Time Warner says customers don’t want or need super fast gigabit Internet

speedlimit

You don’t want the super fast Internet speeds that services like Google Fiber can provide. Nope. You don’t really need that sort of thing. Only business customers do, for their business applications in their businesses. At least, that’s what Time Warner Cable thinks anyway.

Chief technology officer of Time Warner Cable, Irene Esteves, recently said at a conference in San Francisco that they “just don’t see the need of delivering that to consumers.” She said that while Time Warner actually has gigabit connections just like Google Fiber available in some markets, they only offer it to business customers. ‘Cause apparently, only business customers would need that kind of bandwidth.

Experts, on the other hand, believe that this reluctance has actually more to do with protecting their high margin broadband services. According to Craig Moffet of Bernstein Research, companies like Time Warner’s profits with their existing services is around 97 percent. Let’s repeat that for some comic effect: 97 percent profit.

While Esteves may think that there currently isn’t a need for such high bandwidth in the consumer space just yet, people with access to it in Kansas City are making a very compelling argument. High definition streaming of media, gaming, and even in applications in home health care are being developed.

Do you think we all need gigabit connections at home? I do. I’m gonna need it for this thing.

Note: What is with that speed limit in the image? Is that even possible?

[via Wired, image via Peter Dutton]

Share this post

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

9 comments

  1. Netpilot

    I agree that may be a weight area because of the two black strips in the pavement. However, there are signs near where I live with a real, posted, legal speed limit of 7 1/2 MPH. It’s on a 1 1/2 lane, twisty road, through a wooded area with thick brush (almost zero curve visability), near a one-lane, wooden bridge. It sure gets the driver’s attention!

  2. sl0j0n

    Hello, all.
    @ “JonE”:
    Can you say “corrupt government”?
    Locally, the state *had* given local governments some authority over the “cable” companies, & they could ‘pull’ the franchise, if a company’s behavior was ‘bad enough’.
    But then, the state passed a law that kept them mean old local governments from being able to harass the local cable companies, and local telcos, too, apparently.
    Now, the “public service commission” & the FCC are “responsible” for “regulatory action”.
    Is it wonder that companies, like TW, are *convinced* that “people” “don’t need hi-speed access”?

    Have a GREAT day, neighbors!

  3. jayesstee

    There were no cheap autos at one time and all the American and European manufacturers were happy with this. It needs a “Henry Ford” to come in and offer fast (not necessarily super-fast) broadband to the masses.  How about that for a career change Ashraf?

  4. Seamus McSeamus

    There is no true competition anymore. A small number of corporations (including GE, Monsanto and Barclay’s) own just about everything, so even if there was a competing internet or cable provider, chances are it would still trace back to the same parent company.

  5. JonE

    I have been a Time Warner (TW) Road Runner consumer (TW’s definition) since mid 2001.

    I started my trek on the Internet in late summer 2000 when I purchased my first PC (not my first computer). My new PC came pre-loaded with Windows 98se and dial-up Internet through a local provider.

    In mid 2001 I thought I would dip my toes in world of high speed Internet; my first provider was Ameritech aka SBC and as we all know always was and is AT&T; DSL of course. I used this for about a month. There is no other term to define how I felt about DSL except unimpressed. When I received my first bill AT&T had charged me for three installations. When I brought this error to their attention they wanted me to pay the full bill before they were willing to correct the error. I refused; to this day they say I owe them that money – I will never pay it.

    Time Warner had been providing cable television in the area for some time, but only started offering cable Internet just a few months before that. I called them; no installation fees, no deposits, no contracts – Sign Me Up! And I was more than impressed with my Internet connection; shoulda called them first.

    There is more to this history, but I won’t bore you with it. Bottom line in the nearly twelve years since then not one other provider has offered a similar service in this area. Hmmm? Wonder why? I’ll keep that opinion to myself.

    I will be writing Time Warner to let them know how I feel about their intention to extract more and more money from it consumers, like myself, while offering less and less service. I suppose they’re not much different than many providers, but the only way for a TW consumer to get a deal from TW is to be a new subscriber.

    But, I have a news flash for TW; if say Verizon or Comcast were to come to this area and start offering the same kinds of services I presently get from TW (they don’t presently) then I would drop TW like a hot potato. Oh sure, I can get satelite television in this area, but not comparable Internet.

    If any provider moves into this area offering Fiber Gigabit I am most likely to dump TW and sign up with that provider. But, I don’t see that happening; TW has a strangle hold on this area and they will fight to keep it, like they have in the past.