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Time Warner to bill internet per download

Posted on 18.01.2008 at 14:07 in Tech News by Martin

Time Warner Cable Inc said on Wednesday it is planning a trial to bill high-speed Internet subscribers based on their amount of usage rather than a flat fee, the standard industry practice. The second largest U.S. cable operator said it will test consumption-based billing with subscribers in Beaumont, Texas later this year as a part of a strategy to help reduce congestion of its network by a minority of consumers who pay the same monthly fee as light users. The company believes the billing system will impact only heavy users, who account for around 5 percent of all customers but typically use more than half of the total network bandwidth, according to a company spokesman.

Slowing network congestion due to downloading of large media files such as video is a growing problem for Time Warner Cable. The company said the problem will worsen as video downloading becomes more popular. But the move could prove controversial. Unlike with utility bills such as the phone or electricity, which have traditionally been based on usage, U.S. high-speed Internet subscribers have come to expect a fixed monthly charge. An Internet bill typically only varies based on the speed of the consumer’s Internet access. Time Warner Cable, which has 7.4 million residential Internet subscribers, is hoping the move will not confuse consumers if introduced nationwide and is planning a trial period. This sounds like an interesting pricing model for me, but most p2p users won’t be too happy about it, as they usually fit this “heavy users” category…

Source: Reuters

* Comments(142)

Comments (142)

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  1. The Dude
    January 18th, 2008 | 22:13

    In country Australia I was only getting 25 gb a month for 70 dollars, at just 512kb speeds!

    Now working in Romania of all places,I get unlimited downloads for 14 dollars, at 3mb speeds.

    Funny how the ‘primitive and poor’ Romania can provide a service that screws the ‘First-world utopia’ of Australia down into the dust. F@rk, I bet pygmies in the Kalahari get better broadband than in Australia!

  2. The Dude
    January 18th, 2008 | 22:17

    Damn, I meant that now in Romania I get 10mb speeds, not 3mb, thus even further crushing what I had in Australia. What they are doing there is criminal. Never got into online gaming precisely cause of poor speeds, low limits and high cost.

  3. QuadrupelQ
    January 18th, 2008 | 22:22

    They started with this in Holland, when broadband was just coming around the corner. You payed a relatively small fee for a basic connection, but you started paying more pro gigabite downloaded. Eventually, some companies started offering unlimited downloads for a slighty higher fee. In the end, ALL companies offered the latter!

    If other companies follow, then Time Warner has a chance. Otherwise…I’ll sell any Time Warner stock I’d have!

  4. QuadrupelQ
    January 18th, 2008 | 22:25

    “In country Australia I was only getting 25 gb a month for 70 dollars, at just 512kb speeds! Now working in Romania of all places,I get unlimited downloads for 14 dollars, at 3mb speeds.”

    Yeah, and 20 years ago I couldn’t even e-mail! And thousands of years ago, they couldn’t even write!

    Dude, ever heared the phrase “the times they are-a-changing”? You can’t compare these things, because of the enormous leap these kind of technologies made. And if you are trying to make a “Romania is great” statement, you’ve failed

  5. No Hate
    January 18th, 2008 | 22:27

    To #9…you’re not thinking correctly. Your internet speeds will NOT increase. No internet service provider, let alone the internet period is anywhere close to max capacity so your download speeds arent even being effected right now. Time Warner is just saying that a lot of their bandwidth is going towards heavy downloaders who pay as much as everyone else- not that there is a bandwidth comsumption problem that is effecting their customers…so yeah…so ahead and pay a little bit more- people like you deserve to for not knowing what they are talking about.

    You sound like my grandmother.

  6. sub-d
    January 18th, 2008 | 22:52

    I pay in Belgium 42euros for just 12gb of traffic,
    and it costs additional 1euro for 1gb,
    pathetic.

  7. donjo
    January 18th, 2008 | 22:52

    What!? the $60 they charge each month for a crappy 700k line is suddenly not enough? Netscape should go after these bastards for being a monopoly! If time warner were serious about improving peak network speed they would just get rid of their crappy on demand service, block myspace and save us all from this terrible internet ‘death tax’!

  8. hardermach
    January 18th, 2008 | 22:56

    in the netherlands you dont have lucky enough from that stupid jokes :)

  9. The Dude
    January 19th, 2008 | 00:15

    @ Quadrupel(sic)Q

    Times AREN’T a changing. Go live in Moree, NSW and see what a great broadband service you get. This is what I was paying just a year ago. Now it’s even worse. My parents are paying over 70 dollars for just a 15gb limit at 512kb speed. The point isn’t that Romania is great, the point is that this poor country has a far superior broadband service than Australia despite Australia having supposedly far greater infrastructure and wealth, not to mention a decade worth or more head start into internet communications.

