Background: Time Warner announced today it would start testing a new pricing model based on customer usage, rather than on a flat rate.
The following statement is attributed to Gigi B. Sohn, president of Public Knowledge:
“Time Warner's pricing test could be a welcome development for consumers and for the cable industry. Consumers will have a better idea of how they are using their Internet connections and will have the flexibility to adjust according to the rates. Cable companies could be able to better manage their networks and costs, so they won't have to resort to cutting off customers for exceeding phantom usage levels or throttling some applications.
“At the same time, we don't want to see this type of plan used as an excuse to raise prices for all consumers. It should be targeted to the heaviest users.”
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