Measurement Tools to be Made Available

4-16-09

(New York, NY) -- Time Warner Cable (NYSE:TWC) today announced it would alter plans to test Consumption Based Billing, shelving the trials while the customer education process continues. 

Time Warner Cable Chief Executive Officer Glenn Britt said, “It is clear from the public response over the last two weeks that there is a great deal of misunderstanding about our plans to roll out additional tests on Consumption Based Billing.  As a result, we will not proceed with implementation of additional tests until further consultation with our customers and other interested parties, ensuring that community needs are being met.  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.”

Time Warner Cable also announced that it is working to make measurement tools available as quickly as possible.  These tools will help customers understand how much bandwidth they consume and aid in the dialog going forward. 

Britt added, “We look forward to continuing to work with Senator Schumer, our customers and all of the other interested parties as the process moves forward, to ensure that informed decisions are made about the best way to continue to provide our customers with the level of service that they expect and deserve from Time Warner Cable.”

Frequently Asked Questions

What is Consumption Based Billing?
Consumption Based Billing allows customers to choose among usage-based tiers of Internet service.  It’s a common method for Internet service in Canada, the United Kingdom and elsewhere, and it’s also being tested by other broadband providers in the US.

What is Time Warner Cable doing?
We don’t have any specific plans at this point other than to begin a conversation with customers and other people who have an interest in this.  As we move along we will be very open and transparent about any future plans that might develop as a result.

What are Time Warner Cable’s plans for testing?
Time Warner Cable wants to do everything it can to inform customers of our plans and have an open dialog with them about these plans. We have heard from our customers and have determined that we need to spend more time educating everyone on this new model before proceeding.  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.

Does this mean that Consumption Based Billing will not take place?
Time Warner Cable still believes that Consumption Based Billing is the right way to fairly charge our customers.  That said, it is clear that we need to first help customers gauge how much bandwidth they actually consume. 

How does this compare with what other network providers are doing?
In fact, several other providers have instituted Consumption Based Billing, including all major network providers in Canada and others in the United Kingdom, New Zealand and elsewhere. In the US, other broadband providers are also conducting Consumption Based Billing trials or are using varying methods of monitoring and managing bandwidth consumption.

Will you really be taking customer opinions into account as you make final determinations?
We’re  doing that as we speak! Broadband consumption and the Internet itself continue to evolve rapidly and in ways no one can foresee so we’re ‘all ears!’

How can I voice my opinion on this issue?

You can email us at realideas@twcable.com to tell us what you think. We value your feedback.