More On the Time Warner Tiered Pricing Plan

Ben Hwang posted the best explanation I've seen about Time Warner's new pricing scheme for internet data usage.  His analogy using water, hose and bucket really helps put the issue in perspective and goes a long way towards tearing down some of Time Warner's arguments for the pricing.

BTW, Ben's one of the people behind Merchant's Mirror which is a local start up that I think will make some waves in the near future.  They've just moved into the incubator at Nussbaum Center for Entrepreneurship in Greensboro so I think you'll be hearing a lot about them.

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1 thought on “More On the Time Warner Tiered Pricing Plan

  1. darkmoon's avatardarkmoon

    lol. I had another post that went out about TWC yesterday. Just some more thoughts about it.
    Also having a few talks with some friends in GSO today as we break it down. I think the problem is that most people have wrapped their heads around the initial issue, but not the enormity of it and how it really could become something pretty nasty pretty quickly. Owning small businesses, I’m actually somewhat appalled that any business could ever think to charge a customer of theirs more than a 10% increase when the goods/services have not increased in features or the like from the consumer’s perspective. You can justify up to 10%, but after that, unless you have new features and such, it’s a marketing/PR nightmare. Which is exactly what TWC is getting into right now.
    On top of it all? I truly believe that if they want to quash this once and for all, they really need to drop the tiered altogether. I was taking a look at Google if you type TWC with fiber, this latest issue pops up at the top. Not exactly the greatest type of publicity and the Internet is forever. I don’t think it’s bad for businesses to try new plans. But they went way too extreme. To try this again, they’ll have to let this thing die down and perhaps give a cool off period and don’t pull some sick 40GB joke that any somewhat technical person could tell you that the potential overage can be hit in a single day (unlikely again, but you’re going from potentially unlimited to a limited case).
    It’s really a total failure of understanding your [TWC] own business and how customers use it.

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