Time Warner also frames the issue in financial terms: the broadband infrastructure needs to be improved, it says, and maybe metering could pay for the upgrades. So far its trial is limited to new subscribers in Beaumont, Tex., a city of roughly 110,000. In that trial, new customers can buy plans with a 5-gigabyte cap, a 20-gigabyte cap or a 40-gigabyte cap. Prices for those plans range from $30 to $50. Above the cap, customers pay $1 a gigabyte. Plans with higher caps come with faster service.

...The Time Warner plan has the potential to bring Internet use full circle, back to the days when pay-as-you-go pricing held back the Web’s popularity. In the early days of dial-up access, America Online and other providers offered tiered pricing, in part because audio and video were barely viable online. Consumers feared going over their allotted time and bristled at the idea that access to cyberspace was billed by the hour.

In 1996, when AOL started offering unlimited access plans, Internet use took off and the online world started moving to the center of people’s daily lives. Today most Internet packages provide a seemingly unlimited amount of capacity, at least from the consumer’s perspective.

But like water and electricity, even digital resources are finite. Last year Comcast disclosed that it was temporarily turning off the connections of customers who used file-sharing services like BitTorrent, arguing that they were slowing things down for everyone else. The people who got cut off complained and asked how much broadband use was too much; the company did not have a ready answer. Thus, like Time Warner, Comcast is considering a form of Internet metering that would apply to all online activity.

Labels: business, the internet