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TheDomains.com

What Happens To BroadBand When The Price SkyRockets?

April 13, 2009 by Michael Berkens

Time Warner cable has been talking about it for quite a while and now seems to have a plan in place to for a variable pricing, depending on amount of bandwidth a customer uses.

The pricing could leave consumers paying up to $150 a month for Internet access.

Here is the proposed pricing according to Engadget.com:

  • A limited package for “light users” at 1GB/month, 768KB down / 128KB up, with overage charges of $2/GB/month.
  • Road Runner Lite, Basic, Standard, and Turbo packages at 10GB / 20GB / 40GB / and 60GB caps, respectively, and overage charges at $1/GB/month.
  • A big daddy, 100GB Turbo package at $75/month with overage fees of $1/GB, which, when coupled with that magic threshold of $75 in charges, becomes the “unlimited” plan.

Of course as Engadget.com points out once in place there is no guarantee that the $75 in extra charge will remained caped at $75.

In this economy where many are looking to cut back on necessities will people roll back their broadband to cut expenses if the fees get out of hand, or just cut back on using the services that create all the bandwidth usage?

WIth other providers like Comcast looking to put surcharges on high user accounts, this issue will be affecting many cable modem users in the future.

Filed Under: Uncategorized

About Michael Berkens

Michael Berkens, Esq. is the founder and Editor-in-Chief of TheDomains.com. Michael is also the co-founder of Worldwide Media Inc. which sold around 70K domain to Godaddy.com in December 2015 and now owns around 8K domain names . Michael was also one of the 5 Judges selected for the the Verisign 30th Anniversary .Com contest.

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Comments

  1. Sammy Ashouri says

    April 13, 2009 at 2:08 am

    Already sent them an e-mail with my thoughts on how stupid this is. Of course, I’m a consumer and want the most for my money.

    I really would be extremely pissed to be forced to pay almost triple for the same service I’m getting right now.

  2. Jeremy says

    April 13, 2009 at 2:19 am

    Ugh. I’ve been wondering when this would happen.

    I remember going to focus group at the CNN Center in Atlanta ~2002 where they showed us the pilot HDTV programs they were testing. The main point of the focus group quickly became apparent. “How much would we pay for HDTV *per channel*?”

    I was appalled at the other participants’ answers: “$10”, “$15″…”$30/mo.” When it was my turn I answered: “None.”

    Visibly shocked, the host asked why not. “Because it’s not that big of an improvement. This is what you SHOULD be giving us for the price we are *already* paying. I would pay maybe $100/mo if EVERY channel was HD.”

    Like dominoes, the other participants all asked to change their answers to mine. The hosts were PISSED.

    I guess my point is speak up. If we let companies that provide us with essential services (like my broadband, FTW) get us into these sketchy a la carte packages we’re all going to be nickle and dimed to death.

  3. M. Menius says

    April 13, 2009 at 6:00 am

    I’ve poured alot of money into Time Warner products. They started out with incredible customer service, but it has declined steadily year after year as they’ve grown.

    I think this proposed price increase is a play on the fact that everyone wants and needs internet access now. It’s like paying more for gasoline or electricity. People will complain about it, but in the end they will pay because they have to have it. It’s become so essential to daily life.

    If TIme Warner really gouges their internet customers, then it will be time to take a look at Verizon wireless. I have Clearwire as an internet back-up, so may consolidate everything to Verizon (if the service is reliable).

    No doubt, the emergence of HD has eaten into any available broadband overhead that once existed.

  4. Scott says

    April 13, 2009 at 6:46 am

    I’ve been watching this for some time. Net Neutrality is a fight worth fighting for everyone, especially domainers.

    If we’re not careful, it won’t end there. They’ll start putting sites on premium packages, like espn.com, myspace.com, twitter.con, etc. so you will be charged more for visiting high traffic sites. at the same time, they will charge espn, myspace and twitter more for having high traffic and eating up bandwidth. they will charge twice for the same bandwidth.

    AND on top of that, big sites will go to paid memberships to recover these costs.

    This isn’t far fetched. I don’t consider myself a republican or democrat, as i hate em both. But the republicans have been pushing on behalf of the ISPs for this tiered pricing for a while. The democrats are for net neutrality, so now is our best chance to fight it. Fighting for net neutrality is the single best fight a domainer can join.

  5. Domainer says

    April 13, 2009 at 8:14 am

    If they increase the cost of broadband, those suppliers will being about their downfall quicker.

    It will open the door for new competitors .

    Google will laugh all of the way to the bank.
    Google wants to supply broadband over the new frequencies they purchased a while back.

    I believe that is 2 yrs out. But, if the broadband suppliers start increasing prices, Google will move quicker since they know they will have instant customer base.

    Plus, Obama campaigned on supplying economical broadband to all U.S. citizens. What do you think the gov’t will do?

    Like many, I have internet on my pda and can plug my laptop into it. (g3 speed. And, I understand g4 will be available this summer.)

    Therefore, increasing prices during the economic slowdown and with new alternatives on the horizon is financial suicide.

  6. MHB says

    April 13, 2009 at 12:14 pm

    An online petition has been started to object to Time Warner proposed action

    To check it out or sign it go to:

    https://secure.freepress.net/site/Advocacy?cmd=display&page=UserAction&id=311

    (unaffiliated with us)


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