    What has ancient history got to do with it? Did I mention what happened 100 years ago?. Get back on the sofa, open a XXXX and enjoy Punter and Bing Lee!

  10. The Dude
    January 19th, 2008 | 00:16

    @ Quadrupel(sic)Q

    Times AREN’T a changing. Go live in Moree, NSW and see what a great broadband service you get. This is what I was paying just a year ago. Now it’s even worse. My parents are paying over 70 dollars for just a 15gb limit at 512kb speed. The point isn’t that Romania is great, the point is that this poor country has a far superior broadband service than Australia despite Australia having supposedly far greater infrastructure and wealth, not to mention a decade worth or more head start into internet communications.

    What has ancient history got to do with it? Did I mention what happened 100 years ago?. Get back on the sofa, open a can and enjoy Punter and Bing Lee!

  11. The Dude
    January 19th, 2008 | 00:17

    @ QuadrupelQ

    Times AREN’T a changing. Go live in Moree, NSW and see what a great broadband service you get. This is what I was paying just a year ago. Now it’s even worse. My parents are paying over 70 dollars for just a 15gb limit at 512kb speed. The point isn’t that Romania is great, the point is that this poor country has a far superior broadband service than Australia despite Australia having supposedly far greater infrastructure and wealth, not to mention a decade worth or more head start into internet communications.

  12. The Dude
    January 19th, 2008 | 00:18

    @ QuadrupelQ

    Times AREN’T a changing. Go live in Moree, NSW and see what a great broadband service you get. This is what I was paying just a year ago. Now it’s even worse. My parents pay over 70 dollars for just a 15gb limit at 512kb speed.

  13. The Dude
    January 19th, 2008 | 00:20

    oops, sorry for all the multiple postings. they weren’t showing up so I thought it was the oversensitive protection. Once again sorry guys.

  14. OST
    January 19th, 2008 | 00:23

    SPAM ALERT SPAM ALERT, DANGER THE DUDE DANGER DANGER

  15. al bundy
    January 19th, 2008 | 00:24

    I hope they file chapter 11 soon. Google needs a cable company. LOL!

  16. Inevitable
    January 19th, 2008 | 00:39

    That’s original idea. So cool… if you are TW executive. As for me, I have no time to write here any more, as I have to look for part time job to start saving for my soon to be $2,000 a month cable bill.

  17. dan
    January 19th, 2008 | 00:51

    What are you complaining about? I pay TW $70 a month and get between 18 and 25mbps all day every day. And I just got a card that said they are increasing their business accounts to between 25 and 50mbps.

    I mean get real here people…any connection above 7mbps is almost like having a dedicated T-1 directly to the net. I have seen some of you say you download 250GB a week…Hell I dont download 250GB in 3 months! There is nothing out there that I need that badly to do this. My last bill said that I had downloaded less then 60GB in a month, and that was a heavy usage one.

    And before you say anything, TW came in and replaced all the copper cable in my town with fiber optic cable. And considering that with Sprint, the same costs would be $1500. a month for a dedicated T-1 and the other ISP’s around here think they are doing REALLY well when they charge you $60. for a small 1.5mbps account and call that “high speed” I would say $70 a month for between 18 and 25mbps and a 400GB per month limit is and will do most of us quite well than you.

  18. johndoes
    January 19th, 2008 | 01:06

    I am using Verizon FiOS for $150 a month and I get a 700 MB file in no time!!

  19. MarkJG
    January 19th, 2008 | 01:26

    So you think poor speeds and limited bandwidth is the only thing Aussies can give the Internet world. Well just wait for uploads counting against your limit as well as downloads.

  20. Swordfish
    January 19th, 2008 | 03:26

    Thats the problem with Cable medium and Cable ISPs know it. The shared medium can’t handle it w/o major infrastructure upgrade and Docsis 3.0 is just a temporary bandaid. Welcome to FiOS. This will be the final nail in the coffin if Comcast tries pulling this BS.

  21. anonymous
    January 19th, 2008 | 03:37

    to 116 good luck. getting a job is hard. because you have to take this test. and is hard to past test. if anybody here lmows the answers please post them here please please thank you

  22. dj
    January 19th, 2008 | 05:08

    I dont give a sh*t if they charge me more for bandwith, I can afford it. I will hug the bandwith and download illegal stuff even more. fu*k time warner.

