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Time Warner Broadband Cap Trial Rescheduled In Texas

jcrousedotcom writes "Time Warner cable apparently has heard that folks aren't too happy with their plan to meter their unlimited connections. From the first paragraph of the article: 'Time Warner Cable's proposed trials of consumption-based billing were originally slated to begin in several markets this summer, where customers would be a part of a tiered pricing scheme. Pricing would have started at 1 GB per month for $15, and go up to 100 GB per month for $75, and include a per-gigabyte overage fee. The public's reaction was less than favorable, and the trials in Texas have been rescheduled.'"

34 of 353 comments (clear)

  1. They can either do it openly or covertly by elrous0 · · Score: 3, Insightful

    Look, one way or the other, almost every broadband ISP has overbuilt their network and was not prepared for the advent of HD video and streaming services. The hard fact is that they cannot (and never could) deliver "unlimited" bandwidth. So either they:

    a) Raise their prices considerably on all their "unlimited" plans--sucks for the light users, who are basically subsidizing the heavy users who want to stream HD video and movies

    b) Covertly start throttling back heavy users--sucks for everyone, since no one even knows how much they're being throttled and there is no option of paying a premium to escape it

    c) Set download caps--sucks compared to the "free ride" heavy users are getting now, but at least it's out in the open with no throttling bullshit (and light users don't get penalized).

    Personally, I'll gladly take c. But there is for sure one option that is *NOT* on the table:

    d) Everything stays priced the same as now, without throttling or download caps

    So pick a, b, or c. And stop kidding yourself that you can pick d.

    --
    SJW: Someone who has run out of real oppression, and has to fake it.
    1. Re:They can either do it openly or covertly by dykofone · · Score: 5, Insightful

      They certainly will have to pass on the costs, and I would prefer openly, but why-oh-why do they pick the tiered level approach? It's the same way the cell phone companies do it: you have to guess how many minutes you're going to use ahead of time, then get shorted for what you don't use and pay huge overages for when you exceed you're initial guess. Let's get back to the electric utility model where you are charged for exactly what you use, and if anything, you get lower off-peak rates.

    2. Re:They can either do it openly or covertly by MagicM · · Score: 5, Insightful

      d) Everything stays priced the same as now, without throttling or download caps
      So pick a, b, or c. And stop kidding yourself that you can pick d

      What's wrong with picking d? It just means that at peak times, when your ISP has to process more data than it has bandwidth for, everyone's transfer rate goes down. This happens until those watching streaming video get fed up with the "buffering..." and go do something else, at which point everyone else's transfer rate goes back up.

      Nobody has to pay more, no schemes are necessary, and those ISPs who also happen to be Cable TV operators get to rejoice in the fact that streaming video failed. Everyone is happy.

    3. Re:They can either do it openly or covertly by Dan667 · · Score: 5, Insightful

      Time Warner can do what ever they want if they pay back the $200 billion in infrastructure they received from taxpayers enabling a monopoly in some areas. All the data so far shows that a very small percentage of people are very heavy users and it remains to be be seen if that is actually causing any problems for Time Warner. What is clear is that Time Warner is trying to protect their outdated cable tv business model, and as long as we paid for the infrastructure they should have limits to what they can do with it. They should publish data on their problems if they want any reasonable resolution. Until then, "d" is the only option that can be picked.

    4. Re:They can either do it openly or covertly by Poltras · · Score: 3, Informative

      But what about my god-given right to massive unmetered bandwidth without having to pay for it?

      That right exists in many country, European and Asian. You just have to move there.

    5. Re:They can either do it openly or covertly by the_B0fh · · Score: 4, Informative

      So, why is it that South Korea can have 100 mb/s up and down to your house for US$18? And Japan is now rolling out 1 gb/s up/down to the house for less than $100/month?

    6. Re:They can either do it openly or covertly by Pooklord · · Score: 5, Insightful

      . . . I'm going to guess it's much more fair by using the electric utility model and much more profitable by using the "heads-I-win_tails_you_lose" model of cell phone companies.

      Guess which model they're going with?

    7. Re:They can either do it openly or covertly by Endo13 · · Score: 4, Insightful

      Actually you skipped the only options that should even be considered.

      a) They need to pony up and install the extra infrastructure they've already been paid to install with our tax dollars and then actually provide the service they are currently selling.

      b) Since they're apparently unwilling or incapable of doing A, relieve them of their monopolies and introduce more competition.

