Comcast has recently offered Atlanta customers the option of getting an unlimited data plan for an extra $35 a month, as they have been subject to the data cap (300 gigabytes) since 2013. It’s a limited trial, but the economics of Comcast’s unlimited plan make it a potentially dramatic shift in the way we’ll buy broadband in the future. If Comcast decides this trial is a working model, other markets where the data cap is in place could start seeing similar offers, and it’s not crazy to think the plan might someday roll out nationwide.
Cellular providers have been selling mobile Internet like this for years. You know how it works: Go over your monthly limit, and you’ll face penalties such as reduced speeds or expensive overage fees. In the select markets where Comcast has experimented with data caps, the company assesses a $10 charge for every 50 GB a customer uses beyond their monthly limit. And yes, some Comcast users actually reach this point, paying as much as $30 a month in overage fees. When Comcast surveyed these folks, it found that 60% were willing to pay a flat $30-$40 a month extra to be freed from overage payments, hence the $35 a month that Atlanta customers pay.
You can probably see where this is headed. Even if you don’t use a ton of data now, more of our work and play is moving to the Web. Netflix is the cause of one-third of the country’s Internet traffic, and we’re only just getting started with driverless and connected cars, smart appliances and other devices associated with the Internet of Things.
However, Comcast isn’t the only one looking into data cap-associated fees for unlimited usage. A study last year found Internet providers everywhere could benefit financially from introducing data caps and other features associated with metered usage plans.
So how will this possible change effect mobile users? You might be more inclined to have your data increased, as it is much more convenient to have your data readily available to you on your mobile. How will these data limits persuade you to forget home internet all together, and opt for mobile data instead?