Time Warner's broadband cap plan may result in federal legislation aimed at unfair tiered price structures from Internet providers. Angered over Time Warner's pricing plans, U.S. Rep. Eric Massa of New York says that's exactly what he has in mind, promising a bill to curb tiers, particularly in areas where a broadband provider owns a monopoly on service.

If Time Warner thought that its hastily revised broadband cap plan to include an unlimited usage tier would appease U.S. Rep. Eric Massa, the cable broadband provider was wrong. Massa, who represents a New York district where Time Warner is planning to roll out its cap plan, said April 10 he is drafting legislation to prohibit unfair tiered price structures from Internet providers.

Massa responded sharply April 7 when Time Warner said it was introducing a tiered usage cap plan in a three-state trial pricing program. Massa called it "nothing more than a large corporation making a move to force customers into paying more money." The next day, Time Warner said it would offer an unlimited usage tier.

It didn't make Massa any happier.
"I am taking a leadership position on this issue because of all the phone calls, e-mails and faxes I've received from my district and all over the country," Massa said in an April 10 statement. "Time Warner has announced an ill-conceived plan to charge residential and business broadband fees based on the amount of data they download. They have yet to explain how increased Internet usage increases their costs."

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