Thursday, April 16, 2009

Internet as utility

So, in case you hadn't heard, Time Warner Cable wanted to test-drive a tiered Internet pricing plan... and customer response, naturally, was howls of outrage. Not being a customer of theirs, I wasn't directly affected... but the abhorrent concept could certainly sweep into other Internet providers, should TWC succeed.

Today, I stumbled across somebody actually defending TWC's attempts, on the basis that TWC needs to recoup money they're losing from their cable business, and that the Internet is now more utility than luxury, so should be metered and priced accordingly. Here is the original article.

So, first off... TWC (or any cable company, for that matter) isn't entitled to their cable revenue. They're a private entity, and need to provide value for money paid to succeed in the market place. I'm sure the analogy isn't exactly right, but if, back in early automobile days, a company sold both gasoline and buggy whips, thinking they're entitled to jack the price of gas to offset the fallout of their buggy whip line would have been meet with well-deserved scorn.

Second, I'm all for treating Internet access as a utility. Of course, that means that access should either be provided by a public entity at cost, or that prices should be monitored and regulated by some sort of oversight body. Somehow, I don't think that's exactly what TWC or that article's author was envisioning, exactly.

At any rate, it's a moot point for the moment... looks like TWC has realized the PR nightmare they initiated, so they're scrapping the trial until they can improve their "customer education process" (link). Here's hoping this idea stays well and truly dead.

1 comment:

Rich Bowman said...

I wish Mediacom would scratch that idea here. They have been tier pricing high speed cable internet access for a while now. Everybody I have talked to about it has a noticeable lack of outrage at the ridiculousness of it. Gotta love those Monopolies the government chooses to do nothing about...