WASHINGTON (CBS DC) – Heavy Internet users may see their prices rise as Time Warner and other cable providers continue testing a new business model that charges customers based upon the amount of data they use.
“Usage-based pricing” – which is similar to most wireless plans – is what cable companies are looking to use for all Internet due to congestion they claim is clogging up many networks. In a December report, the New America Foundation said caps on data would restrict customers who want to stream movies, television shows or take online classes.
As services like streaming video, cloud data storage, and videoconferencing have increased online, the amount of Internet data consumed by individuals has simultaneously increased. However, while new services and applications require more data, most major Internet service and mobile providers in the United States are moving in the opposite direction by discouraging Internet usage by implementing more restrictive and costly data caps.