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saber11
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2 edits

Re: [TWC] Pricing model changing soon

»Time Warner Cable Eyeing Overage Charges?
B
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join:2000-10-28


3 edits

Re: [TWC] Pricing model changing soon

EDIT: Well hello to all the visitors from ArsTechnica, Slashdot, and the rest of the web! You might see that the leaked memo originally posted here is now missing above. We don't know why the original leaker sanitized it (I can guess), but it's worth noting that many "news" sites are linking here without giving ANY credit to DSL Reports / BroadBandReports, without crediting news guy Karl and his original (often plagiarized) article at »Time Warner Cable Eyeing Overage Charges? , without linking to the proper beginning of this thread at »[TWC] Pricing model changing soon , and/or without crediting the original leaker, whom I presume is now hiding under an assumed name in Guam. Now back to our originally scheduled thread in progress.

said by saber11 See Profile :

NETWORK

Project to plan integration of the Adelphia backbone into the TWC network, creating a nationwide TWC backbone. TWC will merge all IP based services (video, voice, data) onto a single common converged network platform.
Oh, well THAT should be simple; they've got that Staples Easy Button, after all.

Thanks for the documentation. They're clearly insane. Anywhere there's reasonable competition, folks will flee. Then again, people really don't much care about this sort of thing, so I might have to take that back.

As to the "Speed Preview" that's going to be counterproductive. If anything, it will prove to most people why they should probably save money and LOWER their tier.

-- B
--
In a realm outside causality and function

tiger72
SexaT duorP
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join:2001-03-28
Saint Louis, MO
clubs:
well i'll be damned.

I have a feeling that this, like Ohio's caps, will be short lived.

kba4

join:2001-10-23
Canton, OH
·RoadRunner Cable

said by saber11 See Profile :

...We will use the results of the trial to evaluate results for possible future nationwide rollouts.
it's a trial, and they'll more than likely conclude from the inevitable negative response that this action will not be worthwhile at all. Personally, I'd rather have DSL running at 3-6Mbps/384-768Kbps direct than 15/768 shared+caps.

AMDUSER
Premium
join:2003-05-28
Earth
clubs:

Re: [TWC] Pricing model changing soon

As would I, if it meant that there would not be any overage charges.
AT&T dryloop dsl 6 meg is only $38.99, only a couple ($2 - 3) dollars more then the 7 Meg/512k service from TWC.
dentman42

join:2001-10-02
Columbus, OH
·AT&T Midwest

Re: [TWC] Pricing model changing soon

said by AMDUSER See Profile :

As would I, if it meant that there would not be any overage charges.
AT&T dryloop dsl 6 meg is only $38.99, only a couple ($2 - 3) dollars more then the 7 Meg/512k service from TWC.
That's my backup plan. I currently have the 7/512 RR from Insight (only one tier offered so far, but rumor has it they're about to start offering a premium tier) AND 6/768 DSL from AT&T (lineshared). Insight's RR is 44.99 WITH cable TV ($10 more without). I've already been considering ordering a second DSL connection on a dry pair since upstream is more valuable to me than downstream and I have better upstream already on DSL. Then there's the possibility of going to WOW and getting 6/1...

Boinkcomcastcom

@wayport.net

Re: [TWC] Pricing model changing soon

said by dentman42 See Profile :

said by AMDUSER See Profile :

As would I, if it meant that there would not be any overage charges.
AT&T dryloop dsl 6 meg is only $38.99, only a couple ($2 - 3) dollars more then the 7 Meg/512k service from TWC.
That's my backup plan. I currently have the 7/512 RR from Insight (only one tier offered so far, but rumor has it they're about to start offering a premium tier) AND 6/768 DSL from AT&T (lineshared). Insight's RR is 44.99 WITH cable TV ($10 more without). I've already been considering ordering a second DSL connection on a dry pair since upstream is more valuable to me than downstream and I have better upstream already on DSL. Then there's the possibility of going to WOW and getting 6/1...
ATT is looking at reduction of sharing of copyrighted stuff. I think you should just purchase your DVDs.

