Thursday, June 05, 2008

We are all AOL now

Time Warner Cable tries metering Internet use



Remember when your Internet Access was through AOL, and you had to pay by the hour?

Guess what? You thought it (Internet Charges based on traffic/usage) was dead, but like Nosferatu it has risen from the grave to plague you again.

Time Warner Cable is toying with the concept of "metered internet access".

On Thursday, new Time Warner Cable Internet subscribers in Beaumont, Texas, will have monthly allowances for the amount of data they upload and download. Those who go over will be charged $1 per gigabyte, a Time Warner Cable executive told the Associated Press.

Metered billing is an attempt to deal fairly with Internet usage, which is very uneven among Time Warner Cable's subscribers, said Kevin Leddy, Time Warner Cable's executive vice president of advanced technology.

Just 5 percent of the company's subscribers take up half of the capacity on local cable lines, Leddy said. Other cable Internet service providers report a similar distribution.

"We think it's the fairest way to finance the needed investment in the infrastructure," Leddy said.

Metered usage is common overseas, and other U.S. cable providers are looking at ways to rein in heavy users. Most have download caps, but some keep the caps secret so as not to alarm the majority of users, who come nowhere close to the limits. Time Warner Cable appears to be the first major ISP to charge for going over the limit: Other companies warn, then suspend, those who go over.

Phone companies are less concerned about congestion and are unlikely to impose metered usage on DSL customers, because their networks are structured differently.

Time Warner Cable had said in January that it was planning to conduct the trial in Beaumont, but did not give any details. On Monday, Leddy said its tiers will range from $29.95 a month for relatively slow service at 768 kilobits per second and a 5-gigabyte monthly cap to $54.90 per month for fast downloads at 15 megabits per second and a 40-gigabyte cap. Those prices cover the Internet portion of subscription bundles that include video or phone services. Both downloads and uploads will count toward the monthly cap.

I thought it sucked when I was an AOL customer, and I couldn't wait to close my account when I switched to Comcast (whose email service sucks, but that's another story.)

But don't be surprised if you, sometime in the next year or two, discover that your IP (Internet Provider) switches to this new/old billing scheme.

After all, we'll soon be paying state sales taxes on Internet purchases.

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