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story category Time Warner Cable CEO: Metered Broadband The Future
Assuming competition, consumers have nothing to say about it....
05:14PM Friday Sep 19 2008 by Karl Bode
tags: business · bandwidth · cable · RoadRunner Cable
Time Warner Cable CEO Glenn Britt, whose company is currently engaged in metered billing trials, this week told investors that he believes that all broadband service will eventually be metered or consumption-based. Whether that's really a belief or a personal pipe dream isn't quite clear, but what's clear is that Time Warner Cable wants a future where broadband operators bill you in much the same way your local electic utility does. From IP Democracy:
Speaking at Goldman Sachs' Communacopia Conference today (webcast here), Britt said that he believes consumption-based broadband is "where we will ultimately go." Comparing broadband service to an electric utility, Britt said "with electricity we buy something called kilowatt hours and it’s a measure of both voltage and throughput and the amount you’re consuming. I think broadband is going to develop into something like that."
Time Warner Cable is currently running a trial where users are capped between 5-40GB, then charged $1 for every additional gigabyte. Given that's a 1,000-1,500% markup over the price Time Warner Cable pays for bandwidth, and such low caps would help Time Warner Cable strangle competing video options that threaten their cableTV revenues, it's no wonder that Britt's personal crystal ball tells him that metered billing is inevitable.

The reality remains quite different, as many broadband customers remain vehemently opposed to metered usage. It's also a difficult concept for Time Warner Cable to implement in competitive markets like Manhattan, where uncapped Verizon FiOS would eat capped and metered Time Warner Cable for lunch. Luckily for Britt, many of his markets (vast stretches of upstate NY come to mind) aren't particularly competitive, so the future can probably be anything Britt and his investor collective would like it to be.

Related:
  1. Time Warner Cable Confirms Powerboost Trials
  2. Time Warner Cable: Caps 'Make Your Internet Experience Better'
  3. Time Warner Cable Powerboost Hits Texas
  4. Time Warner Cable Using Fine Print To Foist Caps On Customers
  5. Time Warner Cable Powerboost Hits L.A.
  6. Time Warner Cable Upgrades To Be 'Surgical'
  7. Time Warner Cable Beats Back AT&T, Verizon
  8. Time Warner Cable Raises Standalone Broadband Prices
Forums » Time Warner Cable CEO: Metered Broadband The Future
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ninjatutle
You can keep the "change"

join:2006-01-02
San Ramon, CA

TW

Wasn't this the company that bought AOL? I reckon they aint too bright out in them there parts.
socrplyr

join:2008-03-25
Canton, OH

Re: TW

Yes and no. AOL was bought more for the media aspects of it at the time than to be a companion for the cable division. So in a way it was bought by the exec at Time Warner not Time Warner Cable (a different division). Also, note that Time Warner Cable is about to be spun off of Time Warner into its own company.
EPS

join:2008-02-13
Hingham, MA

Re: TW

Yes and no.

America Online, Inc., the country's largest ISP, acquired Time Warner Inc., primarily for its media properties, and renamed itself AOL Time Warner. In the merger, AOL also got control of Time Warner Cable, but restrictions were put in place (including allowing Earthlink to act as ISP) to prevent AOL from dominating broadband like it did dial-up. However, AOL shareholders owned 55% of the new company.

As it turned out, AOL's stock was greatly inflated due to the dot-com boom, and the company's value collapsed. The old Time Warner (inc. its cable arm, but also Warner Bros., Time Inc., etc.) became the most relevant part of the company, and later AOL was dropped from the name.

Now, the remnants of AOL, which never recovered, are a huge weight on Time Warner, which is trying to sell them off. As you stated, they're also spinning off TWC, in an effort to make the company simpler. (the argument being that Time Warner is too complicated and confuses investors)

faithfulreader

@rr.com
Actually it was the other way around. AOL bought Time Warner. At least try to get it right.

punker
deleted by moderator
Premium
join:2004-06-21
Palmdale, CA
clubs:

edit:
September 19th, @05:27PM

well

if we have your shitty cableTV

there should be no CAP
there is allways

leeching off a open AP
you could sue them for price gouging
aparis99

join:2006-10-24
Owensboro, KY

Re: well

if its "shitty" why do u still have it?
Weatherlover
Premium
join:2003-08-09
Costa Mesa, CA

Re: well

It's "you" not "u". Get your fucking grammar right.
aparis99

join:2006-10-24
Owensboro, KY


edit:
September 20th, @08:26AM

Re: well

said by Weatherlover See Profile :

It's "you" not "u". Get your fucking grammar right.
Oh, it's funny you didn't mention punker's "allways" or "a open AP"

Some of us type "shorthand". Sorry if some of us aren't typing properly for you to understand what we're saying. I apologize for all of us.

