Time Warner Cable Inc. last year became the first major U.S. Internet service provider to charge customers extra if they exceeded a certain amount of data traffic every month. That trial run apparently went well, because the company said Wednesday that it will expand the test to other cities.
Many ISPs have imposed caps on how much their subscribers can download each month. Time Warner Cable broke from the pack by setting relatively low limits — for instance, 5 gigabytes for subscribers paying $30 a month — and then charging $1 for each gigabyte over that limit.
It takes thousands of e-mails and Web pages to reach a gigabyte of usage, but video and software downloads consume much more data. A DVD-quality movie is roughly 1.5 gigabytes.
Consumer advocates have criticized the caps, saying they could discourage people from using the Internet and could stifle online video as a competitor to cable TV.
Time Warner Cable spokesman Alex Dudley said his company’s trial, in Beaumont, Texas, had shown that the system is capable of metering and billing accurately. It will soon be expanded to four more markets, for now undisclosed, to give the company a better understanding of how the system works.
The intent behind charging by the gigabyte is to have subscribers who use the Internet more pay for the upgrades necessary for the company to keep up with increasing traffic, Dudley said.
“It’s clear to us that customers want online video, which requires substantial investment in the network,” Dudley said. “We’re willing to make that, and we’re trying to find an equitable way to distribute the cost of that investment.”
Dudley said a “small but vocal percentage” of users in Beaumont were unhappy with the amount of data they could use (the top tier is 40 gigabytes per month). The company plans to address that by introducing plans with larger monthly “buckets” of data, as well as cheaper ones for casual users.
Time Warner Cable is the third-largest ISP in the country, with 8.7 million subscribers. AT&T Inc., the largest ISP, late last year started experimenting with bandwidth caps of 60 to 150 gigabytes per month in Reno, Nev.
Comcast Corp, the second-largest ISP, has capped use at 250 gigabytes for everyone.
Among the top four ISPs, only Verizon Communications Inc. has no caps on its wireline broadband.
A “Masters” Class In Branding and Fashion
If the world of high fashion has Fashion Week in Milan, with sleek models dressed in avant-garde looks strutting down the runways, then the golf world has the Masters, where players bound down verdant green fairways in azalea-inspired polos, exotic bird prints, the yellows of jasmine and the pinks of the dogwoods.
Over the last few years, golf apparel companies have begun treating the first full week of April as their moment to shine, unveiling lineups of Masters-inspired drops they hope can capture the attention of those focused on the season's first major.
The surf-style company Johnnie-O, for example, dips into the Deep South with its classic, understated Azalea Collection. Rhobak likewise offers an Azalea Collection, though with bold flower patterns designed to invoke the feel of being on the grounds of Augusta National. Malbon Golf, meanwhile, offers a "Birds of Georgia" set featuring images of those typically found about the course.
Yet none of them carry the iconic Masters logo. Or reference Amen Corner. Or use the words "Green Jacket."
All of those are trademarked by the club — three of nearly 100 trademarks on file — and force outside apparel companies to creatively build their connections to both the tournament and Augusta National without infringing on their intellectual property.
"Makers of products for mass market dream of becoming a supplier to Walmart. Likewise, high-end brands salivate at the idea of winning a mandate from the Masters," said John Sabino, author of "The Augusta Principles: Timeless Business Lessons from the World's Premier Golf Club." "Apparel companies want to tap into the Masters' high-quality association and leverage the club's exalted brand."
Yet tapping into that association is... Read More