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Content Could Complicate Internet Caps

Comcast and other broadband providers just might exempt content they own from counting against consumer Internet usage caps. Would that make their broadband services more desirable?
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Written by Phil Harvey
3/3/2010 6 comments
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  Consumer Internet   Digital content & entertainment
  Telecom infrastructure   Telecom services
  Americas   Cable
 
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lek1981
IQ Crew
Tuesday March 23, 2010 9:54:18 PM
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I just got an e-mail from Comcast that stated that the Usage meter is now available in my area.  According to their e-mail:

"The current data usage allowance for the Comcast High-Speed Internet service is 250GB per month. This means that the vast majority of our customers – around 99% currently – will not come close to using 250GB of data in a month, and do not need to check the usage meter."

I thought I was in that 1% that is high user of bandwidth, but when I check my Usage meter I was only using about 80-100 GB a month. Comcast said they were doing so to help improve speeds, health, etc. I was one of the first people that doubted their explanation.  I thought I would be one of those that would have to pay extra for going over the cap, but as long as the caps are high enough I guess they are doing this for the health of their network not to get extra money.

Mary Jander
Thinkernetter
Wednesday March 3, 2010 5:13:18 PM
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Compelling, indeed. If they can get the partnerships to pull it off.

The Philter
Thinkernetter
Wednesday March 3, 2010 4:54:39 PM
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I can see it as being a lever to use against competitors.

A service provider might say, "Yes, our Internet cap is lower than our competitors, but you get to watch all the NBC, Bravo, and HGTV content you want -- on demand, streamed right to your set-top or PC -- without it counting against your cap."

Pretty compelling, no?

Mary Jander
Thinkernetter
Wednesday March 3, 2010 4:51:01 PM
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If this plays out as you suggest, Phil, this approach could ensure the ISPs more longevity in their Net domination.

At the same time, basing tiered services on content instead of bandwidth presents an awful lot of partnering challenges.

Interesting to contemplate.

 

 

The Philter
Thinkernetter
Wednesday March 3, 2010 11:08:58 AM
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Thanks. I do think the broadband providers that own content and are considering tiered services will look at 'white-listing' content as a differentiator.

It is one weapon they have against Netflix and other content distributors that use their bandwidth to make money WITHOUT degrading or blocking the Netflix experience on their networks.

And I know lots of different groups have tiered Internet services, but I've seen little proof that consumers really care at all.

Not sure if that helps or hurts my whitelist content theory.

Chris Poley
Thinkernetter
Wednesday March 3, 2010 7:24:02 AM
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Hey Phil, Interesting take on how ISP's will skirt the net neutrality ruling. You also raise another interesting point, that of; if the consumer’s bottom line is not affected, will they notice the content shift as long as their content is left intact?

I guess this is an approach that will eventually give way to the inevitable tiered broadband consumption fees tact on to our already outrageous cable or phone bills.  Whether or not this raises the ire of a consumer advocate group concerning net neutrality is yet to be seen, I’m sure the FCC won’t even bother to raise an eyebrow.

 

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