»Re: [TWC] Outage again
and maybe "mesa" should be capitalized and "effing" isn't a word...
kpatz
MY HEAD A SPLODE
Premium
join:2003-06-13
Manchester, NH
"you" is 2 more bytes than "u". We're just trying to stay within our caps!
Natoma

join:1999-08-30
Brooklyn, NY
·Verizon FIOS

This is why TWC is going out of business in NYC

FIOS is going to crush them wherever it's deployed. Good riddance to companies that refuse to upgrade their infrastructure and instead try to squeeze their existing customers dry.

40GB caps with a 10Mbit/sec connection? Good lord. On my 50mb/20mb FIOS connection, I used 30-42GB downloading AppleTV HD movie rentals in a few days, each movie being 4-6GB a pop.

Let alone regular downloading, torrents, video streaming, etc.

Time Warner Cable is a goddamn joke.
--
--Natoma

rumbasgo

@plus.pl

Re: This is why TWC is going out of business in NYC

hey brittiot ! how about pricing books per amount of letters ?
hottboiinnc
Kyle

join:2003-10-15
Toledo, OH
yep another FiOS fan boy claiming things that are not true.

va176thunder

join:2001-09-14
Columbus, OH
clubs:

I don't think so

Metered broadband consumption - sure, when it becomes a regulated utility "like electricity"
--
and the hits just keep on coming.........

en102
Canadian, eh?

join:2001-01-26
Valencia, CA
·RoadRunner Cable
·DSL EXTREME
·DSL EXTREME

Re: I don't think so

Exactly.. must guarantee 99.99% uptime, and become a 'dumb pipe' if they're going to push caps.

Last thing I need it TWC's 'RR' page/services gobbling up bits that I have pay for at the bit level.
--
Canada = Hollywood North
iansltx

join:2007-02-19
Fredericksburg, TX
·Qwest.net
·Comcast
·magicjack.com
·BeeCreek Communica..
·Sprint Mobile Broa..

Re: I don't think so

Yep. If you want usage based billing, you have a minimum fee, then charge X pennies (I said pennies) per GB above that. Minimum fee should be around $0 per month, and internet speed should be limited only by infrastructure, but with the ability to burst to close to what the medium can afford (in DOCSIS 2's case, 30/10 Mbps is about right).

Also, no throttling of any content. And, again, bandwidth costs should be about the same as electricity costs...except per GB instead of per KWh. So that might be $20 a month plus 5 cents per gig. I'm down with that.
jester121

join:2003-08-09
Lake Zurich, IL

Re: I don't think so

Also I want a pony.

(As long as we're making demands like spoiled children, I figured I'd join in!)
iansltx

join:2007-02-19
Fredericksburg, TX
·Qwest.net
·Comcast
·magicjack.com
·BeeCreek Communica..
·Sprint Mobile Broa..

Re: I don't think so

Sorry, minimum of $20 per month, not $0 per month. Typo. Seems like you've forgotten that some places will sell you a full DSL connection for that price (DSLX comes to mind, 3 Mbit/s). I want broadband as a utility, or maybe just a communications service (too much to ask!?!), MSOs want it as a cash cow that doesn't compete in the least with their TV offerings. If you're on the higher-end Comcast tier, you'll be paying a 20% premium on any iTunes HD rental you get, in bandwidth costs. Naturally, Comcast cable TV has no such cap, but the quality is crap. Catch 22 if I ever see'd one.

gemini365i

@optonline.net

said by va176thunder See Profile :

Metered broadband consumption - sure, when it becomes a regulated utility "like electricity"
BINGO! No way, no how, no MTERED Broadband...EVER!

Duramax08
Oy, Pass It on.

join:2008-08-03
San Antonio, TX
·Juno Express

CAPS! CAPS! CAPS!

