Time Warner Cable has a usage meter up for some customers.

Time Warner Cable has reintroduced usage-limited broadband plans in Austin, Tex., three years after shelving an earlier market test that drew protests from local residents and civic leaders.

Time Warner Cable is offering three tiers of what it calls “Internet Essentials,” each offering different speeds of service, all with a 5GB usage allowance for a $5 monthly discount.

“It’s clear that one-size-fits-all pricing is not working for many consumers, particularly in a challenging economy,” regional vice president of operations in Texas Gordon Harp said. “We believe the choice and flexibility of Essentials will enhance value for lighter users, help us retain existing customers in a competitive marketplace and attract new customers to our superior Internet experience.”

But Stop the Cap! disagrees, noting the three variations of Internet Essentials all offer a tiny discount and come with a ridiculously low usage allowance.

With usage overlimit fees of $1/GB, currently limited to a maximum of $25, customers are playing Russian Roulette with their wallets. Just exceeding the allowance by 5GB a month eliminates any prospects of savings, and going beyond that will actually cost customers more than what they would have paid for unlimited Internet.

The company has added a usage tracker for Texas customers qualified to get the plan. It can be found under the My Services section of Time Warner Cable’s website.

Customers in Texas can choose from Grande Communications, AT&T or Verizon if they want to say goodbye to Time Warner’s endless interest in Internet Overcharging.  Image courtesy: Jacobson

Stop the Cap! recommends consumers strongly reject these plans. If customers are looking for a better deal on broadband, it is wiser to call Time Warner and threaten to take your broadband business to the competition. The savings that will result on a retention plan are sure to be better than the Internet Essentials discount, and no one will have to think twice about how they use their broadband account. Customers on an extremely tight budget can also downgrade to a slower speed plan that offers unlimited access, essential in any home with multiple broadband users.

Time Warner Cable does not help their position by significantly distorting the truth about their last experiment trying to limit customer broadband usage. In 2009, the company proposed changing the price for unlimited broadband to an enormous $150 a month. Customers protested in front of the company’s offices in several cities. Despite that, and the intense negative media coverage the company endured, Time Warner still believes its customers are itching to have their broadband usage limited:

Previous Experience with Usage-based Pricing

Time Warner Cable began testing usage-based pricing in 2009. Although many customers were interested in the plan, many others were not and we decided to not proceed with implementation of the plan. Over the past few years, we consulted with our customers and other interested parties to ensure that community needs are being met and in late 2011 we began testing meters which will calculate Internet usage.

We’d be interested to know what customers in the Austin area were consulted about the desire for usage-limited plans. Nobody consulted us either. We can imagine the “other interested parties” are actually Wall Street analysts and fellow industry insiders. We’re confident the overwhelming number of Time Warner Cable customers have no interest in seeing their unlimited use plans changed and company customer service representatives have told us there has been very little interest in the plans to date. For now, the company claims it won’t force people to take usage limited plans, but as we’ve seen in the wireless industry, yesterday’s promises are all too quickly forgotten.

With a usage meter now established, all it takes is an announcement Time Warner is doing away with unlimited broadband (or raising the price of it to the levels the company proposed in 2009), and customers are ripe for a broadband ripoff.

Time Warner Cable says it is “listening” to customers on its TWC Conversations website. We suggest you visit, click the tab marked Essentials Internet Plans, and let Time Warner Cable know you have no interest in these usage-limited plans and are prepared to go to war to keep affordable, unlimited Internet. With your voice, perhaps Time Warner Cable will finally realize that usage caps and consumption billing just don’t work for you or your family.

A British advertising firm is paying homeless people to act as mobile hotspots for the 4G-challenged in a controversial pilot project that has left some wondering whether it is appropriate to use the disadvantaged as walking wireless access points.

The project took off at this week’s SxSW Interactive conference in Austin, Tex.  Anyone within 20 feet of a roving homeless person outfitted with a transmitting device can make a wireless connection with a 4G network.

BBH New York says it just wants to fill the need for better Internet connectivity at the convention center site.

“Our hope is to create a modern version of this successful model, offering homeless individuals an opportunity to sell a digital service instead of a material commodity,” BBH New York says. “SxSW Interactive attendees can pay what they like to access 4G networks carried by our homeless collaborators.”

BBH has 13 homeless volunteers walking around the convention center announcing they are available to facilitate immediate 4G access for data-hungry attendees.

“Hotspots, Hotspots! If you need to get online, I am your guy,” yelled one homeless volunteer to hundreds of people passing by.

