Time Warner – We Won! (sort of)

The first fight with Time Warner Cable is over, they’ve suspended their tiered bandwidth usage pricing plan for the foreseeable future to educate their customers.  This doesn’t mean we’re done though.  It’s more important now than ever to continue the fight to make sure this doesn’t ever happen. They still plan on going forward with the plan they’ve just temporarily suspended it in favor of putting the meters in place to educate their customers.

I was going to post two letter templates. One to send to Time Warner, and another to send to your local representative.  However; this became a little unnecessary.  My letter to the representatives no longer really applies, so I’ll be drafting a new one shortly.  My letter to Time Warner is still (mostly) relevant so I’ve posted it below.  Feel free to duplicate it, change it, fix it, enhance it and send it to Time Warner yourself.  Please Do!

To Whom it may Concern,

Your recent announcement of plans to begin capping bandwidth usage has created a surge of activity both on the web and off.  People are reacting to your plan in an overwhelmingly negative fashion.

It’s clear that Time Warner Cable stands to make a significant amount of money.  Your own representatives have stated that this plan is meant to generate more revenue in order for Time Warner Cable to invest in its network infrastructure.

What isn’t clear is why your company feels it is necessary to burden it’s customers with extra cost for something which Time Warner Cable does not pay extra for.  Nobody is disputing the fact that there should be more (some higher) tiers for bandwidth itself, but the idea of charging based upon bandwidth usage is nothing short of monopolistic, anti-competitive behavior.

The reason the Rochester NY, Greensboro NC, Austin TX, and San Antonio TX markets have been chosen for your ‘test’ is quite clear.  There is no comparable competition and Time Warner feels they can demand their customers pay whatever they feel like.

You have claimed that only the top 20% of customers will be affected and that the majority of people will actually spend less.  However; no data has been provided to this effect and we have been asked to take this information on faith alone.  That is not enough.  Of the people surveyed over 90% have stated they oppose the bandwidth usage based fees.

Right now customers pay $40/month for an unlimited standard RoadRunner connection and $50/month for an unlimited Turbo RoadRunner connection.  With the new tiered system the current Turbo speed is not even available, and at the standard speed it is possible to acrue a bill of up to $150/month.  This is almost 4 times the current rate, a 300% price increase!

People are turning to the internet for information, ideas and entertainment.  Families with young children, especially teenagers will be hit the hardest.  In a society where most of the bandwidth is used by the younger generation, it would be neigh impossible for parents to ensure their children do not exceed the limits.  Not a single person wants to monitor a fuel gauge of their internet usage.

Many small business owners depend upon the internet for their sustenance and people are already struggling.  It is at this time, with unemployment numbers at a near 20 year high, that Time Warner Cable chooses to place even more of a burden on it’s customers.

Time Warner Cable posts enormous profits yearly.  This money should be reinvested to improve the network to a level which can sustain the increased demand.  Instead of using your current profits you’re asking your current customers to bear more cost.  All for a new network they won’t be able to use without a new higher subscription plan sometime in the unforeseen future.

Shame on you Time Warner Cable.

We as your loyal customers and subscribers deserve more, not less.

Your Customer,

Time Warners Timing is Everything

Eric Massa held a town hall meeting in Pittsford NY today which some Time Warner representatitves attended.

We couldn’t have a better representative than Eric Massa gunning for us against Time Warner.  He really understand the issue and he seems well informed.  He brought several new pieces of information to light, for example, the federal government subsidizes a large portion of any internet infrastructure enhancement work, also billions of dollars in the economic stimulus plan have been dedicated to projects just like that.

Ironically enough about 20 minutes after the meeting began Time Warner released a new press release containing new/different tier information.  The following is a breakdown of the new plans.

Plan Name Cap Price Speed Overage Charges Current Equivalent
Lowest Tier 1Gb $15 768Kbps Down, 128Kbps Up $2/Gb NONE
Lite 10Gb $30 ?? $1/Gb NONE
Basic 20Gb $40 ?? $1/Gb NONE
Standard 40Gb $50 ?? $1/Gb NONE
Turbo 60Gb $55 ?? $1/Gb NONE
Turbo XL 100Gb $75 10Mbps Down, 1Mbps Up $1/Gb RoadRunner – $40/Month, Unlimited, 10Mbps Down 380Kbps Up
?? ?? ?? ?? ?? RoadRunner TURBO – $50/Month, Unlimited, 15Mbps Down 1Mbps Up

Their new plan does offer unlimited service but for a hefty price.

Overage charges will be capped at $75 per month. That means that for $150 per month customers could have virtually unlimited usage at Turbo speeds.

This means that for the Low Low Price of $150/month you can have exactly the same as what you get for $40/month right now.  That’s right, their TURBO speed is slower AND you’ll be paying almost 4x as much as you do right now.

My friend Dean threw together a great graph illustrating the Monthly Cost vs Bandwidth used per plan.

graph

From the graph it would appear that the lowest tier would always be the best, but we know that the lowest tier is crippled (most experts agree that 768Kbps shouldn’t be considered broadband at all).  We really need to get speed information regarding these plans but they have yet to release those figures.  Given that TURBO appears to be crippled according to their current speeds, don’t hold your breath for good numbers.

massaThe feeling couldn’t be scrubbed that the new press released was perfectly timed with the town hall meeting and Time Warner did it this way in order to claim during the meeting that “We just recently released a new press release which has a drastically different pricing scheme and which you may be happy with.”  They did say this and I suspect they timed it this way to quiet some of the more vocal people in the town hall.  Luckily, some of those who had mobile devices had already read the new proposal by the time they announced it in the meeting and they were quite vocal that the new plan did nothing for anyone (I also spoke up to that effect).

Eric Massa suggested we convene at a latter date to discuss the Time Warner issue specifically.  It was interesting to see because it felt like Massa was throwing down and challenging Time Warner to just try to cross his line in the sand.  The Time Warner representatives seemed to agree to this on the spot (whether they have the authority to do so is still to be determined so time will tell) so I suspect we’ll be seeing another event soon.

In summary, it’s great to have Eric Massa with us but Time Warner’s new proposal is laughable at best.

Your move TWC!