Just last week I signed up for Time-Warner Internet access looking to drop at&t DSL which was not performing and because I have a decade long dispute with at&t after they stole $1000 from me in 2000, by slamming me into a $2 a minute long distance calling plan for a month without telling me, but I digress.
Time-Warner wants to limit the amount of video people watch and share on the internet.
The goal is to limit average data usage, allowing Time-Warner to get more customers into their existing fiber infrastructure. Since there is little or no competition for Internet connectivity, they don’t have to worry so much about losing customers.
The entire model lies in stark contrast to the competitive markets set up in South Korea and elsewhere, and it’s going to hurt innovation in the U.S. Many new startups, particularly those focused on video and online gaming, rely on their customers having access to high bandwidth, all you can eat connections.
That’s not very surprising for two basic reasons.
1. Time Warner wants to charge as much extra money for usage as possible
2. Time Warner also owns a lot of movies and if people start sharing their TV and movie content online, Time-Warner wants a share of the pie if they can get it.
So it looks like if this metered system actually makes it from its current testing location in Texas all the way to North Carolina, I will drop Time Warner like a cold fish and they can go back to making money off of luxury vacations tour packages when people visit their theme parks.
I’ll be sure to miss those as well!