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	<title>Comments on: Time Warner Metered Pricing: Not the Solution</title>
	<link>http://www.savetheinternet.com/blog/2008/01/17/time-warner%e2%80%99s-metered-pricing-not-the-solution/</link>
	<description>Tracking the battle over Network Neutrality</description>
	<pubDate>Sun, 20 Jul 2008 23:54:50 +0000</pubDate>
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		<title>By: Scholars and Rogues &#187; Internet freedom means net neutrality, not &#8220;pay-as-you-go&#8221; broadband</title>
		<link>http://www.savetheinternet.com/blog/2008/01/17/time-warner%e2%80%99s-metered-pricing-not-the-solution/#comment-84659</link>
		<dc:creator>Scholars and Rogues &#187; Internet freedom means net neutrality, not &#8220;pay-as-you-go&#8221; broadband</dc:creator>
		<pubDate>Mon, 21 Jan 2008 17:02:22 +0000</pubDate>
		<guid>http://www.savetheinternet.com/blog/2008/01/17/time-warner%e2%80%99s-metered-pricing-not-the-solution/#comment-84659</guid>
		<description>[...] kicked off your service for violating invisible bandwith caps, it&#8217;s still no substitute for building out new networks with more [...]</description>
		<content:encoded><![CDATA[<p>[&#8230;] kicked off your service for violating invisible bandwith caps, it&#8217;s still no substitute for building out new networks with more [&#8230;]</p>
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		<title>By: Making Money Online Has A Bigger Picture</title>
		<link>http://www.savetheinternet.com/blog/2008/01/17/time-warner%e2%80%99s-metered-pricing-not-the-solution/#comment-84351</link>
		<dc:creator>Making Money Online Has A Bigger Picture</dc:creator>
		<pubDate>Sat, 19 Jan 2008 23:59:44 +0000</pubDate>
		<guid>http://www.savetheinternet.com/blog/2008/01/17/time-warner%e2%80%99s-metered-pricing-not-the-solution/#comment-84351</guid>
		<description>[...] begin with, I most certainly agree with Lynn Erskine: &#8220;Network providers should build better networks, and not squeeze users to pay more for [...]</description>
		<content:encoded><![CDATA[<p>[&#8230;] begin with, I most certainly agree with Lynn Erskine: &#8220;Network providers should build better networks, and not squeeze users to pay more for [&#8230;]</p>
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		<title>By: neo-leper</title>
		<link>http://www.savetheinternet.com/blog/2008/01/17/time-warner%e2%80%99s-metered-pricing-not-the-solution/#comment-84256</link>
		<dc:creator>neo-leper</dc:creator>
		<pubDate>Fri, 18 Jan 2008 19:38:27 +0000</pubDate>
		<guid>http://www.savetheinternet.com/blog/2008/01/17/time-warner%e2%80%99s-metered-pricing-not-the-solution/#comment-84256</guid>
		<description>I am a Road Runner and TW digital phone subscriber. If they do this nation wide I will cancel my service with them. They say this just has to do with some people downloading a lot of videos, multimedia, etc. What they fail to tell people is that your operating system downloads a lot of patches that could be 5MB, 100MB or over 200MB. Not to mention updating anti-virus and other security software.

There is so much wrong with this idea. I stream videos from AOL, I purchase programs, videos, music, etc. Now Time Warner is telling me I have to pay even more?

I have the fastest internet in this area. I pay more for it. If they want to cap bandwidth and start charging more then why am I paying for what I have now?

Time Warner is not the only option. I have been a long customer of Road Runner and their phone services. I stopped paying for cable for these same reasons. To much money, digital cable is the same price as non-digital and I pay for most stations that have commercials and a lot of infomercials. Our I have to pay almost 60 dollars a month plus premium channels if I want more. Forget it.

