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Time-Warner Considers Per-Gigabyte Service Fee, After iTunes
Posted by
Zonk
on Tue Feb 05, 2008 09:23 AM
from the isn't-this-a-step-in-the-wrong-direction dept.
from the isn't-this-a-step-in-the-wrong-direction dept.
destinyland writes "Time-Warner is now mulling a plan to charge a per-gigabyte fee for internet service. A leaked memo reveals they're now watching how many gigabytes customers use in a 'consumption-based' pricing experiment in Texas, which we discussed early last month. The announced plan was that they were considering a tier-based approach, as opposed to per-gigabyte fees. 'As few as 5 percent of our customers use 50 percent of the network,' Time-Warner complains, with plans to cap usage at 5-gigabytes, and more expensive pricing plans granting 10-, 20-, and 40-gigabyte quotas. Steven Levy at the Washington post suggests Time-Warner's real aim is to
hobble iTunes, raising the cost of a movie download by $10 (or $30 for a high-definition movie). Eyeing Time-Warner's experiment, Comcast cable also says they're evaluating a pay-per-gigabyte model."
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Time Warner Cable to Test Tiered Bandwidth Caps 591 comments
I Don't Believe in Imaginary Property writes "According to a leaked internal memo, Time Warner Cable is testing out tiered bandwidth caps in their Beaumont, TX division as a way to fairly balance the needs of heavy users against the limited amount of shared bandwidth cable can provide. The plan is to offer various service tiers with bandwidth fees for overuse, as well as a bandwidth meter customers can use to help them stay within their allotment. If it works out, they will consider a nation-wide rollout. Interestingly, the memo also claims that 5% of subscribers use over 50% of the total network bandwidth."
[+]
Your Rights Online: Time Warner Filtering iTunes Traffic? 199 comments
An anonymous reader writes "Starting on Thursday, January 31st, Time Warner subscribers in Texas starting experiencing connectivity issues to the iTunes store to the point where the service wasn't usable. General internet traffic issues haven't coincided with these problems, and many folks have reported that the store works as normal when they head to the nearest mega-bookstore and use their ISP instead. Time Warner has announced that they're going to begin trials of tiered pricing in one local Texas market, but I'll be darn sure to switch my provider if I hear the slightest hint of destination/content based tiers instead of bandwidth tiers."
[+]
Why Is Less Than 99.9% Uptime Acceptable? 528 comments
Ian Lamont writes "Telcos, ISPs, mobile phone companies and other communication service providers are known for their complex pricing plans and creative attempts to give less for more. But Larry Borsato asks why we as customers are willing to put up with anything less than 99.999% uptime? That's the gold standard, and one that we are used to thanks to regulated telephone service. When it comes to mobile phone service, cable TV, Internet access, service interruptions are the norm — and everyone seems willing to grin and bear it: 'We're so used cable and satellite television reception problems that we don't even notice them anymore. We know that many of our emails never reach their destination. Mobile phone companies compare who has the fewest dropped calls (after decades of mobile phones, why do we even still have dropped calls?) And the ubiquitous BlackBerry, which is a mission-critical device for millions, has experienced mass outages several times this month. All of these services are unregulated, which means there are no demands on reliability, other than what the marketplace demands.' So here's the question for you: Why does the marketplace demand so little when it comes to these services?"
[+]
Time Warner Cable Tries Metering Internet Use 589 comments
As rumored a couple of months back, Time Warner is starting a trial 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... [T]iers will range from $29.95 a month for... 768 kilobits per second and a 5-gigabyte monthly cap to $54.90 per month for... 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."
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The problem with consolidated multimedia (Score:5, Insightful)
This is why consolidation in media is such a BAD, BAD, BAD thing for consumers. When one single company (or even small group of companies) owns your newspaper, television stations, internet service, telephone company, cable company, etc. they basically own *YOU*.
MOD PARENT UP (Score:5, Interesting)
In this situation, the regulators ought to look at any competitive advantage this gives their content products and require them to price those products high enough that the bandwidth pricing is competition neutral.
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Re:MOD PARENT UP (Score:5, Insightful)
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Re:MOD PARENT UP (Score:5, Interesting)
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Re:MOD PARENT UP (Score:4, Insightful)
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Re:MOD PARENT UP (Score:5, Interesting)
I don't think many slashdotters are privy to the actual costs of internet connections. I work in the networking department at my work where we had a T3 (45 Mbps). We've moved to leased fiber to a co-loc and now have 250 Mbps for less. It's the same ISP, all we did was take the phone company out and costs went way down.
