Starting Thursday, June 5th, Time Warner will begin a trial program which will impose a monthly consumption cap of 40GB on the internet for it’s customers in Beaumont, Texas.
Users will be given two months to get used to the cap, and then after that they will be charged $1.00 for every gigabyte over the limit that they go.

Time Warner Cable’s plan to test metered service was originally revealed to the public when an internal company memo was leaked in January and later confirmed by the company. The memo indicated that the results of the trial would be used to determine whether to roll out the bandwidth-capping plan to other regions.
Kevin Leddy, Time Warner Cable executive vice president of advanced technology, told the Associated Press that the variable billing model is being adopted to address the disparity in bandwidth consumption among Time Warner Cable users. Five percent of the subscribers are consuming half of the local line capacity, Leddy says.
The caps differ depending on the tier of service paid for by the consumer. The lowest level of service is a 768Kbps connection with a 5GB cap for $29.95 per month. The high-end package will offer 15MBps with a 40GB cap for $54.90 per month. Consumers will pay by the gigabyte for consumption in excess of the established caps. Customers will be able to see how much bandwidth they have left by visiting the Time Warner Cable web site.
This may not, at first glance, seem like a problem, but considering where technology is gong, and the concepts of cloud computing becoming so prevalant, it seems hard to imagine that even the average consumer will be able to subsist on a max of 40GB each month.
If Mr. Leddy is concerned about the 5% of subscribers who are consuming half the local line capacity, then perhaps a plan targetted towards them would be more appropriate. Time Warner is certainly capable of determining who is abusing thier bandwidth, and even if they can’t then at the very least put together a program that is more reasonable. Uncapped DSL is cheaper then $30.00 a month and for that Time Warner will cap you at 5GB ?? I used more then 5GB this month on my iPhone over the edge network…
With the advent of “set-top” internet boxes such as the Apple TV, Netflix and Blockbuster, most consumers will find that they hit these caps after just a couple of movies in the month. Scary that a cable company is able to completely establish a policy that effectively removes the ability to use a product that would be considered a competitor, and no one takes notice.