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Time Warner Offers More Pricing Options to Sweeten Its Tiers

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[qi:004] Time Warner Cable (s twc), after bearing the hatred of the digerati, its customers and even the financial community for its attempts to meter broadband use, has released more information about its pricing plans. It also offered a teaser assuring the world that it plans to one day launch the super-fast DOCSIS 3.0 service that other cable providers are already deploying.

Before it got into the plans, Time Warner in its release it justified its actions by saying, “Internet demand is rising at a rate that could outpace capacity within a few years. According to industry analysts, the infrastructure may not be able to accommodate the explosion of online content by 2012.” Wait, we heard this argument three years ago from AT&T (s T) — only that prediction was that the Internet would be full by next year! Instead of upgrading its pipes, Time Warner’s proposing that we just price this precious resource accordingly, and stop using so much of it. Here is the breakdown of the plans:

  • 1 GB per month tier offering speeds of 768 KB/128 KB for $15 per month. Overage charges will be $2 per GB per month.
  • It’s increasing the bandwidth tier sizes included in all existing packages in the trial markets to 10 GB, 20 GB, 40 GB and 60 GB for Road Runner Lite, Basic, Standard and Turbo packages, respectively. Package prices will remain the same. Overage charges will be $1 per GB per month.
  • 100 GB tier offering speeds of 10 MB/1 MB for $75 per month. Overage charges will be $1 per GB per month.
  • Overage charges will be capped at $75 per month. That means that for $150 per month customers could have virtually unlimited usage at Turbo speeds.

The statement notes that trials will begin in Rochester, N.Y., and Greensboro, N.C., in August.  San Antonio and Austin, Texas trials will begin in October. As Time Warner  launches DOCSIS 3.0 in the trial markets, it says it plans to offer a 50/5 MB speed tier for $99 per month, but doesn’t note the cap.

23 Responses to “Time Warner Offers More Pricing Options to Sweeten Its Tiers”

  1. 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 busienss 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)

    Dean Collins.

  2. charlie

    Stupid move, but let me throw this out there.

    Cable companies need to create a lower tier of service: the sub $20 pricepoint. Putting limits on DL speeds on that tier are largely ineffective. 768/k DL speeds are enough for 90% of broadband use — video streaming won’t work but everything else will. If they offer $15 at 768/DL thousands of existing subs will move over to that to save money. I know — I’m on a 24.99 comcast plan that says it is slower but I’ve never noticed a difference. So a DL cap might be able to create that price tier, but make it annoying enough that an existing sub won’t move over — on or two movies downloaded would kill it.

  3. “100 GB tier offering speeds of 10 MB/1 MB for $75 per month. Overage charges will be $1 per GB per month.”

    Are you kidding me ? Let me repeat that — ARE YOU KIDDING ME ?

    In an age and an era that relies heavily, if not exclusively, on the Internet you’re going to conveniently tier your pricing and make a utility even more expensive than it already is ? All the while reducing its speed because you’re afraid your network “doesn’t have the capacity to support the demand” What the hell do you plan on doing in 2012, make the Internet even more expensive because the Ruby on Rails, or AJAX’s of web development are too bandwidth intensive ? impede web programming innovation because your physical infrastructure can’t support demand ? ridiculous.

    Why can’t the government subsidize whatever “losses” or the expansion of the physical infrastructure for the company and as a result offer higher speeds and more network pervasiveness, so Americans can enjoy and utilize the internet as it should be used. The major ISP’s have been living way too high on the hog in the US and resting on their laurels for way too long while everyone zooms past us — it’s embarrassing. What’s even more disconcerting is it doesn’t appear to be getting any better.

    While TWC is probably one of the most blatant offenders, as an alternative Verizon FIOS is offering a significantly better service/speed for a price point that is not much higher. but how is it that someone in a certain part of Brooklyn can enjoy unfettered and untiered FIOS while in Queens, i’m relegated to the draconian tiered pricing, sub-par network performance of TWC ? something should really be done. I’m dead serious.

    Who is with me ?

    10Mbps Down and 1Mbps Up ? for $75 ? and an overage charge? lol — I guess all i can do is laugh, and continue to laugh until FIOS becomes available in Queens that one fateful day.

  4. This is going to probably make me switch to AT&T’s DSL, which is not cool since it is not as fast as a cable modem. However, I don’t think AT&T is going to give you caps that you can’t go over each month. Maybe Grande Communications will be available in my area to compete with Time Warner. I really hate this. Time Warner Cable is a monopoly in Austin.

  5. Antony

    Yeah, right! They just want its tiers be accepted to become legit, then they change the pricing plans. And even sell their future plan? Look like they’re playing us for an idiot!? What need to done is to build a fiber optic networks.