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Time Warner Cable Pulls "Consumption Based Billing" Trials

by: robert.harding

Thu Apr 16, 2009 at 18:38:14 PM EDT


The consumption based billing concept that Time Warner Cable was going to try and a number of markets throughout the United States, including Rochester, is on hold for now.

The company announced that they won't go forward with the plan until they better educate their customers about consumption based billing. That may or may not mean that a consumption based billing trial will take place in the future, but for now, the trial is postponed.

Congressman Eric Massa has led the fight against Time Warner Cable's proposed trial in the Rochester area, which would have impacted Rochester's suburbs and rural areas that are in the Rochester district. Massa planned on introducing the Broadband Internet Fairness Act and according to his office, he still will. Massa does not want to see customers taken advantage of.

He called today's announcement a "grassroots victory" and said that he will go forward with the legislation anyway.

"We're delighted that commonsense prevailed," said Rep. Eric Massa. "The people of Western New York spoke and I heard them loud and clear. Together we have won and I am glad that I was able to play a small part in bringing about this change. This is a true grassroots victory, but we will move forward with our legislation to ensure that any future plans to charge customers based on how much they download do not spring up anywhere else."

Sen. Chuck Schumer was also involved in trying to get Time Warner Cable to halt this trial.

"By responding to public outrage and opposition from community and elected officials, Time Warner Cable made the right decision today," said Schumer. "I will make sure that any changes going forward are in line with what Rochester's families and small businesses need."

A lot has been made of this story in the areas that would have been impacted by the first round of trials. Austin, Texas was another location where a trial was going to take place. There was plenty of controversy in Austin about this issue and the plan drew heat elsewhere.

For now, Time Warner Cable still has their consumption based billing education page up on their website with a FAQ page for customers.

Time Warner Cable said late last week on its website that this was not a rate increase. However, it was hard to argue that point when your bill would be tied directly to how much Internet you use. If you are a small business that depends on the Internet or if you telecommute to work, you would have been looking at a hefty Internet bill - up to $150 a month - if you are a frequent user.

While Sen. Schumer has taken credit for this, the credit should go to Congressman Massa who has been outspoken in his criticism of Time Warner Cable for its decision to conduct this trial. And while the trial is dead for the time being, Massa still plans on going forward with legislation to ensure that any attempt at consumption based billing is avoided in the future.

robert.harding :: Time Warner Cable Pulls "Consumption Based Billing" Trials
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Kudos to Massa (4.00 / 2)
for organizing a successful campaign to stymie Time Warner's attempt to gouge its customers.

Voters will remember this next year.


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