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All-You-Can-Eat Broadband Is Dead: Time Warner to Charge by the Byte

Posted by Matt Buchanan at 4:00 AM on January 18, 2008

timewarnerchoke.jpgReason number 149 I won't move to Texas: Time Warner confirmed it'll be testing a new pricing plan in Beaumont that's based on how much bandwidth you eat up. That's right, hard caps. Totally made-up example, since they haven't released details on the package tiers: Pay $US50 a month for 500 gigs, and if you consume more, get slapped with probably obscene overage fees.


 

Supposedly, consumption-based billing is aimed at all you assholes downloading movies from BitTorrent—"heavy users of large downloads," the purported 5 percent that swallows "up to 50 percent of network capacity" in order to improve network performance. But this is, at least partially, BS.

Everybody is using more bandwidth than ever, and that is going to continue ramping up with services like Netflix and iTunes that keep pushing these "large downloads" into the mainstream. So, it might only hit a small percentage of users really hard right now, but soon enough it'll be hitting everybody, which is the real point.

At the same time, ISPs and telcos are lobbying hard against network neutrality, largely so they can slap the content providers themselves with higher costs for equal priority on the network with the ISP's own services. In other words, they're reaching into the cookie jar with both hands—from the top, and a hole they're trying to cut into the bottom.

For now, Time Warner's plan will only affect new users starting sometime in the next couple of months, and they actually give you tools to monitor your data diet, but if there isn't a total revolt and pillaging of their home office, expect them to roll it out nationally and other providers to follow suit. [AP/Wired]

Comments (AU Comments · US Comments)

Rangott

Posted January 18, 2008 11:06 AM

Are you all serious?
Here in Australia we pay a lot of money for something similar. Obviously we are in a worse position because of the cost of running cable to everyone in oz let alone to the US or Europe for better bandwidth.
Still im paying $90 per month for 35 gig which gets throttled. And thats a good plan.
The main telco here has a plan for grannies 200mb at 256kbs for $25.
It could be a lot worse trust me.

Jeroen

Posted January 18, 2008 1:42 PM

The cable's to everyone in OZ argument is not a good one. Yes this country is big. But look at a country like Canada. In almost the same % per km2 people living in it. And they can deliver fibre to lots of homes.

It is the Big Telstra that has been holding the country back for a long long time. And them blaming the goverment for not giving them a fibre to the Node (not home) monopoly where they want to charge an arm an a leg for the same speed which we get now with ADSL2.

Yes internet cost in the USA is cheap, because they generate more content which is available on the net, and they have more competition.

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