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Messing With Your “Price Lock Guarantee?” TW Early Draft Statements Exposed

Phillip Dampier April 13, 2009 Austin, TX, Beaumont, TX, Editorial & Site News, San Antonio, TX, Time Warner 22 Comments
"This is not a rate increase."

"This is not a rate increase."

When you say something on those series of tubes we call the Internet, sometimes it’s awfully hard to get those statements back, thanks to the magic of Google caching.  Carrie, one of our great readers from Texas, clued us in on a tweet from Omar Gallaga at the Austin American Statesman, who noted a copy of a Google cached Time Warner corporate website page that said more than was perhaps intended.

It appears one section was cut out in the final release, but with the miracle of Google caching, it all comes back to life.  More and more, this reminds me of the bizarro world thinking Frontier was doing last summer, until they got smart.  Maybe it’s something going around.

Answers to Your Questions

Will my bill go up?

This is not a rate increase. Rather, it gives each level of Road Runner service a generous amount to use each month but, if of someone goes over the monthly usage allocation, they have to pay a slight fee. That’s the only way your bill would change.

How will this impact my Price Lock Guarantee?

The plan will not impact your Price Lock Guarantee price, but it could mean a small incremental fee that will vary by month depending on how much you exceed the megabit usage that goes with your level of Road Runner service.

How can I know if the plan is fair?

Time Warner Cable simply wants to make sure only those who use large amounts of data either upgrade to a level better for them or pay for incremental amounts they choose to have each month. This ensures others don’t have to pay for or subsidize those heavier users.

Why do I have to pay more for Road Runner?

You won’t be paying more if you are like the average user. These new fees will only be charged to the small group of heavy users that the rest of RR customers are effectively subsidizing.

Well, well, well.  I can see why the language was pulled here.  It’s utter fiction. “A slight fee” amounts up to $75 in overages each month, the bandwidth they are providing is generous if you were accessing the Internet from Zimbabwe, and from Time Warner’s own statements to the SEC, nobody is subsidizing anything – profits are up in the broadband division, as bandwidth costs decline.

But the most important part of this is the bit about throwing Price Lock Guarantee customers under the bus. Price lock contracts are available in some markets, mostly in Texas.  They are not part of service in Rochester. A “small incremental fee?”  Like the “slight fee” of up to $75 a month in overages?  Because these statements are no longer part of the “official release,” we’re not about to say this is what is coming, but it does shine light on the kind of thinking that seems to be at work here.  Doesn’t a Price Lock Guarantee mean… you know, a guaranteed price lock — your rate stays the same.   Why anyone would even draft something saying otherwise is beyond me.

The smartest thing Time Warner could do is pull this entire disaster altogether, and get back in the business of providing affordable Internet access to customers without gotchas, caps, and overage fees.

Currently there are 22 comments on this Article:

  1. T.M. says:

    Doesn’t a “Price Lock” contract lock the price?

  2. Earl Cooley III says:

    One general question I have is what recourse do people have if TWC cuts off the internet access of people who prominently oppose usage caps? I’m just thinking ahead to a time when this may get nasty.

    • If they don’t cut me off, chances are they aren’t going to cut anyone else off either. Right now, my impression is they don’t see me or others as much of a threat, because in their minds, most “ordinary” users probably don’t even understand there is a controversy about this, unless they are paying attention to the media.

  3. George says:

    I highly doubt they cutt off service to anyone Earl, that would be lunacy on their part. Of course I never thought they would put in usage caps either.

  4. Sunflower says:

    Ahh, yes. More twitter fun :) meilssatwc_tx (http://twitter.com/melissatwc_tx) says this isn’t on their webpage…But it was, at one time. Here’s the link, now: http://tinyurl.com/dctjk8

    Gotta love google cache :)

  5. Paul Reed says:

    Happened to be home today for Easter Monday, and I took my son kite flying. As we were coming back home we followed a TW Astro Van down the street, not like a regular technicians van, but maybe a supervisors van? Anyway the guy turned around in my driveway and he didn’t seem too keen on the fact that I was the one waiting to pull into my own driveway. He pulled down the street a couple of houses and sat there in his van for a while. Maybe I’m just a paranoid, but it seems to be a bit of a coincidence for me.

