AT&T Will Start Enforcing U-Verse Data Caps, Charging Extra For Unlimited Data

Subject: Editorial, General Tech | March 30, 2016 - 08:00 AM |
Tagged: U-Verse, opinion, isp, Internet, FTTN, FTTH, editorial, data cap, AT%26T

AT&T U-Verse internet users will soon feel the pain of the company's old school DSL users in the form of enforced data caps and overage charges for exceeding new caps. In a blog post yesterday, AT&T announced plans to roll out new data usage caps for U-Verse users as well as a ('Comcastic') $30 per month option for unlimited data use.

Starting on May 23, 2016 AT&T U-Verse (VDSL2 and Gigapower/Fiber) customers will see an increase to their usage allowance based on their speed tier. Currently, U-Verse FTTN customer have a 250 GB cap regardless of speed tier while FTTH customers in its Gigapower markets have a higher 500 GB cap. These caps were soft caps and not enforced meaning that customers were not charged anything for going over them. That will soon change, and all U-Verse customers will be charged for going over their cap at a rate of $10 for every 50 GB over the cap. (e.g. Even if you use only 1 GB over the cap, you will still be charged the full $10 fee.).


The new U-Verse caps (also listed in the chart below) range from 300 GB for speeds up to 6 Mbps and 600 GB for everything up to its bonded pair 75 Mbps tier. At the top end, customers lucky enough to get fiber to the home and speed plans up to 1 Gbps will have a 1 TB cap.

Internet Tier New Data Caps Overage Charges
AT&T DSL (all speeds) 150 GB $10 per 50GB
AT&T U-Verse (768 Kbps – 6 Mbps) 300 GB $10 per 50GB
AT&T U-Verse (12 Mbps – 75Mbps) 600 GB $10 per 50GB
AT&T U-Verse FTTH (100 Mbps – 1 Gbps)  1 TB $10 per 50GB

Uverse customers that expect to use more than 500 GB over their data cap ($100 is the maximum overage charge) or that simply prefer not to worry about tracking their data usage can opt to pay an additional $30 monthly fee to be exempt from their data cap.

It's not all bad news though. General wisdom has always been that U-Verse customers subscribed to both internet and TV would be exempt from the caps even if AT&T started to enforce them. This is not changing. U-Verse customers subscribed to U-Verse TV (IPTV) or Direct TV on a double play package with U-Verse internet will officially be exempt from the cap and will get the $30/month unlimited data option for free.

AT&T DSL users continue to be left behind here as they will not receive an increase in their 150 GB data allowance, and from the wording of the blog post it appears that they will further be left out of the $30 per month unlimited data option (which would have actually been a very welcome change for them).

Karl Bode over at DSLReports adds a bit of interesting history in mentioning that originally AT&T stated that U-Verse users would not be subject to a hard data cap because of the improved network architecture and its "greater capacity" versus the old school CO-fed DSL lines. With the acquisition of Direct TV and the way that AT&T has been heavily pushing Direct TV and pushing customers away from its IPTV U-Verse TV service, it actually seems like a perfect time to not enforce data caps since customers going with its Direct TV satellite TV would free up a great deal of bandwidth on the VDSL2 wireline network for internet!

This recent move is very reminiscent of Comcast's as it "trials" data caps and overages in certain markets as well as having it's own extra monthly charge for unlimited data use. Considering the relatively miniscule cost to deliver this data versus the monthly service charges, these new unlimited options really seem more about seeking profit than any increased costs especially since customers have effectively had unlimited data this whole time and will soon be charged for the same service they've possibly been using for years. I will give AT&T some credit for implementing more realistic data caps and bumping everyone up based on speed tiers (something Comcast should adopt if they are set on having caps). Also, letting Internet+TV customers keep unlimited data is a good thing, even if it is only there to encourage people not to cut the cord.

The final bit of good news is that existing U-Verse customers will have approximately four months before they will be charged for going over their data caps. AT&T claims that they will only begin charging for overages on the third billing cycle, giving customers at least two 'free' months of overages. Users can opt to switch between unlimited and capped options at will, even in the middle of a billing cycle, and the company will send as many as seven email reminders at various data usage points as they approach the cap in the first two months as a warning to the overages.

This is a lot to take in, but there is still plenty of time to figure out how the changes will affect you. 