DAMN THESE CAPS! Seriously, Why caps? I know alot of people like there internets, But cmon, You can do better. Its like every one is joining the Cap bandwagon.
--
»live.xbox.com/member/Duramax08

hopeflicker
Capitalism breeds greed
Premium
join:2003-04-03
Long Beach, CA

Re: CAPS! CAPS! CAPS!

This is all about stepping backwards. Oh yeah, and corp. greed.

dr3yec

join:2002-12-19
00000
·CableOne
·Comcast

Personally, net is not as important as electricity. I could go without net any day. My wife would be happy about that. But I cant go one min without electricity. Go ahead and make a ridiculous cap. So we can watch your business go down the drain. Please?

Duramax08
Oy, Pass It on.

join:2008-08-03
San Antonio, TX

Re: CAPS! CAPS! CAPS!

That would be crazy if they put a meter like a power company meter outside our houses telling us and them how much we used a month.

we are idiots

@direcpc.com

Re: CAPS! CAPS! CAPS!

we don't have to take this shit if everybody would just cut off our internet you wont hear shit about usage caps

yea its going to be funny as hell when everybody gets tired of their bullshit,and goes back to dialup or no internet altogether i lived my first 28 years of my life without internet wouldn't hurt me to go without it

Simba7

join:2003-03-24
Billings, MT

edit:
September 19th, @05:29PM

*Crystal Ball*

I can see you FAILING in the near future. Be prepared to have most of your customers leave you for a better ISP.

I think he's been smoking too much of the green, leafy substance laced with crack.

Killersaurus

@texastechfcu.org

Yes!

I hope they introduce metered viewing for cable TV as well. Then I can just watch my dollars rolling by...
dentman42

join:2001-10-02
Columbus, OH

Re: Yes!

I have no problems with paying metered prices for cable like I do for electricity. I'd be just fine paying the 6.7 cents per gigabyte that I pay per kilowatt hour...

Doctor Olds
I Need A Remedy For What's Ailing Me.
Premium,VIP
join:2001-04-19
1970 442 W30
clubs:

Re: Yes!

said by dentman42 See Profile :

I have no problems with paying metered prices for cable like I do for electricity. I'd be just fine paying the 6.7 cents per gigabyte that I pay per kilowatt hour...
Nah, they want 6.7 cents per kilobyte, not per gigabyte.

So a gigabyte would be 1048576 kilobytes at 6.7 cents each.
--
What’s the point of owning a supercar if you can’t scare yourself stupid from time to time?

hhawkman
Premium
join:2001-02-08
Port Hueneme, CA
·RoadRunner Cable

said by Killersaurus :

I hope they introduce metered viewing for cable TV as well. Then I can just watch my dollars rolling by...
That's an interesting idea. Lets say you have access to 200 channels@$40/month (makes no difference how many channels, you can only watch one at a time (dvr notwithstanding))... break that down to $1.33/day. Figure in a normal day, you have the potential to watch TV for 16 Hours($.04/Hour), but the reality is probably something like 4 hours/Day ($.33/Hour). Hell, My cable bill would drop to somewhere around $17/Month (I watch TV maybe for 2 Hours, 3 nights a week average)

Even if you charge more per hour for premium channels, and less for local BS channels, it would be great.

I'm sure the math can be refined more, but you get the idea

Bring it ON
tmc8080

join:2004-04-24
Floral Park, NY

another certainty?

subscription loss to Verizon in NYC!
as sure as you can say $99 triple play, you can say cancel my account and switch.

TK Junk Mail
Go ahead, make my day
Premium
join:2002-03-03
Margate City, NJ
clubs:
·Comcast

Re: another certainty?

said by tmc8080 See Profile :

subscription loss to Verizon in NYC!
as sure as you can say $99 triple play, you can say cancel my account and switch.
And when Verizon starts using caps too? Where will you move to then?
--
My BLOG .. .. Internet News .. .. My Web Page
Ask yourself one question: 'Do I feel lucky?' Well, do ya punk?
EPS

join:2008-02-13
Hingham, MA

Re: another certainty?

