After Backlash, Time Warner Shelves Pricing Change

Time Warner is scrapping plans to test a new way of billing for Internet access in the wake of a furious backlash from consumers and politicians, BusinessWeek reports. The No. 2 cable provider had planned to bill people in a handful of test markets based on how much bandwidth they used rather than charging them the usual flat fee. Those who watch a ton of video online shouldn't bank on the idea going away for good, however.

"It is clear from the public response over the last two weeks that there is a great deal of misunderstanding about our plans to roll out additional tests on consumption-based billing," said CEO Glenn Britt. The company—derided as a "functioning monopoly" by a congressman in one of the proposed test cities—is still sold on the concept and says it will make tools available for customers so they can measure their own bandwidth use.