Karl Bode
News Guy
join:2000-03-02

Host:
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4 edits
Interesting!

It's been rumored that Comcast has tested a similar system but never launched it for fear of consumer backlash, and I'd assume the same thing would happen here.

Note, we posted a story about this on the front page at 3:30.

Looks like Ars Technica read it and reconstituted their own version at 4:15, their write-up getting the digg traffic and Slashdot traffic.

Matt
Take me down to the paradise city
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join:2003-07-20
Jamestown, NC
·North State Commun..

said by saber11 See Profile :

The introduction of Consumption Based Billing will enable TWC to charge customer based upon usage, impacting only 5% of subscribers who utilize over half of the total network bandwidth.
I'm curious what the average bandwidth usage of a single subscriber in that 5% would be ....

I agree with Karl and others though; I think this will fail for the most part. They may implement a lower speed tier with consumption based billing, but if they sledgehammer this across all residential customers, they'll just drive that 5% to the Business Class side and move the problem. Only this time, the problem could possibly impact big money ...

Karl Bode
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join:2000-03-02

Host:
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Re: [TWC] Pricing model changing soon

I think these companies will ultimately convince the public that these pricing schemes are inevitable (look at all the FUD stories about a looming bandwidth crunch), and we'll start seeing overages for extreme-use customers.

Of course when you consider the countless grannies who only consume a tiny bit of bandwidth it all evens out in the end, but I think the investor pressure to always see quarterly gains will make overages happen eventually....

I still think it would be marketing suicide, but who knows.

telcolackey
The Truth? You can't handle the truth

join:2007-04-06
Death Valley, CA

Re: [TWC] Pricing model changing soon

said by Karl Bode See Profile :

Of course when you consider the countless grannies who only consume a tiny bit of bandwidth it all evens out in the end, but I think the investor pressure to always see quarterly gains will make overages happen eventually....

I still think it would be marketing suicide, but who knows.
I agree with the marketing challenges, but disagree with the granny analysis. Many, many users (including myself) are Internet veterans and use broadband fairly heavily. However "heavy users" don't come close to the 300+G of the top 5%.

I bet that the majority of the BBR folks here are in the 40-60G / month range, but think they are going to be impacted by issues like this. In reality it is the multi-terabyte p2p DVD downloader that causes faster than normal network growth requirements and the push to usage tiers.

I'm not a granny, and don't like subsidizing your DVD library.
--
"Believe only half of what you see and nothing that you hear." - Dinah Craik
B
Premium,MVM
join:2000-10-28


1 edit

Re: [TWC] Pricing model changing soon

said by telcolackey See Profile :

impacted by issues like this. In reality it is the multi-terabyte p2p DVD downloader that causes faster than normal network growth requirements and the push to usage tiers.

I'm not a granny, and don't like subsidizing your DVD library.
I'm not a multi-terabyte P2P DVD Downloader, and I don't like having to check for permission with my ISP before using my Internet connection this week, should I decide to configure high quality videoconferencing to a sick relative, or host a LAN party, or transfer a bunch of video to friends and family, or legitimately BUY and download a bunch of HD quality movies, or... USE MY DAMNED CONNECTION.

There's no reason to "draw the line somewhere". We moderate users and grannies are more than plentiful enough to offset the network's top talkers. The ISPs are just being greedy.

Edit: typos

-- B
--
In a realm outside causality and function

telcolackey
The Truth? You can't handle the truth

join:2007-04-06
Death Valley, CA

Re: [TWC] Pricing model changing soon

said by B See Profile :

I'm not a multi-terabyte P2P DVD Downloader, and I don't like having to check for permission with my ISP before using my Internet connection this week
As you shouldn't, but if you leave your HD Video conf running 7x24 you will have to pay for it like leaving your water running, all your lights on and your windows open in the winter.
--
"Believe only half of what you see and nothing that you hear." - Dinah Craik

tiger72
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Re: [TWC] Pricing model changing soon

said by telcolackey See Profile :

said by B See Profile :

