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Links of the Day:

– So you want to cut the cord, do you? You’re looking forward to watching your videos online, streaming movies on Netflix or hooking up your Apple TV. You’re so excited about lower monthly bills and not having to pay the cable monster for excess channels you don’t watch.

If it sounds too good to be true…

A New York Times article makes it clear that you will either pay big bucks for cable or you will pay big bucks for broadband. Tiered pricing that charges you based on data consumption is on the way. The business model could stifle cord-cutting and innovation:

The strategy, called usage-based billing, is advantageous for the companies that control the digital pipelines. But it may be detrimental for customers who are watching more and more video on the Web every month, as well as companies like Netflix that distribute it. Some fear that as customers become more aware of how much broadband they’re using each month, they’ll start to use less of it, and in that way, protect traditional forms of entertainment distribution and discourage new Internet services.

When Time Warner proposed tiered pricing in Rochester, Senator Chuck Schumer came to town and won a reprieve for consumers. But times have rapidly changed in just the past few years and the company is implementing the model elsewhere. How long can Rochester be exempt?

As more people cut the TV cord, cable companies will need to make up that revenue. They’ll tie us to the new cord – broadband.

– Rochester’s deputy mayor will have to rent an apartment in the city. He’s running up against the year deadline to comply with the residency requirement as he tries to unload his $499,000 house in Perinton.

– Buffalo’s interim school superintendent – not chosen for the permanent job – realized she can’t go back to being not-the-superintendent.

– This isn’t very comforting. Common drugs used to treat acid reflux may cause other problems.

These are truly stunning and scary pictures of wildfires in Colorado.

3 Responses to Tiered Broadband is Coming

  1. Alright 2 questions for Time Warner: is this going to make your current customers happy? Is this going to attract new customers? No on both accounts. Current customers do not want to pay for a meter and new customers will not want to have a meter. I understand trying to make up for lost revenue but alienating customers and charging more doesn’t work. Right D&C? If you do more to attract more customers you will make more money.

    If we had open competition amongst the cable companies and ala carte cable/satellite options then this would not be happening at all.

  2. Time Warner does not need to be concerned with customer retention. They are the only game in town. For reasons I can not begin to understand there is no competition for wired broadband in our market. Time Warner can do as they please. Some customers will leave, others will come. If you want/need anything faster than DSL, you are stuck.
    Why are Comcast or Verizon Fios not available options?

  3. June 28, 2012 at 9:32 am lynn e responds:

    When the law ruled that cable couldn’t charge customers per Tv they came up with digital boxes that were needed per Tv. So far they’ve gotten their money.

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