The cable and phone companies are able to charge so much because they are the only last mile connection in many places. Having a data connection (phone, TV, internet) that the government (controlled at the town/state level) treats like the roads would be great.
My model would have the government run single-mode fiber to every house and bring it all together in a building in each town (or maybe larger). It would then be the responsibility of a company to actually give service over the fiber to homes. This would allow people much more flexibility, so if a group of people want to just share 100 Mbps from a big ISP, they have the power to do so.
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Re:MOD PARENT UP (Score:5, Insightful)
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Re:MOD PARENT UP (Score:5, Insightful)
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Re:MOD PARENT UP (Score:5, Insightful)
In a real market, the variety of meaningful substitutes will mean
that the cost of and product will be driven to it's actual production
cost.
Since these ISPs are essentially operating like public utilities, they
should be regulated in the same manner. They shouldn't be able to use
their monopoly position to "soak the poor bastards".
Parent
Re:The problem with consolidated multimedia (Score:5, Insightful)
So I know they want to do this but my guess is they are afraid to do it without:
A: Losing customers in competitive markets.
B: Becoming regulated in non competitive markets.
Parent
Re:The problem with consolidated multimedia (Score:4, Funny)
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Re: (Score:3, Funny)
Layne
Not only is it a step in the wrong direction... (Score:5, Interesting)
Right now, I could call up Verizon and get FiOS. In about 6 months I'll be able to call up Verizon and get FiOS TV. Hell, theyre currently installing FiOS in my parents tiny village of about 5000.
These cable companies are facing the first real competition they've ever had and instead of reacting by making their service better, they're planning out ways to make their service worse.
And no, this isn't some sort of viral FiOS ad. I'm just a dumbfounded consumer.
Re: (Score:3, Insightful)
U.S. falling behind (Score:5, Insightful)
Spending much of the last several years in Eastern Europe, I've admired how ISPs there offer Internet connections for cheap even by local standards and are tolerant of heavy P2P usage. The technique used by one ISP I've used in Romania to reduce bandwidth usage was setting up a DC++ server where people could trade music and films at lightning speed with people from the same city.
In the U.S., meanwhile, Internet connections are pricey and companies like to poke their nose into what you are doing with it. How ironic that a country which was a major force behind the creation of the Internet is lagging in many respects to poor former-Soviet states.
Re:U.S. falling behind (Score:5, Insightful)
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Re:U.S. falling behind (Score:5, Interesting)
My friend runs a local network in his neighborhood (few apartament blocks, ~200 computers) and they've set up both DC and an FTP server to aid everybody's piracy needs. One of the side effects (besides everybody being able to get pretty much whatever they want in minutes) is that they've been running on something like one 2Gbps/256kbps DSL line (for http, games, ssh and stuff like that) and one 2Gbps/2Gpbs line (something much more expensive, I don't know much about this stuff though) for a few years and owners of ~200 computers are happy with it (partly because it costs peanuts).
Parent
Re:U.S. falling behind (Score:5, Funny)
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Users Used (Score:5, Insightful)
Charge or don't charge but don't hide it (Score:5, Insightful)
Re:Charge or don't charge but don't hide it (Score:5, Interesting)
- The minimum speed that I am guaranteed to get.
- The maximum speed I will get under optimal conditions.
- The percentage of the time I can expect to be within n% of the maximum speed.
- The maximum amount of downtime allowed before I am compensated.
- The maximum transfer I am allowed per month and the cost per GB of going over.
Ideally, each ISP would provide a grid with different levels / prices for each of these categories and I would be able to put together a plan that met my needs. They could even unify their consumer and business pricing structures, so businesses picked from the same grid but, if they were doing anything important with their connection, chose the higher level options.As long as there's competition, and the customer is well-informed about the service they are buying, then a free market works. If either of these conditions fails then you might need some regulation.
Parent
Re:Charge or don't charge but don't hide it (Score:5, Insightful)
The maximum speed I will get under optimal conditions.
The percentage of the time I can expect to be within n% of the maximum speed.
The maximum amount of downtime allowed before I am compensated.
The maximum transfer I am allowed per month and the cost per GB of going over.
ISP A:
- Minimum speed: 1MBs/5MBs.
- Time over certain speed: 99% time over 5MBs-25MBs. 90% time over 5MBs-50MBs
- Max non-compensated downtime: 4 hours.
- Transfer limit: 1GB.
