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Frontier Communications "Testing" Users Response To Being Ridiculously Overcharged For Bandwidth

Apr 22, 2010, 16:04 (0 Talkback[s])

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[ Thanks to Jose_X for this link. ]

"Last year Time Warner Cable took a pretty severe beating from the press and public for plans to impose not only monthly broadband usage caps as low as 5 GB a month, but also for their decision to charge users up to $2 per additional GB. Given this was a 1,500-2,000% markup above bandwidth costs for the provider, most consumers realized that the already very profitable company was simply making a money grab -- and preparing to better monetize and/or stifle Internet video's impact on TV revenues. The media scuff up wasn't helped by company executives, who issued missives proclaiming that overcharging customers for bandwidth during a recession was only "fair" and that it would "actually encourage more use of broadband overall."

"Time Warner Cable eventually backed off the plan, but not before their brand (which they're planning to change) took a lot of damage. One small reason they backed off was because one of the company's few competitors, Frontier Communications, started advertising their DSL service as uncapped in order to gain a competitive advantage."

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