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Comcast To Remove Data Cap, Implement Tiered Pricing

StikyPad writes "Comcast is reportedly removing its oft-maligned 250GB data cap, but don't get too excited. In what appears to be an effort to capitalize on Nielsen's Law, the Internet's version of Moore's Law, Comcast is introducing tiered data pricing. The plan is to include 300GB with the existing price of service, and charge $10 for every 50GB over that limit. As with current policy, Xfinity On Demand traffic will not count against data usage, which Comcast asserts is because the traffic is internal, not from the larger Internet. There has, however, been no indication that the same exemption would apply to any other internal traffic. AT&T and Time Warner have tried unsuccessfully to implement tiered pricing in the past, meeting with strong push back from customers and lawmakers alike. With people now accustomed to, if not comfortable with, tiered data plans on their smartphones, will the public be more receptive to tiered pricing on their wired Internet connections as well, or will they once again balk at a perceived bilking?"

25 of 329 comments (clear)

  1. Fiber needs to move faster... by CSFFlame · · Score: 3, Insightful

    Come on Google (and Sonic.net too). I don't trust Verizon, they're too shifty.

  2. Most won't notice by MikeRT · · Score: 3, Insightful

    This actually seems like a pretty sane plan for most people who aren't diehard pirates or Netflix users. Most users don't use 300GB. If Comcast is smart they'll use this as a basis to actually fund the development of a more powerful and competitive network instead of just milking it for short term gains.

    1. Re:Most won't notice by WilliamGeorge · · Score: 5, Informative

      I was getting worried about our usage at home, since the kids now watch a few hours of Neflix a day along with out other internet usage. I called Comcast because I was having trouble finding where on our account management page the data was about how much we actually used each month - and when they showed me where to find it I was amazed at how little it was. 30-70GB a month on average, occasionally peaking past 100GB. So even in what I would consider a moderate to heavy internet usage household we were way under the existing cap, and will still be with a 300GB limit.

      The only problem I can see here is if they don't notify users when they approach that cap. If something happened and I went way over, but was never warned till the bill came, I would be upset.

      --
      William George
    2. Re:Most won't notice by oddjob1244 · · Score: 3, Insightful

      This actually seems like a pretty sane plan for most people who aren't diehard pirates or Netflix users. Most users don't use 300GB.

      I just hope they give the option to shut off buying extra bandwidth automatically. I'll buy the 300gb a month, but I don't want anymore. If I hit the cap, cut me off to just a Comcast website where I can buy more. None of this, "For an extra $10 a month we'll give you parental controls to limit the automatic purchase of more bandwidth" crap that cell phone companies pull with text messaging.

    3. Re:Most won't notice by rgbrenner · · Score: 3, Informative

      You are not the average user, by far.

      Yes, he's not average, by far. He uses up to 35x the amount of the average comcast user

      http://blog.comcast.com/2009/12/comcast-data-usage-meter-launches.html

      (Note: the median usage for Comcast’s customers is about 2 to 4 GB per month.)

    4. Re:Most won't notice by __aaqvdr516 · · Score: 5, Interesting

      Around 2008, my local ISP was formed. Sometime around 2009 they implemented data caps of 600 MB/day, as most users didn't exceed that amount. Today, the cap is exactly the same as was first implemented.

      300 GB might seem like a lot right now. Give it a few years...

    5. Re:Most won't notice by _KiTA_ · · Score: 4, Interesting

      Around 2008, my local ISP was formed. Sometime around 2009 they implemented data caps of 600 MB/day, as most users didn't exceed that amount. Today, the cap is exactly the same as was first implemented.

      300 GB might seem like a lot right now. Give it a few years...

      Comcast, Verizon, etc -- they're all banking their entire futures on this very idea. They're hoping to get in a reasonable -- for now -- cap, and then in 5 years when our bandwidth usage is way more commonplace, welp, their hope is to get us right around the $50 a month mark... and $50ish in over usage fees a month, every month, until some external market force economically forces them to stop.

