Comcast Users Now Need To Pay A $30 Premium If They Want To Avoid Usage Caps

from the screw-you dept

Tue, Sep 1st 2015 11:44am — Karl Bode

Comcast has slowly but surely been expanding the company's usage cap trials since around 2012, largely focusing them on less competitive markets where annoyed users can't vote with their wallets. In these seventeen (and counting) trial markets, Comcast broadband customers face a monthly usage cap of 300 gigabytes. After that, users need to shell out $10 for each additional 50 gigabytes of data consumed. The trials have expanded slowly but surely in the hopes of minimizing user backlash. Basically, Comcast is the hot water slowly coming to a boil, and you're the frog.

It appears that Comcast has now added a new wrinkle to the mix, and has started charging these trial users an extra $30 if they want to bypass usage caps. The company's FAQ for the new option tries to argue that the change is being made to provide consumers with greater "choice and flexibility":

The Unlimited Data Option provides additional choice and flexibility for our customers who may make heavier use of the Internet. Enrollment is optional. The Unlimited Data Option costs the current additional fee of $30 per calendar month, regardless of actual data usage. The 300 GB plan will not apply to customers who enroll in the Unlimited Data Option.

Yeah, that's bullshit. Back in 2012, users in these trial markets used to get uncapped Comcast broadband service as a matter of course. They now get to pay $30 more a month for the honor of avoiding Comcast's totally arbitrary and unnecessary usage restrictions. And it's all thanks, of course, to the painful lack of competition in most Comcast markets. While this "unlimited" option is currently only being tested in the Florida cap markets, Comcast has made it clear for years it hopes to impose this kind of punitive pricing system in all markets.

You'll recall the cable industry used to claim usage caps on fixed-line networks were necessary due to congestion (fear the Exaflood!). But as bandwidth costs dropped and intelligent network gear offered far more sophisticated ways of managing network load, the cable industry finally admitted that congestion had nothing to do with it. And while the cable industry now tries to argue that usage caps are necessary due to "fairness," they're really about one thing and one thing only: taking advantage of limited competition and protecting legacy TV revenues from Internet video.

If you peruse the Comcast usage cap FAQ you'll notice that Comcast doesn't even really bother with an explanation or justification as to why the caps are necessary, since even the nation's least-liked company knows any defense of this position is futile. This is about as close as Comcast gets to delivering a coherent explanation as to why these limits were imposed:

As the marketplace and technology change, we do too. We evaluate customer data usage, and a variety of other factors, and make adjustments accordingly. Over the last several years, we have periodically reviewed various plans, and recently we have been analyzing the market and our process through various data usage plan trials.

So yeah, we're not a massive incumbent telecom exploiting uncompetitive markets and lazy regulators, we're just experimentin' and changin' and what have you! Comcast has made it abundantly clear that it plans to keep expanding these usage caps (and charging you to avoid them) until either the competition fairy somehow materializes better broadband options out of the ether, or regulators wake the hell up and realize that usage caps on fixed-line networks are a predatory assault on captive customers, an affront to innovation, and an aggressive abuse of monopoly power.

Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.

Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.

While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.

–The Techdirt Team

Filed Under: broadband, competition, data cap, fees, usage cap
Companies: comcast

36 Comments

If you liked this post, you may also be interested in...

Reader Comments

Subscribe: RSS

View by: Time | Thread

Anonymous Coward, 1 Sep 2015 @ 11:48am

"Comcast: Because Screw You, Customer"
[ link to this | view in chronology ]
- Anonymous Coward, 1 Sep 2015 @ 12:14pm
  
  FTFY
  "Comcast: Because milking customers is what we do."
  [ link to this | view in chronology ]
Whoever, 1 Sep 2015 @ 11:58am

Business account?
At what point does a Comcast business account become cheaper?
[ link to this | view in chronology ]
- Anonymous Coward, 1 Sep 2015 @ 12:25pm
  
