Time Warner’s initial plans about unrolling a trial tiered pricing program in Beaumont, Texas, before expanding it caused frustration amid customers. Under that plan, customers would have been forced to choose between a 5GB and 40GB download cap per month.

 

In a statement released as a response to customers, Time Warner COO Landel Hoobs said the wave of criticism of the company’s tiered pricing plan was “premature.” Mr. Hoobs admitted that the communication between the company and customers was “inadequate” and apologized on behalf of Time Warner for the frustration that it caused. 

 

"We've heard the passionate feedback and we've taken action to address our customers' concerns."

 

Under the new plan, Time Warner customers will have a low-price option offering 1 GB per month for $15 with speeds of 768 KB/128 KB and overage charges of $2 per extra GB. The company is increasing the bandwidth tier sizes of all existing packages in trial markets to 10, 20, 40 and 60 GB for its Road Runner Lite, Basic, Standard and Turbo packages, the executive added in the statement. Those packages will be priced between $30 and $75 per month. 

 

As for the customers who need a higher volume, the company will offer a 100-GB Road Runner Turbo package for $75 per month. The package will feature speeds of 10 MB/1 MB and a $1-per-GB overage charge.