      Think about it. In 5-10 years, we won't have Cable, we'll have HD Video on Demand Networks, something like Hulu or Netflix instead.

      Imagine when Hulu (or rather, a Hulu competitor, since Hulu has been compromised) gets the bright idea to make "channels" where you get X number of shows at differing points of the day, all streaming via a Roku box or something similar, with the option to switch back and forth in the channel's timeline if you want. All the benefits of a standard Cable Channel for Mom and Pop ("The news is on at 7, then it's Cops, and Letterman"), with all the benefits of Video on Demand ("We missed Cops, we'll watch it right now and Letterman later tonight").

      Sounds great, right? Well, it won't be once you get the $50 a month ISP bill + $50 a month Overusage bill, every month, for the rest of your life. Which the Bandwidth Middlemen are literally banking their futures on.

    6. Re:Most won't notice by Just+Some+Guy · · Score: 3, Interesting

      That was from three years ago, which I believe to be before Netflix even offered streaming service. A lot has changed since that now-obsolete report came out.

      --
      Dewey, what part of this looks like authorities should be involved?
    7. Re:Most won't notice by TheRealMindChild · · Score: 4, Informative

      Think about it. In 5-10 years, we won't have Cable, we'll have HD Video on Demand Networks, something like Hulu or Netflix instead.

      The future is now. My house lives on Netflix and Vonage. We went to my fathers house to watch TV, and the kids couldn't understand why they kept missing their show because of these "commercial" things. And when their pappy said "I need to change the channel real quick to see the weather", the look of confusion on their face can only mildy be explained as hysterical.

      --

      "When life gives you lemons, don't make lemonade. Make life take the lemons back!" -- Cave Johnson
  3. What's wrong with tiered? by Scutter · · Score: 4, Insightful

    I'd much prefer a flat-rate unlimited plan, but I also recognize that a small percentage of users consume a disproportionate amount of bandwidth and that has to be managed somehow. I don't want a data cap. I'd much rather have the option of an affordable tier if I go over that cap, provided I'm given easy-to-use tools to see what my current utilization is. What I don't want is for that next tier to be ridiculously expensive as a disincentive to use it. I don't think $10 for an additional 50GB is unreasonable, although cheaper would be better.

    --

    "Tell me doctor, with all of your defenses, are there any provisions for an attack by killer bees?"
    1. Re:What's wrong with tiered? by Guspaz · · Score: 3, Insightful

      I don't generally have a problem with tiered, but $10 for 50GB is completely unreasonable. It's the equivalent of $64 per megabit, which is nuts for a home connection.

      It's enough to make third-party IPTV unsustainable; if a household watches, between all TVs/people, 6 hours of TV per day at 4Mbps, you'll end up paying more than $60 a month just in bandwidth overage, above and beyond your TV bill! And 4 meg is a pretty damned conservative bitrate for IPTV.

      $10 should be getting you 100-200 gigabytes per month. It's a reasonable cost, and it's roughly what existing large ISPs like Shaw are charging.

  4. I can only speak for me... by GSloop · · Score: 5, Insightful

    I can only speak for me...but the scummy thing I see is they really want it both ways.

    1) You can pay more for higher speeds
    2) You can pay more for more bandwidth.

    And we'll be really slow about moving the boundaries so as to capture as much money as possible.

    Higher speed should just be included, and fine, charge a reasonable amount for bandwidth.
    OR
    You charge by the speed tier and however much bandwidth I consume you live with it.
    [The pricing seems high too, IMO.]

    But no, they want to make you pay both ways. [And pay again when you can't stream data (without meter) from other vendors - you have to pay extra to CC.]

    Wireless carriers do it like this too.

    Them: "No, you can't tether, that costs extra."
    Me: "Why? You're capping my data consumption anyway. If it's not unlimited, then I should get to choose where I use my data - the phone, a tablet, or my laptop."

    Either it's unlimited to a single device, in which case, I can stream netflicks 24x7 - or I pay for X amount of data and I can use it in any way, with any device I like.

