Comcast will move from broadband caps to usage-based billing

Comcast reportedly plans to adopt a usage-based billing system for customers using broadband services. The new system will replace the 250 gigabyte-per-month cap for its broadband customers. With the new system, heavy users will pay more. In the past those who went over the cap risked being cut off instead.

The cable operator plans to experiment with a couple of different ways to manage data use. One option is to impose a data cap of 300 gigabytes and charge for additional use, likely $10 for each additional 50 gigabytes. A second possibility is to offer tiers of bandwidth, possibly starting with 300 gigabytes for those who subscribe to their lowest tier of Internet service. Customers who pay for premium tiers of broadband service will get higher thresholds.

"We didn't like the message that we were giving our customers with the static 250GB cap," said David L. Cohen, executive vice president for Comcast. "Now, we are sending a signal to our customers that we want them to use our broadband service and to feel free to use it for all lawful purposes. We want them to subscribe to Netflix and stream YouTube and use Skype to their heart's content without worrying about hitting some artificial data cap that results in them losing their service."

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