  Re: Business account?
  If you take this $30 into account, it's cheaper already. You need to convince them you're a business, though.
  [ link to this | view in chronology ]
  - Dan (profile), 1 Sep 2015 @ 1:54pm
    
    Re: Re: Business account?
    "Convince them you're a business" consists of "I'd like business-class Internet." That's it. You don't have to give tax ID numbers, business license, or any name other than your own. I speak as a Comcast business-class Internet customer, with the service in my home.
    [ link to this | view in chronology ]
    - Jeremy Lyman (profile), 2 Sep 2015 @ 5:08am
      
      Re: Re: Re: Business account?
      Can your business be reselling Internet to your neighbors?
      [ link to this | view in chronology ]
      - Dan (profile), 2 Sep 2015 @ 8:48am
        
        Re: Re: Re: Re: Business account?
        They don't ask what the business is. They do, however, have you sign a contract (in my case, for two years).
        [ link to this | view in chronology ]
DigDug, 1 Sep 2015 @ 11:59am

Class Action Lawsuit time
Illegally changing contract terms without written consent of subscriber.
Sorry Comnuts, but you cannot do that.
[ link to this | view in chronology ]
- W_underdog, 2 Sep 2015 @ 6:57am
  
  Re: Class Action Lawsuit time
  Unfortunately, they can. This is from their residential services agreement.
  
  4. CHANGES TO SERVICES
  Subject to applicable law, we have the right to change our Service(s), XFINITY Equipment and rates or charges, at any time with or without notice. We also may rearrange, delete, add to, or otherwise change programming or features or offerings contained in the Service(s), including, but not limited to, content, functionality, hours of availability, customer equipment requirements, speed, and upstream and downstream rate limitations. If we do give you notice, it may be provided on your monthly bill, as a bill insert, e-mail, in a newspaper or other communication permitted under applicable law. If you find a change in the Service(s) unacceptable, you have the right to cancel your Service(s). However, if you continue to receive Service(s) after the change, this will constitute your acceptance of the change.
  [ link to this | view in chronology ]
- jraama, 2 Sep 2015 @ 9:34am
  
  Re: Class Action Lawsuit time
  If you check your Comcast account carefully (as I did about a month ago), you may find that your internet package already has a usage cap listed. My cap is 250GB/month, but it is currently listed as "temporarily waived".
  I have been with Comcast for over 5 years and have never had the cap imposed, but I know it is there to ensure they can turn it on at any point they wish.
  Also, many customers (like me) are not under a long term contract with Comcast, we get our services on a monthly basis. Terms of service can be changed monthly (hello biannual rate hikes) without prior consent of the customer (only requires timely notification).
  [ link to this | view in chronology ]
Anonymous Coward, 1 Sep 2015 @ 12:00pm

Remind me, why are we still using Comcast's term "trials" for this? They've been "trying" the caps for three years now, and by the way they keep expanding them to new markets, they obviously concluded the caps work in the manner they desire years ago. As such, the only reason to call them "trials" is to try and give the impression that they might deem the "trial" a failure at some point and stop capping users. They only thing about usage caps they can be said to be "trying" at this point is they're trying to see if they can get away with expanding them to all markets.
[ link to this | view in chronology ]
Anonymous Coward, 1 Sep 2015 @ 12:00pm

Imagine if the food industry started testing poison in some markets, and then presenting a poison-free option for only $30 more.
[ link to this | view in chronology ]
David, 1 Sep 2015 @ 12:12pm

Indeed:
that the change is being made to provide consumers with greater "choice and flexibility"

Once the consumer is more flexible, his choices for how to get screwed are increased. Any yoga sex instructor can tell you that.
[ link to this | view in chronology ]
Anonymous Coward, 1 Sep 2015 @ 12:19pm

We evaluate customer data usage, and a variety of other factors, and make adjustments accordingly.

