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Time Warner Cable Using Incentives And Fine Print To Lock Customers Into Broadband Caps

from the read-the-fine-print dept

Tue, Jul 22nd 2008 9:04pm — Mike Masnick

Back in January, Time Warner Cable admitted that it was considering adding usage caps and overage fees to broadband users. It recently started signing up new customers for these offerings (sometimes with absurdly low usage caps). Of course, it knows it can't just change existing customers over to such plans, realizing they'd be in for quite a set of lawsuits for selling people one thing and then completely changing the terms. However, it's now working on a way around this: trying to convince existing customers to upgrade to special triple play packages with "locked in" pricing for a year and then burying in the fine print that they also agree to the usage caps. Sneaky. Soon it won't be long before you won't be able to change anything on your plan without also agreeing to the new usage caps.

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Filed Under: broadband caps, fine print, incentives
Companies: time warner cable

21 Comments

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Brad, 22 Jul 2008 @ 9:15pm

$1/gig?
That's unreasonable and wayyyy too high.
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Not Bob, 22 Jul 2008 @ 9:52pm

Umm
The sad thing (I guess) is that I have no idea how much I'm using these days. I don't a number anywhere on my bill like I do with my cell phone, nor is there an easy way (that I'm aware of) to find out what my usage is/was for the month. I think if they are going to charge for exceeding an arbitrary cap they should be required to make it easy to determine where I am in relation to that cap.

Just my half sense.
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Anonymous Coward, 22 Jul 2008 @ 10:00pm

Re: $1/gig?
Seems comparatively low. Really low.
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mike, 22 Jul 2008 @ 10:03pm

And thats why I switched to FiOS a few months back...
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Go Ahead, 22 Jul 2008 @ 10:24pm

Let them give it a shot. Will just make it laughably easy for competitors to steal their customers away by offering to give them what they have always had. Greed only works when you're the only game in town.
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Capt Obvious, 22 Jul 2008 @ 10:33pm

Sadly
Sadly,
From what I understand often they ARE the only game in town.

That's when it Sucks to be suburban!
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creig, 23 Jul 2008 @ 1:30am

usage fees overage charges
i have an ISP provider that offers broadband,voip phone, digital high def cable with all the bells @ whistles. they constantly try to solicit me to change to their phone service and digital cable which requires a box top set.they are the only game in town but do not get sucked into their so called bundling package to save money.i would not be saving money with my phone i use vonage and i don't need or want the expense of a box top set for digital high def cable tv.i assume this would be where they get me with there usage cap fees by changing my service package.just say no to any more services from a company that has a monopoly on your living area.
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Todd Loren SInlair, 23 Jul 2008 @ 3:13am

Time Warner not the only only doing bandwidth caps
AT&T announced they will change contracts in October and specify usage limits.

http://tinyurl.com/bandwidthcaps
Oh No!!!! AT+T to rollout caps in October.
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Anonymous Coward, 23 Jul 2008 @ 4:27am

how about...
What about Comcast? Any word on them offering usage caps?
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Garry, 23 Jul 2008 @ 4:46am

Easiest way to lose customers
I'm in agreement with Go Ahead.

I had the following experience with Vodafone (European arm of Verizon) for their Mobile Broadband. I was on an "unlimited package" for €50 per month. They offered me a capped version of 5GB and 2c per MB overage charge - 15€ for 3 months and thereafter €30. Money talks and I changed package.

As soon as their main competitor, O2, offered a package of 10GB per month for the same price and terms - I jumped ship.

Offering lower pricing for capped products will only eventually lead to lower pricing all round as the caps increase based on competitors offering higher and higher caps at equal prices.
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Killer_Tofu (profile), 23 Jul 2008 @ 5:52am

Re: how about...
Re #9
Yes, there has been some word, although I am not sure if "offering" is the right word for it.
Here in Michigan they did make a small announcement saying they were looking at ways to implement this and are interested in it.

As soon as they do that though, they lose customers. I will see to it that everyone I know drops them.
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Chronno S. Trigger, 23 Jul 2008 @ 6:05am

Re: Re: $1/gig?
I wouldn't mind $1 per Gig but on two conditions:

1) the starting price is like $10
2) I'm getting a dumb pipe and nothing else.

Outside of that I will jump ship as soon as I have the chance.
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Improbus, 23 Jul 2008 @ 6:58am

Try It Punk
I have the option of going fiber if Time-Warner tries screwing with my cable. Well, Time-Warner, do you feel lucky? Well, do ya punk? I WILL switch if you ^*&%&$*^%'s piss me off.

Wow, I think I need to take a blood pressure pill.
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Yakko Warner, 23 Jul 2008 @ 8:24am

Re:
Nice if you can get it.

Sucks if you can't and are just trying to stay with the lesser of two evils, which seem to be trying to outdo each other for "evil".
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Anonymous Coward, 23 Jul 2008 @ 8:53am

What Lawsuits?
What lawsuits would they face? Time-Warner cable broadband isn't long term contract, so they're not violating any service agreement. It's a month-to-month service... you pay them upfront for the coming month's service and that's what you get. If they suddenly wanted to say "next month we're having a usage cap" I can pay them for that service or not. If I do, then I am agreeing to that limitation.

It's like going to the store and buying a loaf of bread. If Acme bakery used to sell a 20 ounce loaf for a dollar, but suddenly they reduce the loaf size to 16 ounces for $1, I have no grounds to sue them (provided that the package is accurately labeled). The only choice I have is not to buy the bread.
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James, 23 Jul 2008 @ 9:03am

Idiots
I still can't figure out WHY they insist on doing this sort of thing in a clandestine manor.. perhaps TW's approach is at least better.

It seems like a good business opportunity... offer the customers tiers of service, and a proper method for checking bandwidth/data used, and then let them decide.

Those who use more.. pick a higher tier and pay more, those who only use email and light browsing pick a lower tier and thus pay less.

No, I do not work in marketing this just seems like common sense.. where did they learn marketing... from the gov't??
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Roger E. Huff, 23 Jul 2008 @ 6:50pm

Useage Caps
It is a bunch of crap. Offering an all you can eat buffet and then putting a limit on it. Maybe they should offer lower end services for thoes who don't use much but putting caps on thoes of us who use our accounts for most of our communications is crap!
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Anonymous Coward, 23 Jul 2008 @ 9:36pm

Mmm, I really don't get how this is doing them much good. Until they entirely transition, the bittorrent bandwidth hogs will all be drowning the universe with their downloads while the puny users will sit within their 5gb-10gb caps, just like they always have...
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Manolonyc, 18 Aug 2008 @ 7:51pm

Time Warner Cable needs to be stopped
Switch to RCN. They have a package for 16.95 with a year contract for 1.5 GB. Or you can have a package for $20 without a contract for 6 months for 5GB, regular price is $34 after the six months. Everybody needs to drop TWC. The evil company needs to be put on its place.
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دردشه, 5 Jul 2009 @ 2:30pm

tankyo
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Time warner Employee, 18 Jan 2010 @ 7:05am

Wow I had no Idea
I am an employee that goes door to door and sales it and I had no idea. It's now 2010, hopefully they scrapped the idea.
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