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Comcast introduces monthly download limits in U.S.

01.09.2008 10:00 Shopping - Source: cbc.ca

Comcast Corp., the second-largest internet service provider in the United States, confirmed Thursday it would set an official limit on the amount of data subscribers can download and upload each month.

On Oct. 1, the cable company will change its user agreement to say that users will be allowed 250 gigabytes of traffic per month, the company announced on its website.

Comcast was first rumoured to be mulling the data cap back in May, and had mentioned it might charge users $15 for every 10 gigabytes they went over the cap. But the overage fee was missing from Thursday's announcement.

Comcast has already said it would cut off subscribers who use too much bandwidth each month, saying the move was necessary to keep the network running fast for the majority of users.

The introduction of data caps is a departure for U.S. internet service providers, which have traditionally offered "unlimited" download plans to subscribers.

And Comcast is not the only provider doing it. Time Warner Cable Inc. is testing caps between five gigabytes and 40 gigabytes in one market, and Frontier Communications Co., a phone company, said it plans to start charging extra for use of more than five gigabytes per month.

Comcast's proposed caps are also still significantly higher than what most Canadian internet customers can currently access.

Most Canadian ISPs, including the two biggest — Rogers Communications Inc. and Bell Canada Inc. — already have data caps for users much lower than the one Comcast is introducing.

The most popular plans for both Bell and Rogers cap monthly data at 60 GB. Bell's high-end offering has a cap of 100 GB a month while Rogers offers up to 95 GB a month. Bell says 60 GB is enough for 30 high-definition movies at 2 GB each.

And Telus Corp. has begun to move away from unlimited plans, discontinuing the Connect 75 Unlimited plan it was selling in conjunction with a wireless air card, which plugs into a laptop computer and connects to the internet via a cellphone network.

The plan had cost $75 plus other charges and offered unlimited downloading, but Telus is now urging customers to move onto a $65 service that provides only one gigabyte of data per month, with each extra gigabyte costing $10.

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Telus draws fire for cancelling 'unlimited' data planComcast said to be mulling monthly download limits

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