But what are they adjusting, the value for the user, or the profit for Comcast?
[ link to this | view in chronology ]
- Anonymous Coward, 1 Sep 2015 @ 5:45pm
  
  Response to: Anonymous Coward on Sep 1st, 2015 @ 12:19pm
  The "Variety of other factors" is that people are cord cutting and using more data to stream their choices in programming and Comcast is just adding the $30 that they WERE making on the cable TV part of the bill (before you cancelled it) onto the internet bill. Thank you, now nothing changes on their bottom line.
  [ link to this | view in chronology ]
scotts13 (profile), 1 Sep 2015 @ 12:23pm

I'm inspired!
Some much choice, so much flexibility! Let's see, I can pay more for the same thing, or pay the same and get less. Or, of course, I can do a little of both.
[ link to this | view in chronology ]
- Almost Anonymous (profile), 1 Sep 2015 @ 1:42pm
  
  Re: I'm inspired!
  Yeah, it's less than awesome that the phrase "choice and flexibility" now means "fleece the customer".
  [ link to this | view in chronology ]
ltlw0lf (profile), 1 Sep 2015 @ 12:31pm

There's that unlimited word again...
I don't think that word means what they think it means.

Will they pull a T-Mobile and say unlimited data until you go over 1200GB, then we cut you off because you apparently don't agree with our definition of unlimited?
[ link to this | view in chronology ]
- tqk (profile), 1 Sep 2015 @ 1:37pm
  
  Re: There's that unlimited word again...
  ... then we cut you off because you apparently don't agree with our definition of unlimited?
  
  You're not being cut off. You're still getting data, albeit at 300 BPS, but not cut off! Sheesh, what hyperbole you people come up with!
  [ link to this | view in chronology ]
  - ltlw0lf (profile), 1 Sep 2015 @ 2:45pm
    
    Re: Re: There's that unlimited word again...
    You're still getting data, albeit at 300 BPS, but not cut off!
    
    Hah! I thought my snark detector blew up, but here it is, working perfectly fine.
    
    However, unlike uncarrier T-Mobile I am sure Comcast would just cut you off and tell you it was to protect your 1st Amendment rights.
    [ link to this | view in chronology ]
  - nasch (profile), 2 Sep 2015 @ 8:15am
    
    Re: Re: There's that unlimited word again...
    You're not being cut off. You're still getting data, albeit at 300 BPS, but not cut off! Sheesh, what hyperbole you people come up with!
    
    Did Violynne get hold of your account? ;-)
    [ link to this | view in chronology ]
Anonymous Coward, 1 Sep 2015 @ 12:43pm

Net neutrality taking the middle man out of screwing the customer
[ link to this | view in chronology ]
John Fenderson (profile), 1 Sep 2015 @ 1:05pm

If Comcast were an honest company
If Comcast were an honest company, they'd simply acknowledge that this is a $30/mo price hike. If they were a slightly kinder company, they're offer alternative, capped plans that were $30/mo cheaper.

Instead, they're going for a standard marketing pricing lie: reduce service, then charge a premium to get the reduction removed. That way they can avoid announcing the price hike.
[ link to this | view in chronology ]
- Almost Anonymous (profile), 1 Sep 2015 @ 1:44pm
  
  Re: If Comcast were an honest company
  Hey, at least Comcast customers get a choice. On Mediacom, there is no more unlimited plan. To the best of my knowledge, all their plans have caps. My cap on mid-tier plan is 350 gigs/month, IIRC.
  [ link to this | view in chronology ]
- Jeremy Lyman (profile), 2 Sep 2015 @ 5:12am
  
  Re: If Comcast were an honest company
  Exactly. I called the B.S. on Sprint when they added their $20 "premium data" fee when you had a smartphone on your unlimited plan instead of a feature phone. It's just a price hike on the same product while spitting on my cupcake and telling me it's a feature.
  [ link to this | view in chronology ]
Shill, 1 Sep 2015 @ 1:13pm

Without usage caps all of the bandwidth pirates are going to pirate all the bandwidth with their piracy and then all the ISP's will go out of business and there will be no more Internet.

