Time Warner Cable Expands Metered Billing Efforts Dubious Value Option Expands in Texas After Time Warner Cable took a public relations beating for pushing low caps and high per byte overages on consumers back in 2009, the company has been stepping very carefully in what is quite obviously their relentless desire to charge consumers broadband overages. Early this year their metered billing option returned to a few tiny markets as a voluntary option named " Internet Essentials. The company promises users a $5 discount off their bill if they sign up for the plan, which features a 5 GB cap and $1 per gigabyte overages. Granted if you actually use your connection for anything more than checking the weather a few times a week, that "discount" evaporates immediately. Seeing the value yet? Yeah, us neither. If having your bandwidth consumption tightly constricted for no particular reason appeals to you, you'll be happy to note that Time Warner Cable has expanded the plans further throughout Texas. According to the company, Internet Essentials is now available in Austin, Dallas, El Paso, Waco, Temple, Killeen, Kerrville and the Golden Triangle. Time Warner Cable continues to try a little too hard to sell users on the idea that this plan is a good idea for them, and that tightly rationing bandwidth is about meeting a consumer need. "Its clear that one-size-fits-all pricing is not working for many consumers, particularly in a challenging economy," said Time Warner Cable's Gordon Harp, Regional Vice President of Operations in Texas in a press statement, adding that the new tier is designed "to meet the needs of consumers who want more price flexibility." Except it's far from clear that consumers asked for Time Warner Cable's metered proposal. In reality, as the company found out painfully in 2009, most customers are perfectly happy with flat rate pricing. Consumers are even happy with flat-rate pricing at what's often an obvious premium -- because they don't like having to worry about counting their bytes. It's Time Warner Cable that wants the shift. Flat rate pricing doesn't fit Time Warner Cable's agenda because the company simply wants to charge more for data. As we've long noted, the goal isn't value or flexibility for consumers, it's to constrict the bandwidth pipe and impose new tolls to offset the inevitable impact Internet video will have on TV revenues. The tried to force it, now they're trying to soft sell it. Customers remain fortunate that the option is voluntary -- for now.
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 DrDataPremium join:2004-12-31 Longwood, FL | Lack of competition Lack of competition drives stupidity like this. If they had competition they would be taking $5-$10 off the all you can eat plans. | |
|  |  | | Re: Lack of competition Metered billing , or an across-the-board internet price hikes?. Metered billing please. | |
|  |  |  | | Re: Lack of competition Congratulations: you get both | |
|  |  |  |  | | Re: Lack of competition said by Wilsdom:Congratulations: you get both no kiddin, peoples bills will be skyrock at that pricing.., makes dropping your standard tv sub easyer..
5gb they are way out of line... but kinda knew that in 09 when they tried 40 ha | |
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 |  |  The LimitPremium join:2007-09-25 Greensboro, NC kudos:2 | I'll take a price hike over metered billing ANY day. | |
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·Comcast
| said by ITALIAN926:Metered billing , or an across-the-board internet price hikes?. Metered billing please. this post and several others from you scream shill -- my site | |
|  |  |  |  | | Re: Lack of competition Shill, I use my net to browse the web, not download a Terrabyte of data due to streaming movies. My prices should increase due to what YOU do every month? Kiss it bro | |
|  |  |  |  |  innoman-Premium join:2002-05-07 Dallas, TX kudos:1 | Re: Lack of competition Then pay less for a 1.5Mbit connection. Your price will increase regardless of what others are doing. I shouldn't have to pay $1/GB extra when TWC pays pennies for it. | |
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·Verizon FiOS
| Re: Lack of competition Pennies? Are you their accountant and / or a TWC network engineer ? Perhaps you sit on their board?
The cost to maintain/improve your last-mile connection costs pennies? I dont think I agree. Even if it did, Im pretty sure these corporations exist to make money. They arent providing you a connection pro bono. | |
|  |  |  |  |  |  |  | | Re: Lack of competition The cost to move data is dropping (fractions of a penny) as well as costs to maintain the network year after year. Don't believe me? Look at Time Warners earnings in regards to broadband. Labor costs are already figured in so I don't know why you keep harping on that.
