Commentary
Consumer Advocates Unimpressed With Time Warner 'Concessions'
- by Wendy Davis , Staff Writer @wendyndavis, April 10, 2009
Yesterday evening, the company said it will offer slightly more generous terms in the four new cities where it will test a pay-per-download pricing plan. Rather than a top tier of 40 GB for $55 a month (the maximum cap for the test in Beaumont, Texas), the new top tier will be 100 GB for $75. Users will have to pay $1 extra for each additional GB, up to a maximum of $75 a month.
For consumers, these changes don't look like much of a victory. In practical terms, Time Warner will now charge subscribers in the test markets $150 a month for unlimited bandwidth -- more than three times the current price. The four new markets are Austin and San Antonio (Texas), Greensboro, N.C. and Rochester, N.Y.
In Rochester, where opponents to the new pricing are particularly vocal, Time Warner canceled a planned meeting with the editorial board of the Rochester Democrat & Chronicle after learning that the paper planned to stream the meeting online.
Time Warner has defended the price hikes by claiming that costs are rising. In an editorial this morning, the Democrat & Chronicle asked Time Warner for some evidence to back up its assertion that costs of bandwidth use justify the price increases.
Meanwhile, this morning advocacy group Free Press launched a petition drive calling for a Congressional investigation into whether the company "plans to impose an unfair penalty against Internet users."
"Congress has made access to an affordable and free-flowing Internet a focus of our economic recovery. Time Warner's price-gouging 'metering' plan penalizes consumers at a time when we need Internet access the most," states the Free Press petition.
Wendy Davis is a Senior Writer at MediaPost. You can reach Wendy at wdavis@mediapost.com
This all sounds fine and reasonable.
As soon as cable companies offer to give up their exclusive cable franchise rights then they can implement 'metered broadband'.
Until then..... the cable companies, their paid lobbiest shrills, and anyone trying to throw FUD into the mix can go back to their desks in hell and work out a new business model.
Cable companies have gotten fat and lazy on these exclusives.
If they want to throw competition into the mix...then they are welcome to. Until then - hands off.
(doesn't look so attractive now does it Time Warner)
Cheers,
Dean Collins
www.Cognation.net
I agree that we need competition in broadband access. However, I strongly disagree that Time Warner (or any other broadband provider) shouldn't have the right to meter access. No one expects to pay a flat fee for unlimited water or electricity use, so why should internet downloads be any different? Consumers need to be weaned off the idea that the Internet is an unlimited cost-free service, and companies won't have the incentive to invest in infrastructure if they can't recoup their investments.