After a torrent of criticism from its customers and a skeptical press, Time Warner Cable changed, but did not withdraw, on Thursday its scheme to impose bandwidth caps and charge overage fees on its 8.4 million customers. TWC, like all major ISPs in the U.S., currently charge by the speed of their service.
But the modifications, which included hig did not mollify FreePress, which is calling on its 500,000 members to sign an anti-cap petition and push Congress to hold hearings.
Without such limits, the demand for online video on the web will lead to “internet brownouts," the company ominously warned Thursday as it introduced new tiers. The company has not yet explained, however, why its broadband costs fell dramatically in 2008, even as it added ten percent more customers.
Critics like the FreePress's Timothy Karr charge that TWC is unfairly trying to protect its lucrative cable television business from customers switching over to online video.
“Charging consumers penalty fees on top of what they are already paying to download a movie or show will cripple online video," Karr said. “This is a win-win situation for Time Warner. Congress must investigate these anti-competitive practices before they become a nationwide problem."
Even independent analysts say the caps are so low that they are clearly about protecting the cable television industry.
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