I'd rather my Internet go up than have to deal with ridiculously low caps. Perhaps you like being given the heave-ho in the backside but I don't. | |
|  |  |  |  |  |  |  innoman-Premium join:2002-05-07 Dallas, TX kudos:1 Reviews:
·VoicePulse
| You know, I may very well be. Either way, I am not a brainless moron and I understand how the industry works quite well.
And yes, pennies... actually, as sandman says, fractions of a penny. I'm not asking for free, I am asking for reasonably fair. I believe the standard price of a typical connection is what, like 40-50/month? Take $5 off of that and it's 35-45/month for 5GB. I get 5GB using LTE for $50/month (which is a whole different issue). Then $1/GB over, it's absurd and you know it just as well as I do.
You can try to spin it in any direction you want, but I have to believe you are not so unintelligent to think it's not fair. As for network upgrades/maintenance, that costs but they surely aren't running any fiber out to my home. Verizon did that to quite a few homes and they aren't ranting about caps/overages, yet... I don't see TWC making anywhere near that kind of commitment.
I'm happy to pay for my connection and I'm willing to pay a reasonable amount. Even slightly more than reasonable as long as I am getting something close to what I am paying for. Those who are being capped like that... They are NOT getting what they are paying for, they are getting ripped off. Most are getting ripped off. For every person using 200-300GB/month, there are probably 50+ using 5-20GB/month. TWC isn't rewarding those using less, they aren't going to (oh wait... $5off/month... which most will probably end up paying back at least double because they went over 10GB--not understanding how things work). They are going to continue to collect hefty rates from them while they try to make more from those using more.
It has nothing to do with cost vs. usage and EVERYTHING to do with preventing loss of revenue for their TV services. Making money and greed walk a fine line, they past that line a thousand miles back.
Do you work for TWC? | |
|  |  |  |  |  |  |  chip89 join:2012-07-05 Independence, OH | that's because they do no not maintain there network at all. | |
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·RoadRunner Cable
| Metered billing as an option may work very well for some people. This isn't the plan for them, however.
A metered billing plan that may work for some people has a very low connection charge (read $5 or so) and then an affordable cost per gb of use.
A $5 discount is a slap in the face to consumers. Time Warner wants metered billing, but they don't want to reduce the connection price any. "Just pay us more" instead of "Just pay for what you use." -- I never knew how much time I could waste on the Internet before it was so fast! | |
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 |  | | Regardless how many providers there are, they have the same common goal. GREED!!!!!!!!!!!!!!!!!!!!!!!!! | |
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 | | 5GB per month...wow You know people complain about only having 4-5GB month on their cell phone, what would they do if that was their home connection. I only use 1GB per month on my cell phone because I use Wifi at home, this would completely destroy that idea. This is worse than any cell company, WISP, and satellite company I've ever come across.
Just another reason I dislike TWC. | |
|  RadioDocYeah, like it matters.Premium,ExMod 2000-03 join:2000-05-11 La Grange, IL kudos:2 Reviews:
·AT&T Midwest
| Who could have guessed? The landline ISP bean counters have been wetting themselves over the wireless ISP pricing model for years, and have waited until the latter wore down customer resistance to the point where the former can bend everyone over enough to force pay per byte through. This is just their first volley of lies. | |
|  CheesePremium join:2003-10-26 Naples, FL kudos:1 | Hmmm ""Its clear that one-size-fits-all pricing is not working for many consumers, particularly in a challenging economy," said Time Warner Cable's Gordon Harp, Regional Vice President of Operations in Texas in a press statement, adding that the new tier is designed "to meet the needs of consumers who want more price flexibility.""
