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Time Warner COO Talks Revised Capped Plans

By - Source: Tom's Hardware US | B 100 comments

Time Warner Cable COO has posted a public letter announcing revisions to the proposed bandwidth capped internet plans.

The proposed trial internet plans from Time Warner Cable has customers livid at the restrictions that they would impose, along with the associated price hikes for those who make full use of internet services.

Time Warner Cable COO Landel Hobbs wrote in an open letter, “We’ve heard the passionate feedback and we’ve taken action to address our customers’ concerns.”

“The feedback we’ve received from our customers has been very helpful,” Hobbs wrote. “We’ve made changes to the terms in our current and upcoming trial markets as follows:

“To accommodate lighter Internet users and those who need a lower priced option, we are introducing a 1 GB per month tier offering speeds of 768 KB/128 KB for $15 per month. Overage charges will be $2 per GB per month. Our usage data show that about 30% of our customers use less than 1 GB per month.

“We are increasing the bandwidth tier sizes included in all existing packages in the trial markets to 10, 20, 40 and 60 GB for Road Runner Lite, Basic, Standard and Turbo packages, respectively. Package prices will remain the same. Overage charges will be $1 per GB per month.

“We will introduce a 100 GB Road Runner Turbo package for $75 per month (offering speeds of 10 Mb/1 Mb). Overage charges will be $1 per GB per month.

“Overage charges will be capped at $75 per month. That means that for $150 per month customers could have virtually unlimited usage at Turbo speeds.

“Once we implement this trial, we will not immediately start billing customers for overage. Rather, we will first provide two months of usage data. Then we will provide a one-month grace period in which overages will be noted on customers’ bills, but they will not be charged. So, customers will have an opportunity to assess their usage and right-size their service packages before usage charges are applied.

“Trials will begin in Rochester, N.Y., and Greensboro, N.C., in August. We will apply what we learn from these two markets when we launch trials in San Antonio and Austin, Texas, in October, but we will guarantee at least the same level of usage capacity in these trials.

“As we launch DOCSIS 3.0 in the trial markets, we plan to offer a 50/5 MB speed tier for $99 per month.”

So how about it, Time Warner Cable customers? Is this enough to convince you to douse the torches and put away the pitchforks?

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  • 16 Hide
    tayb , April 11, 2009 12:17 AM
    AT&T and Verizon offer unlimited bandwidth and Comcast caps it at 250GB. If you were to pretend that AT&T and Verizon cared how much bandwidth you used and had a cap at $250 the price per GB from AT&T, Comcast, and Verizon would still be less than a third of what Time Warner plans to charge per GB used.

    The COO can sugar coat it all he wants and pretend there is some actual reason beyond reaping in profits but the math doesn't lie. Anyone who is placed under a Time Warner cap is being unmistakably and undeniably ripped off. Operating costs went down in 2008 11% while revenue went up 11%. There is no justification. None.
  • 11 Hide
    duckmanx88 , April 11, 2009 12:09 AM
    absolutely worse idea ever. i hope the customers that have another option for an IP will switch. they did not listen to customers at all. are we going to go back to aol days where we pay for how long we use the internet to?
Other Comments
  • 11 Hide
    duckmanx88 , April 11, 2009 12:09 AM
    absolutely worse idea ever. i hope the customers that have another option for an IP will switch. they did not listen to customers at all. are we going to go back to aol days where we pay for how long we use the internet to?
  • 16 Hide
    tayb , April 11, 2009 12:17 AM
    AT&T and Verizon offer unlimited bandwidth and Comcast caps it at 250GB. If you were to pretend that AT&T and Verizon cared how much bandwidth you used and had a cap at $250 the price per GB from AT&T, Comcast, and Verizon would still be less than a third of what Time Warner plans to charge per GB used.

    The COO can sugar coat it all he wants and pretend there is some actual reason beyond reaping in profits but the math doesn't lie. Anyone who is placed under a Time Warner cap is being unmistakably and undeniably ripped off. Operating costs went down in 2008 11% while revenue went up 11%. There is no justification. None.
  • 7 Hide
    ParadoxMind , April 11, 2009 12:18 AM
    Total BS!
  • 5 Hide
    magnus962 , April 11, 2009 12:19 AM
    I dont think they are understanding where the concern really is. I dont care if they have a superultramega tier that accommodates all my needs. I care they that want to add the tier system altogether. As the internet grows and computers become faster and faster, the gap between how much data a person uses on a day to day basis will continue to increase. These types of ISP services are another step to assign costs for people who make full use of their service. Cell phones are very identical and it is very easy to go over your plan with your phone unless you pay for the highest possible plan, and even that can have penalties. The more they include these tier systems the more likely we are going to see restrictions and harsher punishments, just for the transfer of the same amount of data I am sending now.

    Im not saying that I dont understand why they are making the changes, I am simply disagreeing with the system altogether. I want to pay a price that is reasonable ($50 or less) and be able to use the internet as much as i want. Paying a price like that will already affect the speed at which i can download, but now paying that same amount will also affect the maximum amount I can use before the penalties start rolling in.
  • 8 Hide
    ParadoxMind , April 11, 2009 12:19 AM
    Total F'n BS! I will switch over to the fastest DSL i can if they pull this crap. I live outside of Greensboro,NC and i will be gone if they even try this crap!
  • 4 Hide
    saturn77 , April 11, 2009 12:23 AM
    The only other option in my area is Verizon. I hate Verizon sooooooo much. I can't belive another company could get worse. AS SOON as these prices are implemented, I will be calling Verizon up.
  • 1 Hide
    Vettedude , April 11, 2009 12:32 AM
    Hello U-Verse! And FIOS is coming around me soon too!
  • 0 Hide
    fancarolina , April 11, 2009 12:33 AM
    Well I get to be one of the pissed off customers who gets to enjoy the trial program. How the f&(* did they choose Greensboro, NC? I know the Triad RR network covers 3 cities but I would have thought they'd pick a big market.
  • 2 Hide
    tayb , April 11, 2009 12:33 AM
    saturn77The only other option in my area is Verizon. I hate Verizon sooooooo much. I can't belive another company could get worse. AS SOON as these prices are implemented, I will be calling Verizon up.