Verizon's not using caps, and hasn't said anything about them (though if asked I'm sure they would say that they wouldn't rule them out)

If one accepts the postulate that caps are inferior to unlimited service, and ignoring all other elements, then a provider that may possibly cap but hasn't said anything definitive is still better than a provider that has outright said it will cap.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA
Indie DSL... aka DSL-Extreme
--
Canada = Hollywood North

espaeth
Misanthrope
Premium
join:2001-04-21
Minneapolis, MN
·voip.ms
·Callcentric
·VoiceStick
·ViaTalk
·Comcast
·Embarq

Re: another certainty?

said by en102 See Profile :

Indie DSL... aka DSL-Extreme
If enough high bandwidth users flock to DSL they'll be forced to implement caps as well. Their costs go up as bandwidth utilization increases.

RaulF

@metrocast.net

Re: another certainty?

What i dont understand is, if more customers go to them that also means more money!!!!!!!!!!! WHY OH WHY can't they use that money to get a better network an maintain those customers without restrains??? It is all about greed, more customers more money, but once they see the customers are not happy because they are not providing what they promise, instead of fixing the problem(more bandwidth) they choose the easy part, caps. Oh well.

If it gets to that point to dial-up i will go. They can keep their HSI for all i care.

djrobx

join:2000-05-31
Valencia, CA
·AT&T U-Verse
·AT&T CallVantage
·Time Warner VOIP
·RoadRunner Cable
·DSL EXTREME


edit:
September 19th, @08:08PM

Re: another certainty?

said by RaulF :
If it gets to that point to dial-up i will go. They can keep their HSI for all i care.
If you download so much data that you're concerned about metered internet billing, I call BS. You are NOT going back to dialup.

What i dont understand is, if more customers go to them that also means more money!!!!!!!!!!!
Today's low broadband pricing relies on "overbooking" capacity with the assumption that people are not using it around the clock. Indie ISPs like DSLExtreme must offer similar pricing to the telco to gain a decent customer base. If DSLExtreme gets flooded with all of Time Warner and AT&T's heavy usage customers, they will have unusually high traffic and bandwidth expenses. They will be forced to institute similar caps, or upgrade their network and raise prices.
--
AT&T U-Hearse
Your funeral. Delivered.

RaulF

@metrocast.net

Re: another certainty?

The main reason for my HSI is low ping for playing online game via PC. So yes, i will give up online gaming. And about downloading data i do watch shows online in the FOX NBC and Hulu. But i also have my DVR, which would make that obsolete.

Pizz
Hi

join:2000-10-27
Astoria, NY
·RoadRunner Cable
·AT&T CallVantage

said by TK Junk Mail See Profile :

said by tmc8080 See Profile :

subscription loss to Verizon in NYC!
as sure as you can say $99 triple play, you can say cancel my account and switch.
And when Verizon starts using caps too? Where will you move to then?
I seriously doubt verizon will cap a service that isnt even being utilized fully. Plus on top of it, they own one of the largest NSP backbones in the world. Bandwidth to them is non-existant.
EPS

join:2008-02-13
Hingham, MA

Re: another certainty?

Don't be so sure. at&t's fiber network has substantial capacity, but at&t has talked about introducing a capped system. In their case it's probably more about greed than legitimate "our network is DOOOMED" issues.
tmc8080

join:2004-04-24
Floral Park, NY

said by TK Junk Mail See Profile :

said by tmc8080 See Profile :

subscription loss to Verizon in NYC!
as sure as you can say $99 triple play, you can say cancel my account and switch.
And when Verizon starts using caps too? Where will you move to then?
you imagine a world in which consumer protections (though few they may be after the last 8 years) do not exist. municipal or 3rd party providers would flourish in that environment. just because cable and telco own 98% of the market today does not guarantee that in the future. we decide where we spend our money. it's our money before we decide to give it to them. on the one hand they're free to change the terms of providing service as they see fit. we have the choice to buy or not to buy, and consumers have the bully pulpit of encouraging a boycott of services where companies go out of their way to be greedy and screw the consumer. don't think it works? take a look at sprint! they have a big problem with subscriptions. take a look at plain old telephone service, there are many examples in which the consumer's choice is king, and the companies who fight against the grain do it at their own peril!

a day will come when the oil companies will have their comeuppance as well.. but not for long, long time (unfortunately)-- as the republican party has a stranglehold on that steady stream of oil money and they won't give it up without some pruning of that influence (people party and institutions). fuel does not have to be a revenue stream that props up the economy. if alternatives such as hydrogen were given a chance to flourish, there would be little need for billions of barrels of oil to be imported from the middle east. however, if you were guaranteed a monopoly market and control/manipulation of the progress of technology would you want to give that up?

oil=$98 a barrel
price at the pump per gallon $3.51-$4.59
9/20/2008
iansltx

join:2007-02-19
Fredericksburg, TX
Heh, my idea of triple play:

$63 - internet
$1.50 - MagicJack
$34.50 - Netflix + iTunes budget

Still $99 but my internet is faster and I'm not limited to my house as far as where I can watch my TV.

