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Customers in Beaumont, Texas still get metered price gouging

Time Warner Cable has been under harsh criticism from consumers and politicians alike to stop their proposed tired internet pricing trials. The trials were to be started in Rochester, N.Y., Greensboro, N.C., Austin, Texas, and San Antonio, Texas. The trials would have seen users currently paying about $40 for unlimited bandwidth forced to pay $150 per month for the same service.

Time Warner has now announced that it is not going to be adding the new areas to its metered pricing trial. However, customers in Beaumont, Texas who are already paying for metered access will continue to do so.

Time Warner CEO Glenn Britt said in a statement, "It is clear from the public response over the last two weeks that there is a great deal of misunderstanding about our plans to roll out additional tests on consumption-based billing."

Much of the consumer protest surrounding the metered trials was in the Rochester, N.Y. area reports the AP. In that area, U.S. Rep. Eric Massa had said he was preparing legislation that would ban metered billing of internet access.

Timothy Karr from Free Press said, "We're glad to see Time Warner Cable's price-gouging scheme collapse in the face of consumer opposition. Let this be a lesson to other Internet service providers looking to head down a similar path."

Under the Time Warner metered plan, consumers would have paid at least an extra $1 per gigabyte over the miniscule monthly allotments provided. Streaming video would have been the hardest hit internet service under the tiered pricing plan. One gigabyte of data equals about three hours of streaming video.

Karr added, "Consumers are not going to stand idly by as companies try to squeeze their use of the internet."

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RE: Got caught red handed
By AntiM on 4/17/2009 11:17:44 AM , Rating: -1
I hope TW is smart enough to realize that most people didn't object to bandwidth caps in principle, it was their proposed price/allotment that was so objectionable.

Comcast's 250 GB/month is perfectly reasonable, if not overly generous. TW's plan was obviously designed to gouge people. If a person is using more than 250 GB per month, they should be charged more. I wouldn't have a problem with that at all.

RE: Got caught red handed
By Bateluer on 4/17/2009 11:36:35 AM , Rating: 3
People were more angry at Comcast's plan because of how they went about it. They weren't exactly forthcoming with their plans.

Had Comcast openly stated that they would begin instituting and enforcing a 250GB/month cap, there wouldn't have been a public lynching and an FCC smackdown.

RE: Got caught red handed
By wempa on 4/17/2009 12:43:44 PM , Rating: 1
Agreed. I have Comcast and I don't come anywhere near the 250GB cap. The unlimited plan just became the 250GB plan. That obviously wasn't an attempt to gouge customers. It was a deterrent to the top 1% of the people doing the downloading. If I had TWC, I'd be fuming at their ridiculously low caps. Unlimited would have become 40GB, which is low for somebody who even does moderate downloading or video streaming.

RE: Got caught red handed
By mindless1 on 4/17/2009 11:48:18 PM , Rating: 5
People are angry because they are not doing what is fair. They have the capacity to offer people 250GB per month so if someone only uses half that, their bill should be $1 less for each 10GB under that figure, down to a minimum of what is needed to service the account, perhaps $15 a month minimum.

In short, their claim does not jive with the facts. Paying per bandwidth necessarily means those who use less should pay less than they do currently, which is the majority of their customers.

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