Friday, January 18, 2008

Another reason why Time Warner sucks

Apparently, Time Warner wants to charge users for total data transmission. I'm not sure if this is in addition to the bandwidth rates they charge for now. In any case, they are trying to get their piece of the content-on-demand pie. Essentially, they are going to tax anything you don't get through their set-top box. (Assuming they offer video on demand)

http://bits.blogs.nytimes.com/2008/01/17/time-warner-download-too-much-and-you-might-pay-30-a-movie/

Here's my comment,

Data networks are RATE limited. Therefore, providers current process of charging for Mbps is appropriate. Even at this, they are apparently over selling their bandwidth, because I've heard that cable companies do not provide the rates they advertise. This would contrast with power companies. They charge per kilowatt-hour because they have to input coal, natural gas, whatever to generate the electricity. Some of the charges are going to transmission costs, sure, but the majority is to the creation of energy. In essence, Time Warner is taxing content that they did not create - or even provide!

This is not the first questionable pricing scheme by TW. When looking into cable service, I was informed that TW would charge me $25 per outlet to have analog cable installed. I attempted to discover what this charge was for. Of course the sales rep did not know, but she switched my call to a technical service rep. She said that the charge was to "turn on" the service. I told her that I didn't think the service needed to be "turned on" for each outlet individually, that it needed to be hooked up at the box, then all my outlets would work. We didn't get anywhere, and I didn't get the TV service (I did, however, get cable internet). It turns out that the "installation" consisted of the technician making a coax cable and screwing one end into the wall and the other into your TV. That's something I probably could have handled.

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