| Time Warner Cable has proposed an experiment of sorts. This experiment would take place in two cities throughout the country. One of those cities is Rochester, New York.
What Time Warner Cable is proposing is a broadband cap. In Time Warner's terms, it is "consumption-based billing."
 The plan is fairly simple. It includes the following:
- Light Internet users would pay $15 per month for 1 GB. According to Time Warner Cable, about 30 percent of their users use 1 GB or less every month. Overage charges for these users will be $2 per gigabyte every month.
- These current packages will have the following caps: Road Runner Lite - 10 GB; Basic - 20 GB; Standard - 40 GB; Turbo - 60 GB. The prices for these packages will remain the same, but overage charges will be in place. The overage charges for all these plans will be $1 per GB a month.
There will also be a 100 GB Turbo package that Time Warner Cable will offer for $75 per month.
- Overage charges will not exceed $75. According to Time Warner Cable, that means you could get "unlimited usage at Turbo speeds" for $150 a month. (Note: That is if you get the $75 a month package that will give 100 GB Turbo.)
- Time Warner Cable says that they will not charge for overages immediately. They will give customers three months, including a one month grace period, to get used to their usage and to adjust to the new plan.
The argument that Time Warner Cable uses for these usage fees is that those who use more should pay more. TWC cites industry experts who say that by 2012, the Internet infrastructure might not be in place for the supply to meet the demand. The rising costs of providing this service is one of the main reasons why consumption based billing is being attempted.
While Time Warner Cable says that this is not a rate increase, it is hard to argue that it isn't. This consumption based billing concept will have an impact on individuals and businesses alike. Right now, individuals and businesses pay a flat rate for Internet use. For individuals that use the Internet frequently, that cost is sure to rise under the new plan for those living in the Rochester area. And for businesses that also depend on the Internet and use the Internet, this will only add to the operating costs for the businesses and will hurt them in this tough economy.
It is time for true competition. For many of us in Western New York, the only company we can turn to for cable television and high-speed Internet is Time Warner Cable. The computer I am using right now is using Road Runner (through Time Warner) and the TV I am watching is the standard cable service provided by Time Warner Cable. The only other options are dial-up and satellite dishes. The latter isn't a bad option, but the former is a terrible option, especially for someone who uses the computer regularly.
Time Warner Cable doesn't have a monopoly everywhere, but they do enjoy monopoly status in plenty of areas throughout the United States. Western New York is one of those areas. It is time that TWC's monopoly in this region and others is addressed. |
