The good news is that Time Warner has “backed away from its controversial efforts to price broadband based on consumption” in the cities where the trials were implemented.
The bad news is that it’s clearly not an admission of failure on their part. In their confirmation they stated this (emphasis mine):
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. As a result, we will not proceed with implementation of additional tests until further consultation with our customers and other interested parties, ensuring that community needs are being met.
Ah yes, it’s just a “misunderstanding”. We’re doing the right thing, you just don’t get it.
This isn’t the end of it, they’re simply regrouping. The translation is simple: Our PR group screwed up and wasn’t able to successfully fool enough people into believing the other guy will pay big bucks, not you.
Sometimes don’t you just wanna take a ball bat to the heads of companies like this?
There’s a wave of technologies converging for which broadband will come out of the “luxury” category and move more to the forefront. VOIP, video streaming, etc. Wouldn’t any far-seeing (dare I say it, “visionary”?) company say to themselves, “Wow. All these technologies are going to have lots of new people interested in our bandwidth. We better fatten the pipe and get ready for the onslaught of new customers”?
And not just streaming, more and more file downloads are requiring a larger pipe. In Apple’s case, they recently opened the gates for HD movie sales to Mac users (i.e., HD is not just for Apple TV owners), and could be a large beneficiary of more users having broadband in their homes.
Sadly, TW instead said, “Wow. Here’s the perfect chance for us to grab more money from our base. Why bother with improvements to add more customers when it’s easier just to milk the ones we have”?
This is why people hate the cable companies (and, yes, the phone carriers as well).