This Time Warner customer is already looking for alternatives before they go nation wide with this.</description>
		<content:encoded><![CDATA[<p>I am a Road Runner and TW digital phone subscriber. If they do this nation wide I will cancel my service with them. They say this just has to do with some people downloading a lot of videos, multimedia, etc. What they fail to tell people is that your operating system downloads a lot of patches that could be 5MB, 100MB or over 200MB. Not to mention updating anti-virus and other security software.</p>
<p>There is so much wrong with this idea. I stream videos from AOL, I purchase programs, videos, music, etc. Now Time Warner is telling me I have to pay even more?</p>
<p>I have the fastest internet in this area. I pay more for it. If they want to cap bandwidth and start charging more then why am I paying for what I have now?</p>
<p>Time Warner is not the only option. I have been a long customer of Road Runner and their phone services. I stopped paying for cable for these same reasons. To much money, digital cable is the same price as non-digital and I pay for most stations that have commercials and a lot of infomercials. Our I have to pay almost 60 dollars a month plus premium channels if I want more. Forget it.</p>
<p>This Time Warner customer is already looking for alternatives before they go nation wide with this.</p>
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		<title>By: barry payne-economist</title>
		<link>http://www.savetheinternet.com/blog/2008/01/17/time-warner%e2%80%99s-metered-pricing-not-the-solution/#comment-84245</link>
		<dc:creator>barry payne-economist</dc:creator>
		<pubDate>Fri, 18 Jan 2008 04:23:13 +0000</pubDate>
		<guid>http://www.savetheinternet.com/blog/2008/01/17/time-warner%e2%80%99s-metered-pricing-not-the-solution/#comment-84245</guid>
		<description>From a Time Warner Statement:

"Company spokesman Alex Dudley said the trial was aimed at improving the network performance by making it more costly for heavy users of large downloads. 

Dudley said that a small group of super-heavy users of downloads, around 5 percent of the customer base, can account for up to 50 percent of network capacity."

So Time Warner plans to make it "more costly", for what?  Using the capacity paid for?  A common download broadband speed is 4 Megabits per second.  Although the fine print explains that the connection is provided on "good faith" terms - which means it can be interrupted or downgraded at will by Time Warner, the marketing and advertising designed to sell the connection is clear - the connection is made intentionally attractive as having 4 Mbps of available, maximum capacity.

It's like buying a car with a top speed of 90 mph.  One may rarely drive that fast, but that's what was paid for and expected to be available as desired.

So what's the problem with using the full capacity of the broadband connection paid for as well?  Why are these customers instead classified into the "heavy user" category?  

The answer is this is not the customers' problem.  It's Time Warner's problem for overselling the capacity in the first place.  As stated above, Time Warner complains that 5% of the customers use up to 50% of the capacity.  So why didn't it build the system network large enough to provide what was sold?

Do 5% of the customers of a 90 mph car that actually drive 90 mph cause the car company a problem?  Even if all car customers drove at 90 mph, why is that a problem for the car company?  The problem occurs only if the cars don't perform at 90 mph as sold, and even then, it's not the customers' problem.

Now that users are starting to use more capacity per customer, Time Warner is backpedaling from it's marketing promises and claiming "heavy users" must "pay more".  Why?  Because they're using all of what was sold to them, while before they were using only part of it?

Instead of Time Warner providing the original broadband speed necessary to serve ALL customers on the network at the MAXIMUM SPEED SOLD per customer, it is now planning to single out customers who actually use the maximum speed and raise the price - again, just for using what they were sold, like driving the car at 90 mph instead of 50 mph.

Why shouldn't the Federal Trade Commission or the Federal Communications Commission intervene in on the basis of deceptive business practices?  If all cars were sold as 90 mph cars but only 5% of them could actually go that fast, wouldn't that be deceptive for the other customers who cannot go 90 mph as the cars were sold?  And if the car company attempted to charge extra, after the fact, so all cars could go 90 mph, wouldn't that be deceptive as well?

If certain customers are indeed exceeding the maximum 4 Mbps capacity of the connection as originally sold, that's a different question and perhaps they should pay more.  If so, then that should be the starting, floor point for new, higher metered rates above 4 Mbps - not a retroactive starting point that penalizes existing customers who are just now starting to use the full speed of the connection as sold, up to 4 Mbps.

Another way to ask the question is, if Time Warner insists that "heavy users" should pay more, then why shouldn't "light users" get a refund - or lower rate - for not using all of what they paid for in the first place?
 
