Net data caps lifted at AT&T and Comcast

Xfinity, U-verse customers who stream were steamed

Comcast Corp. and AT&T increased the data caps for their broadband customers following complaints about the limits and the subsequent surcharges users incur when they surpass them.

Comcast said last week that Xfinity data plans in its trial markets, including Arkansas, will move from a 300-gigabyte limit to a terabyte, or 1,000 gigabytes cap, by June 1.

AT&T said last month that Internet customers will receive an increase in their monthly data caps starting May 23.

"We have learned that our customers want the peace of mind to stream, surf, game, download, or do whatever they want online," said Marcien Jenckes, executive vice president of consumer services for Comcast Cable, in a blog post.

"So, we have created a new data plan that is so high that most of our customers will never have to think about how much data they use," he said, adding that most customers use about 60 gigabytes of data a month.

Demand for more bandwidth is growing as more people are streaming movies and television online, with some forgoing traditional cable service altogether.

Comcast said the move to a terabyte plan will allow customers to stream about 700 hours of HD video and play 12,000 hours of online games a month. The company has not yet extended the data plan to all of its markets.

The decision by Comcast to increase its data limits comes after a Wall Street Journal report described the limitations the meter plans place on customers, such as reducing how much consumers can watch movies and televisions shows from Netflix and Amazon.

"Most people aren't going to have a great sense of how much a video stream ... is actually eating up," said Matt Wood, policy director for Free Press, an Internet advocacy group in Washington D.C.

"But when you're trained to have that meter ticking in your mind then people start thinking 'maybe I'm using too much,'" he said.

Of the data plan increase, Wood said: "It sounds nice for them to say, 'hey it's higher than before,' but it still doesn't answer the question of why they need one in place. It shows that the limit isn't really designed to keep traffic down, it's designed to keep people paying more."

Customers who exceed Comcast's new monthly data limit will be charged $10 for every additional 50 gigabytes they use. The company also is offering an unlimited data plan for an additional $50 a month.

AT&T U-verse's new data caps will range from 300 gigabytes to 1 terabyte, or 1,000 gigabytes. The company said home Internet customers average about 100 gigabytes of data per month.

"We're increasing the allowances because as Internet speeds increase, most people tend to use the Internet for more data-rich activities like streaming video or video conferencing. They need to use more data," said Anita Smith, spokesman for AT&T, in an email.

The company said when the data limits increase, there won't be a surcharge for additional data for the first three months. But after that period, if customers go over their data cap, they will be charged $10 per additional 50 gigabytes used.

AT&T U-verse also said the company will offer an unlimited data option to their customers starting in May.

AT&T customers who only have Internet service can add unlimited data for $30 more a month, while users with a bundled package including both Internet and television service will receive unlimited data at no additional cost.

"It's almost like insurance for them," Wood said. "If you are willing to pay us for TV then you can watch as much online video as you want."

SundayMonday Business on 05/02/2016

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