Time Warner tests Internet bandwidth caps

There may be limits coming to high-speed Internet from Time Warner Cable, according to details of a memo obtained by Broadband Reports.

While the new policy is expected to affect about one out of every 20 subscribers, it is aimed at collecting revenue from those who apparently "utilize over half of the total network bandwidth."

Although the cable provider confirmed that the memo is indeed legit, it declined to offer any other details on its plans.

The first subscribers to be subjected to the new caps would be in the Beaumont, Texas area, with a national deployment possible if the new system is determined to be practical. Bandwidth usage to these customers would be metered, and then overage charges would apply if those caps are exceeded.

Such a policy has its pitfalls: consumers respond well to the "unlimited" bandwidth model, and moving back to a metered model could trigger a backlash from existing customers. Comcast has also reportedly tested a similar overage concept, although that backlash threat apparently kept the company from moving forward.

For ISPs that may be concerned about bandwidth issues, there is another option, which in some cases is already being implemented. Heavy users of bandwidth have recently found their connections throttled, and in some cases disconnected altogether.

Time Warner reportedly has already been implementing such a policy, although it has officially denied any type of throttling.