Time Warner Transfer Caps May Inspire Fair-Price Legislation
Time Warner's recently announced plan to expand their broadband transfer caps to new markets drew heavy criticism, which prompted their attempt to smooth things over with a ridiculously expensive "unlimited" plan. That wasn't enough for New York Representative Eric Massa, who now says he will draft legislation to "curb tiers, particularly in areas where a broadband provider owns a monopoly on service." Massa said, "Time Warner believes they can do this in Rochester, NY; Greensboro, NC; and Austin and San Antonio, Texas, and it's almost certainly just a matter of time before they attempt to overcharge all of their customers," adding, "I believe safeguards must be put in place when a business has a monopoly on a specific region."
People complain about providers advertising "unlimited" that they can't provide for the price. People complain when providers have unpublished caps. People complain when providers publish caps. People complain when providers offer an "unlimited" service for a price that supports it.
Bandwidth and infrastructure cost real money. Providing "unlimited" access means allocating more bandwidth for those customers; why should they not charge for that? I work at a relatively small ISP, and our Internet circuits cost us $50-75/meg (plus we have multiple paths for redundancy), and that doesn't include our infrastructure (routers/switches, UPS/generator, A/C, people, etc.). If you want a guaranteed 6 meg pipe, you shouldn't expect to get it for $99.