FOR IMMEDIATE RELEASE

Date: January 17, 2008
Contact: Jen Howard, Free Press, (202) 265-1490, x22

WASHINGTON -- Today, Time Warner confirmed its plans to test a new Internet pricing system that would charge higher prices to high-bandwidth customers.

Ben Scott, policy director of Free Press, issued the following statement:

"Time Warner's announcement that it will start testing metered pricing for broadband is a symptom of the deeper problems in our communications infrastructure. Cable companies claim to have limitations on how much traffic they can support. Some Internet service providers have claimed that the only way to manage their networks is to disconnect customers when they cross a mysterious line of 'overuse' or by secretly blocking applications like BitTorrent with an eye toward stifling competition.

"Compared to that approach, Time Warner's proposal is better -- at least customers will know what they're getting into. But metered prices may chill innovation in cutting-edge applications because consumers will have a disincentive to use them. Viewed in the context of our long-term national goals for a world-class broadband infrastructure, telling consumers they must choose between blocking and metered pricing is a worrying development.

"Why not use public policy and market forces to improve the quality of our networks? The best answer to any capacity crunch is to build the kind of high-capacity networks available in the world's leading broadband nations. If smart, open access policies and genuine competition are working in Asia and Scandinavia, why not in America?"

Read more about America's broadband problems in two Free Press reports: Broadband Reality Check II and Shooting the Messenger

Free Press is a national, nonpartisan organization working to reform the media. Free Press does not support or oppose any candidate for public office. Through education, organizing and advocacy, we promote diverse and independent media ownership, strong public media and universal access to communications.