Time Warner Cable modifies Web pricing structure with usage
By Erina Lin, Friday 18 January 2008 at 21:38 :: Online/Digital Publishing :: #1123 :: rss
Time Warner Cable will modify a new pricing structure for high-speed Internet access later this year, charging users based on the amount of data they download, according to a company spokesman Wednesday.
As the second-largest cable provider in the United States, the company will start a trial in Beaumont, Texas. To new online customers, it will sell different tiered levels of service based on how much data they download per month, not the fixed-price with unlimited downloads as usual.
According to company spokesman Alex Dudley, this move is aimed at “improving the network performance by making it more costly for heavy users of large downloads.” He said that the super-heavy download users, about five percent of the customer base, can represent up to 50 percent of network capacity.
Dudley refused to reveal the details of the pricing tiers or the download limits.
The trial would likely start around the second quarter. Dudley added that the new pricing policy would only effect new customers in Beaumont, not existing ones, Editor & Publisher reported.
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