Time Warner Cable to enforce data cap on Internet use

by Stevie Smith - Jun 3 2008, 12:27

In what some might see as a definite backward step in terms of service providing, Time Warner Cable Inc. has this week revealed it is to run a metered Internet access trial that will see customers charged extra should they exceed a set monthly data allowance.

Despite unlimited flat-rate Internet access being widely enjoyed by many online customers, and unattractive capped upload and download rates largely considered to be a thing of the past, Time Warner Cable is proposing that its service will charge customers $1 USD for every gigabyte of data used beyond their agreed set limit.

According to Kevin Leddy, Time Warner Cable’s executive vice president of advanced technology, the metered usage service will roll out to new customers starting this Thursday in Beaumont, Texas. The 90,000 established Time Warner Cable customers in the region will not be affected.

In fleshing out Time Warner Cable’s reasoning on its service to the Associated Press, Leddy claimed that it is an attempt to rein in heavy data users and address an uneven usage balance that presently exists amongst the media giant’s cable subscribers.

Specifically, Leddy noted that a mere 5 percent of Time Warner Cable’s subscriber base is responsible for requiring half of the available capacity through local cable lines.

The company believes its new metered service system is the fairest way to move forward in creating the necessary finance required to provide vitally important infrastructure investment.

Time Warner Cable’s official announcement comes after the Connecticut-based company vaguely mentioned in January of this year that it was planning a new service trial for the Beaumont region of Texas. It did not divulge in-depth details at that time.

In terms of pricing, Time Warner Cable has said that it will offer tiered usage packages starting at a 5GB per month cap on a 768Kps connection for a total of $29.95 per month, through to a 40GB per month cap on a 15Mbps connection for a total of $54.90 per month. The subscription price bands also include video and/or phone services.

In an effort to avoid any potentially damaging customer confusion or trepidation -- which could lead to the favouring of a competing provider -- Time Warner Cable has said that new users included in the trial will be able to monitor their data usage through a handy “gas gauge” consumption tool situated on the company’s Web site.  

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