Time Warner Cable Puts a Cap on Bandwidth Capping

Not even a week after it announced consumption-based broadband pricing that would include the option of $150-per-month unlimited bandwidth, Time Warner Cable Inc. has decided to shelve the plan.

The cableco had announced it would run trials of usage-based pricing tiers that set a limit on how many gigabits of bandwidth a user could take up in a month, but soon ran into industry blowback from opponents of bandwidth capping. Given the ongoing explosion of online data usage and video streaming, capping the amount of bandwidth would inevitably lead to overages and essentially force subscribers into using the $150-per-month option, industry groups argued. In other words, the plan is just a thinly veiled attempt to raise prices, they said.

CEO Glenn Britt said Thursday that TWC still believes metered usage to be the best for consumers, but said the trials are canceled for now so that the company could work on educating the populace to this fact. To avoid unwanted overages, the cableco will offer usage meters and awareness programs as to how the plans work.

The company isn’t shutting down the pricing structure in Beaumont, Texas, however, where bandwidth capping has been in place for almost a year. There, it said, only 16 percent of customers actually ran into the bandwidth cap.

Leave a comment

Your email address will not be published. Required fields are marked *

The ID is: 78397