Should read..."it's clear that one-size-fits-all is not working for US" | |
|  |  | | Re: Hmmm said by Cheese:Should read..."it's clear that one-size-fits-all is not working for US" To make it even more clear it should read "it's clear that one-size-fits-all is not making us enough money" | |
|  |  |  CheesePremium join:2003-10-26 Naples, FL kudos:1 | Re: Hmmm I was going to say something to that effect  | |
|  |  |  roc5955Premium join:2005-11-26 Rosendale, NY | You beat me to that line. Why is it that EVERYONE wants to just make more and more money, and nobody is looking out for the average Joe? This is proving to me, more and more each day, that capitalism is unsustainable. -- "Understanding is a three-edged sword." | |
|  |  |  |  | | Re: Hmmm said by roc5955:You beat me to that line. Why is it that EVERYONE wants to just make more and more money, and nobody is looking out for the average Joe? This is proving to me, more and more each day, that capitalism is unsustainable. it all comes down to the government that runs it, and weve haven't had a decent one in 20 years, everything is messed up, corruption in our own government allows this to happen we have our selves to blame for it to | |
|  |  |  |  | | said by roc5955:This is proving to me, more and more each day, that capitalism is unsustainable. You can pretty much blame Wall Street for that and what Cobra11M pointed out. We have moved away from a economy that makes stuff to an economy based of strictly consumerism and paper (stocks, ect.). The Great Depression chalk it up to Wall Street. 2008 crash, chalk it up to Wall Street. Wall Street wants quick money and doesn't care how it gets it. Wall Street will be the doom of our economy I guarantee you that. Just need one more bubble to pop from one of their latest scams and boom economy gone. This time, a bail-out aint going to work. | |
|  |  |  |  |  WhatNowPremium join:2009-05-06 Charlotte, NC | Re: Hmmm You can blame China and the powers to be. The decision makers move all the jobs like textile mills and the less skilled manufacturing to China. Now they want the workers to be like the workers in China. They work you to death for next to nothing just like during the days of the Robber Barons.
I can see the TWC if the limit was 50G but 5G is just about useless if you do anything but use a few e-mails. I wonder if you left your computer on just the dribble of bits back and forth of the equipment talking to each other would use 1Gig. There is a big difference between the 250gig other companies are setting and 5gig or 40 gig. | |
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 | | They'll never give up on metered bandwidth pricing It'll always just rear its ugly head in one form or another. Although this blatant pricing should be downright criminal from a major regional Cable ISP like TWC (Comcast being the other both probably in cahoots). It isn't even something that should be discussed, like murder, you should just know it's wrong and it's beyond sick. Essentially what they're doing is killing the Internet in there effort of greed and monopolistic practices.
They should feel ashamed of themselves. 5GB + $1 per GB if they go over when Tier 1 ISP's are offering $.02 per GB to guys like Comcast/TWC.
Shame. | |
|  | | lettuce let the service wither on the vine.. rather than be gouged. | |
|  | | Wow How is this not a money grab? | |
|  tshirtPremium,MVM join:2004-07-11 Snohomish, WA kudos:3 Reviews:
·Comcast
| depending on the base price... ... for some it may be a good deal. As hard as it is for some people here to comprehend 25% don't care about higher speeds or massive downloads and use the internet in a minimal way (email, bill paying, occasinal lookups or shopping) so just like pay as you go cell services low cost serivce with a high per unit useage cost makes sense for them. | |
|  |  iansltx join:2007-02-19 Golden, CO kudos:2 Reviews:
·Verizon Online DSL
·RoadRunner Cable
·Comcast
| Re: depending on the base price... Not only this, but with the lower cap and lower pricing TWC is somewhere in the neighborhood of significantly slower AT&T DSL in these markets.
Also, last I checked, overages were capped at $25 per month. So you're paying between $5 less and $20 more per month vs. the unlimited plans.
