Time Warner’s recently scrapped plans to bill consumers for bandwidth consumption based on effectively metering their usage isn’t just the victory for subscribers touted by the media, it’s also a coup for advertisers.
The company had planned to roll out metered bandwidth pricing in Rochester, NY; Greensboro, NC; San Antonio and Austin, TX. Customers who exceeded the monthly usage cap could, under the plan, be subject to steep overage charges — not unlike mobile phone owners who exceed their monthly voice or text message allotments.
Politicians, as well as consumers, raised their voices in opposition to the plan, which TW finally abandoned — at least for now.
This comes at a time when bandwidth consumption is steadily increasing, particularly with the rise of online
video. But it’s not just consumers who stand to lose in the face of bandwidth caps. Advertisers and publishers have a horse in this race, too.