Time Warner Cable Using Incentives And Fine Print To Lock Customers Into Broadband Caps

from the read-the-fine-print dept

Back in January, Time Warner Cable admitted that it was considering adding usage caps and overage fees to broadband users. It recently started signing up new customers for these offerings (sometimes with absurdly low usage caps). Of course, it knows it can’t just change existing customers over to such plans, realizing they’d be in for quite a set of lawsuits for selling people one thing and then completely changing the terms. However, it’s now working on a way around this: trying to convince existing customers to upgrade to special triple play packages with “locked in” pricing for a year and then burying in the fine print that they also agree to the usage caps. Sneaky. Soon it won’t be long before you won’t be able to change anything on your plan without also agreeing to the new usage caps.

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Companies: time warner cable

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Comments on “Time Warner Cable Using Incentives And Fine Print To Lock Customers Into Broadband Caps”

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21 Comments
Not Bob says:

Umm

The sad thing (I guess) is that I have no idea how much I’m using these days. I don’t a number anywhere on my bill like I do with my cell phone, nor is there an easy way (that I’m aware of) to find out what my usage is/was for the month. I think if they are going to charge for exceeding an arbitrary cap they should be required to make it easy to determine where I am in relation to that cap.

Just my half sense.

creig (user link) says:

usage fees overage charges

i have an ISP provider that offers broadband,voip phone, digital high def cable with all the bells @ whistles. they constantly try to solicit me to change to their phone service and digital cable which requires a box top set.they are the only game in town but do not get sucked into their so called bundling package to save money.i would not be saving money with my phone i use vonage and i don’t need or want the expense of a box top set for digital high def cable tv.i assume this would be where they get me with there usage cap fees by changing my service package.just say no to any more services from a company that has a monopoly on your living area.

Killer_Tofu (profile) says:

Re: how about...

Re #9
Yes, there has been some word, although I am not sure if “offering” is the right word for it.
Here in Michigan they did make a small announcement saying they were looking at ways to implement this and are interested in it.

As soon as they do that though, they lose customers. I will see to it that everyone I know drops them.

Garry says:

Easiest way to lose customers

I’m in agreement with Go Ahead.

I had the following experience with Vodafone (European arm of Verizon) for their Mobile Broadband. I was on an “unlimited package” for €50 per month. They offered me a capped version of 5GB and 2c per MB overage charge – 15€ for 3 months and thereafter €30. Money talks and I changed package.

As soon as their main competitor, O2, offered a package of 10GB per month for the same price and terms – I jumped ship.

Offering lower pricing for capped products will only eventually lead to lower pricing all round as the caps increase based on competitors offering higher and higher caps at equal prices.

Anonymous Coward says:

What Lawsuits?

What lawsuits would they face? Time-Warner cable broadband isn’t long term contract, so they’re not violating any service agreement. It’s a month-to-month service… you pay them upfront for the coming month’s service and that’s what you get. If they suddenly wanted to say “next month we’re having a usage cap” I can pay them for that service or not. If I do, then I am agreeing to that limitation.

It’s like going to the store and buying a loaf of bread. If Acme bakery used to sell a 20 ounce loaf for a dollar, but suddenly they reduce the loaf size to 16 ounces for $1, I have no grounds to sue them (provided that the package is accurately labeled). The only choice I have is not to buy the bread.

James says:

Idiots

I still can’t figure out WHY they insist on doing this sort of thing in a clandestine manor.. perhaps TW’s approach is at least better.

It seems like a good business opportunity… offer the customers tiers of service, and a proper method for checking bandwidth/data used, and then let them decide.

Those who use more.. pick a higher tier and pay more, those who only use email and light browsing pick a lower tier and thus pay less.

No, I do not work in marketing this just seems like common sense.. where did they learn marketing… from the gov’t??

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