I'm not a multi-terabyte P2P DVD Downloader, and I don't like having to check for permission with my ISP before using my Internet connection this week
As you shouldn't, but if you leave your HD Video conf running 7x24 you will have to pay for it like leaving your water running, all your lights on and your windows open in the winter.
except that bandwidth doesn't expend resources. It's either a "use it or lose it" product - not a finite resource which can be saved and used elsewhere.
--
|- The LP »www.lp.org/issues/issues.shtml -|
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|- Ron Paul »www.ronpaul2008.com/ -|

Boinkfoobarnet

@wayport.net

Re: [TWC] Pricing model changing soon

Umm ... the equipment is capital intensive and the bandwidth is purchased. Me thinks you have not taken undergrad economics

tiger72
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Re: [TWC] Pricing model changing soon

said by Boinkfoobarnet :

Umm ... the equipment is capital intensive and the bandwidth is purchased. Me thinks you have not taken undergrad economics
Me thinks you earned a degree in overanalyzation.

I didn't think I needed to spend the time to describe precisely that there is a set amount of throughput per second that can be used and that there was investment to be able to transmit the data that is transferred, and that networking agreements also play into TW's decision, etc.. etc.. I believe that most readers can grasp that network equipment and data is *not* of the same nature as oil flowing through pipelines experiencing wear as more oil is pumped which deteriorates the infrastructure, which over time leads to ever-increasing expenditures on maintenance, etc...

An ISP can at best be described as a street which doesn't generate the traffic, it just facilitates its transfer. However, unlike a road which experiences physical wear and tear from the weight of ever-flowing traffic (as well as large loads on trucks, for example), a user transmitting a 4GB file does no more "damage" to the network infrastructure than 4 users transmitting 1GB files each, or 400 users transmitting 10MB a piece, contrary to what the ISP's claim.

Is that a slight bit more clear?
--
|- The LP »www.lp.org/issues/issues.shtml -|
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|- Ron Paul »www.ronpaul2008.com/ -|

Boinkcomcastcom

@wayport.net

Re: [TWC] Pricing model changing soon

said by tiger72 See Profile :

said by Boinkfoobarnet :

Umm ... the equipment is capital intensive and the bandwidth is purchased. Me thinks you have not taken undergrad economics
Me thinks you earned a degree in overanalyzation.

I didn't think I needed to spend the time to describe precisely that there is a set amount of throughput per second that can be used and that there was investment to be able to transmit the data that is transferred, and that networking agreements also play into TW's decision, etc.. etc.. I believe that most readers can grasp that network equipment and data is *not* of the same nature as oil flowing through pipelines experiencing wear as more oil is pumped which deteriorates the infrastructure, which over time leads to ever-increasing expenditures on maintenance, etc...

An ISP can at best be described as a street which doesn't generate the traffic, it just facilitates its transfer. However, unlike a road which experiences physical wear and tear from the weight of ever-flowing traffic (as well as large loads on trucks, for example), a user transmitting a 4GB file does no more "damage" to the network infrastructure than 4 users transmitting 1GB files each, or 400 users transmitting 10MB a piece, contrary to what the ISP's claim.

Is that a slight bit more clear?
It is clear, but the following applies. A business model provides the ability to make net revenue.

Assuming that:

- 5% of the users utilizes 50% of the consumption
- This consumption is illegal sharing of multimedia content.

As a consumer I refuse to pay more for my bandwidth to support these P2P kings ... network abuses that are breaking the law. Why should I fund the capital for network hardware and the bandwidth to keep up with the P2P abuse?

I'm cheap!

Karl Bode
News Guy
join:2000-03-02

Host:
Road Runner
PC gaming GAMES
PC gaming Tech
quote:
I bet that the majority of the BBR folks here are in the 40-60G / month range, but think they are going to be impacted by issues like this. In reality it is the multi-terabyte p2p DVD downloader that causes faster than normal network growth requirements and the push to usage tiers.
Investors who get a taste of per-byte billing will want more. It ramps up the revenue stream, and if they can sell it from the marketing side, it will expand.