  23. anonymous33
    January 19th, 2008 | 05:22

    dont know much about bandwitdh. basicallly with the bandwitdh limit you wont be able to download faster. it will have to be at a specific time and day to go fast? but just read on this just now people say comcast has bandwith but how can i tell how much so i will go over it. http://www.dslreports.com/forum/r19038478-Comcast-Bandwidth-AbuseLimits-Discuss-here-only

  24. donjo
    January 19th, 2008 | 05:23

    RE: 70 a month for between 18 and 25mbps and a 400GB per month limit is and will do most of us quite well than you.

    Where do you get the 400GB limit figure? anyone got a link to this? It is a slipper slope….next thing you know they will change more for less and less and the internet will die like aol did

  25. anonymous33
    January 19th, 2008 | 05:24

    what program tells you have bandwith you use in total. does bandwith also effects videos you watch on youtube and other sites. and also uploading?

  26. anonymous33
    January 19th, 2008 | 05:38

    well the bill my mom pays now is 64 a month. but i still download fast

  27. anonymous33
    January 19th, 2008 | 05:39

    though only if it has high seeds then my downloading speed goes fast. but low seed like around 20 or 30 around there

  28. dan
    January 19th, 2008 | 05:53

    donjo
    January 19th, 2008 | 05:23
    RE: 70 a month for between 18 and 25mbps and a 400GB per month limit is and will do most of us quite well than you.

    Where do you get the 400GB limit figure? anyone got a link to this? It is a slipper slope….next thing you know they will change more for less and less and the internet will die like aol did
    —————
    Just call your TW head office/corporate offices and talk to the techs. Bypass the regional ones as they cant find their heads with both hands and a road map.

    The TW head office stated that they are going to set up the following tier and no this does NOT include your e-mails uploads or IM’s, just downloads

    $45. a month
    6 to 7mbps 100gb max

    $60. a month
    8 to 14mbps 250GB max

    $70 a month
    18 to 25mbps 400gb max

    $85 a month
    30 to 40 mbps 600GB max

    $100 a month
    40 to 50mbps 750GB and up
    *this is ONLY for business, like GM and Hospitals and Colleges/Universities that need this kind of bandwith. To get this kind of speed, you will have to have a tech come to your site and set it up)

    All of this is sorta moot anyway as there is a bill in Congress right now that is Veto proof when it goes up for debate this year. Once it passes, ALL ISP’s will be required to give high speeds at no less then 10mbps

    You can read all about it at Speed matters
    http://www.SpeedMatters.org

    I mean you Brits have got it made
    Plan for high speed Internet access for British students
    Posted by Speed Matters team | January 18, 2008 |

    Jim Knight, the British minister of schools, is working with major British IT firms and parents to develop a plan to make sure every student in England has high speed Internet access, in part by requiring parents to provide it. Currently, there are more than one million children in England without home computer access.

    Knight said that they are working with the IT companies to try and work out a deal to lower the cost of high speed Internet equipment if the access for over six million children becomes a requirement. “Knight said there were ‘some crunchy negotiations ahead’ with the big firms but said the government could in effect procure millions of new customers for them.” He said he is trying to make high speed Internet access as regular for students as a pencil and piece of paper, and a vital part of education.

    “The initiative is part of a major push which could also see the parents of every secondary school student given access to continuous online updates on their child’s lessons, performance and behavior as early as next year.”

    In addition to the exponential educational benefits for the students, the parents would be given access to learning tools and progress reports to assist in their child’s learning. The compilation of weekly reports for parents is worrying to some in the teacher’s union because of a possible increase in work, yet the benefits that come from closer contact and communications with the parents makes the progress report a real possibility. But perhaps most importantly, making high speed Internet access available to all students will start to significantly narrow the digital divide.

    http://politics.guardian.co.uk/publicservices/story/0,,2235297,00.html

    And look at the japanese
    In the U.S., DSL generally reaches speeds of up to 1.5 – 3.0 mbps at a price averaging $30-$50 per month (not including fees) while cable modems generally reach speeds of 3-5 mbps for $40-$50 per month. In Japan, the cost of an average connection with the speed of 26 mbps costs about $22.

    The contrast is even more striking when expressed in terms of cost per 100 kbps. The top speed generally available in Japan is 51 mbps at a cost of $0.06 per 100 kbps. The top speed generally available in the U.S. is 6 mbps available at a cost of $0.72 per 100 kbps.

    In other words, the Japanese have 8.5 times the speed at 1/12 of the cost.

