Time Warner Cable Inc said on Wednesday it is planning a trial to bill high-speed Internet subscribers based on their amount of usage rather than a flat fee, the standard industry practice.
The second largest U.S. cable operator said it will test consumption-based billing with subscribers in Beaumont, Texas later this year as a part of a strategy to help reduce congestion of its network by a minority of consumers who pay the same monthly fee as light users.
The company believes the billing system will impact only heavy users, who account for around 5 percent of all customers but typically use more than half of the total network bandwidth, according to a company spokesman.
Slowing network congestion due to downloading of large media files such as video is a growing problem for Time Warner Cable. The company said the problem will worsen as video downloading becomes more popular.
