Time Warner Cable Inc. last year became the first major U.S. Internet service provider to charge customers extra if they exceeded a certain amount of data traffic every month. That trial run apparently went well, because the company said Wednesday that it will expand the test to other cities.
Many ISPs have imposed caps on how much their subscribers can download each month. Time Warner Cable broke from the pack by setting relatively low limits — for instance, 5 gigabytes for subscribers paying $30 a month — and then charging $1 for each gigabyte over that limit.
It takes thousands of e-mails and Web pages to reach a gigabyte of usage, but video and software downloads consume much more data. A DVD-quality movie is roughly 1.5 gigabytes.
Consumer advocates have criticized the caps, saying they could discourage people from using the Internet and could stifle online video as a competitor to cable TV.
Time Warner Cable spokesman Alex Dudley said his company’s trial, in Beaumont, Texas, had shown that the system is capable of metering and billing accurately. It will soon be expanded to four more markets, for now undisclosed, to give the company a better understanding of how the system works.
The intent behind charging by the gigabyte is to have subscribers who use the Internet more pay for the upgrades necessary for the company to keep up with increasing traffic, Dudley said.
“It’s clear to us that customers want online video, which requires substantial investment in the network,” Dudley said. “We’re willing to make that, and we’re trying to find an equitable way to distribute the cost of that investment.”
Dudley said a “small but vocal percentage” of users in Beaumont were unhappy with the amount of data they could use (the top tier is 40 gigabytes per month). The company plans to address that by introducing plans with larger monthly “buckets” of data, as well as cheaper ones for casual users.
Time Warner Cable is the third-largest ISP in the country, with 8.7 million subscribers. AT&T Inc., the largest ISP, late last year started experimenting with bandwidth caps of 60 to 150 gigabytes per month in Reno, Nev.
Comcast Corp, the second-largest ISP, has capped use at 250 gigabytes for everyone.
Among the top four ISPs, only Verizon Communications Inc. has no caps on its wireline broadband.
Apple and Google Face UK Investigation Into Mobile Browser Dominance
Apple and Google aren't giving consumers a genuine choice of mobile web browsers, a British watchdog said Friday in a report that recommends they face an investigation under new U.K. digital rules taking effect next year.
The Competition and Markets Authority took aim at Apple, saying the iPhone maker's tactics hold back innovation by stopping rivals from giving users new features like faster webpage loading. Apple does this by restricting progressive web apps, which don't need to be downloaded from an app store and aren't subject to app store commissions, the report said.
"This technology is not able to fully take off on iOS devices," the watchdog said in a provisional report on its investigation into mobile browsers that it opened after an initial study concluded that Apple and Google effectively have a chokehold on "mobile ecosystems."
The CMA's report also found that Apple and Google manipulate the choices given to mobile phone users to make their own browsers "the clearest or easiest option."
And it said that the a revenue-sharing deal between the two U.S. Big Tech companies "significantly reduces their financial incentives" to compete in mobile browsers on Apple's iOS operating system for iPhones.
Both companies said they will "engage constructively" with the CMA.
Apple said it disagreed with the findings and said it was concerned that the recommendations would undermine user privacy and security.
Google said the openness of its Android mobile operating system "has helped to expand choice, reduce prices and democratize access to smartphones and apps" and that it's "committed to open platforms that empower consumers."
It's the latest move by regulators on both sides of the Atlantic to crack down on the... Read More