    • My neighbors have half-jokingly suggested they will be looking for TW trucks.

      Seriously, from all the background chatter I’ve picked up, the local employees don’t like this cap anymore than we do. This is a corporate drama, which is why I have always implored people to treat local employees with decency and respect. They are not the problem.

  6. Earl Cooley III says:

    What, you think they were wardriving?

  7. M.W. says:

    Quickly becoming one of the most hated companies in operation today. Bravo Time Warner.

  8. Dion says:

    Well, I thought this might be coming. I know ATT might be going down this road, but right now they offered me 175$ to switch over to them from TWC so I will be leaving TWC even with my contract. People at ATT told me they have been getting a major inflex of TWC customers coming over to them wanting to switch to Uverse and they already made their numbers for the month because of it… they seemed pretty happy with Time Warner. :)

  9. Robert S. says:

    In the 2nd paragraph TWC says megabit and not gigabyte. Now doesn’t that seem more of a rip off then anything else?

  10. Uncle Ken says:

    Another battle front to fight…. Verison at the same time. They have to be chomping at the bit to get in here. Something, some unknown deals are holding it up and those deals what ever they are need to be found and fought. TWC wont last a month where ever Fios shows up unless they compete. As has been said the perfect place to test is where nobody else is.

  11. Uncle Ken says:

    Paul: Unless somebody is up a pole, in your yard or at a another connection point they have no vision in the streets. The van could be something as harmless as them looking over a future job such as a repair of a main feed line that runs from pole to pole not to your house. They need to replace about a mile of main trunk line around me as a service guy said and its been over a year. Nothing so far so at times the signal is flakey like today for both net and TV. Cant blame rain or wind. The service guy that replaced the cable from my house to the pole said it was so brittle the the insulation was cracking off the wire because this is an older wiring area. The service guy is your friend. Offer a cold drink (water or soda) and you made a new friend that can be very helpfull.

  12. Uncle Ken says:

    Earl: I don’t think I would worry. Valid reasons would be lack of paying the bill, posting threats to others maybe downloading a tera byte or 3 of data a day but short of that it may sound cheesy they could be running into constitutional issues and I do not think they want to go there. Complaining about a service does not fall into the realm of miss use

  13. james_terse says:

    I tend to agree with what Phil is saying. Do NOT be unkind to the regular and/or local TWC employees. Be calm, civil, and logical and explain and give examples as to why these data limitations do not make sense for the average Internet user. I myself have no trouble thinking of ways in which the so called “bargain plan” of $15 can easily result in $30-40 at the ridiculous proposed “1 GB cap”.

    The problem lies with the higherups who have signed onto this ridiculous, anachronistic “plan” and are clueless about the modern Internet (except in how to make more $$$$$$$$$$$$$$$$$$$).

    Data capping on principle makes little sense because unless there’s a shortage of electrons, there is no bandwidth shortage.

    Data capping also hurts Internet advertising, and in TWC’s latest bilge of a FAQ that they provided, they’re practically encouraging people to install ad blocking and pop-up blocking software. I wonder how the Internet advertising industry feels about that.

  14. Lewis Salem says:

    I live in Winston-Salem (Greensboro) and I’m concerned about this whole ordeal. We received this price lock contract in the mail, and my wife signed up for it. If they decide to change it, this is a breach of contact and I will leave TWC. It is really too bad because I have been happy with the service over the years. They didn’t do any packet shaping, however, download speeds aren’t the fastest.

    • The last I had heard, the local TW people were promising to leave people on contracts off of the cap for the length of their contracts, but as you can see from the shifting-like-sand statements coming from these people, I guess the only way to be sure is to wait and see.

  15. Craig says:

    Last night i saw an add for TWC the basic join us and pay 29.99 for the first 12 months, is that not false advertising if they roll out the new tiered pricing plan in August. Or does the first 12 months constitute a “contract”

    • T.M. says:

      I wondered the same thing when I saw the commercials yesterday. I saw them several times and haven’t seen them for months. All of a sudden yesterday, I see them over and over.

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