Time Warner Expanding Internet Transfer Caps To New Markets

Akido37 writes "Time Warner Cable is expanding its transfer capping program to new markets in Rochester, NY, Austin, TX, San Antonio, TX, and Greensboro, NC. It seems they have been testing plans with 5, 10, 20, or 40GB of data transfer per month, with prices ranging from $30 to $55 a month. BusinessWeek quotes Time Warner Cable CEO Glenn Britt saying, 'We need a viable model to be able to support the infrastructure of the broadband business ... We made a mistake early on by not defining our business based on the consumption dimension.' Ars Technica adds, 'The BusinessWeek article notes that only 14 percent of users in TWC's trial city of Beaumont, Texas even exceeded their caps at all. My own recent conversations with other major ISPs suggest that the average broadband user only pulls down 2-6GB of data per month as it is. One the one hand, this suggests that caps don't really bother most people; on the other, it indicates that low cap levels aren't needed to keep traffic 'reasonable' since it's actually quite low to begin with.'"

Comments

Re:Only 40Gb/month?

[TubeSteak]

'We need a viable model to be able to support the infrastructure of the broadband business... We made a mistake early on by not defining our business based on the consumption dimension.'

Lol what? Does he think we're fucking stupid?
Time Warner (aka Road Runner) started experimenting with cable modems in 1995, but didn't go big until 1997ish.
Is CEO Glenn Britt really saying that their business model hasn't been viable for over a decade?

More likely they've been overpromising for over a decade and it's only been recently that demand has caught up with the promises.