After Backlash, Time Warner Shelves Pricing Change

Time Warner is scrapping plans to test a new way of billing for Internet access in the wake of a furious backlash from consumers and politicians, BusinessWeek reports. The No. 2 cable provider had planned to bill people in a handful of test markets based on how much bandwidth they used rather than charging them the usual flat fee. Those who watch a ton of video online shouldn't bank on the idea going away for good, however.

"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 CEO Glenn Britt. The company—derided as a "functioning monopoly" by a congressman in one of the proposed test cities—is still sold on the concept and says it will make tools available for customers so they can measure their own bandwidth use. (More Time Warner Cable stories.)