Where I live in Hawaii I have only 1 choice in broadband. That company is Time Warner. Today they started their trial in Beamount Texas where they are capping customers usage at 5gb and 40gb depending on the broadband plan you are on.
If you bust the 40gb level its gonna cost you a $1.00 a gig where wholesale price of bandwidth in the quantities they buy is about .07 to .08 cents a gig.
So lets do the math here. Lets say you use 40 gigs a month in traffic, that bandwidth cost Time Warner Cable about $2.80 my current monthly bandwidth bill with the Turbo service is $54.95.
Seems to me like their margins are pretty fat! In order for them to loose money on my account I would have to move 785 gigs a month. Comcast is currently considering a more reasonable cap of 250 gigs per month.
The way I figure it based on my usage last month which included a AppleTV and Vudu Box plus Amazon Unbox. 2 kids and 2 adults on the net was about a 100 gigs. Under the new plan my bill would rise to about $104.95 per month for broadband alone the actual cost to deliver that bandwidth is about $7.00
The executives at Time Warner are being criminal in their pricing plans. For people like me that have to deal with their Monopoly it pisses me off, and I will change providers as soon as their is a viable provider available to me.