Time Warner Lays Groundwork for Future Rip-Off

Posted by Tana Ganeva, AlterNet at 4:00 PM on June 1, 2009.

In April, a full-blown customer revolt forced Time Warner Cable to temporary halt its metered billing program — a tiered-pricing system that charges customers based on how much bandwidth they consume. (Like cell phone plans, but more unworkable and annoying because it’s impossible to gauge how much bandwidth is being used at any one time).

As customer ire grew, TWC spokespeople unconvincingly argued that the program was meant to keep heavy users from devouring too much bandwidth and slowing down Internet traffic for everyone else. Not surprisingly, no one bought TWC's claims that their primary concern was the wellbeing of customers, as opposed to, say, creating a new revenue stream and curbing online consumption of their cable offerings.

Not to be swayed by consumer wants and needs though, Time Warner pledged to reintroduce the program at an undisclosed later date, following a sinisterly-termed “customer education process."  So, it’s only a matter of time before there's an explosion of fake consumer rights groups and other fun astrosurf that try to convince you it’s in your interest to pay more for Internet. (Look forward to ads featuring distressed old people wondering why they can’t read emails from their grandkids. “You! It’s because of you and all that online porn you watch!” their eyes will accuse.)

It looks like TWC is already laying the legal groundwork for their propaganda campaign. Some sharp-eyed TWC customers noticed a recent change to their terms of service, as Stacey Higginbotham reports on Gigaom:

Time Warner Cable has modified the language of its consumer subscriber agreement that is directed at legitimizing the cable company’s ability to throttle and measure a consumer’s bandwidth. The new additions to the agreement also sanction tiered pricing. After Time Warner Cable’s failed attempt to expand tiered billing trials, which created different pricing plans for consumers based on the amount of data they downloaded, the company promised it would shelve the plans while it educated consumers. It looks like that education campaign may come now that the legal bases are theoretically covered. Here’s the new language:

6. Special Provisions Regarding HSD Service

(ii) I agree that TWC or ISP may change the Maximum Throughput Rate of any tier by amending the price list or Terms of Use. My continued use of the HSD Service following such a change will constitute my acceptance of any new Maximum Throughput Rate. If the level or tier of HSD Service to which I subscribe has a specified limit on the amount of bytes that I can use in a given billing cycle, I also agree that TWC may use technical means, including but not limited to suspending or reducing the speed of my HSD Service, to ensure compliance with these limits, and that TWC or ISP may move me to a higher tier of HSD Service (which may result in higher monthly charges) or impose other charges and fees if my use exceeds these limits.

(iii) I agree that TWC may use Network Management Tools as it determines appropriate and/or that it may use technical means, including but not limited to suspending or reducing the Throughput Rate of my HSD Service, to ensure compliance with its Terms of Use and to ensure that its service operates efficiently. I further agree that TWC and ISP have the right to monitor my bandwidth usage patterns to facilitate the provision of the HSD Service and to ensure my compliance with the Terms of Use and to efficiently manage their networks and their provision of services. TWC or ISP may take such steps as each may determine appropriate in the event my usage of the HSD Service does not comply with the Terms of Use. I acknowledge that HSD Service does not include other services managed by TWC and delivered over TWC’s shared infrastructure, including Video Service and Digital Phone Service.

The language means that a subscriber can’t sign up for a contract plan hoping to avoid tiered pricing by getting in before a new tiered plan is implemented. It also specifically threatens throttling of a person’s service for violating the terms of use (hopefully it makes those terms of use a little clearer, though).

Tagged as: propaganda, metered billing, time warner cable, internt use, tiered-pricing system, isp, cable