- Cost for extra transfer: 0.05$/GB.
ISP B:
- Minimum speed: 1MBs/5MBs.
- Time over certain speed: 90% time over 5MBs-25MBs. 5% time over 5MBs-50MBs
- Max non-compensated downtime: A month.
- Transfer limit: 1Gb.
- Cost for extra transfer: 5$/Gb.
ISP C:
Supermegaoffer!! 50MB MAX connection!
Sign up now! Don't put up with the slow ISPs!
Final customer cover result would probably end up like:
A: 25%
B: 15%
C: 60%
Parent
Re: (Score:3, Interesting)
Speakeasy will sell you a T1 with 1,5Mbps down, 384k upstream for about $360/month. That's the real cost of unlimited bandwidth.
Time Warner and Comcast are cordiallly invited... (Score:5, Funny)
...to FUCK OFF AND DIE, because I'll go back to fucking dial-up before I pay their ransom!
Good luck with that guys (Score:5, Interesting)
Time Warner and Comcast need a reality check (Score:4, Interesting)
Get ready for the apocalypse privacy-invading broadband douches.
I really hope they do this. (Score:5, Insightful)
That's the biggest problem, Most cable areas have ZERO competition for broadband. DSL is not available as telcos like to drag their feet upgrading the infrastructure to get DSL working everywhere.
As soon as there is some real competition out their for broadband forcing time warner and comcast to quit playing their rape the customer games.
Also, the effect to people with open accesspoints will be chilling. Clueless people in their homes will be slapped with a shutoff or higher bill that month when a bunch of kids discover their accesspoint to download their stuff. It will create a underground "internet stealing" activity as people get their downloads without exceeding their own cap.
Cable companies dont give a rats ass, as long as they find a way to charge you more for what you already get and not upgrading their equipment, they are incredibly happy.
I wish I had another choice (Score:3, Interesting)
This just frosts me even more, I don't WANT to switch to DSL, but I may have to.
what to do... (Score:3, Informative)
They should lower the fees for the guys aren't using as much bandwidth rather than raise the fees for the guys that are. That will never happen though.
Hello Comcast. (Score:3, Insightful)
This is a great idea (Score:4, Funny)
And some day, when we do decide to make a come back
I'm looking forward to living a 22nd century stone age. Aren't you?
What About "Dumb" Consumers? (Score:3, Insightful)
Maybe I'm wrong, but customers using more bandwidth don't add additional cost to the infrastructure, do they? The network is a sunk cost and customers are simply utilizing what's there. (Do I have that right?)
Here's what's worse. How do "stupid" consumers know what it high and low bandwith? Even many programmers and engineers would have a hard time knowing this, unless a monitoring tool or widget was on your desktop.
That's fine, as long as the pricing remains fair (Score:4, Insightful)
Of course not. Yet Another Money Grab. Oh well, if they do change the terms of the service I'm getting, it means I can get out of that 1 year promotional package I have from Comcast.
Anyone know if Verizon is going to do this with FiOS? I'm fortunate enough to have a choice of high-speed internet service, so at the very least there's SOME market pressure here.
NP, but I also want (Score:4, Insightful)
2) penalty for excessive latency and delay
3) detail billing on paper for free
4) 99.99% uptime
5) intelligent 24/7 technical/billing support (not the reset this, reset that, I don't know nothing support)
Time for the Electric Company to Jump in for Real (Score:5, Informative)
The networking is already in your house:
"Providing broadband service to these customers would simply require adding equipment to their wires. The feature of BPL that would make it more attractive than DSL or cable modem is that BPL customers would immediately have in-house networks without having to purchase and install additional wiring in their homes."
Plug in a wireless hub or router and you're ready to roll.
Although all of this brings up the next problem: You're dealing with *another* monopoly. Bah!
Re:Time for the Electric Company to Jump in for Re (Score:4, Informative)
If BOP would really work, why do we still have human meter readers? Why doesn't the meter transmit its usage back over the same lines it's pulling power? Meter reading is one of the biggest costs of a utility company so they have big incentives to fix the problem. Lots of companies try to make remote monitoring hardware but don't get very far due to the poor (data) capabilities of the network.
I'm not discounting the idea completely. Just saying that, in my limited knowledge, it's fraught with practical problems and is unlikely to be a solution anytime soon.
Parent
Can I bill Microsoft/Apple/RedHat/etc for patches? (Score:3, Insightful)
Are they going to count all the incoming connections from bots trying to hack my network? Like an incoming cell call, will I still have to pay for unwanted incoming connections?