Those who take them up on their offer can make donations for the access, which volunteers get to keep.

The company admits it has received some criticism from those who think the program exploits the homeless, but the company had no shortage of volunteers willing to participate.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/KXAN Austin Project makes homeless a mobile hotspot 3-12-12.mp4[/flv]

KXAN in Austin explores the “Homeless Mobile Hotspot” project that has a lot of people talking at this year’s South by Southwest Interactive conference.  (2 minutes)

Time Warner Cable customers in Austin, Tex. excited to learn DOCSIS 3 speed upgrades have finally arrived in the state capital are less than thrilled to learn the rug has been pulled out from under some of the high speeds the company was promising customers just one week earlier.

At issue is Road Runner Extreme, the DOCSIS 3 upgrade that delivers faster speeds at a “sweet spot” price of just $10 more than Road Runner Turbo.  In most Time Warner Cable markets, Road Runner Extreme delivers 30/5Mbps service, and so it was to be for Austin customers as well:

Captured from Time Warner Cable website - July 1, 2011 (click for screenshot of entire web page)

But Broadband Reports reader “SunnysGlimps,” who signed up for Extreme expecting those speeds, discovered “bait and switch” broadband instead, as the resulting speed test (and subsequent advertising) showed a much less impressive 20/2Mbps result.

“I was actually getting faster speeds with the Turbo then I am now with the capped Extreme package,” says Sunnysglimps. “My speed clearly hits a cap when it goes to 20/2Mbps on speedtest.net.”

This reader feels Time Warner Cable is engaged in false advertising in Austin.

“You cannot advertise 30/5Mbps, sell the service, charge more, and then change your advertising a few days later and say it won’t be what you just purchased.”

Captured from Time Warner Cable website - July 5, 2011 (click for screenshot of entire web page)

[flv width=”512″ height=”404″]http://www.phillipdampier.com/video/Al Franken on Net Neutrality SXSW 3-14-11.flv[/flv]

Sen. Al Franken (D-Minn.) delivered comprehensive remarks at today’s South By Southwest (SWSW) gathering in Austin, Tex.  Franken declared the fight for Net Neutrality is by no means over, and claimed corporate opponents and some members of Congress are “using a rhetorical technique called ‘making stuff up'” to fight the rules guaranteeing a free and open Internet.  Franken added an open Internet does not mean open season for online content piracy, but preserving today’s online experience is crucial for entrepreneurs working in the 21st century digital economy, as well as for the creative talent attracted to SXSW.  (45 minutes)

Average measured connection speed (All graphics courtesy: Akamai)

America is marching backwards with a gradual decline in broadband speeds, according to a new report issued today.

Akamai’s State of the Internet Report for the final quarter of 2009 (report only available with permission from Akamai) rates America 22nd fastest in broadband connections, averaging 3.8Mbps, and declining.  Speeds dropped 0.9 percent for the quarter, 2.5 percent for the year.

Still on top are South Korea, Hong Kong, and Japan, now joined by former Soviet bloc countries Romania, Latvia, and the Czech Republic — all rapidly improving broadband speeds by double digit percentages.

Within the United States, among the top 10 individual states — five rated increased speeds and five measured lower speeds.  Some attribute this to network congestion, others suspect some customers have downgraded service in a poor economy.  But the biggest reason for the speed drop comes from wireless broadband.  Some Americans are increasingly relying on broadband service delivered to smartphones or other wireless devices over slower speed networks.

Overall, 31 states saw average connection speeds increase in the fourth quarter – up from 25 in the prior quarter. Notable gains included South Dakota’s 18 percent jump to 4.5 Mbps. Fourth quarter decreases in average connection speeds were seen in 19 states and the District of Columbia, and included Virginia’s 13 percent drop to 4.0 Mbps. Akamai believes that the significant decline in Virginia was likely due, in part, to increased traffic seen from lower-speed mobile connections that entered the Internet through gateways within those states.

Increased speeds year over year were seen in 29 states, with Hawaii growing 33 percent to 4.7 Mbps.

South Korea’s introduction to the iPhone drove their average speeds down by a whopping 24 percent.  KT (formerly Korea Telecom) is at fault here — the national wireless carrier has slow wireless Internet speeds.

Stop the Cap! readers  in Rochester and Austin should notice both cities made the top ten fastest list, measured by Akamai.

[Thanks to Stop the Cap! reader Rob who sent us details.]

Fastest American Broadband Cities by Unique IP

Fastest Broadband States

Best Average Measured Connection Speeds (not suprisingly most are college towns)

Top 10 States