05/02/2009 05:12 am ET Updated May 25, 2011

Time Warner Cable Expands Internet Usage Pricing

It was only a matter of time before Time Warner Cable expanded its efforts to bring tiered broadband out of the tiny town of Beaumont, Texas. Time Warner is joining other ISPs in trying to squeeze more money from their broadband pipes, generally in the name of needing to upgrade the network or to stop bandwidth hogs. 1

The newly spun-off cable company will impose premium rates on big users of broadband in Web markets in Texas, New York, and North Carolina. In April, Cable will begin collecting information on its customers' Internet use in the Texas cities of Austin and San Antonio and in Rochester, N.Y. Consumption billing will begin in those cities later this summer. Spun off from Time Warner (TWX) this month, Cable had been testing a plan to meter Internet usage in Beaumont, Tex, since last year. By charging a premium to the heaviest broadband users, much the same way cell-phone providers collect fees from subscribers who exceed their allotted minutes, Time Warner would upend a longstanding pricing strategy among Internet service providers. Cable and phone companies say they need flexibility in setting prices for use of large, expensive, heavily used broadband networks. 2
  1. Time Warner Expands Metered Broadband Rollout [GigaOM] (GigaOM)
  2. Time Warner Cable Expands Internet Usage Pricing (BusinessWeek Tech)