Time Warner Broadband Cap Plan Faces Delay in Texas

SAN ANTONIO, Texas — Time Warner’s plan that would charge Internet surfers a buck for every gigabyte after they pass a tiered-pricing plan cap has been put on hold in Texas until next year.

The ISP said, however, said still plans to launch the new pricing scheme in Rochester, N.Y., and Greensboro, N.C., in August.

Time Warner announced last month that the company had arrived with a consumption-based pricing plan ranging from $29.95-$75 a month; it also said it would offer a $150 unlimited-gigabyte tier option.

With the new prices, consumer groups said that with the new caps put in place, it could potentially lead to more than tripling the monthly broadband bills.

Earlier this month, U.S. Rep. Eric Massa threatened legislation to kill tiered pricing, particularly in areas where a broadband provider owns a monopoly on service.

"Time Warner has announced an ill-conceived plan to charge residential and business broadband fees based on the amount of data they download," said Massa, who represents Rochester. "They have yet to explain how increased Internet usage increases their costs."

"Time Warner believes they can do this in Rochester, Greensboro and Austin and San Antonio, Texas, and it's almost certainly just a matter of time before they attempt to overcharge all of their customers."

Last year, Time Warner experimented with bandwidth caps in Beaumont, Texas, imposing anywhere from a 5GB to a 40GB limit on the total amount of data users could transfer online. Consumers found out quickly that going over meant an extra dollar paid for each offending gigabyte.

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