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Wednesday, April 22, 2009

As Costs Fall, Companies Push to Raise Internet Price

By SAUL HANSELL, New York Times, April 19, 2009

Internet service providers want to end the all-you-can-eat plans and get their customers paying à la carte.

But they are having a hard time closing the buffet line.

Faced with rising consumer protest and calls from members of Congress for new regulations, Time Warner Cable backed down last week from a plan to impose new fees on heavy users of its Road Runner Internet service.

The debate over the price of Internet use is far from over. Critics say cable and phone companies are already charging far more than Internet providers in other countries. Some also wonder whether the new price plans are meant to prevent online video sites from cutting into the lucrative revenue from cable TV service.

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