    But no. We'll pick the terms we like when it benefits us, and then mix and match to make even more.
    Screw you customer! Just keep forking over the cash.

    -Greg

  5. I Hope Not by MoldySpore · · Score: 4, Interesting

    I really hope that people won't give in without at least expressing their anger to Comcast by finding another ISP if available, when they implement tiered pricing. I hope Comcast users push back like us TW users did.

    One of the MAIN reasons these ISP's are introducing tiered pricing is simply to avoid the costs of upgrading their infrastructure. Instead of modernizing their networks and equipment to handle today's higher demand for more and more bandwidth, they simply implement overage fees and/or tiered pricing to keep people's usage within the confines of what their infrastructure can handle. It really is a scam on so many different levels. This is why the US is so far behind in broadband when looking at other country's broadband statistics.

    Money hungry as ever, the largest ISP's over here just don't see the need to provide a higher level of service to home users when it means investing hundreds of $Millions, possibly more, to do it.

    In addition to that, you have places like Rochester, NY where no competition can EVER break into the market because 1 or 2 ISP's have monopolized the space for new fiber and/or copper runs, effectively creating a stagnant market where users have no choices for service (ISP's such as EarthLink give the ILLUSION of choice, but really only lease space on another larger ISP's lines, such as Time Warner).

    --

    "I hope you know how very lucky you are to know me, because I am so incredibly incredible."

    1. Re:I Hope Not by cpu6502 · · Score: 3, Interesting

      >>>This is why the US is so far behind in broadband when looking at other country's broadband statistics.

      False. According to speedtest.net, the average U.S. speed is 1 Mbit/s faster than the average speed for the E.U. And yes there are some EU states that have very fast internet, but there are some U.S. states that also have very fast internet: Like New Jersey. New York. Washington.

      Vice-versa there are EU states like Greece and Spain and Portugal that have internet slower than the U.S. average. Thank your lucky stars you don't like there. (Or in the UK where they have decent speeds, but are censoring the net.) The grass always looks greener on the other side of the fence, but rarely is.

      --
      My AC stalker: " I personally agree with your posts most of the time, but that won't keep me from modding you troll"
  6. Re:Even better - just meter the whole damn thing by Hatta · · Score: 5, Insightful

    Gas, power, and water utilities manage to deliver and upkeep what's arguably a more complicated infrastructure with the same model, why should data be any different?

    Because gas, power, and water can be saved for another day. Any bandwidth we don't use right now is lost forever. It's actually more economical on a dollars per byte basis to keep your network near saturation. If you discourage people from using the network, you're increasing everyone's per byte costs.

    The right way to deal with contention for network resources is to build out infrastructure. If ISPs are allowed to profit from network congestion, there is no incentive to build out infrastructure.

    Metered internet access provides exactly the wrong incentives for *everyone* involved.

    --
    Give me Classic Slashdot or give me death!
  7. Well, that does it. by MacGyver2210 · · Score: 4, Insightful

    "First, we fucked them with television. We fucked them too much and they don't watch television on cable anymore.
    Then, we fucked them with advertising online and through what TV remained, but we advertised too much, and now everyone ignores our ads or pirates our shit.
    We tried to fuck them with BitTorrent, but even the government wouldn't let that slide. We had to unfuck BitTorrent. Apparently it isn't just for pirating shit.
    Now they want internet, so we're going to fuck with internet a bit and see if we can't squeeze a few more cents out of them."

    What the fuck, Comcast? Get a clue.

    --
    If the only way you can accept an assertion is by faith, then you are conceding that it can't be taken on its own merits
  8. they also have certified meters by Joe_Dragon · · Score: 3, Insightful

    they also have certified meters and most of the ISP meters are off and bill you for overhead and ARP data.

  9. FTC and unlimited by Anonymous Coward · · Score: 3, Insightful

    So the FTC will bust Sketchers for advertising shoes that don't give you a great butt (http://www.ftc.gov/bcp/cases/skechers/index.shtm), but they have no problem with carriers that advertise limited data plans as unlimited?

