One of the worst ideas I have seen this year.Time Warner Cable Inc said on Wednesday it is planning a trial to bill high-speed Internet subscribers based on their amount of usage rather than a flat fee, the standard industry practice.
The second largest U.S. cable operator said it will test consumption-based billing with subscribers in Beaumont, Texas later this year as a part of a strategy to help reduce congestion of its network by a minority of consumers who pay the same monthly fee as light users.
The company believes the billing system will impact only heavy users, who account for around 5 percent of all customers but typically use more than half of the total network bandwidth, according to a company spokesman.
Think that this will not become the standard?
Time Warner Cable, which has 7.4 million residential Internet subscribers, is hoping the move will not confuse consumers if introduced nationwide and is planning a trial period.
"Largely, people won't notice the difference," said the Time Warner Cable spokesman. "We don't want customers to feel they're getting less for more." News of Time Warner Cable's plans was originally leaked on an online industry forum BroadbandReports.com.
Other cable operators may follow Time Warner Cable's lead and phone companies such as Verizon Communications Inc and AT&T Inc are likely to be watching the New York-based cable operator's plans.
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