If I don't like what they're doing, where the heck am I supposed to go? Back to dial-up? Oh, wait, I'll do my movie downloads at work. Just like health insurance, the burden will start to be placed on the employer. Expect office internet filtering to start to become more draconian.
The concept of competition and free markets in the US is only important until someone gets enough lobbyists. Sometimes this country really pisses me off.
throttling at different times? (Score:3, Insightful)
Assuming that this is the case, exactly what impact on performance is this having on web usage to the "average" consumer? In my opinon, I'd say none. A better option to me, if their numbers are right, would be to shape traffic during times of day. Say, throttling non http/smtp/IM traffic increasing the performance during the day for "consumer" level usage that many small businesses use for communication or what have you. Later in the day, increase the speeds on the throttled traffic up a percentage, creating a "prime time" for those people who use other services like itunes/youtube/whatever file sharing they wouldn't normally use during the day. Then once this "prime time" traffic has died down, open the floodgates.
Granted an option like this doesn't help with them taking more of your money, but it would be an interesting approach to the problem that doesn't really cost them anything either.
1500 HD movies a month? (Score:5, Interesting)
A bunch of smoke being blown in your... (Score:5, Interesting)
So these companies complaining makes no sense. In fact they just shared our regional numbers with us and HSI was profitable by some comparable sum equal to video.
IMO these companies should just become common carriers like AT&T and provide you access. Other companies should provide IPTV which would either be free or subscription based. Thats where I see the industry hopefully going!
Did these guys... (Score:3, Interesting)
Does the Board of either company actually believe this $/GB model would have anything other than a short-term revenue burst? I refer of course, to the people who will receive their statement once this plan has been put into effect (I'm assuming it will be made retro-active for the billing period when the policy is put in place).
And leveraging the price of iTunes movie downloads? First of all, if Time Warner is already being paid per GB, then why would they need to do this? To offset profit? I purchased a movie from iTunes, (Wargames, if you must now) and it was not a small file.
Secondly, a $10 increase? $30 for High-Definition? Why not just send out billing statements that have a 10% Off coupon for any TW-Library title at Best Buy, because I certainly believe the desire here is to push the physical media rather than the digital.
Finally, does Time Warner actually believe that Apple will roll over and say "okay"? Apple had it's arm twisted once over the price of songs and didn't quit. So why would they suddenly agree to a $10/$30 increase and hamper their own sales just so Time Warner can force their On Demand service to their customers? Apple may just do the opposite and end all dealings with TW once the contractual obligation ends. Add to that, customers won't want to download from the On Demand service if it will cost them per Gig.
This is an excellent method for alienating an entire customer base in one simple step.
Commercial v. "home" usage / Pro surcharge (Score:3, Funny)
I routinely use VPN contact with my office computer network and I have downloaded 2-3 gig video depo files. I can easily have evidentiary material scanned into tens of
I routinely use video streaming to take Continuing Legal Education courses and those also involve a massive conference call with all of the participants. If I am already paying $250/mo for Internet and $400 + for a Video streamed CLE and I make use of my VPN connections I'm going to be in the top 5% of bandwidth users and it is all 100% legit. How much of a surcharge are these twits planning? A normal month will be dozens if not hundreds of gigs of data. My primary email is through a web hosting company that I negotiated "unlimited" file size with (effectively that "unlimited email is about 600 meg) and posting unencrypted client data to a private server is a massive ethical violation.
Anybody want to guess what PGP does with a 4.2 gig
So, what do I do? Buy a ton of Firelite drives and Fedex data? Does this even make sense?
Hell, if I spend any time researching the law on Westlaw and Lexis (not to mention Thomas) I'll download a few gig. EVERY MONTH.
I'm a solo practitioner with an active litigation practice (primarily Federal) and I can't think of a better reason than this new scheme to REGULATE the @#$%^&* out of the access providers.
Nothing New, we do it already and people LOVE IT (Score:5, Interesting)
Re:5GB?! (Score:5, Informative)
And its not about iTunes downloads.
My ISP (iinet.net.au) charges me $XX dollars for XX GB of usage per month on a 24Mbps ADSL2 connection. This is very common in Australia. My XX's are $49 for 10GB of usage but other higher and lower plans are available. After that I am "shaped" to a 64kbs connection.
Sounds bad right? But...
If I get me email off their POP server that doesnt count towards usage.
