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BREAKING NEWS: TW Questioned on Usage Based Pricing

Phillip Dampier April 29, 2009 Issues No Comments

In a conference call this morning with Time Warner Cable executives, reporters questioned officials about their usage based pricing trials.

Company officials indicated that the company was dealing with a dynamic business sector and was trying to improve returns by trying new products and services, and redefining the business model for broadband, depending on customer reaction.

Company officials noted there was significant push back by consumers and politicians over usage based pricing, and withdrew the market trials for the time being.  However, company officials stressed they will “keep trying to do things in the future.”

“Back in the 1990s, Time Warner was primarily a TV company in a TV industry.  Broadband then was an innovating and radical thing, and a lot of people thought it was stupid and wouldn’t work.  [The usage based trial] got a lot of pushback, but this was just going to be a market trial.”

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