Cable Broadband Users, Get Ready For Overage Fees
Clear caps? Great. $1.50/GB Overage fees? Wait a !@$% minute...
06:14PM Thursday May 08 2008 by Karl
tags: competition · business · bandwidth · Op/Ed · Comcast · RoadRunner Cable · Rogers Hi-Speed
What seemed like a vague industry possibility just a few months ago now seems like an inevitable certainty. Multiple carriers in North America are now either employing or considering monthly caps where users pay per gigabyte should they "over eat." But the move begs a number of questions. Not least of which is whether opening the door to overage fees invites a broadband future where ISPs use the nebulous specter of "excessive use" as a new piggy bank -- and as a pre-emptive weapon against competing content.
Earlier this week I broke the news that Comcast is considering implementing a 250GB monthly cap, with a $15 penalty for each 10GB over that cap you travel. I've been reading through the various subsequent coverage (Associated Press, New York Times, CBC) , and came across this Business Week report. In it, Time Warner Cable spokesman Alex Dudley confirms they're still on track to begin testing their own overage system. If you recall, we also broke the news of that system, which could come with caps as low as 5GB per month.
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