In April Time Warner temporarily shelved its plans to charge broadband internet subscribers based on usage, but Congress member Eric Massa is still moving forward with legislation to address the issue.
Today, Massa rolled out legislation - H.R. 2902 - that would require internet service providers with more than 2 million subscribers to submit plans for usage-based rates to the Federal Trade Commission and Federal Communications Commission. The bill would prohibit any usage-based plan that the FTC determines would impose "unreasonable or discriminatory" rates, terms, and conditions, Massa says. It also establishes public hearings for plans submitted to the FTC.
When Time Warner backpedaled on plans to test a tiered, usage-based rate system for its Rochester high-speed internet customers earlier this year, CEO Glenn Britt made it clear the company hadn't abandoned the idea altogether. "While we continue to believe that consumption based billing may be the best pricing plan for consumers, we want to do everything we can to inform our customers of our plans and have the benefit of their views as part of our testing process," Britt said in a prepared statement.





Comments for "TECHNOLOGY: Massa submits internet cap bill" (1)
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Bruce said on Jun. 18, 2009 at 4:50pm
Time Warner's motivation is profit driven. They are in business to make money, and to make more each year than the last year. So, it's laughable to hear them try to portray any change as "beneficial" to customers. They already have "tiered pricing" based on speed. So, the power users are already paying more. But, apparently not enough more. The real issue for Time Warner to recognize is they have mispriced their on demand and premium cable services. When we have options like Redbox to get movies on DVD for $1.00 and other online websites that offer similar services (movies, TV reruns) for "free" or less than TimeWarner charges, they feel like they are missing out on profit opportunities. The reality is, if they charged less for their on demand/premium services, they would actually steal businss away from Redbox and Netflix and other services. I have no interest in spending $4.00, $5.00, or more for something I can get for $1.00 or less. It's really that simple....... make the proifit up in volume.
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