TK Junk Mail
Go ahead, make my day
Premium
join:2002-03-03
Margate City, NJ
clubs:
·Comcast

Quoted markup % is pure fantasy

capped between 5-40GB, then charged $1 for every additional gigabyte. Given that's a 1,000-1,500% markup over the price Time Warner Cable pays for bandwidth
That markup being quoted is pure hype. Sure bytes bought from internet backbone providers are much cheaper than $1/GB. But the cost to deliver a GB to the last mile is much greater than purchasing it for the backbone. All the local infrastructure costs(splitting nodes; upgrading electronics; maintaining extra infrastructure; etc makes the quoted markup a joke.

There is also the main purpose of a cap with HIGH overage charges - to discourage users from exceeding the cap at all. It isn't to make a lot of extra money.

And when last mile infrastructure is ultimately enhanced(say by Docsis 3), the cap can be raised considerably. But even then, there will be the need to cap some abusive customers. So overage charges will still exist even with new higher caps.
--
My BLOG .. .. Internet News .. .. My Web Page
Ask yourself one question: 'Do I feel lucky?' Well, do ya punk?

See 29 replies to this post
Mr Matt

join:2008-01-29
Eustis, FL
·Comcast

Who says the United States wants to be first in broadband

TW obviously uses backward thinking or suffers from extreme greed. Broadband service pricing should be regulated just like land line service. Georgy Bush does not believe in regulation, so don't hold you breath for any change in regulation of broadband service pricing.

jchambers28

join:2007-05-12
Alma, AR

moved

thank god I moved away from Kansas city. And the time Warner cable hell hole. With their looming bandwidth caps and all the other BS they are putting their customers threw.

What_Broadband

@stancera.org

Caps on Service

While I subscribe to the fact that most broadband users probably don't anything close to the caps these providers are considering implementing, I still think this this is a slippery slope that we need not head down. Today the caps may be 5 to 40 Gb, tomorrow they might be 2-10Gb.

The answer is improving infrastructure...not capping service. What happens as services such as video rentals become an all "on demand" solution...and in the competitive market, you decide to choose a solution other than your carrier/ISP. Now these video streams could easily consume more than the cap value.

I grow weary of this environment where everyone wants to get into the business of pay as you go services. The software industry is headed that way with everything being a hosted application.

We must hold our ground and let these companies know enough is enough. We're sick of the drain on our wallets.

That's my two cents...
BF69

join:2004-07-28
Camden, TN

Re: Caps on Service

said by What_Broadband :

While I subscribe to the fact that most broadband users probably don't anything close to the caps these providers are considering implementing, I still think this this is a slippery slope that we need not head down. Today the caps may be 5 to 40 Gb, tomorrow they might be 2-10Gb.
And then I will not bother with internet at all. At best I'd just get the cheapest DSL which is $20 amonth for 768 kbps speed which is fine form e-mail and very basic surfing which is all youc an do with 2-10 GB. So not a very smart way of making money. More and more busines are offering free-wifi so maynbe I would just get a laptop and use their internet if ISPs are going to be complete assholes.

ArchAngel21x
MacFan Pro
Premium
join:2001-10-28
Lincoln, NE
·Internet Nebraska

Ok

If they want to move to a metered broadband system then they should let everyone have the fastest speed their cable modem will give them. Why not let them have un-throttled speed if they are going to pay extra for going over a cap?
--
Proud owner of a Mac Book & iPod Touch (8 Gig) | Mac Rumors | Apple Store

meh37

@verizon.net

Well, sure...

because it costs them just as much money to "produce" a gigabyte of broadband as it costs the electric companies to produce a gigawatt of electricity.