And with systems like DirecTV's VOD system that uses your broadband connection to automatically download HD video, combined with the vast volume of on-line video that's emerging daily, the category "bandwidth hog" is going to ramp up very quickly.

I doubt this trial will have 400GB as its consumption ceiling, so I think this probably would impact many more consumers than just the 24/7 DVD p2p RIP junkies...

telcolackey
The Truth? You can't handle the truth

join:2007-04-06
Death Valley, CA


1 edit

Re: [TWC] Pricing model changing soon

said by Karl Bode See Profile :

And with systems like DirecTV's VOD system that uses your broadband connection to automatically download HD video, combined with the vast volume of on-line video that's emerging daily, the category "bandwidth hog" is going to ramp up very quickly.
Perhaps, but as you add more electronics to your house, or christmas lights outside, doesn't your electrical bill go up? Maybe you go from 100amp service to 200amp service... maybe the electrical company needs to add more infrastructure...

said by tiger72 See Profile :

except that bandwidth doesn't expend resources. It's either a "use it or lose it" product - not a finite resource which can be saved and used elsewhere.
Incorrect. Increase in bandwidth growth over and above normally yearly growth causes unexpected capital expense. This can either be shared among all users, light, moderate, heavy and terabyte dvd downloaders, or the costs are put where they belong.
--
"Believe only half of what you see and nothing that you hear." - Dinah Craik
Gib4500

join:2003-12-08
Sardis, OH
·AT&T Midwest
·Windjammer Cable
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Re: [TWC] Pricing model changing soon

If their going to implement this then why are they raising the speeds all the time. I would rather they leave the speed at say 7mb and have it like it is than increase the speed and then say oh you have to pay extra if you actually want to use your connection. I don't think this could be implemented because to many people would cancel service. If they implement this this would take this country back yet another step in broadband. The internet is used for many many usefull things and to say you have to pay a premium up and beyond what you already are paying will make it so some people may not afford the internet anymore, which is sad.

tiger72
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said by Karl Bode See Profile :

quote:
I bet that the majority of the BBR folks here are in the 40-60G / month range, but think they are going to be impacted by issues like this. In reality it is the multi-terabyte p2p DVD downloader that causes faster than normal network growth requirements and the push to usage tiers.
Investors who get a taste of per-byte billing will want more. It ramps up the revenue stream, and if they can sell it from the marketing side, it will expand.

And with systems like DirecTV's VOD system that uses your broadband connection to automatically download HD video, combined with the vast volume of on-line video that's emerging daily, the category "bandwidth hog" is going to ramp up very quickly.
People do not like seeing overages on their accounts. Americans in particular like to see "unlimited", and suddenly saying that we're going to have overages for a population which doesn't know the difference between a bit and a byte, or a megabyte and a gigabyte will NOT go well. It's one thing on cell phones when we have limited minute plans. Everyone knows what a minute is, and even then overages are frequently negotiated down. It costs lots of money to pay employees to waste time negotiating down costs so customers actually pay their bills.

Until everyone knows how much a gigabyte is, telling people that they have a cap of xGB/mo is a useless, costly waste of time. And for the educated users, it's twice as bad since most of us would contend (and waste service reps time arguing) that if they are going to charge us by-the-byte, then having speed caps is doubly bad as we don't want to be restricted on both counts.
--
|- The LP »www.lp.org/issues/issues.shtml -|
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|- Ron Paul »www.ronpaul2008.com/ -|

Karl Bode
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Host:
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4 edits

Re: [TWC] Pricing model changing soon

I think yeah, that's a good point too. Confusion. That was the primary stumbling block a Jupiter analyst cited to me last month when I spoke with them...

Per-byte billing will be a real hit with the "can't differentiate a Mhz from a MB no matter how many times my son tells me" crowd...especially just as HD film distribution over broadband is taking off.

But I imagine they like that. Lots of ridiculous bills rung up by confused soccer moms, which makes investors happy, which in the end is all this is really about. Not fairness, or making a fair profit (they already do), or anything else.

