Time Warner has announced plans to test a new tiered pricing structure of their internet service based on how much data customers download per month. Currently, the US’ second largest cable provider charges a flat monthly fee for its internet service. The tiered pricing structure would not only put caps on usage but would also charge more should you go over your allotted amount of bandwidth for the month. Presently, Time Warner claims five percent of its customers take up 50 percent of its bandwidth. This test would only apply to new customers signing up for services in the Beaumont, Texas market.

Such a change could have a domino effect on the industry. By breaking our pricing structures, Time Warner would be decreasing the demand on certain web services; iTunes , Netfilx )and YouTube come to mind immediately. Sadly though, it’s the consumer that would be the biggest loser. A slippery slope indeed…

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