To be honest, if TWC stopped offering unlimited plans and only offered Internet Essentials, with the $25 overage cap, I could live with that, because I could still get unlimited access, just at an inflated price compared to what they had before. | |
|  |  |  tshirtPremium,MVM join:2004-07-11 Snohomish, WA kudos:3 Reviews:
·Comcast
1 edit | Re: depending on the base price... Or suppose they shifted it even more say $25 for a 5 gb account and a $50 or $75 cap for a really high cap (I don't think you'll see true unlimited ever seriousley offered again, at least not using that term) Anyway some plan that doesn't overcharge low end users (but still gets more people paying the base network/plant costs) and allows you to buy more consumption in chunks. with more total users, TW makes the more money they want, and you pay for what you use with out HUGE overages or extremely low limits, everybody comes out better. | |
|  |  |  |  | | Re: depending on the base price... said by tshirt:Or suppose they shifted it even more say $25 for a 5 gb account and a $50 or $75 cap for a really high cap (I don't think you'll see true unlimited ever seriousley offered again, at least not using that term) Anyway some plan that doesn't overcharge low end users (but still gets more people paying the base network/plant costs) and allows you to buy more consumption in chunks. with more total users, TW makes the more money they want, and you pay for what you use with out HUGE overages or extremely low limits, everybody comes out better. they've hinted at offering unlimited but at a very high rate in the future to replace the income of tv subs.. I think all of them will go to this soon | |
|  |  |  |  |  tshirtPremium,MVM join:2004-07-11 Snohomish, WA kudos:3 Reviews:
·Comcast
| Re: depending on the base price... I would agree that all will go to tier pricing, However you'll either see business tiers( as ComCast does for unlimited) at a very high rate(unlikely as it will drive away actual businesses they they worked hard to attract) or (more likely ) those plans will also have some higher level cap. Unlimited at the high speeds available today is too attrative to those that Choose to abuse the intend purpose and potentially incurs great cost. | |
|  |  |  |  |  |  | | Re: depending on the base price... Bullshit. A connection maxed 24/7 at the rate set by the ISP is hardly "abuse" since they chose to offer that speed, and it does not incur "great cost". They never provide actual numbers, but we can be certain that they still make a nice profit off that usage even with a flat rate, because data actually costs them almost nothing. | |
|  |  |  |  |  |  |  tshirtPremium,MVM join:2004-07-11 Snohomish, WA kudos:3 Reviews:
·Comcast
| Re: depending on the base price... You are right that MOST of the cost is the Plant, and building addtional capacity, replacing equipment and maintaince is the "GREAT COST". I know you believe your mantra of "everyone else makes too much money, everyone else charges too much for services rendered, and everyone else demands too much profit".
So should I assume you choose to make as little as possble, charge below cost for your effort and ideas, and lend money for free?
Since most of the larger ISP's are publicly traded, a person such as yourself can easily research their annual reports and learn exactly where they make their sub 10% annual profit margin*. **
*Industry average nationwide for large ISP's, quite a bit below other similarly capital intensive, high cash flow-high expense industries. ** A far more important measure than exactly where each penny is made. | |
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 Reviews:
·Time Warner Cable
·Verizon FiOS
·voip.ms
| TWC vs FIOS In my area I happen to have FIOS but recently Verizon has priced themselves out of the market. FIOS now goes from 15/5 to 50/25, which is a huge gap. Even said the lowest internet only for 15/5 is an amazing $70/month. Now that is gouging.
I can get lite (DSL grade 3Mbs) for $20/month for a year ($40 regular price). Standard (10Mbps) is only $30/yr through TWC.
Maybe pricing is better than in other areas but I would hardly call that gouging.
In fact VZ already tried to jack my rates $30/month if I wanted to go from 25/25 to 50/25 which I told them no thanks. When my price lock is up in Jan I may very well pop over to TWC. Their cust service can't touch VZ but their price is like half, so maybe it's a deal.
The question is if 5 GB is there like Comcast poor intercity plan (which they are now in trouble for) is there to appease. It is. It's no deal. It's a honey pot. Look it up.