Hey! Where's that BPL?

BPL

@direcpc.com

Re: Well, sure...

ham operators crybabyied about causing interference plus cost allot for providers, its being shut down in dallas bbl could have been great if given time to make devices to not cause interference,and everybody working together on it instead of all these companies wasting money in their own failed projects bbl could have been the answer for rural broadband but will not happen

hayabusa3303
Over 200 mph
Premium
join:2005-06-29
clubs:

Hate to say it.

Ok at&t looks like you will get my business.

Karl Bode
News Guy
join:2000-03-02

Re: Hate to say it.

Sorry, they too think metered broadband is "inevitable."

Are we sensing the investor and executive driven meme, yet?

hayabusa3303
Over 200 mph
Premium
join:2005-06-29
clubs:

Re: Hate to say it.

At least it will not be 5gs a month like Tw has it set.
kingofdsl

join:2002-12-11
Afton, OK

said by Karl Bode See Profile :

Sorry, they too think metered broadband is "inevitable."

Are we sensing the investor and executive driven meme, yet?
Karl, I say let the Corp bastards implement this. When enough people are negatively affected and paying up the ying yang they will revolt.

hayabusa3303
Over 200 mph
Premium
join:2005-06-29
clubs:

One more.

what about business class? they metered also?
BF69

join:2004-07-28
Camden, TN

Three things

A) last time I checked my electric company doesn't cap my useage.

B) My electric company doesn't charge 10X the cost of the product.

C) The more electricity I use, the LESS per kilowatt I pay, not MORE.

Maybe Mr Britt should check his analogies before he uses them for examples.

See 7 replies to this post
isp

join:2003-12-02
Chillicothe, OH

cya

people will just seek out the providers that offer unlimited usage...and there always will be one....it's a significant competitive advantage
BF69

join:2004-07-28
Camden, TN

Re: cya

said by isp See Profile :

people will just seek out the providers that offer unlimited usage...and there always will be one....it's a significant competitive advantage
Or you will see a singifican't increase in people leaching wi-fi from their neighbors too stupid to secure their wireless connections. For less than $50 you can make a cantenna or a wok-fi and find LOTS of unsecured connections.
Aidens Daddy

join:2006-01-30
Belleville, IL

Electricity is a two way street

If I generate power (solar) and use less than I generate the power company pays me. So if I upload more than I download does not mean TW is going to pay me?
EPS

join:2008-02-13
Hingham, MA

Re: Electricity is a two way street

That's not how bandwidth works- analogies can only take you so far.
bugabuga

join:2004-06-10
Austin, TX

Re: Electricity is a two way street

Actually that's how it works between the big providers. If I'm generating more outgoing traffic to your network than receiving from you, you pay.
In case of approximately symmetric traffic the peer exchange usually doesn't go the metered route.

maartena
Obama 2008

join:2002-05-10
Orange, CA
·RoadRunner Cable

They will lose me as a client....

I don't download THAT much, I average about 100 Gb a month. Most of it is game server related traffic, as I run 5 OpenTTD servers (Open Source Transport Simu game) on one box, and with map-downloading it uses a lot of data, i'd say 30 Gb a month.

I can live with a Comcast-like cap of 250 Gb. But anything less then 100 Gb, and i'll switch my TV to DirectTV (more HD channels anyways) and my ISP to DSLExtreme.
--
Obama 2008 - Because McCain is more of the same!
BF69

join:2004-07-28
Camden, TN

Re: They will lose me as a client....

said by maartena See Profile :

I don't download THAT much, I average about 100 Gb a month. Most of it is game server related traffic, as I run 5 OpenTTD servers (Open Source Transport Simu game) on one box, and with map-downloading it uses a lot of data, i'd say 30 Gb a month.

I can live with a Comcast-like cap of 250 Gb. But anything less then 100 Gb, and i'll switch my TV to DirectTV (more HD channels anyways) and my ISP to DSLExtreme.
First of all 100 GB is A LOT today. Most people don't use anywhere near that. Second running a game server is 100% against your ISP TOS. You should be using a BUSINESS account for that.

Thirdly do you think that ISPs care if they lose the top 1% of users? Hell no. ISPs love Grandmas paying $50 a month to read e-mail 3 times a week than they do someone using their $50 conenction to stream netflix all day long.