Comcast Nixed Metered Pricing. But What About Time Warner Cable?
Earlier this week, Comcast Corp. (NSDQ: CMCSA) president Neil Smit stated pretty emphatically it had no plan to institute usage-based broadband pricing. But Time Warner Cable (NYSE: TWC) COO Landel Hobbs seemed to send …
Context & Ripple Effects
Comcast says it has no plan to introduce usage-based broadband pricing, separating its public position from Time Warner Cable's unresolved stance. Time Warner Cable had already tested usage-linked web pricing in 2008 and, after customer outcry, withdrew its 2009 caps.
That retreat did not end the underlying pricing debate: TWC had framed tiers as a trade-off for faster service in its earlier broadband-tier argument. Comcast's statement makes TWC's next position a more visible competitive and customer-relations choice.
First-order effects
- Comcast broadband customers are not slated for metered pricing under the company's stated plan, while Time Warner Cable faces renewed pressure to clarify whether it will pursue usage-based billing.
Second-order effects
- A divergent TWC policy would give customers and broadband rivals a simple comparison point: Comcast's no-metering stance versus TWC's willingness to revisit tiers after its earlier reversal.
Third-order effects
- If major cable operators continue to take different positions on usage billing, broadband pricing becomes a retention and brand-risk issue rather than only a network-management tool, with past customer backlash constraining how tiers are introduced.
The trend: Cable providers are testing whether broadband usage can support differentiated pricing without repeating the customer backlash that derailed earlier cap proposals.