Time Warner Cable (NYSE:TWC) is taking a second shot at increasing the amount payable by ‘cord-cutters’ for their Internet usage by offering plans that bill the user according to the broadband bandwidth consumed, even though a previous attempt to do so in 2009 had to be abandoned due to customer protests.
The company is trying to safeguard its revenue streams, wary of consumers who may be shifting to watching all their video online rather than on TV, but don’t want to annoy their broadband customers. Irene Esteves, the company’s Chief Financial Officer, said “It’s all about giving them flexibility – it’s a terrific opportunity to keep more customers with us, if they’re light users and they want to save some money.”
According to the plan, broadband customers in Southern Texas will be charged $1 per gigabyte GB over the monthly usage cap, up to a max of $25 per month. Customers can still subscribe to Time Warner’s unlimited broadband plans, which start at $34.95 a month for 12 months. “If you watch online video, you should not opt for this option,” said Vijay Jayant, an analyst at ISI Group in New York.
The company will probably extend the optional broadband pricing plan to more markets, said Alex Dudley, a spokesman.
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