Thursday, April 16, 2009

Time Warner Cable Postpones Internet-Billing Trials

Plans to expand the internet usage test into additional markets has been put on hold as public outcry has caused big consumer push back. "Time Warner Cable had planned to initiate usage-based billing trials in Rochester, N.Y., and Greensboro, N.C., in August, followed by San Antonio and Austin, Texas, in October." Besides local politicians getting into the discussion, even their telco competitors used it to their marketing advantage in the two test markets. Who wants to go from an unlimited plan to a usage plan raise your hands? Anyone? Anyone? Really, no one likes the idea. Once the cat is out of the bag it is hard to catch him.

Until Time Warner and other broadband companies can prove that more people benefit with a usage plan with lower bills, it will be hard to gain much support. And as more web sites become more graphic, add more videos and gaming, they will naturally become heavier users. And as consumers recognize their increased reliance on the web for information and entertainment, they will only use the web more. So why would the consumer agree on changing over from an unlimited plan to usage. It makes no sense. Hence the public and governmental outcry.

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