Wednesday, June 4, 2008

Time Warner Cable to Begin Net-Metering

This month, in a test run, Time Warner Cable will be charging consumers in Beaumont, TX for their upload and download volume. Customers can choose plans ranging from $30-55 per month, with a charge of $1/GB for exceeding the volume threshold.

Link.

My take on this? Yes, I believe consumption based pricing models; video downloaders should have to pay more for their service than those that just check email. But at the same time, the problem is that Time Warner Cable, the broadband provider, is not sufficiently decoupled from Time Warner, the content provider. While piracy is a legitimate concern, the 40GB cap can also have a disastrous effect on even legitimate content providers. For example, Netflix recently introduced the Roku, which would deliver movies directly to the set-top box via the Internet. With the cap, given that an HD movie can be 8GB, the Roku is rendered pointless. And yes, Netflix is a competitor of Time Warner Cable's video on demand service.

Hey, it could be worse. To offset higher fuel costs, airlines are contemplating charging passengers by the pound.

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