  10. Re:Even better - just meter the whole damn thing by Hatta · · Score: 5, Interesting

    That makes zero sense. The more the datalines are used, the more electricity is being burned-up.

    The electricity it takes to send a 0 or 1 down the line is negligable. The only power savings you're getting from running under capacity is if you're so under utilized that you can put your servers to sleep. That's equivalent to reducing network capacity, which we would very much like to discourage.

    --
    Give me Classic Slashdot or give me death!
  11. "internal traffic"? by Dahamma · · Score: 5, Interesting

    I'd love to see someone implement a bittorrent client with an option to limit peers to other Comcast customers, and then see how they start redefining "internal traffic"...

    1. Re:"internal traffic"? by Eil · · Score: 4, Insightful

      "Internal traffic" counts only towards Comcast's own content services like Xfinity. All other traffic (including to your neighbor) will whittle away at the cap.

      Remember, data caps are not about network or quality management. They're about keeping the provider from becoming a "dump pipe" for premium content elsewhere. (In Comcast's case, high-def streaming TV.)

  12. Re:How can they complain? by MobileTatsu-NJG · · Score: 4, Insightful

    Here in rural Manitoba we get 7Mbps down / 768Kbps up for $46 + tax for a 60GB cap. Fucking sense of entitlement.

    I realize it's fun to play songs on the hate parade when talking about Americans, but entitlement is not the word. At the next town over they can get unlimited service with a different provider. That's an issue of value, not entitlement.

    --

    "I like to lick butts!" by MobileTatsu-NJG (#32700246) (Score:5, Informative)

  13. How bout this by way2trivial · · Score: 4, Interesting

    I have a cable modem at home
    I have one at work
    1 mile apart and they are 4 hops apart..
    before I got a commercial account at home, I was warned about the bandwidth
    95% of which was backups from work to home
    (I keep two NAS's synchronized)

    would that be internal enough for you?

    --
    every day http://en.wikipedia.org/wiki/Special:Random
  14. This is relevant to my interests by jtownatpunk.net · · Score: 4, Interesting

    Comcast put me on probation last year. I move a lot of data. All non-commercial. I asked if there was a service plan that would allow me to move more data. The conversation went something like this:

    "No."
    "I'm willing to pay more money to be able to move more data."
    "That isn't an option."
    "What about business service? I know you also provide service to businesses and charge more for the SLA and heavy traffic."
    "I don't have any information about the caps on business service plans but you can't change your plan or open a new account when you're on probation. In six months, you can inquire about business service."
    "That's ridiculous. I didn't know there was any problem with my usage until 15 minutes ago. That's the first I heard that there was an issue. I'm offering to give you more money for a higher level of service. You're in business to sell the service I'm that I'm trying to buy. Why would you not want to take my money?"
    "I'm sorry, sir, you cannot change your service while on probation. If you go over the 250 gig limit at any time while you're on probation, your account will be closed and you won't be able to open another account for 12 months."

    It baffles me. If they'd offered me 50 gig chunks of data at $10, I would have taken it. It's not cheap but it's not outrageous and it's better than being banned from purchasing their services for a year. My only other options here are "up to" 3 meg DSL and satellite. Oh, and 3G cellular. Hell, they would have made a lot of money from me because I would have said, "Screw it, it's only another $10." Probably would have been paying an extra $20-40 every month.

  15. Re:Boggles by fnj · · Score: 3, Insightful

    Boggle on. You're not very imaginative. There probably should be a cheapo option for customers like you whose demands are so minuscule. For my part, I can easily get up dangerously close to 250 GB within HALF a month without half trying, and I then have to curtail my usage for the rest of the month.

    I'm not even going to say what kind of stuff I do to pile up the GB. It's not particularly daring or esoteric. There are so many ways. Look, I've got a pipe that flows a sustained 2 MB/s - that's 120 MB/min, 7.2 GB/h, 172.8 GB/d, 5184 GB/mo. And you seriously think using an average of 4.8% of that capacity "boggles the mind"?