Time Warner COO Talks Revised Capped Plans
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?
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.
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.
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.
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???
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.
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.
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
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.