Phil
Rojo Sol
Premium
join:2001-06-11
Camarillo, CA

Re: [TWC] Pricing model changing soon

On the flip side, how many people check their electrical meter every month, yet still pay their electric bill? If they could bill based on flat per byte rate this could be realized quite easily.

hopeflicker
Capitalism breeds greed
Premium
join:2003-04-03
Long Beach, CA
Why are they so concerned with that 5% of heavy users?

tiger72
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Re: [TWC] Pricing model changing soon

said by hopeflicker See Profile :

Why are they so concerned with that 5% of heavy users?
"5% of subscribers who utilize over half of the total network bandwidth"

That 5% loses TW money, or they're at the least not profitable.

hopeflicker
Capitalism breeds greed
Premium
join:2003-04-03
Long Beach, CA

Re: [TWC] Pricing model changing soon

said by tiger72 See Profile :

said by hopeflicker See Profile :

Why are they so concerned with that 5% of heavy users?
"5% of subscribers who utilize over half of the total network bandwidth"

That 5% loses TW money, or they're at the least not profitable.
so if im reading this right, 5% of the users on their network use over half of the bandwidth? This is suspect to me.
--
Man created God in his image : intolerant, sexist, homophobic and violent.
B
Premium,MVM
join:2000-10-28

Re: [TWC] Pricing model changing soon

Nope, that sounds about right.

And it's COMPLETELY typical on any computer network! (And probably any voice network for that matter.)

A competent and responsible network management understands, accepts, and deals with that, especially when those users are PAYING to be there. The management does NOT figure out new and exciting ways of showing that 5% the door.

Because guess what? After that top 5% leaves, there's STILL another level of 5 or 10 percent who represent the NEW "Top Talkers" on the network, and now THEY become the next target for execution.

How much utilization is little enough? Perhaps we should all just turn off our modems and send Time Warner checks every month anyway?

-- B
--
In a realm outside causality and function

Matt
Take me down to the paradise city
Premium
join:2003-07-20
Jamestown, NC
·North State Commun..

Re: [TWC] Pricing model changing soon

said by B See Profile :

Perhaps we should all just turn off our modems and send Time Warner checks every month anyway?

-- B
Shhhhh! Don't give them any ideas.

Or at least patent a very broad definition of the method for turning off a modem but collecting a check and then sue them when they implement it.

Boinkcomcastcom

@wayport.net

I've bought/sold and managed ISP's. Yes ... 5% of the subs use 50% of the bandwidth. The only reason you need that type of bandwidth is for illeagal P2P multimedia content.

I don't want to have my bill go up due to abuse ... just as I don't my water bill to go up as the idiot down the street leaves his water rose running 24/7 on the street.


kfsutops
Premium
join:2002-08-19
Brandon, FL
clubs:

Re: [TWC] Pricing model changing soon

said by Boinkcomcastcom :

I've bought/sold and managed ISP's. Yes ... 5% of the subs use 50% of the bandwidth. The only reason you need that type of bandwidth is for illeagal P2P multimedia content.

I don't want to have my bill go up due to abuse ... just as I don't my water bill to go up as the idiot down the street leaves his water rose running 24/7 on the street.


That is just complete bullshitz. I use my xbox to download legally purchased movies. I use netflix streaming movies. Somebody is using the internet in my house all the time and none of it is for illegal stuff.

RR is just trying to cash in on the bandwidth that is going to be required for the increase video that will be downloaded with all of the new services that are coming in 2008.

P2P is just the "code word" to get people up in arms. It's BS.

As for your water bill..guess what it does go up if people abuse it. It's called supply and demand. Same thing with gas.. why do you think gas prices go up? But the difference is that neither of these types of service/products have ever billed themselves as unlimited or always on (or available).

The only way to stop this is for the people of Beaumont to not buy the service at all. It should get all of the media attention it can. I'm sure this is not going to be on the front pages of the shiny brochures that RR will be providing. It will be hidden somewhere with asterisk.
--
"There are no stupid questions, but there are a LOT of inquisitive idiots"

JamesonLewis3rd

@rr.com
It appears that TWC preferred to have Reuters break this story which is found here.
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