Comcast announced on Thursday that it is transitioning away from its static data limit policy into a more flexible allotment model.
In the coming months, the company will start testing new options that will offer users more bandwidth as part of their cable Internet plans, as well as the ability to purchase additional bandwidth if necessary.
In 2008, Comcast started enforcing a 250GB usage cap amongst its residential subscribers. Comcast's rationale at the time was that only a small fraction of users ever came close to using 250GB of bandwidth each month — and that even fewer users actually exceeded that cap.
The move was enacted in part to limit what Comcast deemed "illegal" uses of the Internet; in other words, they wanted to stop users from downloading movies and music over BitTorrent.
At the time, there was a lot of user outcry over the new usage cap limit, however in practice, few users actually reached that limit. (I was one of those Comcast users who bumped against the usage limit on more than one occasion, thanks in part to my $100-a-month business-speed Internet plan.)
These days, the situation has changed. Users frequently use more bandwidth. Not only are average access speeds faster (which makes it possible to consume more data), the way we consume content has changed.
Thanks to connected devices such as Roku and Apple TV, over-the-top streaming services such as Netflix and Hulu and Amazon Prime are increasingly becoming the way that many users watch content on their television sets.
Even though this content is consumed on a TV set, the bandwidth still counts against a customer's data cap.
In Comcast's case, the network has made an exception for its OTT-delivered Xfinity On Demand Xbox app. The data that Comcast users who use the Xfinity TV app on their Xbox 360 use is not counted against their overall limit. Netflix's Reed Hastings criticized Comcast over this move, arguing that the company is violating rules of Net Neutrality.
How the New Bandwidth System Will Work
As Comcast explained on its blog, in the coming months, all customers will get at least 300GB of bandwidth to use each month. Additionally, users in higher package tiers — like Blast and Extreme — will have higher base allotments each month.
All users, regardless of their plan, will be able to get additional data at a nominal price. The pricing right now is expected to be $10 for 50GB.
Comcast will start trialing the the new management system in several markets and will suspend the data caps in markets not getting the trial. Comcast didn't lay out a timeline for these bandwidth changes, and on a press call, was unable to give hard dates.
At this time, Comcast is also unsure what the specific starting data allotments will be for Blast and Extreme customers.
Why Now
On a press call, Comcast Executive Vice President David Cohen repeatedly denied that the change in bandwidth structure had anything to do with changing customer usage. "We are absolutely not doing it because customer needs are approaching the cap," Cohen said on a call.
When pressed for specifics such as how many customers are approaching or exceeding current bandwidth limits, Cohen refused to say anything other than "a very small fraction of customers ever even come close to using the existing data cap."
Instead, Cohen tried to spin the news as a consideration Comcast has been undertaking for some time.
"Times have changed. Things are very different than they were four years ago. We're ready to transition from what might have been a state-of-the-art approach four years ago to a different approach that is more pro-consumer."
It appears that the reason Comcast is making this announcement now — and without hard dates or specific plan information — is because it has come under increased scrutiny for how it segments its own OTT data, compared to competitors such as Netflix.
Rather than focusing on how Comcast counts bandwidth, it wants to frame the conversation in a way that suggests that customers have no bandwidth caps.
It may be true that most Comcast users don't approach the 250GB limit, but as the usage of services such as HBO Go, Netflix and Hulu continues to increase, that won't be true forever.
What do you think of the new bandwidth policy? How much bandwidth do you use a month? Let us know in the comments.
Image courtesy of iStockphoto, luismmolina
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