Comcast drops controversial data caps
Critics have complained that data caps imposed by Comcast and other Internet service providers are an end run around network-neutrality rules. Comcast says it is dropping them.
Comcast drops controversial data caps
Jeff Gelles, Inquirer Business Columnist
Critics have long complained that data caps imposed by Comcast and other Internet service providers are an end run around network-neutrality rules. As I wrote here last week, Netflix has complained that Comcast's caps put it at a disadvantage in competing against Comcast's new video-streaming service, Streampix, and Sony blamed data caps when it dropped plans for a new service offering "virtual cable" to Internet subscribers.
As explained in a March column, Comcast didn't impose overage charges for those few customers who exceeded the 250-gigabyte cap. Instead, it suspended service for a year to repeat offenders such as the outspoken Seattle gaming consultant, Andre Vrignaud.
Today, after growing criticism over its practices favoring Streampix, Comcast did an about-face: In a blog post today, it says it will drop the caps in favor of "improved data usage management approaches" and - importantly - tiered charges for overages:
In the next few months, therefore, we are going to trial improved data usage management approaches comparable to plans that others in the market are using that will provide customers with more choice and flexibility than our current policy. We'll be piloting at least two approaches in different markets, and we'll provide additional details on these trials as they launch. But we can give everyone an overview today.
The first new approach will offer multi-tier usage allowances that incrementally increase usage allotments for each tier of high-speed data service from the current threshold. Thus, we'd start with a 300 GB usage allotment for our Internet Essentials, Economy, and Performance Tiers, and then we would have increasing data allotments for each successive tier of high speed data service (e.g., Blast and Extreme). The very few customers who use more data at each tier can buy additional gigabytes in increments/blocks (e.g., $10 for 50 GB).
The second new approach will increase our data usage thresholds for all tiers to 300 GB per month and also offer additional gigabytes in increments/blocks (e.g., $10 per 50 GB).
In both approaches, we'll be increasing the initial data usage threshold for our customers from today's 250 GB per month to at least 300 GB per month.
I'll have more to say later about Comcast's new approach, which still treats data too much as if it's something produced and consumed, like electricity. The new policy still ignores the fact that during periods of low demand, there is virtually no incremental cost to Comcast for customers' high-volume data use – say, to upload data to the cloud for backup, the activity that Vrignaud says was largely responsible for his shutoff.
But the company deserves credit for shifting gears, and for adopting a more-transparent and less-punitive approach.
The problem with this is that the data is still essentially capped. By offering a tiered approach you are saying when you hit X - Gig we will now charge you this. How is the every day user who doesn't know how to mange their bandwidth know when they reach this limit? This approach is just like cell phones. you go over your per minute per-diem you get hit for usage charges however what differs here is that you can actually look at your cell phone minute usage and opt when to make changes or voluntarily stop using it. I would call comcast and complain. They only thing they are permitted to limit is your max up-load/download speed.— alcsmith- Normal people who uses internet just for a few hours of steaming tv, internet, gaming will not be affected by the changes. 300gb limit per month is plenty for regular users. For extreme users, 300gb is nothing when 10gb files are not uncommon to share via internet. Those are the audience that Comcast wants to target. Rest of us won't even notice a thing.— penncrow19
- Comcast finds another revenue stream. Big story.— Trident252
- Sounds like Comcast is adopting the AT&T cellular model. Not a good thing for consumers (depending on the pricing, that is)...— Yoda117
- This blog is very good for readers and very informative.....— Domestic cleaning services
Reach Jeff at jgelles@phillynews.com.
