This is a subject that chills web video companies and customers — especially the day after Verizon Wireless announced that it will eliminate its unlimited data subscriptions for 4G customers. Comcast, the No. 1 broadband provider, said in a blog post that it’s “time to begin to move to a new plan” for its Internet service. As you might expect, the post clearly describes changes consumers might like, including one that raises the residential usage cap to 300 gigabytes a month from 250 GB. But the post is vague about potentially unpopular changes — leaving open the possibility that Comcast might dramatically raise the price users pay if they exceed the cap. Comcast says it must “address the realities of managing a network that services more than 20 million customers.” But Internet activists fear that a hefty new fee could deter consumers from subscribing to rival services such as Netflix which use a lot of bandwidth to stream movies and TV shows. The possible change “illustrates that Comcast is really trying to discourage subscribers from experimenting with online video alternatives,” Free Press Policy Adviser Joel Kelsey says. “We call on Comcast to drop the caps and these exorbitant overage fees entirely.”
Comcast is positioning the change, including the higher monthly usage cap, as an improvement for consumers. It says that it’s responding to protests over its initiative offering unlimited VOD to Xfinity cable customers who use an Xbox 360 in place of a cable set top box. Critics say that gives Comcast a big advantage over online rivals that are subject to the usage cap. The company counters that VOD is part of its cable video service and doesn’t travel over the Internet. Comcast’s blog promises that it “will be transparent to our customers” as it weighs options, and will provide them with “the tools necessary to manage their use of our high-speed Internet service.”


It’s has been obvious from the very beginning that Internet providers and video providers should be broken up and it’s a conflict of interest. Internet providers should be worried about getting more subscribers, trying to provide more bandwidth to customers and making money, but if they are also provide video services then having lots of bandwidth, low prices and lots of subscribers may not be a good thing. Hopefully congress will take control of their pipes like they did with DSL. That should be the end game.
“The internet is not a big truck. It’s a series of tubes.” TS
Time to end all the monopolies in USA, specially Cable.
It’s insane that they can provide their own video content and restrict other companies video content at the same time.
Regulate, regulate, regulate. Sherman anti-trust. break up these companies and then regulate some more.
This lack of regulation will KILL the internet.
I’d be surprised if they don’t start changing new subscriptions to a full blown usage based pricing model with a low cap, like 50GB…and then migrating this to existing customer over time just as they are doing in wireless. The next step is to charge Netflix to bypass the cap.
They have a right to charge based on usage, just like your electrical company….in fact, pretty most services are usage based if you think about it. They used private money…BILLIONS and BILLIONS of dollars…to build these networks. They didn’t use public money. Investor took the risk and should reap the rewards. Hedge yourself by simply buying cable stocks.
@sdMark, how long have you been a Comcast payroll troll?
1) Your statement is absolutely false. In short, Comcast (like most large corporations) has utilized their wealth to control Congress via lobbyists to help secure massive tax breaks, loop-holes, and tax-payer funded subsidies to build out their entire network from day 1; you have absolutely no idea what you are talking about. Stop spreading false information;
2) Comcast (also like most large corporations) utilizes the public commons in order to get its goods/services to market. The vast majority of Comcast’s customers are able to pay for Comcast’s services only because of various technologies such as copper wire to optical fiber to the very highways the install trucks drive on: infrastructure which was put in by public works projects. Private industry cannot get its goods/services to market without utilizing the public commons.
3) Comcast should not be allowed to circumvent basic capitalistic rules free markets by asserting monopoly control. Being a content creator and distributor is a massive no no for anyone who believes in free markets. You must be one of those guys who believes in socialism for the rich and “harsh reality” for everyone else.
You entire line of reasoning doesn’t pass the straight face test.
Cable companies have had it far too good for far too long. It’s high time we Shermanized them.
We need to just look at Canada. When the country’s ISP was going to start capping and charging after going over the cap, which I believe was a measly 25gb, the government stepped in. They deduced that the amount of data isn’t what costs IPs money, its the SPEED and that is how prices were to be set. And it makes sense because that is were the capital costs come in, to provide a faster service you need more capacity. I went to a Comcast business account because we went over 200gb and I know if you go over 250 twice in 6 months, you are gone. So for the same price I have a 3 year contract and NO cap and better repair service and my packets are prioritized over residential internet traffic on Comcast’s system. The cap needs to go. Sen Franken is looking into why Comcast is violating Net Neutrality. I am hoping that caps will be looked at next. They need to be raised to a realistic level or dropped.