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Comcast Considers Tiered Service

Posted On 13 May 2008
By : admin

PHILADELPHIA, PA – As part of an effort to convince the Federal Communications Commission and the public it’s not a monster that arbitrarily cuts off users who consume “too much” bandwidth, Comcast is considering offering tiered internet-access pricing based on bandwidth usage.One proposal would cap “standard” accounts at 250 gigabytes of data transfer monthly. Users who exceeded their allotments would be charged $15 for every 10 gigabytes above the limit.

Two hundred fifty gigabytes represents about 50 high-definition, full-length videos, 250 standard-definition videos or 6,000 songs.

Comcast, the second-largest internet service provider in the U.S., has said about 5 percent of its 14.1 million subscribers use more than 50-percent of the total available bandwidth monthly. The company describes those people as “excessive users” and says they typically send 40 million email messages or download 50,000 songs, for example.

Comcast currently is under investigation by the FCC because of complaints that it interferes with subscribers’ internet traffic. The company claims some “bandwidth throttling” of super-users is necessary to ensure bandwidth is available for other subscribers. The majority of Comcast’s customers use two gigabytes or less monthly, the company has said.

Analysts say any move toward tiered service may precipitate a customer outcry.

“Once you’re on an unlimited plan, it’s hard to go back,” Gartner Inc. Research Vice President Phil Redman told USA Today. “On the wireline side, it’s almost an inalienable right to use as much bandwidth as you want for a set price.”

That hasn’t stopped other ISPs from making the leap, however. Time Warner Cable later this year plans to test a tiered pricing structure in Beaumont, Texas. Bandwidth plans ranging from five to 40 gigabytes will go for $29.95 to $54.95 monthly, according to spokesman Alex Dudley.

Cox Communications has had caps on its service plans for three years, spokesman David Grabert told USA Today. So has Bend Cable Communications of Bend Oregon, which charges subscribers $36.95 to $74.95 monthly for 10 to 100 gigabytes of data transfer.

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