The Reality of Usage Caps for Broadband Users

The Reality of Usage Caps for Broadband Users

Posted under: AT&T, Internet and Xfinity

High speed Internet users everywhere are facing the reality of usage caps for their broadband use. Comcast is rapidly adding usage caps to its service on a "trial" basis. AT&T has also implemented data caps on service. Not surprisingly, these caps are most prevalent in uncompetitive markets and the reasoning behind the implementation is sketchy at best.

What the Big Players Are Saying

Industry leading companies used to talk about the "exaflood", the impending inundation of Internet data demand that is sure to come in the near future. While the number of uploads, downloads, and sharing are ever-increasing, many of the big name ISPs have used this exaflood and online congestion as the justification for usage caps. However, today they are often giving no explanation for the usage caps, leaving users to come to their own conclusions. The best we are hearing from Internet Service Providers is that they are looking out for our best interests and offering increased flexibility and choice in exchange for usage caps. Occasionally the reason is given that caps are necessary because of the cost of providing broadband service. However, that is untrue and has been proven by many industry experts.

Dane Jasper, the CEO of ISP Sonic has shared publicly that the cost of providing broadband service is dropping more quickly than the increase of online traffic. Just a few short years ago, the company spent about 20% of its revenue on necessary infrastructure for providing service. Now it spends about 1.5% of revenue on infrastructure. Because of this, his company is not planning to impose data caps. They just can't be justified.
Dan McCarthy, CEO of Frontier Communications agrees; his company also has no plans to implement unnecessary data caps. Yet, it's not just those ISPs without data caps who are admitting to the fact that there's no financial need for caps.

Those who have data caps as a part of their service like Suddenlink also admit that they are not tied to financial demands. Usage caps are likely here for the long term. While they may not be justified, as long as they are legal, there is nothing preventing ISPs from making them standard on plans. The disappointing part is that it is the uncompetitive markets that are being most targeted for these caps, creating less than fair options for those living in such areas. Hopefully as users become more aware of the facts around data usage caps and competition increases, the big name companies will have to get more competitive or they will lose a serious percentage of their business.

AT&T logoAT&T(855) 441-4668AT&T U-verse Internet offers lightning-fast, high-speed internet with speeds up to 45 Mbps at a great price.

AT&T provides DSL and Television services.

Details
Recent Posts
The Student's Internet Research Guide - 2020 Edition

The Student's Internet Research Guide - 2020 Edition

Research is an important part of your work in both high school and college. This in-depth student’s research guide looks at the internet resources available to you and how to get the most out of them.

Posted under: Internet and Student

The 14 Apps and Social Media Sites Parents Need to be Aware Of

The 14 Apps and Social Media Sites Parents Need to be Aware Of

It’s important to keep children safe online. While danger can lurk almost anywhere on the internet, here we discuss the apps and social media sites parents need to be particularly aware of.

Posted under: Internet, Safety and Cyber Bullying

The Complete Evolution Of Blogging – Everything You Need To Know

The Complete Evolution Of Blogging – Everything You Need To Know

What was the first blog? How many blogs are there? Today, blogging is hugely popular having evolved from simple personal journals to a major source of digital information and entertainment. Here we highlight the key details and events the history of blogging,

Posted under: Internet and Google

Disney Plus: Everything You Need to Know Before You Sign Up

Disney Plus: Everything You Need to Know Before You Sign Up

Disney Plus is a new streaming service bringing you all your favorite Disney movies and shows as well as new and original Disney content. Here we answer your questions about Disney Plus.

Posted under: Internet and Television

14 Facts About YouTube You Probably Didn't Know

14 Facts About YouTube You Probably Didn't Know

YouTube has become a part of our digital lives but beyond knowing it’s popular, free, and international, how much do you really know about this internet sensation? We look at 14 facts about the hugely popular video site.

Posted under: Internet, Social Media and Youtube

The Complete Guide to Domain Names: What Are They and How Do They Actually Work

The Complete Guide to Domain Names: What Are They and How Do They Actually Work

Domain names play a key role in ensuring content can be found and seen online. We look at what they really are, how they work and some key facts about the history of domain names.

Posted under: Internet

The 10 Craziest Internet Hoaxes In History

The 10 Craziest Internet Hoaxes In History

The internet is an important of information bit that information isn’t always true. We summarize some of the funniest, craziest and strangest hoaxes that have circulated via the internet.

Posted under: Internet and Funny

How to Check if a Website is Safe and Legitimate - The Ultimate Guide

How to Check if a Website is Safe and Legitimate - The Ultimate Guide

There are many scam, fake or fraudulent websites on the internet. We’ll explore how to tell the legitimate from the dangerous to make your online browsing experience that bit safer.

Posted under: Internet and Safety

19 Alarming Cybercrime Statistics For 2020

19 Alarming Cybercrime Statistics For 2020

We take a look at the latest cybercrime statistics and discuss in detail what you can do to keep yourself, your business and your family safe from cybercrime when using the internet.

Posted under: Internet and Safety

Internet Security 101: How To Keep Your Home Internet Safe And Secure

Internet Security 101: How To Keep Your Home Internet Safe And Secure

There are many tools you can use to keep your home internet safe and secure. In this blog post we look at some of the most common threats and what you can do to protect yourself and your family.

Posted under: Internet and Safety