Thu, Apr 2nd 2009 3:49pm
time warner cable
Time Warner has been testing broadband plans with traffic caps for several months, and apparently it likes what it's seen, as it plans to soon expand the caps into four more markets. The company alleges it has to switch to capped plans in order to "support the infrastructure of the broadband business," even though the supposed bandwidth crunch ISPs cite when talking about these plans is little more than a myth. As the company's CEO notes, getting the cat back in the bag by getting consumers to switch from unlimited to capped plans is going to be very difficult. Previous studies have found that even light internet users would look to take their business elsewhere if their ISP introduced caps, mainly because they have absolutely no idea how much bandwidth they're consuming. That's a good thing, because the absence of mental transaction costs helped wired broadband take off, and laid the groundwork for all sorts of innovative internet services -- not to mention lots of revenues for ISPs. Compare this to the mobile world, where per-KB or per-MB pricing helped stymie the growth of data services.
If you liked this post, you may also be interested in...
- Missouri The Latest State To Let Telecom Monopolies Write Awful, Protectionist State Law
- If New FCC Boss Ajit Pai Is So 'Pro Consumer,' Why Does The Telecom Industry Need To Pay People To Say So?
- FCC Commissioner Thinks Ultra-Fast Broadband Just a 'Novelty'
- Charter's Mega Merger Results In Higher Prices, Slower Speeds, And Worse Customer Support Than Ever
- Time Warner Cable Sued Again Over Sneaky Hidden Fees...By Plaintiff Not Seeking Monetary Damages