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Cable Technology Feature Article

September 02, 2008

Comcast Setting the Pace for Limited Internet?

By Susan J. Campbell, TMCnet Contributing Editor


Is unlimited Internet usage soon to be a thing of the past? Ki Mae Heussner reported yesterday on the ABC News site that Comcast’s (News - Alert) recent announcement to limit bandwidth usage will officially set a threshold for monthly Internet usage.
 
Comcast last week announced that although it already contacts residential customers who use excessive amounts of bandwidth, it has never set a specific limit. Now, the second-largest Internet service provider in the country plans to amend its user agreement to say that users will be allowed 250 gigabytes of monthly usage.

Although this announcement was not met with a favorable response, Comcast emphasized that this cap is generous and is expected to affect only one percent of its 14.4 million customers. It is likely that those users affected are those who are heavy gamers and those who use significant amounts of bandwidth for creating or uploading video.

Whether customers are excited about it or not, this move by Comcast is viewed as being indicative of a trend by Internet service providers to move more toward usage-based service plans. Comcast is a larger company and therefore has a larger profile, spurring more attention and criticism, even though the company is not the first to make this move.

Comcast has set a limit that is substantially higher than those already established by other service providers, but the reality is that it is metered billing. If customers are going to be charged for their usage, they need a way to determine how much bandwidth they are using. Comcast will not be providing such meters as it claims that there are already plenty available for free and for a fee.

Something else to consider — while the Comcast limit is substantial for today’s technology, it may not be sufficient in the future. Considering the growing demand for high-definition video and the popularity of sites such as YouTube (News - Alert), the demand for higher bandwidth may just be around the corner.

In its defense, Comcast has had an excessive use policy for years, only it never disclosed its definition of excessive use. According to company spokesman, Charlie Douglas, when customers exceeded the limit, Comcast would alert the customer who would in turn moderate his or her own usage. In the event of a non-response from the customer, Comcast reserved the right to suspend service.

Douglas noted that while this newly announced cap may not find favor with those that use an excessive amount of bandwidth, the company is trying to protect the 99 percent of people who don’t use a massive amount. The problem is that some industry experts believe that the massive users of today will be the average users of tomorrow.

The result of these caps in the industry will likely be watched by other close players to determine if more should move in this direction. The only real question that still needs to be answered is exactly what type of protection Comcast is trying to provide? Or, is the company in fact anticipating heavier usage in the future and is trying to impose limits now to get ahead of the game? Only time will tell.
 

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Susan J. Campbell is a contributing editor for TMCnet and has also written for eastbiz.com. To read more of Susan's articles, please visit her columnist page.

Edited by Mae Kowalke