Bottom line, transit costs, Docsis 3 is LOWERING costs to all time lows but these guys are not satisfied and want to raise rates, add caps (which raises rates). In a normal competitive environment that would mean lower costs. So if the government can't figure out that raising rates (in some cases dramatically) in a situation where costs are going down (DRAMATICALLY), that is a perfect natural monopoly.
The FCC is useless because it's just a corporate front, and doesn't have regulative power.
I'm on the fence because regulation always leads to higher price and less choice, so it's bad too.
If the US was smart, treat the last mile like a utility, connect everyone to fibre, coax, or whitespace wifi and let the providers compete on transit, and publicly regulate the last mile. Problem solved.
It works. I can already choose my own provider of power or gas (I do) which costs less than the regulated supply and I also save in taxes. | |
|  |  | | Re: TWC vs FIOS That $30/month for TWC is a promotional price. Compared to the normal rate of $60 for 10/1, $70 for 15/5 looks fine, though it's not cheap | |
|  |  |  |  |  |  LightSPremium join:2005-12-17 Greenville, TX | Normal rate of $60 for 10/1? Not sure about you, but in my area I have 30/5 and I'm paying $62/mo after all fees & taxes. Maybe I got lucky, haha. | |
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 elray join:2000-12-16 Santa Monica, CA | $5 is $5 While that's not enough to attract me over the uncapped rate, I know that fully half of my neighbors, relatives, inlaws, kinfolk, friends and associates would benefit from this offering. A lucky few have dirt-cheap dry-loop DSL circuits.
What's wrong with allowing the consumer to make up his own mind, rather than having the angry mob shout down and take away cheaper options, just because they disapprove of the concept?
This isn't about making overage bucks. Its pitching to the 30% of the customer base that doesn't spend their life online.
Its true, that over time, basic usage levels will rise, even for the 30%, but the ISPs will adjust their caps accordingly, to keep the business. | |
|  |  See 6 replies to this post | |
 DominokatHiPremium join:2002-08-06 Boothbay, ME kudos:2 | I wonder... ...how many people are actually signing up for metered "Internet Essentials?" | |
|  kingdome74Emotionally UnavailablePremium join:2002-03-27 Syracuse, NY kudos:2 Reviews:
·Verizon FiOS
·RoadRunner Cable
| Whose Laughing Now I was ridiculed three years ago on this site by Time Warner (apparent) workers and lackeys that Time Warner would NEVER - under any circumstance - make users pay for overages. Now whose laughing? I left TW for Verizon, who is no better but a hell of a lot cheaper and three times the bandwidth, and never looked back. And now we have this... Time Warner wants you to pay to have the priviledge to pay even more for your broadband. I can't think of anyone - not even my long dead grandparents - who would use LESS than 5 GB a month. A DVD is 5 GB. Done till next month sweetie unless you want to PAY for more. Sweet deal. -- If you want to make God laugh, tell him your plans - Woody Allen
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|  mmay149qPremium join:2009-03-05 Dallas, TX kudos:48 | Only 5GB a month?! Are you serious, since when did landline become so constrained to only be able to get 5GB a month? Man Time Warner is STUPID to think people will be that stupid... Seriously if you're using 5GB a month or less on landline, the ONLY thing you're doing is maybe checking Facebook 5 times a week and looking at email... if that? Seriously TWC... Get a clue, and stop trying to rape your customers without lube......