      --
      There is no -1 Disagree mod. Slashdot.org/faq defines mod options. USE IT.
    8. Re:They can either do it openly or covertly by Anonymous Coward · · Score: 5, Insightful

      The problem is the issue behind this whole thing has nothing to do with internet traffic and the poor ISPs who can't keep up. It's about keeping people from watching content on the net rather than on the TV, or on the Cable Provider's website which they charge for. Hulu has deals with the networks, not with the cable providers. TWC doesn't like that.

    9. Re:They can either do it openly or covertly by srh2o · · Score: 5, Interesting

      All the evidence I've seen shows that d.) is entirely possible. Time Warner Cable has been making large profits already with the current system and their is no evidence that there is a bandwidth crunch. In fact all the evidence points to bandwidth caps having little or nothing to do with network management and everything to do with a cash grab. Best of all the COO of Time Warner Cable Lendell Hobbs agrees with me. "Mr. Hobbs tried to strike a balance, saying that while the company is concerned about the cost to maintain its broadband network, investors should not be worried. He said it was "absolutely not" true that Time Warner's profits were being squeezed by the cost of heavy broadband users. "If you are getting feedback that there is an immediate problem, nothing could be further from the truth," he said." http://bits.blogs.nytimes.com/2009/04/08/time-warner-cable-profits-on-broadband-are-great-and-will-grow-because-of-caps/

    10. Re:They can either do it openly or covertly by rts008 · · Score: 5, Interesting

      Well said.

      Besides that, I don't see how throwing more money at them will magically clear up the problem. We already tried that[as you mentioned], yet here we are again. "Bury us in money, and everything will instantly be OMGZ!!! Ponies!"

      I read my TOS with my ISP before I signed. There is no clause or restriction on usage of bandwidth/data amounts.
      What limits there are involve not setting up a webserver, or connecting more than three computers to the net at a time.

      The service I get now for $40 USD/month would jump to a minimum of $75 USD/month.

      Sounds like a raw deal to me. I'm not with TW, but don't like the thought of this becoming an 'industry standard'.

      FTFA:

      When networks are built out, the level of bandwidth consumption must be projected in advance; when those projections fall short, networks encounter serious congestion problems. Now that online gaming, streaming video, remote console and hard drive access, VoIP, and video conferencing are all increasingly common uses of the Internet, bandwidth consumption has exploded. According to Time Warner, it's exploding 40% faster than previously expected.

      [my emphasis]

      Yet all of those services have joyously and lavishly been advertised and marketed by these very same ISP.'s. What did they expect? Was this not what they were aiming for by promoting them?
      I'm not buying this load of BS.

      --
      Down With Slashdot BETA!!! I've been around the corner and seen the oliphant; you can only abuse me from your perspecti
    11. Re:They can either do it openly or covertly by tthomas48 · · Score: 5, Insightful

      What costs? Their bandwidth costs have been going down, and their profits have been going up. There are no costs they have to pass onto the consumer.

      You mean the cost of losing their cable business because Hulu, Netflix, and iTunes do what they do, but better and cheaper? I think that's the cost they're passing onto the consumer. It's an anti-competitive penalty to lock consumers into the "Time Warner Family of Products".

    12. Re:They can either do it openly or covertly by empiricistrob · · Score: 5, Informative

      Is this a serious answer, though? The vast majority of the land area of the US is almost unpopulated. But *MANY* people live in highly populated areas.

      For instance:
      San Francisco: 6688 people per square km
      New York: 10482 people per square km
      Chicago: 4816 people per square km

      For comparison, Tokyo has a population density of 5847 people per square km.

      So, to re-ask the grandparents question: Why are our urban areas so far behind Japan and South Korea's urban areas?

    13. Re:They can either do it openly or covertly by uncqual · · Score: 5, Insightful

      Back in the day when people had landlines, did they think that their "unlimited local calling" allowed them to use the phone while everyone else also was? They probably, if asked, thought so, but in reality if everyone in the city picked up their landline to place a call at 6PM, many (actually, probably most) of them wouldn't have gotten a dial tone.

      If your house has 200 AMP service from the electric company, do you think you can draw 200 AMPs at any time? Well, no, not if everyone in your area is also using "their" 200 AMPs at the same time.

      What do you suppose would happen if everyone in a town supplied with municipal water turned on all their faucets at the same time. Yep, they would get a dribble compared to what they would get if they just turned it on at a random time.

      Virtually all utilities "over subscribe". I'm betting that if you read the medium sized print in your residential cable broadband contract, you will find that they don't guarantee bandwidth. If you want bandwidth guarantees, try business class services.

      I'd agree, if the advertised "Up To X Mb Per Second" isn't available much of the day, the advertising would be dishonest, but in my limited experience, most times of the day, ComCast meets their "up to" bandwidth advertising.

