Comcast mulls monthly internet usage charge
Posted by: Jon Ben-Mayor on 05/17/2014 06:58 AM
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Comcast Executive VP David Cohen let out his prediction while speaking at the MoffettNathanson Media & Communications Summit in New York City; "I predict that in five years Comcast at least would have a usage-based billing model rolled out across its footprint.”
According to the Wall Street Pit article, that means Comcast customers could get charged for going over their data limits. Cohen said the company would aim to set the limit at a level where “the vast majority of our customers” wouldn't be affected.
“I don't think we will want to be in a model where it is fully variablized and 80 percent of our customers are implicated by usage-based billing and are all buying different packets of usage,” he said, speculating that the limit might be set at 350GB or 500GB per month.
Cohen made a rebuttal, to what he says are statements taken "out of context and misinterpreted in a number of places." He explains further in a Comcast blog post: I thought it was worth clarifying a couple of things about the Internet, data caps, and prioritization.
To be clear, we have no plans to announce a new data usage policy. In 2012, we suspended our 250 GB data cap in order to conduct a few pilot programs that were more customer friendly than a static cap. Since then, we've had no data caps for any of our customers anywhere in the country. We have been trialing a few flexible data consumption plans, including a plan that enables customers who wanted to use more data be given the option to pay more to do so, and a plan for those who use less data the option to save some money. We decided to implement these trials to learn what our customers’ reaction is to what we think are reasonable data consumption plans. We certainly have no interest in adopting any plans that our customers find unreasonable or disruptive to their Internet experience.
It’s important to note that we remain in trial mode only. We're now also looking at adding some unlimited data plans to our trials. We have always said that as the Internet, and our customers’ use of it, continues to evolve, so will Comcast and our policies.
With today’s FCC announcement issuing a Notice of Proposed Rule Making (NPRM) on the Open Internet, there has been a lot of discussion about net neutrality, fast lanes, and paid prioritization. To be clear, Comcast has never offered paid prioritization, we are not offering it today, and we’re not considering entering into any paid prioritization creating fast lane deals with content owners.
First, I expressed my support – and Comcast’s support, for legally enforceable Open Internet rules. The fact remains that no company has had a stronger commitment to openness of the Internet than Comcast. We have supported and been legally bound by the Open Internet rules set forth by the FCC because they struck the appropriate balance between consumer protection and reasonable network management rights for ISPs. Even though these rules were struck down earlier this year by the U.S. Court of Appeals for the District of Columbia, today Comcast is the only Internet Service Provider in America legally bound by them. In fact, when we close our transaction with Time Warner Cable, we will extend our commitment to support the Open Internet rules to millions of additional broadband customers in Time Warner markets. This means that millions of additional customers also will be legally bound by the 2010 Open Internet rules. And we think the DC Circuit decision lays out a clear path, under section 706 of the Telecommunications Act, for the FCC to put in place legally enforceable, transparency rules, no blocking rules, and non-discrimination rules – and we’re supportive of that.
Second, an Open Internet is about much more than "fast lanes" and "paid prioritization". What I said about those issues was (1) that I wasn't even sure what the definition of "fast lanes" and "paid prioritization" were; (2) that they were not covered by the 2010 Open Internet Order and that, therefore, I did not believe that they were illegal.
I hope this clarifies our plans. Comcast's commitment to a free and open internet has never been stronger.
If this charge does become a reality - then perhaps in the future, Tim will get his coaxial cable splitter for free and have it at the time of the actual install...not hours or days later.
According to the Wall Street Pit article, that means Comcast customers could get charged for going over their data limits. Cohen said the company would aim to set the limit at a level where “the vast majority of our customers” wouldn't be affected.“I don't think we will want to be in a model where it is fully variablized and 80 percent of our customers are implicated by usage-based billing and are all buying different packets of usage,” he said, speculating that the limit might be set at 350GB or 500GB per month.
Cohen made a rebuttal, to what he says are statements taken "out of context and misinterpreted in a number of places." He explains further in a Comcast blog post: I thought it was worth clarifying a couple of things about the Internet, data caps, and prioritization.
To be clear, we have no plans to announce a new data usage policy. In 2012, we suspended our 250 GB data cap in order to conduct a few pilot programs that were more customer friendly than a static cap. Since then, we've had no data caps for any of our customers anywhere in the country. We have been trialing a few flexible data consumption plans, including a plan that enables customers who wanted to use more data be given the option to pay more to do so, and a plan for those who use less data the option to save some money. We decided to implement these trials to learn what our customers’ reaction is to what we think are reasonable data consumption plans. We certainly have no interest in adopting any plans that our customers find unreasonable or disruptive to their Internet experience.
It’s important to note that we remain in trial mode only. We're now also looking at adding some unlimited data plans to our trials. We have always said that as the Internet, and our customers’ use of it, continues to evolve, so will Comcast and our policies.
With today’s FCC announcement issuing a Notice of Proposed Rule Making (NPRM) on the Open Internet, there has been a lot of discussion about net neutrality, fast lanes, and paid prioritization. To be clear, Comcast has never offered paid prioritization, we are not offering it today, and we’re not considering entering into any paid prioritization creating fast lane deals with content owners.
First, I expressed my support – and Comcast’s support, for legally enforceable Open Internet rules. The fact remains that no company has had a stronger commitment to openness of the Internet than Comcast. We have supported and been legally bound by the Open Internet rules set forth by the FCC because they struck the appropriate balance between consumer protection and reasonable network management rights for ISPs. Even though these rules were struck down earlier this year by the U.S. Court of Appeals for the District of Columbia, today Comcast is the only Internet Service Provider in America legally bound by them. In fact, when we close our transaction with Time Warner Cable, we will extend our commitment to support the Open Internet rules to millions of additional broadband customers in Time Warner markets. This means that millions of additional customers also will be legally bound by the 2010 Open Internet rules. And we think the DC Circuit decision lays out a clear path, under section 706 of the Telecommunications Act, for the FCC to put in place legally enforceable, transparency rules, no blocking rules, and non-discrimination rules – and we’re supportive of that.
Second, an Open Internet is about much more than "fast lanes" and "paid prioritization". What I said about those issues was (1) that I wasn't even sure what the definition of "fast lanes" and "paid prioritization" were; (2) that they were not covered by the 2010 Open Internet Order and that, therefore, I did not believe that they were illegal.
I hope this clarifies our plans. Comcast's commitment to a free and open internet has never been stronger.
If this charge does become a reality - then perhaps in the future, Tim will get his coaxial cable splitter for free and have it at the time of the actual install...not hours or days later.
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