Matt
P.S. Since this is my current provider, looks like I'll have to start shopping around, but the only thing in my area is U-verse, been there, supported that for about 3 years, won't go back FML..... -- I am no longer an AT&T Employee. Check out my kudos! »/profile/1626573 Have U-verse questions? Please email uversecare@att.com and they will assist you!!  | |
|  |  Rob_Premium join:2008-07-16 Mary Esther, FL | Re: Only 5GB a month?! Now you know why I want to make caps illegal, however, people just don't seem to care at the moment. When this takes affect and the average user find out, people will complain. Google.. bring it on
-Rob | |
|  |  |  mmay149qPremium join:2009-03-05 Dallas, TX kudos:48 | Re: Only 5GB a month?! said by Rob_:Now you know why I want to make caps illegal, however, people just don't seem to care at the moment. When this takes affect and the average user find out, people will complain. Google.. bring it on
-Rob Well, I wouldn't mind them being legal if you were paying something like a $5 access fee and then about 10 - 20 cents per GB since that's close to real world economics (the $10 per 50GB on AT&T = 20 cents per GB) but I'm not going to pay a $30 - $50 access fee and then 20 cents per GB after it surpasses a 250GB cap, I can't even use less that 250GB per month, gaming, YouTube, Netflix, un-licensed anime, and just regular Windows updates between my tablet, and 2 PC's would eat into that in half a month, there's no way I'm going to start paying someone double for the same service...
Maybe if they did this and was like "guarantee'd to upgrade your connection speed at least 4 times a year (every quarter?) to double the speed or at least half of double the speed" I would bite for it, because then at least I'd feel like all that extra $$$ was going to something worth it, and they'd probably have to have some other clause in there saying the cap would get raised 50GB/100GB per year to accommodate the speed increases or something before I'd truly allow this, I'm not going to lie, if all the providers in my area start capping + overages I'll probably just completely stop purchasing internet all together and live off my UNLIMITED 4G service....
Matt -- I am no longer an AT&T Employee. Check out my kudos! »/profile/1626573 Have U-verse questions? Please email uversecare@att.com and they will assist you!!  | |
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 | | Greed Greedy Greedest What a rip. | |
|  juilinsandarTexas GoonerPremium join:2000-07-17 San Benito, TX | not enough of an incentive for me That $5 discount, to go metered, is a complete joke.  | |
|  |  Reviews:
·Time Warner Cable
| Re: not enough of an incentive for me Last month I only downloaded 16 GB according to the meter and I have extreme 30/5 in North Texas so I don't think that if they were to cap extreme that I would have a problem because I usually watch a few youtube music videos a month and play games on facebook an surf chat forums. Although I think the reason they are offering a cap is that they want everyone to pay about $50 dollars a month to start with I really don't think they are going to cap turbo, extreme and Ultimate because those customers are the ones they are going after to offer the TV tv app because they think if you can afford those tiers that you can afford tv packages. Also they are probably fine with customers paying $60-$100 for unlimited access as they probably want a fatter profit margin on the low income tiers. | |
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 | | By the load. Except it's far from clear that consumers asked for Time Warner Cable's metered proposal. In reality, as the company found out painfully in 2009, most customers are perfectly happy with flat rate pricing. Consumers are even happy with flat-rate pricing at what's often an obvious premium -- because they don't like having to worry about counting their bytes.
So how does the audience feel about counting their KwH or gallons? | |
|  bn1221 join:2009-04-29 Cortland, NY | I beg to differ One size fits all works fine. 50 bucks for 5*25 no caps. There....fits 99% of your user base (I figure the DSLR 6 kids streaming and 14 adults downloading legal ISOs 24/7 as part of the 1%) | |
|  Reviews:
·Time Warner Cable
| Just my two cents, Call retention and get a better price. Since i started with Time Warner coming from telco PRI/ISDN service ive been a thorn in their ass about promised speeds, I called three times a row back in 2003 when my promotions were ending and told them i was seriously thinking about switching back to telco. What they did each time is put all my prices back to promotional and every 6 month's i get a letter telling me they are extended promotions, Of course a tech would have to come and the whole shabang, but its worth it to me. i have the "extreme" 30 MB down package and only pay for Lite and i have the whole shabang with tv and only pay for a basic. Everyone should exercise some good consumerism if they arnt happy before switching to other options like horrid DSL or overpriced Fios Call these people and wheel and deal see what you can get. | |
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