    You should call Verizon right now. Verizon Fios is far better than the best Time Warner has to offer.

    Compare their packaged deals.

    Time Warner $119 gets you 7MB internet, basic digital cable, and home phone.

    Verizon for $140 gets you 20MB internet, digital cable with 45 premium channels (HBO, Showtime, Cinemax, etc), and home phone.

    Time Warner doesn't even offer an internet service that fast and upgrading your television service to match Verizon's will run you an extra $25 a month minimum. It is a ripoff already then they have the balls to try and cap your usage???
  • 0 Hide
    Anonymous , April 11, 2009 12:39 AM
    Keep sending the hate mail I sent plenty already.
  • 4 Hide
    Anonymous , April 11, 2009 12:40 AM
    They are going to take the speed I pay $45/mo for now and raise it to $75/mo and then cap me at 100GB. This is terrible and there should be something to protect the consumer from this type of thing. I've had this service for probably 6 years and now they are going to completely change everything. I hope Time Warner pays a hefty price for this BS.
  • 0 Hide
    saturn77 , April 11, 2009 12:42 AM
    FIOS is not in my area. If it were, I probably would have it. TW charges way to much for cable TV, now they want to do the same for internet.

    There needs to be at least 3 options in any given market that offere similar speeds/quality/content. This screws people with 2 options like myself. Now I will be forced to go with DSL from Verizon who will WITHOUT A DOUBT start charging more ASAP. That's just how Verizon works.
  • 1 Hide
    tayb , April 11, 2009 12:51 AM
    saturn77FIOS is not in my area. If it were, I probably would have it. TW charges way to much for cable TV, now they want to do the same for internet. There needs to be at least 3 options in any given market that offere similar speeds/quality/content. This screws people with 2 options like myself. Now I will be forced to go with DSL from Verizon who will WITHOUT A DOUBT start charging more ASAP. That's just how Verizon works.


    Ouch. Yeah. Verizon DSL is pretty slow. They do have some pretty nice packaged deals with the DSL, DirecTV, and home phone for $99 but you won't get faster than 3MB speeds.
  • 2 Hide
    panhead20 , April 11, 2009 12:54 AM
    I have been a TW customer for over 10 years and I will be switching to Verizon as soon as TW starts this new billing system. Bye TW. You attempt to kill streaming video competition will kill your business.
  • 4 Hide
    jhansonxi , April 11, 2009 1:12 AM
    I have fond childhood memories of Road Runner. It saddens me to see him associated with this company. Willie E. must be a consultant.
  • 2 Hide
    magicandy , April 11, 2009 1:19 AM
    taybThe COO can sugar coat it all he wants and pretend there is some actual reason beyond reaping in profits but the math doesn't lie. Anyone who is placed under a Time Warner cap is being unmistakably and undeniably ripped off. Operating costs went down in 2008 11% while revenue went up 11%. There is no justification. None.


    Exactly, and the fact that most of the affected areas are markets where people only have TWC to choose from clearly shows this is only about money. They are afraid to expand it to markets with other broadband providers because they know people will just switch providers. They found an easy way to make extra income to push them further into the black and the method happens to be quite unethical.
  • 0 Hide
    tipmen , April 11, 2009 1:22 AM
    Dig your hole deep TWC, DSL sounds pretty good just about now if theses caps come true im done with them.
  • 1 Hide
    Anonymous , April 11, 2009 1:31 AM
    I will soon terminate my internert service with time warner. This is total BS. This is just another way for them to make more money and screw us, the consumers.
  • 0 Hide
    shadow_1 , April 11, 2009 1:37 AM
    Im in the same boat as other people who are about to get ripped off. I'
    ve been a customer ever since they have been in existance in our area. Now I have my phone/tv/internet and spend over $175/month. I will be like the others and TWC can go smoke there coke pipe and I will get on the AT&T bandwagon. I really feel sorry for the people who have no choice in this matter. I guess since verizon got in the game and they (TWC) see the how they shove priceing down thier customers who have no choice, so they want to get in the game too. Also the for those who wish the goverment is going to help, dont' hold your breath. The FCC and other agencies which over see this will do nothing but lip service to you cause this mean more taxes for them. The more useage they can charge for mean the goverment has more reason to charge you more(TAXES for thier earmarks). And most of them want to have a job after a few year working for these goverment agencies so they will not bite the hand the justifies thier existance.

    I hope AT&T observes this and take avantage of this and expand in this market were TWC is about to screw up and take thier market share to teach them a lesson. What really funny is that many dont know is that TWC uses AT&T's major routing hubs for thier internet traffic. AT&T with profit either way. So in the end the consumer is screwed either way. LOL
  • 1 Hide
    troye , April 11, 2009 1:38 AM
    tayb Operating costs went down in 2008 11% while revenue went up 11%. There is no justification. None.



    Hi Tayb, I don't doubt your numbers, but could you reveal your source of information for the 11%? I just want to know that its credible information and that these numbers are accurate. Thanks for posting.
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