Finally, it is essential to understand that Time Warner is a landline monopoly or duopoly in many places, which explains why it can casually announce price increases that violate existing contracts by raising prices rather than providing the capacity sold.  

While not an explicit violation of net neutrality by direct, selected content manipulation, this policy could become a serious implicit violation of net neutrality by restricting certain high-volume uses through prohibitively high prices assessed retroactively in areas where there are no competitive alternatives.</description>
		<content:encoded><![CDATA[<p>From a Time Warner Statement:</p>
<p>&#8220;Company spokesman Alex Dudley said the trial was aimed at improving the network performance by making it more costly for heavy users of large downloads. </p>
<p>Dudley said that a small group of super-heavy users of downloads, around 5 percent of the customer base, can account for up to 50 percent of network capacity.&#8221;</p>
<p>So Time Warner plans to make it &#8220;more costly&#8221;, for what?  Using the capacity paid for?  A common download broadband speed is 4 Megabits per second.  Although the fine print explains that the connection is provided on &#8220;good faith&#8221; terms - which means it can be interrupted or downgraded at will by Time Warner, the marketing and advertising designed to sell the connection is clear - the connection is made intentionally attractive as having 4 Mbps of available, maximum capacity.</p>
<p>It&#8217;s like buying a car with a top speed of 90 mph.  One may rarely drive that fast, but that&#8217;s what was paid for and expected to be available as desired.</p>
<p>So what&#8217;s the problem with using the full capacity of the broadband connection paid for as well?  Why are these customers instead classified into the &#8220;heavy user&#8221; category?  </p>
<p>The answer is this is not the customers&#8217; problem.  It&#8217;s Time Warner&#8217;s problem for overselling the capacity in the first place.  As stated above, Time Warner complains that 5% of the customers use up to 50% of the capacity.  So why didn&#8217;t it build the system network large enough to provide what was sold?</p>
<p>Do 5% of the customers of a 90 mph car that actually drive 90 mph cause the car company a problem?  Even if all car customers drove at 90 mph, why is that a problem for the car company?  The problem occurs only if the cars don&#8217;t perform at 90 mph as sold, and even then, it&#8217;s not the customers&#8217; problem.</p>
<p>Now that users are starting to use more capacity per customer, Time Warner is backpedaling from it&#8217;s marketing promises and claiming &#8220;heavy users&#8221; must &#8220;pay more&#8221;.  Why?  Because they&#8217;re using all of what was sold to them, while before they were using only part of it?</p>
<p>Instead of Time Warner providing the original broadband speed necessary to serve ALL customers on the network at the MAXIMUM SPEED SOLD per customer, it is now planning to single out customers who actually use the maximum speed and raise the price - again, just for using what they were sold, like driving the car at 90 mph instead of 50 mph.</p>
<p>Why shouldn&#8217;t the Federal Trade Commission or the Federal Communications Commission intervene in on the basis of deceptive business practices?  If all cars were sold as 90 mph cars but only 5% of them could actually go that fast, wouldn&#8217;t that be deceptive for the other customers who cannot go 90 mph as the cars were sold?  And if the car company attempted to charge extra, after the fact, so all cars could go 90 mph, wouldn&#8217;t that be deceptive as well?</p>
<p>If certain customers are indeed exceeding the maximum 4 Mbps capacity of the connection as originally sold, that&#8217;s a different question and perhaps they should pay more.  If so, then that should be the starting, floor point for new, higher metered rates above 4 Mbps - not a retroactive starting point that penalizes existing customers who are just now starting to use the full speed of the connection as sold, up to 4 Mbps.</p>
<p>Another way to ask the question is, if Time Warner insists that &#8220;heavy users&#8221; should pay more, then why shouldn&#8217;t &#8220;light users&#8221; get a refund - or lower rate - for not using all of what they paid for in the first place?</p>
<p>Finally, it is essential to understand that Time Warner is a landline monopoly or duopoly in many places, which explains why it can casually announce price increases that violate existing contracts by raising prices rather than providing the capacity sold.  </p>
<p>While not an explicit violation of net neutrality by direct, selected content manipulation, this policy could become a serious implicit violation of net neutrality by restricting certain high-volume uses through prohibitively high prices assessed retroactively in areas where there are no competitive alternatives.</p>
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