      --
      Why is there an "insightful" mod and why isn't it "-1"? If I wanted insight, I wouldn't be reading /.
    14. Re:They can either do it openly or covertly by falconwolf · · Score: 4, Insightful

      They do it because the cell phone companies are making money with it. Utilities use metered because electric load is fairly constant and predictable. Even the use of AC is predictable. With a phone though, I can go a month and use about 60 minutes, and then the next one, I can use up 3000 (yay conference calls). I prefer knowing how much I pay ahead of time to getting wildly differing phone bills.

      The problem is that unless you get unlimited you'll more than likely still have differing bills. But if you pay for more than you use you're wasting your money.

      Falcon

    15. Re:They can either do it openly or covertly by Totenglocke · · Score: 3, Insightful

      Which is why NBC has the right idea with NBC Direct. Sure, they have some glitches right now, but they're working on it and release updates every couple weeks.

      I got busted by NBC for getting episodes of season 1 of Heroes over bittorrent because I misssed a couple episodes and NBC didn't post them online -- now they use p2p to let people download their videos in HD onto your computer and then watch it whenever you feel like it. Right now I'm working the night shift, so when I get home on the night a new episode was posted, I start the download, go to bed, and when I wake up I can watch it while eating breakfast. Overall I'd say it's much better than Fox on Demand in that the quality is consistent and it's better quality (the only downside being the rare occasions when the program breaks and you have to spend 30 minutes screwing with things to get it fixed).

      I think all tv stations should switch over to NBC's model and exclusively release shows online for download and release them on dvd / blu-ray. It would let people manage their time a lot better and (for stations funded by commercials) you wouldn't have to pay for cable just to get a show in HD that you could pick up for free with an antenna (granted, in crap quality). Channels like HBO that you do have to pay for with cable could just charge a small monthly subscription to get their shows online. Sounds like a good plan to me, but that's just my opinion.

      --
      "The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants." ~Thomas Jefferson
    16. Re:They can either do it openly or covertly by pnuema · · Score: 3, Interesting
      I prefer C:

      C. regulate them until they can't take a shit without permission since they have proven to abuse their monopoly.

    17. Re:They can either do it openly or covertly by Lil'wombat · · Score: 5, Interesting

      New Marketing Idea. Do what ATT does for cell phones

      Rollover MB's

      Sign up for a plan for X MB per month. Download capacity you don't use goes into the bank. Overages are charged at a set rate.

      Over the cap for two months in a row and get bumped up a level. Have too many MB's in the bank and get dropped automatically down a level.

      Fair and Simple.

      You could get even more complex if you desire, where MB's consumed vary with network load. Downloading a torrent during the busiest time of day counts double towards your cap, Download at 3:00AM and it counts half.

      I just wish these companies would man up and and have fair pricing. And for all of the people who signed up for Unlimited plans, suck it up and deal with the change or go elsewhere. Every other industry (credit cards, insurance, medical care)can periodically change the service agreement. Besides, as COMCAST I'd hope the heavy users got mad and went elsewhere.

      --

      Truth: If it's not one thing, it's another

    18. Re:They can either do it openly or covertly by Shakrai · · Score: 4, Interesting

      Why are our urban areas so far behind Japan and South Korea's urban areas?

      Because we have a fucked up hybrid system that touts the advantages of the "free market" while actually granting monopolies that lock out competition (franchise agreements) and which are backed with the full force of Government?

      --
      I want peace on earth and goodwill toward man.
      We are the United States Government! We don't do that sort of thing.
    19. Re:They can either do it openly or covertly by donny77 · · Score: 5, Insightful

      This is also one of the biggest concerns with bandwidth metering. A customer sells in 8 year old XP machine that shipped with Automatic Updates off. His brand new Vista machine shipped with Automatic Updates on. His bill jumps up and he doesn't know why.

      Windows Update, Apple Software Update, Java Update, Adobe Updater, Virus signatures, Spyware signatures, all the badly coded 1024x768 Flash websites that think they are Web 2.0. Suddenly this all costs money, and we haven't even gotten into the malware and viruses that are "surfing" for you when you are not around. The average consumer will not understand how they used so much "bandwidth" when they just check their e-mail.

    20. Re:They can either do it openly or covertly by Larryish · · Score: 5, Insightful
      I can sum up the reason that this will never happen in two words:

      ... fair and simple...

      The cable companies don't roll like that.

  2. Are they trying this with existing customers? by cayenne8 · · Score: 3, Interesting
    Are they trying to no LIMIT people who have and have had for awhile, the advertised 'unlimited' plan?

