N.Y. Congressman Plans Bill Banning Internet-Usage Billing
Rep. Massa Drafting Legislation to Outlaw Caps on Broadband Services
Todd Spangler -- Multichannel News, 4/13/2009 11:13:07 AM
A New York Congressman wants to make it illegal for Internet service providers to charge subscribers based on the amount of data they download.
Rep. Eric Massa (D-N.Y.) last Friday officially announced that he is drafting legislation that would "prohibit unfair tiered price structures from Internet providers."
"I am taking a leadership position on this issue because of all the phone calls, e-mails and faxes I've received from my district and all over the country," Massa said in a statement April 10.
The proposed law is in response to Time Warner Cable's plans to expand its trials of metered broadband service to four markets, including in the Rochester, N.Y., area which includes Massa's district. The freshman congressman last week blasted the MSO's plans as "monopolistic" and alleged it would force consumers to pay more.
The Massa Broadband Internet Fairness Act will also "address the importance of helping broadband providers create jobs and increase their bandwidth while increasing competition in areas currently served by only one provider," according to the congressman's announcement.
Time Warner Cable representatives did not comment on Massa's proposed legislation.
Last Thursday, Time Warner Cable announced revisions to its consumption-based billing trials, including a cap on overage charges at $75 per month and a $15-per-month tier for subscribers who use less than 1 Gigabyte per month.
Massa noted, however, that for a consumer to receive the same unlimited Internet service currently offered for about $40 per month would cost $150 per month under the new plan,
Time Warner Cable has "yet to explain how increased Internet usage increases their costs," Massa said, adding "while I favor a business's right to maximize their profit potential, I believe safeguards must be put in place when a business has a monopoly on a specific region."
The MSO has defended the plan as being a fairer approach than simply raising rates for all subscribers to offset costs, and the company has likened the new pricing model to those used by wireless-phone carriers.
"Rather than raising prices on all customers or limiting usage, we think the fairest approach is to move to a tiered model in which users pay more if they use more," Landel Hobbs, Time Warner Cable chief operating officer, said in a statement April 9.
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Danny, are you being sarcastic or serious? I can't tell. It does not seem fair that I should pay for some guy who overwaters his stupid lawn during a drought.
Steve V. - 4/14/2009 11:21:12 AM EDT -
I'd very much like to apply this to actual utilities as well, where delivery costs are more deterministic (e.g., power, water, sewage). Why should they be variable if less deterministic Internet data delivery (e.g., downloads from China or Europe v. locally)? Why should users be required to pay for what they consume, everyone should share the cost.
Danny McPherson - 4/14/2009 9:30:08 AM EDT -
Ken Paxton's office has received a message from me requesting support of this bill.
Gordon Pettey - 4/13/2009 10:47:48 PM EDT -
It's not just time warner that does this. We have Hughes Net and they do the same thing, ours is incredibly low though. I can't even watch youtube videos for fear that it will cause us to go over our daily download limit. If we go over we are slowed down to dial up speeds :(
Amanda Sullivan - 4/13/2009 10:32:43 PM EDT -
How about a big round of applause for Rep. Eric Massa? I will be asking my rep to co-sponsor this legislation!
Anne MacPhee - 4/13/2009 7:43:47 PM EDT
Time Warner Cable: Much Work Ahead
02/28/2007
