Comcast data caps aren’t about congestion, leaked memo shows

Earlier this week we learned that Comcast is planning to roll out data limits for residential internet customers to more markets, mainly in the south. Customers will be given 300 GB of data per month, and automatically charged an extra $10 for each additional 50 GB of data they use.

It’s true that Comcast has built in a few flexibility to the program. “And it has advocacy groups concerned about the effect the caps could have on competition and consumers, especially if they become widespread”.

Though the cap is being applied in a limited number of markets, advocates say they are concerned that it could limit competition and raise prices for consumers.

The competition concerns stem from Comcast’s own stake in the turbulent video market, in the form of its cable television service. Comcast’s video offerings are a rival to services including Hulu and Netflix that stream television shows and movies over a broadband connection. They are to use very specific language when talking about the cap.

“We don’t want to overstate it, but we’re seeing a steady build where more and more people are substituting online over-the-top video for traditional video”, said Matt Wood, policy director for Free Press. That conveniently ignores the fact that Comcast’s blanket 250GB cap has been suspended for years.

Over the past two months, a trial started at Comcast of an option for charging subscribers of Xfinity Internet in Atlanta and South Florida an additional $30 to $35 per month for unlimited usage of data.

“That parenthetical was not added by us”, The Consumerist notes. The limit doesn’t apply to fiber or gigabit speed customers.

Comcast wants its representatives to carefully stay on script and on message when questioned by customers who will no doubt either be confused or downright angry about newly imposed data caps. Speaking with investors, Comcast Executive Vice President David Cohen said, “I would predict that in five years Comcast at least would have a usage-based billing model rolled out across its footprint”. Not too long ago, we highlighted a comment from Comcast’s VP of Internet services Jason Livingood who intimated that the Company’s data caps have nothing to do with technical issues but were rather borne of business considerations. They should stick to the term “Data Usage Plans”, the Comcast guidance says. Comcast has created an internal document to help its reps fend off these displeased customers, and one rep made a decision to leak it all over the internet. So it’s “fair” that you pay Comcast when you use more data, although you bill doesn’t go down when you use less. “That those who use more data pay more, and those who use less pay less”.