The idea of limiting the amount of bandwidth Internet
subscribers use each month does not belong exclusively to Comcast.
AT&T is also an adept of the idea, and began testing it in the Reno, Nev. area
as of this month. Subscribers here will have a 20GB limit of downloaded data
per month for the slower speed services, and 150GB for the fastest plan, the
company revealed.
AT&T explained that the purpose of the plan is to
continue to equitably provide consumers affordable broadband services by
limiting the use of a small minority of broadband customers who use a
disproportionately large amount of the total bandwidth available to all the
customers on the AT&T network.
Consumers have been informed on the limitations, and
according to the company, they are free to cancel their Internet access
service without early termination fees if they do not wish to participate in the
trial.
AT&T’s plan includes sending written notices to
consumers when they reach 80 percent of the monthly usage cap, also reminding
them of the extra charges applicable after exceeding the limit. Subscribers will
not be forced to pay any extra charges the first time they exceed the monthly
cap. However, the second time they do it, they will subject to per-gigabyte
charges, AT&T said, namely $1 for every extra gigabyte used. The company
also said that by the end of the year, they will expand the testing to a second
market.
Does that plan sound familiar? Two months ago, Comcast made
a similar announcement, stating that as of October, residential customers will
have a 250GB monthly data usage limit. The Internet service provider explained
at the time that the decision of imposing monthly limitations is actually based
on consumer feedback.
Furthermore, they explained that less than 1 percent of
their subscribers actually exceed the monthly cap, which means the 250GB
limitation should only affect heavy users. “Consumers asked that we provide a
specific threshold for data usage and this would help them understand the
amount of usage that would qualify as excessive,” the Internet provider
explained at the time.
Despite such announcements, Internet providers such as these
also announce improved speeds and service plans. For example Comcast recently introduced
its next-generation wideband, providing customers with speeds of up to 50 Mbps.
AT&T also announced recently the successful completion
of a new bandwidth capacity test, which incorporated 100 Gbps technologies to
transmit data at 114 Gbps per second over 161 separate channels on a single
link, which resulted in a total bandwidth capacity of 17 Terabits per second.
So what we’re looking at right now is a trend that will soon
be equally shared among all Internet service providers: as companies work on
delivering faster speed and the newest technologies for the benefit of
consumers, they also begin to limit bandwidth consumption for users. Most analysts
believe this is good business for them, and less of a good deal for consumers.