And they have some kind of agreement with Apple (mirror maybe?) that itunes downloads dont count. (NOTE: This partnership with Apple is highly visible and advertised on their website)
They also have a mirror for just about every linux distro (they are an official Ubuntu mirror) and for almost all game demos and patches. Not only does this not count towards my usage, but it means I can get these at the maximum speed of my connection as the download is only one short hop away (think linux iso in 3 to 4 minutes).
About the only thing that really counts towards your usage is web browsing - which even in a month of heavy use doesnt come close to the limit at about 2 to 3 GB - and BitTorrent/P2P which I have to admit I do use sometimes.
I hate to say it but if we all downloaded legal video content the ISPs wouldnt have to look at this. They would just setup legal local mirrors for large files.
Parent
Re:5GB?! (Score:4, Insightful)
Automatic Updating software (Windows/AV and all others) cuts into it.
Skype cuts into it.
Playing games cuts into it.
Your 2-3gb is gone very quickly without ever opening a webpage.
Parent
Re: (Score:3, Insightful)
I mean, seriously, that's *2 DVDs*. Not exactly a lot of data, is it? At your connection speed, it'd take you less than an hour to transfer (download) that amount of data.
Of course, if your ISP is upfront about this and doesn't claim to be selling you anything they're not (such as an "unlimited plan", a "flatrate" or so), then there's nothing inherently wrong with it; after all, if you don't like it, you can switch to
Re:5GB?! (Score:4, Interesting)
Parent
Re:5GB?! (Score:5, Insightful)
An ISP has partnered with various content providers to offer specialized service: Network Neutrality nightmare #1 is here! To everybody who said all this network neutrality stuff was theoretical and we should wait until it happens - here's your example. Now, do we have to wait until this happens in the U.S. before we get some neutrality legislation?
I know that the parent poster was using this example to be a good thing, but it isn't. It is now cheaper for him to buy stuff from iTunes instead of Amazon. It's cheaper to play games from the companies they've partnered with. I'm sure that non-commercial games with large downloads aren't getting these special benefits. Nor small Linux distros. This sounds like a great way for an ISP to slip non-neutral policies into place: 1. Create some sort of cap that applies to everyone. 2. Make exceptions to the cap. Now, instead of it looking like they are penalizing Amazon's music download service, they can say they are doing something helpful to the iTunes users. Same thing, different spin.
Parent
Re: (Score:3, Insightful)
Re:5GB?!-Breaking the honesty barrier. (Score:5, Insightful)
I downloaded the entire first season of Lost from iTunes at one point. That single download was (IIRC) over 9GB. I have rented several movies from iTunes in the past few weeks, each one around 1.5GB in size. I have taken an active interest in history and archeology as of late and have downloaded as many as 5 History Channel shows in a single weekend, each between 450MB and 1.5GB in size. (The History Channel has some special feature shows which are basically movies.)
I'd easily trample 5GB for my entertainment before you even START looking at my bandwidth usage for getting Solaris 10 & OpenSolaris downloads; evaluating the latest Linux version; playing video games online; downloading the latest OO.org, Netbeans, Seamonkey, Firefox, Opera, Safari, iTunes, GIMP, and other software that I need to keep up to date on a regular basis. Oh, and then there are free videos like Star Wreck, YouTube, Starship Exeter, New Voyages, Hidden Frontier, Java Gaming Vidcast, watching the lastest Macworld Expo, the JavaOne presentations, the Sun announcements, etc., etc., etc., etc.
Oh! And let's not forget about my day-to-day tasks of obtaining libraries, SDKs, documentation, and other tools I need for my work and hobby. (HTML & PDF documentation can easily exceed hundreds of megs for many projects. Some exceed several GB. Don't even ask me about the time I tried to get a copy of MonoDocs by spidering the MonoDoc website.)
As if that isn't enough, taking my game console online to play web games, watch videos, and otherwise interact over the web with the console easily chews through a significant chunk of bandwidth. A 3-10 MB Flash Game or a 20MB video clip might not seem like much, but it starts to add up after a while.
Am I a power user? Sure. And I'm more than willing to pay for quality service that provides me what I need to use my connection to its fullest potential. But don't think for a moment that using your connection implies illegal activity. There's more than enough data churning around the 'net before you even touch the illegal stuff. And when I'm paying upwards of $50/mo for broadband, you had better bet that I expect to be able to transfer as much as a hundred GB a month. As someone already mentioned, bandwidth is more than cheap enough to make that much transfer cost-effective.
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