    Yeah, I could see how they'd get pissed.

    I could see Time Warner trying to set this up with NEW customers, but, with existing ones...how can they change it in the middle of the game? I know they say in the TOS they can change some things, but, can they legally change the basic service agreement on what a person contracted with them to provide?!?!

    --
    Light travels faster than sound. This is why some people appear bright until you hear them speak.........
  3. What was that? by DarKnyht · · Score: 3, Funny

    TW Exec 1 - "What was that?"

    TW Exec 2 - "That was the sound of a million subscribers switching to DSL and our stockholders crying in pain."

    --
    Voting them all out of office, now that's change I can believe in.
  4. Probably How It All Went Down by eldavojohn · · Score: 5, Funny

    TW Scam Artist: So this is how it works. See this graph here? Stats are showing that 80% of your users lie in monthly usage between 1GB and 100GBs of usage and they're paying about $45 as it is. So we reward the ten percent below 1GB with 1/3 their normal cost and we hit the 80% in bell curve here with 66% increase in price.
    TW CEO: And the 10% above 100GB per month?
    TW Scam Artist: Fuck 'em. We don't even want their business and what they're doing is probably illegal as it is. We hit them with one crippling monthly payment and they leave. There will be splash back but nothing our mitigation team can't handle.
    TW CEO: I see. How on earth are we going to market a 66% increase to 80% of our users?
    TW Scam Artist: We aren't. We're going to cherry pick stats. That's 1,000 songs downloaded from iTunes. Do you download 1,000 songs a month? No. That's 1,000,000 webpages and we point out that that isn't humanly possible to do in a month. We gotta be careful and skirt some of the obvious stuff like if you stream netflix, youtube, vimeo or any video site just a few hours and you're already in the $75 range. Avoid that. And avoid questions on people who download DVDs or even large updates to popular software like Warcraft and Windows.
    TW CEO: So we just unleash this on them?
    TW Scam Artist: No, we do a trial run and expect bad feedback. Then we say "oh gosh, some people didn't like it, so we're doubling the lower limit to 2GB!" and that loses us like 1% of the bell curve but we don't care. The people feel like they're vindicated blah blah blah they don't even realize or sign anything when this goes into effect. After that bullshit trial run, we are free to unleash it because it looks like we've done our homework and compromised our profits in the interest of the consumer.
    TW CEO: Why are we doing this, are we having network and hardware problems?
    TW Scam Artist: No, are you stupid? That shit gets better daily. Oh, did I hurt your feelings? I'm sorry, I didn't realize I was employed by a bunch of dumbass hippies waiting to roll over whenever an opportunity of epic proportions gets dropped in their lap.
    TW CEO: My apologies, here's your sack of money.

    --
    My work here is dung.
    1. Re:Probably How It All Went Down by bFusion · · Score: 3, Insightful

      That sounds about right.

      Hell, the latest major patch for World of Warcraft was closing on a gig by itself. If I have two computers and two laptops that need to download it (for girlfriend and other visiting friends) I'm completely boned.

      Granted I can copy/paste the patch file from one computer to another, but it's the principle of the thing here! There is this feeling I get from these revisions that "If you use more than a few gigs a month you're probably a pirate anyway" ... it's REALLY easy to burn through a gig or two just doing normal non-illicit internet hijinks.

  5. It's not bandwidth. by Drakin020 · · Score: 3, Insightful

    It's not bandwidth they need to cap, it's download speeds.

    Seriously, just because someone downloads 3TB's of porn doesn't mean the internet is going to run out of fuel. The kicker is how FAST they are downloading.

    If everyone in the world started downloading at 4MB/sec then we would have problems. It's not how much they download.

    --
    The greatest revenge in life is massive success.
  6. Rochester by mc1138 · · Score: 5, Insightful

    As a Rochester Time Warner customer myself and my friends who are also customers are pretty upset about all of this. The big problem is that as far as broadband goes choices are slim. Either Time Warner, or Earthlink, who buys its bandwidth from Time Warner. Beyond that its either Clearwire, Frontier DSL, both of which suck, or shell out a ton for a commercial grade installation in your house/apartment, which probably isn't actually an option. I've already said that if someone like Verizon were to introduce FiOS to the area at the same time Time Warner did this, they'd probably have a lot of people jump ship...