    Soon we in the US will have this as well

  29. 2012
    January 19th, 2008 | 07:34

    Guess people in apt complexes should start securing their wireless cause if Time Warner (or any cable company) puts some kinda stupid cap on the downloads there is going to be a lot of people looking into cracking the wireless protocols to get free access… thats what I think anyways…;)

  30. Rap
    January 19th, 2008 | 07:37

    well well well…If this really happens than it will be the end of TWC…I will instantly DC my TWC and move to Verizon FiOS…Corporate America should be shame on themselves and should follow the path of Japan…Japan is the LAND OF HIGH TECH…America is just doing the opposite…No wonder why terrorist are so mad at this country…

  31. Dreadies
    January 19th, 2008 | 08:35

    I mean you Brits have got it made
    Plan for high speed Internet access for British students

    ///

    Dont believe all you read. OFCOM are having to prosecute ISPs in the UK for false advertising. They are also having to take BT to task for not ploughing profits back into internet infrastructure. It will be a decade at least till you find fibreoptics outside the main cities. It was the same with ADSL when it came out.

    Privatization was the biggest mistake ever made for all our public utilities. Investment ceases as it all becomes about profit and boardroom bonuses. I mean what kind of company has to be taken to court to ensure that it can remain competitive in the changing world. A daft one, thats what.

  32. I Want A T1
    January 19th, 2008 | 09:30

    If only getting your own T1 was more affordable. :(

  33. Bob Marley
    January 19th, 2008 | 11:32

    What a American nonsis

  34. bubbakush
    January 19th, 2008 | 14:35

    i got put on soft disconnect for the second time for downloading 600 + gigs in dec ,guess the 12 mb connection
    with unlimited newsgroup acess is asking for it lol.
    anyhow they cant just tell me a number to shut it down after so im still somewhat confused on how much is too much. they said just dont be in the top 5% peace

  35. anonymous33
    January 19th, 2008 | 18:09

    delete that post above me could be a damn malware or virus

  36. JGarcia
    January 19th, 2008 | 19:01

    What’s happens when people reinstall windows and have to redownload patches. Will people be charged for downloading a lot? this is ridiculous. Time Warner is going to lose lot’s of customers.

  37. Sal
    January 19th, 2008 | 19:26

    I hate cable Internet. One has to share the connection with the whole neighborhood. I rather pay a higher echelon ISP that provides ADSL/DSL/T1s and provide you a direct line. Plus one has the choice to set up your own server. It is a bit higher in price, but worth it. As for Time Warner, I’m still fighting with them in why they messed up me credit report when I didn’t owe them any money. Time Warner is not worth paying for..

  38. goatman
    January 20th, 2008 | 11:41

    well to have a 2.4mb connection i pay 70 bucks a month for a 40 gig limit but you dont get charged when u go over you get shaped to near dial up speeds!!! the main reason why the internet is so bad in Australia is because one company basically has a monopoly over all the phone lines! the most common services you can get here are adsl or adsl2 not dsl because Telstra make so much from charging all the other ISP’s to use their telephone exchanges! that is one of the major contributing factors to why there is a high price to poor service ratio!

    and you guys are complaining you might get a charge when u go over a limit i personally would rather a charge then get stuck on dial up speeds because u go over your limit and have to wait till your next billing period before you are back to normal.

    however a fibre optic network is meant to be getting set up and guess what telstra doesnt want anything to do with it because they cant control prices!!! typical!

  39. jl
    January 20th, 2008 | 15:51

    So do they charge LESS for people who don’t use as much bandwidth? Hell no – stick it to the people who actually USE their “always on, high speed” that you advertise so much.

    They push the ‘it’s so fast, it’s always on’ then if you use it for big files (is there another reason?) they want you to pay MORE.

    They have to AT LEAST provide some sort of monitor so you will know how much you’ve used. Otherwise you can’t question the billing. Which is probably how they want it.

  40. spivack
    January 20th, 2008 | 18:16

    This sucks, not just for us who download videos, but also for developers – has anyone ever heard of MSDN Subscriptions???? Maybe (hopefully), Microsoft will realize that charging for the amount downloaded will hurt their product, and use all that power($) they have to stop ISPs from doing this…

  41. spivack
    January 20th, 2008 | 18:21

    Oh, and just a question, does anyone know how much they would charge? I downloaded about 600GB in one month, and just wondering how much this would cost. Can anybody in Oz (or anyone who pays for the amount downloaded) please let me know how much this would have cost them?

  42. kid
    January 22nd, 2008 | 07:28

    being an employee with the free benefits does have its advantages especially since i’m quite certain i fit in the high usage category

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