FOR IMMEDIATE RELEASE: April 16, 2009
YESTERDAY SCHUMER STATED OPPOSITION TO TIERED PRICING PLAN: SCHUMER ANNOUNCES TIME WARNER CABLE, RESPONDING TO HIS CALL, WILL SHELVE PLANS FOR TIERED INTERNET SERVICE IN ROCHESTER
U.S. Senator Charles E. Schumer today announced that Time Warner Cable will be shelving its plan to implement a tiered broadband plan in the Rochester area. Time Warner’s decision came in response to Schumer’s and others’ call, shortly after Schumer announced his opposition to the plan. Schumer spoke to Time Warner Cable CEO, Glenn Britt, to discuss the overwhelming opposition. Schumer will be working with Time Warner Cable going forward to make sure that any future changes in internet pricing are in line with what the community wants and needs. If the pricing scheme was implemented, it would have raised rates for many users. Schumer’s office has been in contact with TWC, expressing to them the Rochester community’s outrage over the proposed change.
“By responding to public outrage and opposition from community and elected officials, Time Warner Cable made the right decision today,” said Schumer. “I will make sure that any changes going forward are in line with what Rochester’s families and small businesses need.”
Time Warner Cable (TWC) recently announced its plans to switch its 8.4 million cable broadband customers to metered internet billing. The plan would essentially cap internet usage and charge users by the gigabyte. Local leaders and politicians have opposed the plan saying usage caps will cost users more and hurt innovation on the net as subscribers begin to scale back on their internet usage to save money.
TWC's new tiered pricing structure for its internet service would have started at $15 for a plan that allows 1 gigabyte (GB) a month with an overage charge of $2 per GB. A gigabyte is approximately 1,000 megabytes (MB) and equals about three hours of online video, about half of a rented online movie and approximately 250 songs (at 4 MB a song).
In the face of enormous community opposition and at Schumer’s urging, TWC will shelve the plan for all of their test markets.