  7. And Verizon Says... by Silentknyght · · Score: 4, Informative
    from stopthecap.com

    Samuel Greenholtz, a retired manager from Verizon, offered this absolutely impenetrable thinking on why broadband providers needed to impose caps on customers and were forced to charge way too much for them:

    While a tiered pricing structure may have been inevitable in the long run, if the corporate bashing horde stayed out of the way, the vast majority of users would have avoided paying more for additional capacity. Time Warner Cable does give the politicians what they are looking for â" more bandwidth availability for all of its subscribers. Still, the lowest speed package is not going to be enough for most of the consumers â" and so they will have to take the higher tier offerings â" along with the new overage charges. Had the MSOs been allowed to just cap excessive users, most of the subs would have continued to receive a reasonable amount of bandwidth at the same flat price.

    Ironically, all of the illogic obsession with net neutrality will result in even more of a usage-based pricing scheme. There will now be several layers of capping. The anti-ISP crowd has actually created a more beneficial pricing system for these companies. And there is certainly nothing unfair about this development. But the clamoring for so-called equality resulted in an acceleration of the removal of the all-you-can-eat advantage for consumers.

    Stopthecap.com is referenced in the article to which Slashdot linked. The citation above from Sam Greenholtz was so outlandish, so clearly showing pro-corporate stances, I had to call it out. I didn't think the corporate side was so violently opposed to net neutrality and unlimited bandwidth, but with gems like "illogical obsession" and "corporate bashing horde", I'm surprised that there's not any active raping and pillaging.

  8. Actually. by tthomas48 · · Score: 4, Informative

    They haven't rescheduled anything. This is the exact same start date I got when I called them. This is just more fluff.

    I called and emailed (to make sure I cost them the most money) to verify that my price lock guarantee wouldn't allow them to charge me an extra cent or restrict my access. Once I'm done with that I've notified them I'm leaving.

    This is going to be really unpopular once people understand their marketing. My mom and dad don't have cable, but they do have Road Runner. They watch Netflix Watch Now movies (as they really like old movies and British TV shows, a place where Netflix excels). My Dad mentioned that he was hoping it would lower his bill. I pointed out that he was exactly the sort of user they were trying to get more money out of. He doesn't utilize their enormously profitable cable division and he's downloading movies from a competitor. He's going to be a direct target of this price gouging.

    If my Dad (who's decently tech savvy) didn't spot this then the "unpopularity" they're seeing now is going to be nothing compared to what happens when they try to attempt to bill people for it.

  9. Re:They will get their money one way, or another by tthomas48 · · Score: 3, Informative

    Did you look at their tiers? Basically they have:

    1) Affordable tier for people who think the Internet means email.
    2) Raping tier for people who know about websites like YouTube.

    They're effectively placing all their users who use the Internet regularly in the same bucket as file traders.You only have to download a few movies monthly off of iTunes or Netflix to need their unlimited plan.

    If you are a slashdot user, my guess is that you are in tier 2. Or you read slashdot using lynx.

  10. NO change at all by jsalbre · · Score: 3, Informative

    The rape^H^H^H^Htesting hasn't been delayed at all. October is the date TWC has been saying it would start in Texas since they announced the whole thing. The San Antonio Express-News is just clueless, and sadly other media sites are picking up on their article and repeating the nonsense.

  11. Metered is inherently better for you by Nerdposeur · · Score: 5, Insightful

    I prefer knowing how much I pay ahead of time to getting wildly differing phone bills.

    I understand your viewpoint - you want one less thing to worry about. But in every other area of your expenses, you just budget for an average amount - gas, food, whatever.

    Unless you get unlimited, never-expiring rollover minutes/bandwidth - and good luck with that - the "plan" model ALWAYS favors the provider. It's like this:

    1. Estimate your usage and choose a plan.
    2. Did you use less than that? You paid too much. The carrier wins.
    3. Did you use more than that? You got charged fees. The carrier wins.

    The optimal price model for the consumer is where you pay for exactly what you use at a fair per-unit price.

    Of course, what's missing from these "metered" plans is to take it the other direction. If I'm going to pay extra for using more than a cap amount, I want to pay zero when I use zero and pennies when I use very little. It's only fair.

  12. Damn by Amazing+Quantum+Man · · Score: 3, Insightful

    When I read the headline, I was hoping TW was getting sued over the cap.
    Then I RTFS (this is /., I didn't RTFA).

    --
    Fascism starts when the efficiency of the government becomes more important than the rights of the people.
  13. Could Google be waiting in the shadows? by IonOtter · · Score: 3, Interesting

    Remember those Slashdot articles a few years ago about Google buying up dark fiber?

    And more recently, building massive data centers near power stations?

    I wonder if they might be waiting for something like this to open up their ISP division and bury Comcast and TWC by offering unmetered service?

    --
    [End Of Line]