Comcast to Impose New Broadband Data Caps Nationwide

Comcast is to impose a 1.2TB monthly data limit on its broadband customers in all locations across the United States. The move affects 12 states that weren't already under the cap.

Customers will be able to get unlimited data, but will have to pay a fee of $30 a month above their current charges. Those who don't "upgrade" will face an overage charge of $10 for each 50GB they use, with a maximum overage charge of $100. (Source: stopthecap.com)

The company already had the cap in 27 of the 39 states it served. Many of the remaining 12 covered markets where Comcast had competition with Verizon, rather than enjoying a monopoly.

One Month Grace

The states which are getting the cap next year are Connecticut, Delaware, Massachusetts, Maryland, Maine, New Hampshire, New Jersey, North Carolina, New York, Pennsylvania, Vermont, and West Virginia. The move also affects Washington DC and parts of Ohio and Virginia which don't currently have the cap.

Although the move takes effect in January, the effects will be phased. There won't be any overage charges until March. After that, customers who remain on a capped plan can go over the 1.2TB monthly limit once without penalty. After that, they will be charged the overage fee.

In some senses this could be viewed as simply a $30 a month price hike for customers, rather than Comcast removing any option to have unlimited data use. It's still going to be hugely controversial, particularly given reports of customers disputing the amount of data they actually use.

95% Under Limit Already

Comcast told Arstechnica that its median residential customer uses 308GB a month, meaning half of people use less and half use more. It also says that only five percent of customers use more than the 1.2TB threshold. Of course, that's potentially misleading as many of those customers would use more if they didn't face overage fees. (Source: arstechnica.com)

Data caps are a contentious topic, as people using more data across the month likely have relatively little effect on an Internet service provider's costs. Instead the real problem is if too many people try to use data at the same time, congesting the network. That's not necessarily solved by a monthly cap.

What's Your Opinion?

Do you have a cap on your home (non-mobile) broadband? Is 1.2TB a reasonable limit in era with so many legal streaming services? Should this be a regulatory issue or something left to the market?