Time Warner Cable drops per-megabyte charging trials

Surfers in the US have reacted badly to a new internet pricing model

Time Warner Cable has cancelled plans to trial a new internet pricing model in the US, under which it would charge customers by the megabyte rather than by connection speed.

The trials were to take place in Rochester in New York, Greensboro in North Carolina, and San Antonio and Austin in Texas.

The pricing model would have applied to businesses and consumers, and would have charged $15 (£10) per month for one gigabyte, and around $2 (£1.35) for each additional gigabyte.

However, the move was opposed by consumers and politicians, and protests were set up to take place this Saturday outside the company's offices.

"It is clear from the public response over the last two weeks that there is a great deal of misunderstanding about our plans to roll out additional tests on consumption-based billing," said Time Warner Cable chief executive Glenn Britt.

"As a result, we will not proceed with implementation of additional tests until further consultation with our customers and other interested parties, ensuring that community needs are being met.

"While we continue to believe that consumption-based billing may be the best pricing plan for consumers, we want to do everything we can to inform our customers of our plans and have the benefit of their views as part of our testing process."

US senator Charles Schumer, who represents New York, was particularly critical of the plans, and discussed making some kind of legislative example of the issue.

"By responding to public outrage and opposition from community and elected officials, Time Warner Cable made the right decision today," he said. "I will make sure that any changes are in line with what families and small businesses need."

The decision will be a blow to telecoms providers looking to shift businesses and consumers away from the all-you-can-eat model of internet pricing to one based on usage. Nevertheless, other companies look likely to follow Time Warner Cable's lead.