Sign in with
Sign up | Sign in

Time Warner's Unlimited Plan: $150, Still Terrible

By - Source: Tom's Hardware US | B 54 comments

Due to the massive amount of backlash from the press as well as customers, Time Warner Cable at the end of last week introduced essentially what is the company's unlimited download plan, for $150 per month.

In actuality, what the plan is of course is TWC's 100 GB $75 per month plan, which the company increased from a lower cap not too long after it realized people were becoming irate with its cap proposals. If you pick the $75 package, the overage charge is limited at $1 per gigabyte up to $75. This essentially gives you unlimited downloading for $150.

However, even with the limit on the overage charges, TWC's price structure is still very much out of line with the rest of the industry, including those of its direct competitors in the cable space. Outside of the cable space, TWC's price is even more ludicrous.

Consider Verizon's FIOS service, which is a direct fiber line to your home. At it's cheapest package, Verizon offers a 10 mbit/2 mbit down/up connection for $49.99 without any download cap. This package is already just as fast as TWC's "turbo" package. Customers can choose to go all the way up to Verizon's $144.99 package which gives the customer a whopping 50 mbit/20 mbit connection--far superior to anything TWC has to offer.

TWC does have a cable service based on Docsis 3.0, delivering speeds of 50 mbit/sec. download and 5 mbit/sec. uploads. The service is $99 per month but TWC did not specify whether the service comes with a download cap. If the Docsis 3.0 plan comes with a cap equivalent to its Turbo service, the price would be $174/month--still pricier than Verizon's faster FIOS service and more costly than an equivalent $139/month service from Comcast.

TWC says that its restructured, and more expensive pricing schemes are due to increasing network support costs as users download more. Despite this claim made by TWC's COO Landel Hobbs, TWC's financial reports for 2008 revealed that its costs declined even though its customer based increased by 10-percent.

If TWC executives can't agree with their company's own reports, what makes them think that customers will agree? This is why TWC has decided to roll out its new plans first in areas where it is the majority or only provider of broadband service.

Image: courtesy of Wired.com/Dennis Crothers --source, TWC.

Display 54 Comments.
This thread is closed for comments
Top Comments
  • 11 Hide
    rodney_ws , April 13, 2009 6:47 PM
    I think Verizon gets it... they want to sell you a pipe. TW wants to sell you services. Just give me the damned pipe and let me do what I want with it. I hope TW fails miserably in what they're attempting to do.
Other Comments
  • 7 Hide
    m3kt3k , April 13, 2009 6:37 PM
    150BUCKS are they fucking insane. Im on comcast and if they told me that hello Fairpoint.
  • 6 Hide
    bourgeoisdude , April 13, 2009 6:41 PM
    Wow. I wish Verizon would hurry up and get FIOS ready in my area. Pricing for RoadRunner is already pretty high.
  • 3 Hide
    jsloan , April 13, 2009 6:41 PM
    If this nonsense is not stopped now we will all end up with caps.

    What I think would work is if a large number of Time Warner's switch providers.

    At this point FIOS is a better and less exprensive option.
  • 11 Hide
    rodney_ws , April 13, 2009 6:47 PM
    I think Verizon gets it... they want to sell you a pipe. TW wants to sell you services. Just give me the damned pipe and let me do what I want with it. I hope TW fails miserably in what they're attempting to do.
  • 8 Hide
    judeh101 , April 13, 2009 6:47 PM
    FU TWC
  • 3 Hide
    akhodjaev , April 13, 2009 6:52 PM
    One bad sheep ruins the whole flock of sheep.
    I hope this virus will not spread... Time to let go TWC.
    Instead of increasing capacity, it is cutting the usage, and we are moving to digital on everything. Stupid
  • 2 Hide
    avericia , April 13, 2009 6:53 PM
    I hope TW looses as much business as possible so other companies don't follow in their greedy, a hole footsteps!!!

    Increase cost and lie saying your expenses went up while your financial records say the opposite nice job idiots.
  • 2 Hide
    fausto , April 13, 2009 6:54 PM
    freaking crazy. they just after people's money. there is no increase in cost. it is a known fact that in technology costs decrease over time.


    f u time warner
  • 2 Hide
    hellwig , April 13, 2009 6:57 PM
    FTC, FCC, FDA, all these gonvernment agencies are useless.

