Print 126 comment(s) - last by oe2k.. on Jan 21 at 6:13 AM

Time Warner Cables hopes to weed out excess usage with new billing system

When it comes to high-speed Internet, most people take for granted that their flat monthly fee will provide all the bandwidth needed for endless downloading.

Time Warner Cable (TWC), on the other hand, doesn't quite see things that way. Just as Best Buy labeled its bargain-minded customers as "Devil Customers," TWC has its own subset of customers that take the "all you can eat" approach to Internet access.

In order to discourage bandwidth gorging, TWC will trial a new billing system patterned after regular household utilities that we all have become familiar with. Like gas, water and electric bills, TWC will charge customers based on their usage instead of a flat fee.

The move should help TWC weed out the five percent of its customers which it says horde over fifty percent of total network bandwidth.

TWC warns that the network congestions problems will only get worse as more media content is made available online. People today are taking advantage of their high-speed Internet connections to download movies and television shows -- and we can't forget users who often frequent P2P and torrent sites to share/download content.

"Largely, people won't notice the difference," said a spokesman for TWC. "We don't want customers to feel they're getting less for more."

TWC will first roll out a trial of the new billing system in Beaumont, Texas later this year. If the tests are successful, TWC may apply the new billing scheme to all of its 7.4 million residential subscribers around the country.

Time Warner Cable isn't the first company that has attempted to curtail a small minority of its customers from hogging network bandwidth using P2P services like BitTorrent. Comcast chose the unsavory route of throttling bandwidth for greedy customers using P2P software. Unfortunately, Comcast's actions also hampered legitimate users of software like Lotus Notes.

Comcast's actions resulted in class-action lawsuit from customers and an official investigation by the FCC.

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

By sapiens74 on 1/17/2008 5:44:17 PM , Rating: 2
Capitalism is the battle between the consumer to pay as little as possible versus the company attempting to charge as much as legally possible

In the end, the consumers always decide. Notice TW's better half isn't do so well now (AOL)

By johnbuk on 1/17/2008 5:55:23 PM , Rating: 2
More like communism where there is only one supplier and if you want it you'll pay whatever they want or go without.

By sapiens74 on 1/17/2008 5:58:21 PM , Rating: 2
Here (Hawaii) we have the choice of DSL and TW Roadrunner, and ClearWire Wireless, plus Sprint/Version EVDO, which are pretty fast.

If they start charging more, then I will just switch.

By sweetsauce on 1/17/2008 6:26:19 PM , Rating: 4
In the end, the consumers always decide.
Only when there are alternative choices. If there isn't, then you're boned.

"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki