United State’s largest cable TV and Internet Broadband provider, Comcast updated its data cap policy on broadband services back in 2008. The company announced this through a blog post and shared the fact that the new pricing model for customers who require “excessive” data usage every month is in the works.
Headquartered in Philadelphia, Pennsylvania, Comcast corporation is the largest broadcasting and cable TV company in the world by revenue after AT&T. It is also the largest Internet Service Provider in the U.S and has been providing services to residential and commercial customers in around 40 states in Columbia.
Apart from producing feature films and TV programs for theatrical exhibition and over-the-air Cable TV broadcast, Comcast also owns Xfinity residential cable communications and various other cable only channels like CNBC, Bravo and USA Network.
Details about the Updated Policy
Starting October 1, 2008 Comcast’s new data cap policy went into action. It is believed that this policy was designed to encourage users to consume more data without having to worry about hitting a limit. The policy states that the company has been testing a new pricing model for customers whose data consumption is comparatively higher than regular users. The company plans to increase the cap for such markets to around 300GB per month (from previously 250 GB per month). The company has also stated that if and when a customer exceeds this cap, they will be charged an extra $10 for every 50GB of data each month. Meanwhile the 250GB cap is supposed to be suspended in all other parts of the country while the test is on.
Comcast executive vice president David L. Cohen has stated that the main goal behind this new policy was to keep in check the small percentage of customers who consume “excessive” amount of data every month while encouraging the rest of the users (who are supposedly not even close to reaching the cap) to use their service more freely.
“We didn’t like the message that we were giving our customers with the static 250GB cap. Now, we are sending a signal to our customers that we want them to use our broadband service and to feel free to use it for all lawful purposes. We want them to subscribe to Netflix and stream YouTube and use Skype to their heart’s content without worrying about hitting some artificial data cap that results in them losing their service.” he said to reporters.
When asked to elaborate, he revealed the companies aim to test different approaches during the trial, one where the company allocates different amount of data for different tiers of service offered by them, the lowest tier being allotted 300GB. Customers opting for the higher tiers of service would be offered a higher data allotment, upon exceeding which they would have to pay extra for the extra usage. The second approach planned by the company is to apply the 300GB data cap across all tiers of the service.
The company feels that the new policy shouldn’t affect majority of the users as the percentage of customers bumping up against Comcast’s 250GB Cap is quite tiny.
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