Comcast Plans Data Caps
The feds have opened the door to carriers gouging customers on both ends of their pipes, and that sucking sound is money coming out of your bank account!
(Jim Hood @ ConsumerAffairs) If you're looking to be relieved of your worldly goods, you can hang out in a casino, buy a batch of Lotto tickets daily and give big piles of money to everyone you meet.
Or you can just sign up for cable, telephone and Internet service.
The ink is not even dry on the Federal Communications Commission's new policy that lets companies like Comcast charge companies like Netflix higher rates to ensure that their streaming video moves smoothly and quickly and now the perhaps over-confident carriers are beginning to move towards their longtime dream -- getting more money on both ends.
A Comcast executive is being quoted today as saying he expects the company will roll out "usage-based billing" — what most people call "data caps" — to all of its customers within five years.
"I would predict that in five years Comcast at least would have a usage-based billing model rolled out across its footprint," Comcast Executive Vice President David Cohen said, according to ThomsonReuters (transcript).
Forked tongue
But hey, put yourself in Comcast's shoes. Currently consumers pay you $100 or so per month for Internet access and other "bundled services." If they want faster Internet connections, they pay a few bucks more.
Netflix and other big content companies pay for their local connection to the Internet but until recently, they haven't paid a premium to the Comcasts of the world even though they use more than half the available broadband capacity most days.
So now that they have their hands in the pockets of the content providers, Comcast and the other carriers are just doing what big monopolies do -- sharpening their plans to shake more money out of consumers.
Come on, did you really expect anything else?
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