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[ NNSquad ] Time Warner on up-sells and competition (in their own words)




----- Forwarded message from David Farber <dave@farber.net> -----

Date: Fri, 10 Apr 2009 13:53:12 -0400
From: David Farber <dave@farber.net>
Subject: [IP] Re:   How Much Time Warner's Broadband Caps Will Screw You - 
	Broadband caps
Reply-To: dave@farber.net
To: ip <ip@v2.listbox.com>



Begin forwarded message:

From: Debi Jones <debi.jones@gmail.com>
Date: April 10, 2009 12:47:36 PM EDT
To: dave@farber.net
Subject: Re: [IP] How Much Time Warner's Broadband Caps Will Screw You -  
Broadband caps
Reply-To: mojo@mobilejones.com

The money quote comes from Time Warner's SEC filing as highlighted in this 
article and reveals the anti-competitive issue for consumers and video 
producers.

http://www.obsessable.com/news/2009/04/10/time-warner-makes-broadband-cap-concessions-unlimited-plan-for-150-month/

One position from Time Warner's COO,

Moreover it's clear that Time Warner fully expects its customers to keep 
climbing that bandwidth ladder over time, ratcheting themselves into 
sweeter and sweeter profit positions thanks to the tiered strategy plus 
known usage increases, thanks to a money quote (literally) from Hobbs: 
"Broadband data is such a great product. I think there will be some 
customers who dont use much that will select the lower tier. But over 
time, they will use more and move up to the higher price plans." This too 
reveals that metered broadband isn't really about saving the internet or 
ensuring great customer experience for the more "polite," less 
bandwidth-hungry users on the network  it's about setting up a tiered 
scheme in which Time Warner stands to make an incredible amount of bank as 
general demand for internet usage is increasing.

And now the anti-competitive "money quote" from TW:

Thanks also to TW's SEC filing we know it's additionally about thwarting 
the increasing competition their cable video business faces from 
competitors delivering video content over the web: "TWC faces competition 
from a range of other competitors, including, increasingly, companies that 
deliver content to consumers over the Internet, often without charging a 
fee for access to the content. This trend
could negatively impact customer demand for TWCs video services,  
especially premium and On-Demand services."

Time Warner's data caps could cost us much more than high monthly fees, if 
the company has it way.



On Fri, Apr 10, 2009 at 10:08 AM, David Farber <dave@farber.net> wrote:

http://i.gizmodo.com/5206697/how-much-time-warners-broadband-caps-will-screw-you
Like the virus in 28 Days Later, Time Warner's internet-strangling  
broadband caps is spreading all over the country. They've got brand new 
pricing plans too and they yep, they suck. Let's look.

The old cap scheme was pretty limited, only going up to a max of 40GB. Now 
they've got a whole Skittles bag of caps. Here's how Time Warner Cable's 
COO Landel Hobbs breaks it down, all while breaking out the familiar 
warning that the internet is about to die if you don't limit your porn 
consumption to two times a dayMAX:
Internet demand is rising at a rate that could outpace capacity within a 
few years. According to industry analysts, the infrastructure may not be 
able to accommodate the explosion of online content by 2012. This could 
result in Internet brownouts.

 1GB with 768kbps downstream for $15/month with $2/GB overcharges
 10, 20, 40 and 60GB will go with Roadrunner Lite, Basic, Standard and 
Turbo packages, respectively, and maintain the same pricing. Overage is 
$1/GB.
 100GB will be the new Road Runner...Turbo (I'm not sure why there are two 
Turbo packages) which is 10Mbps downstream and 1Mbps upstream for 
$75/month. This is still an order of magnitude more restrictive than AT&T 
and Comcast, who have caps of 150GB and 250GB, respectively.
 A 50Mbps/5Mbps down/up speed tier is coming for $100/month wh


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----- End forwarded message -----