Cox communications begins charging more to avoid usage caps
2017-08-16 14:00 by Stella
Large ISPs have abused the lack of competition in the broadband market for years, by imposing arbitrary usage caps and overage fees. Caps raise rates and protect TV revenues from streaming video competition.
Cox communications is one of many cable providers that have taken full advantage of the reduction in competition by telephone companies to drive up rates via overage fees and usage caps. Cox has quietly begun charging customers even more money if they want to avoid being hit with usage caps and overage fees. Currently, Cox imposes a usage cap of one terabyte, and charges users $10 for each additional 50 GB of data used. However this week, they have introduced a new "premium" option - the ability to avoid usage caps if they pay an additional $50 every month. Another new option for users is to pay $30 more per month for an additional 500 GB of data.
"An overwhelming majority of data is consumer by a very small percentage of internet users. The new choices are great options for the small percentage of heavy users who routinely use 1TB+ per month and prefer a flat monthly rate, rather than purchasing additional data blocks."
Cox executives are well aware that caps and overage fees are strongly disliked by consumers. ISPs used to claim that caps and fees were necessary due to congestion and for the sake of fairness, however the claims were repeatedly debunked. These companies have stopped giving justification for price hikes and such, because they know a lack of competition means users don't have much of a choice.
Read more at https://www.theverge.com/2017/1/24/14375232/cox-communications-home-internet-data-cap-broadband-fcc