I’ve been with Time Warner Cable for about a year and a half now and for the most part have been pretty happy with them as an internet provider. The connection has glitched out a few times and the DNS has been horrid (thank goodness for OpenDNS), but no catastrophic failures. However, I read some disturbing news this morning detailing Time Warner’s bandwidth cap plans. Ars Technica has a great article pointing out a lot of the problems with the proposed price structure. Raising prices while costs are going down and the general economy is in a slump? Sounds like typical monopoly behavior to me. How bad are the proposed plans? See for yourself at the original post (scroll about half-way down to the bullet points). Here’s a quick summary with current pricing in Los Angeles:
- $15 for 1 GB per month at 768 KB/128 KB
- $25? for 10GB per month at 768 KB/128 KB
- $37 for 20GB per month at 1.5M/384K
- $47 for 40GB per month at 6M/512K
- $57 for 60GB per month at 10M/1M
- $75 for 100GB per month at 10M/1M
All but the lowest plan will have $1/GB overage (which will be $2/GB) and overages will max out at $75/month.
Let’s ignore for a moment that they’re tying caps and speed together, almost all of their peers (let’s face it, you don’t have a choice when it comes to your cable provider) are charging less and/or giving their customers more (Comcast and Verizon FIOS both kill TW in terms of price/performance, and while Comcast has a cap, it’s 250gb, even on their low end, lower speed plans) and the fact that they’re changing plans for the worse while their price per subscriber is going down, and look at some real world scenarios.
If all you did was stream music at 128k (about 1M/Minute), you’d be paying the following:
- $15 for 17 hours/month (a little over half an hour a day)
- $25 for 170 hours (over 5.5 hours a day)
- $37 for 340 hours (over 11 hours a day)
- $47 for 680 hours (almost a full day)
- (no need to go on- there are only 24 hours a day)
At my current rate ($47), that’s no biggie- I’m not streaming online music constantly and I’d be more than covered, but good luck to someone on the lowest plan who discovers Napster or Pandora at the beginning of a billing cycle- they’re going to be in overage city pretty fast (assuming that’s the only thing they use their connection for that month, a little YouTube and a few big software updates will get them there even faster).
However, it gets a lot uglier when you start dealing with streaming video which can easily run 10x the bandwidth of audio. Since you wouldn’t even get the speed needed to stream video properly on the lowest 2 plans, I’ll leave them out:
- $37 for 34 hours (a little more than an hour a day)
- $47 for 68 hours
- $57 for 102 hours
- $75 for 170 hours (a little over 5.5 hours a day)
Each additional hour is going to cost you about 60 cents. Here, with my current usage patterns and plan, I’m probably ok, but combined with my music streaming and other web usage (including large downloads like OS images for testing/development), I’m too close to the cap for comfort. As more shows stream online in hi-def and as the quality improves, it’s only going to get worse. I’m guessing TW is trying desperately to hold onto their Cable TV business in a time where it no longer makes sense.
<Dinosaur Media Rant>
I’ve made the conscious decision that I won’t want to pay for media that has advertising (ideally I’d have the choice to pay with my time (ads) or my money, I shouldn’t ever have to pay with both), so Cable TV is out (besides the fact that I’d be paying for something that looks worse than what we get OTA for free). I also don’t want to pay for content with ads and then pay for Tivo to skip the ads. The technical capability for HD internet streaming is here today, and if I can’t consume on my (reasonable) terms, I won’t be consuming your media. When (not if) enough people come to the same conclusion, your content that costs multiple millions to produce becomes worthless.
</Dinosaur Media Rant>
So, where does that leave me? As with the vast majority of the country, I can’t just tell another cable provider that I want their service instead, because there is no other cable provider in my area. FIOS isn’t here yet (not sure who the telco here is since we don’t have a land line- we only recently got a home phone, and it’s VoIP - T-Mobile @Home), so I guess my only choice is to go with DSL and hope we’re not very far from the switching station <sigh>.
Maybe they’ll see a mass exodus before it comes to that, and the caps will never make it here, but if they do, and they even closely resemble the current proposal, TW will no longer get any money from our household.