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?

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    Top Comments
  • tayb
    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.
    16
  • duckmanx88
    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?
    11
  • Other Comments
  • duckmanx88
    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?
    11
  • tayb
    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.
    16
  • ParadoxMind
    Total BS!
    7