Time Warner's metered Internet experiment doomed to fail on clarkhoward.com

Unlimited Internet use has become something of a given in modern life, whether you access via dial-up, DSL, cable modem or another way.

Until now.

Time Warner is launching an experiment in Texas with metered Internet. Much like your utilities, you'll be charged based on your usage.

Why are they trying out this "Dark Ages" approach? Clark believes the cable companies are terrified of people watching TV shows on the Internet for free. It completely demolishes their main business model.

But Time Warner doesn't have a chance with this experiment, according to Clark. This business model could only work if they were the sole provider of the Internet, but that's not the case. There are so many more choices coming, including WiMAX and even the wireless cards from cell carriers that are close to becoming cost-effective.

So if you're in the testing grounds in Texas, don't think you're a sitting duck. Just go to a monopoly phone company for Internet, even if that's the only other choice. At least they aren't metering!

The United States isn't even in the Top 10 worldwide when it comes to a good Internet experience -- we're 15th. Our Internet is slower, more expensive and less reliable than many other developed nations. We're even below some Third World countries! But new technologies coming into the market will blow things open and promise a much different experience -- without metering.

What others are saying

Cap and Pay expansion at Time Warner
The program is expanding to 4 more markets. http://www.businessweek.com/technology/content/mar2009/tc20090331_726397.htm
By Michael @ 04/01/09 04:43:16 PMreport abuse
Perfectly Reasonable
An average new computer might come with a 500GB hard drive. Comcast thinks that it is excessive if it takes you less than 2 months to fill it up with downloads. I tend to agree.

There have always been limits. There have been silent crusades against excessively heavy users and bandwidth-intensive protocols.

I don't think it's a bad thing that Comcast is finally being honest and upfront, setting reasonable policies that are enforced for everyone rather than claiming their service is unlimited and then playing games with users of specific bandwidth-intensive services such as point-to-point.
By Pete @ 09/01/08 05:21:50 PMreport abuse
Typical story
This sort of story is typical when coming from people that have no idea what goes into operating an ISP. I also have my own ISP, though I currently offer unmetered service.
By Mike Hammett @ 06/19/08 10:01:15 AMreport abuse
Metered Net
Residential internet will not survive as a all you can eat buffet. In a lot of other countries internet is metered and/or highly expensive to obtain. In others it is funded by the government at a incredible loss. Metered internet is not a bad thing (in fact its a good thing!). Being metered like electricity would be a fair thing too. Why should a light user pay $50 for 256k DSL vs someone who uses like a dedicated connection? That BTW, its the crux, the broadband companies never saw what P2P or online movies would become so they sold access as unlimited. You can not sell residential lines as if they were dedicated commercial connections. A T1 (1.544mbit) is $800/mo here, 256kbit DSL is $50. Do the math, it does not add up if people are "over using" those (mislabeled) unlimited accounts. If some one thinks internet access should cost less then start your own company, I did.
By Anon @ 06/18/08 10:39:13 PMreport abuse
most commonly cited source
Assessing Broadband in America: OECD and ITIF Broadband Rankings: http://www.itif.org/files/BroadbandRankings.pdf

Here is a graph from that report: http://www.worldpoliticsreview.com/Images/commentarynews/broadbandspeedchart.jpg
By neb jones @ 06/07/08 02:40:07 PMreport abuse
Worldwide Internet Experiences
I'd be interested in knowing the source of this comment: "The United States isn't even in the Top 10 worldwide when it comes to a good Internet experience -- we're 15th. Our Internet is slower, more expensive and less reliable than many other developed nations. We're even below some Third World countries!"
By Bob Butterfield @ 06/07/08 12:35:01 PMreport abuse
Phone Service and DSL
I listened to Clarks comments on thursday on my radio station in South Lake Tahoe, CA. He mentioned something in this report about Tariff rates for phone service and how you can cut your phone bill in half. nothing mentioned here....
By Jim T. @ 06/06/08 02:33:52 PMreport abuse

Cap and Pay expansion at Time Warner

The program is expanding to 4 more markets. http://www.businessweek.com/technology/content/mar2009/tc20090331_726397.htm

By Michael @ 04/01/09 04:43:16 PMreport abuse

Perfectly Reasonable

An average new computer might come with a 500GB hard drive. Comcast thinks that it is excessive if it takes you less than 2 months to fill it up with downloads. I tend to agree.

There have always been limits. There have been silent crusades against excessively heavy users and bandwidth-intensive protocols.

I don't think it's a bad thing that Comcast is finally being honest and upfront, setting reasonable policies that are enforced for everyone rather than claiming their service is unlimited and then playing games with users of specific bandwidth-intensive services such as point-to-point.

By Pete @ 09/01/08 05:21:50 PMreport abuse

Typical story

This sort of story is typical when coming from people that have no idea what goes into operating an ISP. I also have my own ISP, though I currently offer unmetered service.

By Mike Hammett @ 06/19/08 10:01:15 AMreport abuse

Metered Net

Residential internet will not survive as a all you can eat buffet. In a lot of other countries internet is metered and/or highly expensive to obtain. In others it is funded by the government at a incredible loss. Metered internet is not a bad thing (in fact its a good thing!). Being metered like electricity would be a fair thing too. Why should a light user pay $50 for 256k DSL vs someone who uses like a dedicated connection? That BTW, its the crux, the broadband companies never saw what P2P or online movies would become so they sold access as unlimited. You can not sell residential lines as if they were dedicated commercial connections. A T1 (1.544mbit) is $800/mo here, 256kbit DSL is $50. Do the math, it does not add up if people are "over using" those (mislabeled) unlimited accounts. If some one thinks internet access should cost less then start your own company, I did.

By Anon @ 06/18/08 10:39:13 PMreport abuse

most commonly cited source

Assessing Broadband in America: OECD and ITIF Broadband Rankings: http://www.itif.org/files/BroadbandRankings.pdf

Here is a graph from that report: http://www.worldpoliticsreview.com/Images/commentarynews/broadbandspeedchart.jpg

By neb jones @ 06/07/08 02:40:07 PMreport abuse

Worldwide Internet Experiences

I'd be interested in knowing the source of this comment: "The United States isn't even in the Top 10 worldwide when it comes to a good Internet experience -- we're 15th. Our Internet is slower, more expensive and less reliable than many other developed nations. We're even below some Third World countries!"

By Bob Butterfield @ 06/07/08 12:35:01 PMreport abuse

Phone Service and DSL

I listened to Clarks comments on thursday on my radio station in South Lake Tahoe, CA. He mentioned something in this report about Tariff rates for phone service and how you can cut your phone bill in half. nothing mentioned here....

By Jim T. @ 06/06/08 02:33:52 PMreport abuse

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Jun 05, 2008 -- Time Warner's metered Internet experiment doomed to fail

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