If you use Time Warner or high-speed internet access (or perhaps you know them as Roadrunner, you need to know about this: Business Week reports that Time Warner was testing usage caps for internet service in Beaumont, Texas, and has apparently just expanded the test to four other cities: Austin, TX; Greensboro, NC; Rochester, NY; and San Antonio, TX.
Sources say the caps are priced as follows:
5 GB: $29.99/month
10 GB: $39.99/month
20 GB: $49.99/month
40 GB: $54.90/ month
100 GB: No information yet
What does this mean to you? Well, say you were subscribing to the fairly standard tier of service at $30 a month.Currently, your fee pays for a particular speed of service. Under the new plan, you’d be paying by usage, not by speed, so for $30 you’d be able to download up to 5 Gigabytes of information.
5 GB may sound like a lot of bandwidth, and for many internet users it’s no doubt plenty. But as Gamers With Jobs points out in their excellent report, watching just one movie a month online could put you well over that cap on its own, and that’s not counting the bandwith you’d use for anything else — like e-mail, instant messaging, or viewing your family’s photos online.
Here are a few things that 5GB gets you:
- Just over three episodes of Lost in HD from iTunes
- About 5 game demos on PlayStation 3 or Xbox 360
- About 14 games in the Xbox Live Arcade
- About 500 songs downloaded from iTunes
- About 550 three-and-a-half-minute videos on YouTube
- About 1000 holiday chain e-mails with multiple pictures
- About 1500 pictures from an average digital camera
- About 3000 visits to Facebook…or Roadrunner.com
- About 350,000 text-only e-mails
Of course, the real question is: What happens if you download more than what’s included in your plan? The same thing that happens if you go over your cell phone plan: You get charged for the usage. In this case, Time Warner says they’ll charge customers $1 per GB of overage.
Time Warner claims to be implementing this plan to ensure that the average user isn’t adversely impacted by a handful of high-volume users downloading and sharing huge files constantly. But interestingly, competitor Comcast took the same stance…with a cap of 250GB per month. And a warning — not a fee — for overage.
As online video becomes more common and sites like ABC.com, NBC.com, Hulu, and YouTube gain regular viewers, the average user is going to burn more and more bandwidth. At the same time, bandwidth is getting cheaper and cheaper to the provider thanks to advances in technology and economies of scale. So why is Time Warner picking now to begin squashing bandwidth hogs? Your guess is as good as mine.
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