    We split up the Tel-Co monopolies years ago, but that just created a bunch of regional monopolies. Sure, there are 10 different cable companies, but only one in any given area. Cable companies put caps on internet downloads (but I can watch as much high-def on-demand TV as I can pay for). Even cell-phone providers fix prices (20-cents for an SMS message?). Add in the failed banks and insurance companies and endless poisoned food recalls, all of this overlooked by the government agencies created to supposedly look-out for the consumer.
  • 7 Hide
    mustwarnothers , April 13, 2009 7:13 PM
    If their revenue is UP and their costs are DOWN how the fuck can they justify that the current pricing model isn't working?

    I see a bunch of devils advocates roaming these comments about infrastructure this and operating cost that.

    There is ZERO reason why the consumer deserves to be gouged to hell like this.

    I can't wait until my "1 year, all three services for 29.95 each, no contract" plan is done with.

    FiOS just arrived a few months ago.

    Time Warner, I'll let you eat handfuls of my feces for 29.95 a month, but if you go over the usage of 20 handfuls per month, It's going to be an extra 2 dollars per handful.
  • 2 Hide
    MotorMouth , April 13, 2009 7:16 PM
    hellwigFTC, FCC, FDA, all these government agencies are useless. We split up the Tel-Co monopolies years ago, but that just created a bunch of regional monopolies. Sure, there are 10 different cable companies, but only one in any given area. Cable companies put caps on Internet downloads (but I can watch as much high-def on-demand TV as I can pay for). Even cell-phone providers fix prices (20-cents for an SMS message?). Add in the failed banks and insurance companies and endless poisoned food recalls, all of this overlooked by the government agencies created to supposedly look-out for the consumer.


    That's why stupid sheeple need to quit looking for the government to fix everything for them. The last time I checked we don't have to have internet service like we do clean water? It's simple if you don't like what someone charges DON"T BUY IT!!! Without customers they will lower the price.
  • 1 Hide
    pug_s , April 13, 2009 7:22 PM
    Fortunately, Optimum Online didn't implement this stupid type of cap.
  • 5 Hide
    GenKhan2 , April 13, 2009 7:23 PM
    From the TWC chart:

    On average, a customer costs them $17.30 a year. A staggering $1.44 a month.

    On average, a customer generates $495.12 a year. A mere $41.26 a month.

    A rate hike is totally necessary! They'll go out of business!
  • 1 Hide
    njalterio , April 13, 2009 7:32 PM
    Time Warner already lost a bunch of subscribers (including me) to their cable services in Western New York when they didn't air the Buffalo Bills games for a few weeks.

    I guess TW didn't feel like paying the local station (that actually aired the game), because people could still watch the game for free anyways over the antenna, big difference was in the signal quality!
    TW ended up paying for the station again after a few weeks of bleeding customers. Seems like they haven't learned their lesson.

    Even though I canceled their TV service, I still have them as an ISP. Now I am ready to do switch off of them completely as soon as FiOS is available.
  • 3 Hide
    Anonymous , April 13, 2009 7:46 PM
    $16.2 Million salary for a CEO at the expense of customers is bad enough in this time of economic downturn.

    This is nothing more than more money to line the CEO's Pocket along with other corporate heads at TWC.

    I'd like to see a Cap on their salaries of say no more than $500K for the CEO with other corporate heads earning less than that.
  • 2 Hide
    noahjwhite , April 13, 2009 8:12 PM
    WTF $150 for the same service that I'm getting now for $60. That's insane. AT&T DLS is already cheaper. Without a cap. If they impose a cap here I'm switching. As will most people I suspect.
  • 1 Hide
    thegh0st , April 13, 2009 8:35 PM
    TWC = insane, crazy, shadey, greedy, b@st@rds with no concern for consumers/customers other than how much they can milk them for.

    This is simply ridiculous that they even try to justify such blatant extortion. I guess they are taking a page out of the oil company's books.
  • 0 Hide
    gamerk316 , April 13, 2009 8:37 PM
    http://www.eweek.com/c/a/IT-Infrastructure/Time-Warners-Broadband-Cap-Plans-Draw-Lawmakers-Ire-202147/

    Thank you, state of NY. Now go spam your own represenatives and get this thing moving.
  • 1 Hide
    Anonymous , April 13, 2009 9:38 PM
    Verizon's FIOS may not be an option in your area not because the company just hasn't scheduled it, but because they're not allowed to. In my area, we have AT&T DSL and Comcast cable, and both of them have successfully lobbied very hard to keep FIOS out, even though this is one of the largest metropolitan areas in the US. Why do we give them local monopolies again?
  • 0 Hide
    mindless728 , April 13, 2009 9:50 PM
    regardless of whether or not that bill passes, im stitching companies once i move to Rochester

    go F*#$ yourself TWC
Display more comments