high prices and mediocre service. The FCC and FTC used to be the consumers watchdogs. The consumer no longer has a voice in these matters.

  • Greedy people…

    I say all 15 billion Time Warner customers should get together and cancel the internet subscribtion for at least a month to see them come back begging to all the customers once their stock crashes on the market …just to see what other bright  ideas they think they can come up with while they  losing money of their own instead of  getting more….

    I do hope satelite internet ever comes to life so that the cable companies could die off.

    I for one am not addicted to the internet and cable…could care less to pay for anything extra that is going to make a company such as Time Warner’s bank account any larger. I rather donate my money to a worthy cause…..

    As a matter of fact Time Warner and cable companies alike should provide free services to all tax payers and most of all to Service Members…How about working on an idea such as that instead of taking money from hard working humanity……

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    I think that broadband may be the solution that will make the process very fast download

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