Time Warner and other major Internet service providers (ISPs) often blame slowdowns on the 5% of users who consume as much as 50% of network capacity downloading vast numbers of large files, such as movies, videos, and songs. By charging such consumers more, companies could encourage them to curb excess use, or generate enough extra cash to enable their systems to handle higher data demands. "What we are trying to do is create the best experience possible for all of our users," Time Warner spokesman Alex Dudley says.
But the plan could also stifle demand for movie-download services from companies including Apple (AAPL), Amazon (AMZN), and Netflix (NFLX), some consumer groups say. "It depends on how they structure it," says Art Brodsky, communications director of Public Knowledge, a nonprofit consumer advocacy group focused on digital rights. "You don't want to do it so you totally discourage uploading videos and downloading videos, and doing what the Net is used for."
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