When Time Warner Cable (s twc) rolls out its new pricing plans, it won’t base its tiers simply on consumption, but will also consider broadband speed as part of the equation, according to a statement released this afternoon by TWC Chief Operating Officer Landel Hobbs. As it deals with the backlash generated by its expansion of tiered broadband trials to four new cities, among them San Antonio and Austin, Texas, the cable company is getting its messaging together. From the statement:
Our current pricing plans require all users to pay the same amount, whether they check email once a month or download six movies a day. As the amount of usage has dramatically diverged among users, this is becoming inherently unfair and not the way most consumers want to pay for goods they consume.
When you go to lunch with a friend, do you split the bill in half if he gets the steak and you have a salad?
This metaphor is unfortunate, since prior to this, broadband has been compared to an all-you-can-eat buffet, and the point is that everyone pays the same price and eats what they want. Changing the rules of the game now does a disservice to everyone, from consumers to innovation to companies such as Amazon (s AMZN), Google (s GOOG) and Microsoft (s MSFT), which stand to lose if consumption-based broadband forces people to reconsider certain of their online services. Read More about TWC Defends Tiers, Plans Speed- and Consumption-Based Plans