Wait a minute, a world with no more Internet? That's a good thing!!! My bosses will be pleased.

Carry on then.
[ link to this | view in chronology ]
Justme, 1 Sep 2015 @ 1:13pm

Wait for it. . .
Once this is fully implemented, expect to see a new Maximum Monthly Network transport allowance, which can be avoided for an addition $20 a month.

Justification: greed!
[ link to this | view in chronology ]
CharlieBrown, 1 Sep 2015 @ 1:36pm

More About Australia.....?
Our ISP has a data cap but we have an option for to pay an extra $10 per month to only have downloads counted, not uploads. It makes a huge difference.

Most ISP's in Australia don't offer this option. Although some are now offering unlimited data plans that actually appear to be unlimited.
[ link to this | view in chronology ]
John David Galt (profile), 1 Sep 2015 @ 1:44pm

There are always going to be physical limits on the capacity of any data service. The only question is how the company deals with that fact.

If they promise "unlimited" service, then they have a duty to keep it unmetered and unthrottled, even though it will likely result in a few big users hogging most of the capacity. So I'd much rather they not use that word, but instead set a specific limit and tell us what it is and exactly what will happen to people who go over it, whether that's an extra usage charge, throttling, or even termination of service. Then we can make our choices intelligently.

Even better would be a way for us to find out (perhaps on the router's control panel IP address) how close we are to hitting that limit at any given time. Maybe even an app to show it in a corner of the screen.

So I'd say this new ComCast policy is a step in the right direction, and I hope the other ISPs will be made to follow suit.
[ link to this | view in chronology ]
Mattmon (profile), 1 Sep 2015 @ 2:14pm

The fact that they even have the ability to let you to avoid the usage caps, just means that they didn't need the usage caps in the first place. But we already knew that.
[ link to this | view in chronology ]
Anonymous Coward, 1 Sep 2015 @ 3:50pm

Unlimited
You keep using that word. I do not think it means what you think it means.
[ link to this | view in chronology ]
COMCASploiTation, 1 Sep 2015 @ 4:29pm

that the change is being made to provide consumers with greater "choice and flexibility"

You can now choose to bend over further "Flexibility" whether or not you touch your toes is your "Choice"
[ link to this | view in chronology ]
Anonymous Coward, 1 Sep 2015 @ 6:05pm

Innovation
Ars Technica put it best: This is a Comcast innovation.
(http://arstechnica.com/business/2015/09/comcast-now-charging-30-extra-per-month-for-unli mited-data-in-florida/)

I just hope they patented it... wouldn't want any other ISPs offering "unlimited" or charging fees now, would we?
[ link to this | view in chronology ]
Yes, I know I'm commenting anonymously, 2 Sep 2015 @ 4:02am

Soon to be announced...
Very soon we will hear about the limit to the ammount you can buy off of the datacap to an unlimited bundle.
[ link to this | view in chronology ]
Blue Adept (profile), 2 Sep 2015 @ 7:07am

People dont call them ComCrap for no reason.
I also found out that they now charge $40 for a service call with a technician being dispatched, even if it is a problem on their end.
To avoid being charged, they asked if I wanted to subscribe to their maintenance plan for $4.99 a month. I told them what a load of crap that is and refused.
I did get it taken off my bill after 2 hours on the phone.

They screw you every chance they can. Comcrap is THE WORST company in the US, if not the world!
[ link to this | view in chronology ]
Anonymous Coward, 2 Sep 2015 @ 8:35am

One Finnish provider is making fun about how bad situation is in US.
https://www.youtube.com/watch?v=QFOTYqVTdUU
and
https://www.youtube.com/watch?v=pxUrtLMMIYE
:D
[ link to this | view in chronology ]