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Time Warner Cable Experiments With Usage-Based Pricing Again

2012-03-01 10:13 by
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Time Warner Cable Inc. (TWC) launches usage-based billing again, making the offer an option to avoid protests that led it to abandon a similar plan three years ago. In 2009 Time Warner Cable said that it wanted to move towards tiered pricing because bandwidth usage was growing to the tune of 40 percent a year, and it was facing "increasing variable costs."

Dubbed the Essentials Plan, the offering limits subscribers to 5GB of data usage a month in exchange for a $5 discount to their monthly bill. Time Warner Cable says customers can opt-in or opt-out of the deal at any time, and subscribers will get a "meter" to let them see where they stand over the period. Upon going over their limit, customers will be charged $1 per GB of usage, not to exceed $25 a month, the company says.

Time Warner Cable subscribers will be charged $1 per extra gigabyte over the cap, up to a maximum charge of $25 per month. Time Warner Cable’s unlimited plans start at $34.95 a month for 12 months.

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