Um, this link will also help those who think that bandwidth is keeping up with technology.
http://blogs.moneycentral.msn.com/topstock...ernet-fees.aspx
Or for those who can't be bothered.....
Time Warner trial ends flat-rate Internet fees
Posted Jan 17 2008, 03:32 PM by Kim Peterson
Filed under: Microsoft, Apple, Netflix, Time Warner Cable, online video
Talk about bad timing. Apple just announced it will offer downloaded movie rentals (including high-def) over the Internet. Netflix is working on a set-top box to do the same thing, and Microsoft has been ramping up its downloadable movie offerings over Xbox Live.
Now, one cable company is starting to push back at excessive bandwidth usage caused mainly by video downloading. After an internal memo was leaked, Time Warner Cable confirmed it's planning a trial in Beaumont, Tex., in which it will charge Internet subscribers based on usage. (Time Warner's share price closed unchanged today.)
It's a tricky situation for Time Warner and other cable companies. Customers generally pay a flat rate for Internet (about $50 a month in my case), but a small minority are basically torrenting HD movies like crazy and sucking up a bunch of bandwidth. According to the leaked memo, 5% of subscribers were using up half of the total bandwidth.
So a few people are fiber hogs. Time Warner probably could have handled that motley crew of torrenters, if it was just that. But the cable operator sees what's coming. Video downloading -- particularly high-def downloading -- is moving more into the mainstream as tech companies make it easier to rent and buy movies online. A few months of that and Time Warner is going to have a real bandwidth problem on its hands.
This new billing system will reportedly apply to new customers only, and Time Warner isn't giving any details about how it will structure the system or how much it will charge people. I'm assuming there will be some sort of tiered-rate scenario. The idea raises some questions.
1. What if you have an unprotected network? I know someone who only
*REMOVED* albums when she's able to get on her neighbor's open network, thereby avoiding the wrath of the RIAA. Will people be punished for not locking down their networks?
2. Will there be "peak" and "off-peak" hours? Some areas give electricity customers a reduced rate during off-peak hours. If you download a movie at 3 a.m., when bandwidth usage is down, do you get a break?
3. How much is too much? Time Warner will let subscribers track their Internet usage so they know how close they're getting to a bandwidth cap. But what will that cap be? Will I cross the line if I download three movies a week? Or five? And does YouTube viewing factor into this as well?
4. Will Time Warner direct any new revenue from this into badly-needed network expansion?
At least Time Warner isn't doing a Comcast-style termination of the accounts of heavy downloaders. That's bad business.
This is what we live with in NZ. I think our Telecom (owns our whole fiber-optic and telephone exchange) saw this coming. Your country won't be far away.