Are you a U-Verse or AT&T DSL user? What do you think about the new data caps for U-Verse users and the $30/month unlimited data option?

Source: AT&T

Comcast Testing 300GB, up to 600GB Data Caps in Two Cities

Subject: General Tech | September 21, 2012 - 04:24 AM |
Tagged: isp, data cap, Comcast, bandwidth

Comcast’s 250GB per month data cap was proved an unpopular but necessary evil (in the sense that it cannot be avoided). The company suspended its data capping earlier this year to reevaluate its data caps and how they affect users. That temporary freedom is not slated to last, however as Comcast will be re-instating caps in the future (as soon as next year, by many reports). Currently, Comcast is testing a single 300GB cap across all tiers in Nashville, Tennessee, and on October 1st it will begin another data cap strategy in Tucson, Arizona.

Linksys CM100 Cable Modem.jpg

In Tuscon, Comcast will be mixing things up a bit by pairing the higher (faster) tiers of service with larger data caps. For example, the Blast tier (25/4 in many markets) will have an additional 50GB for a total cap of 350GB per month. The next highest tier – Extreme 50 – will get a 450GB cap, and so on. This is a good thing, because it allows the caps to scale with speed. Otherwise, the faster the speed tier, the worse value it becomes as it will just allow you to burn through your data cap faster. When the caps scale with speed, that problem is eliminated. Interestingly, this method seems to be the one that Comcast is leaning towards using, because a source –when talking to DSL Reports – has stated that when Comcast reinstates caps nationwide, customers will have a 500GB caps while lower tiers will Performance tier users will receive only a 300GB cap. Specifically, the source stated “faster speed tiers will see higher caps.”

Personally, if I have to endure caps, I would much rather have this scalable cap system rathen than a one-size-fits-all number for every tier like the company is implementing in Nashville (and has in the past with its 250GB per month cap). It will be interesting to see exactly how it will scale the caps once they are official, and how often Comcast will consider raising its caps as more and more services move "to the cloud."

Comcast Internet Packages and Accompanying Data Caps
Comcast Internet Tiers Data Cap (Nashville, TN) Data Cap (Tucson, AZ) Overage Charge (both cities) - $/50GB
Economy 300GB 300GB $10
Economy Plus 300GB 300GB $10
Internet Essentials 300GB 300GB $10
Performance Starter 300GB 300GB $10
Performance 300GB 300GB $10
Blast 300GB 350GB $10
Extreme 50 300GB 450GB $10
Extreme 105 300GB 600GB $10
Extreme 305 Unknown Unknown $10

Another bit of (surprising) news is that Comcast is being rather reasonable in its overage policy for customers that exceed the cap in the test markets. Customers that go over the cap in a month will be notified by both an email and webpage notification. Should the customer wish to continue to use the Internet service, Comcast will provide additional 50GB blocks for $10 each, which works out to 20 cents per Gigabyte. That is not bad at all, especially compared to wireless data overages that customers have begrudgingly become accustomed to. 

Even better, Comcast will give each customer up to three warnings before charging for additional data. If customers go over their caps for three months in one year, they will not be charged for additional data usage. After the three “courtesy notices,” it’s back to $10/50GB. The overage charge and three warning system applies to both test markets, which seems to suggest that it has a good chance of being implemented nationwide.

At least in the testing markets, Comcast is being much more generous than it has in the past. I’m interested to see what the cable providing-giant that is Comcast actually ends up doing once it puts caps in place around the nation. Specifically, how standardized the caps and overage charges are across all of the markets, and whether it will be more aggressive in areas where it has a monopoly where customers can not fall back to AT&T’s U-Verse or Verizon’s FIOS service (among other options, though I don’t count satellite or dial up as those are not really competitive to wired broadband). Right now though, I think Comcast is moving towards a system that is an acceptable compromise between customer freedom and its business interests. [Please don’t mess this up, Comcast.]

What are your thoughts, do you think the proposed caps are fair? I do concede that data caps suck, and it is definitely possible to exceed the caps with legitimate services, but it does look as though caps are here to stay. Here's hoping Comcast remains at least as reasonable with the entire US as it is with its test markets.

Read more about Comcast's data cap test markets.

Image courtesy Chauncey Davis via Flickr Creative Commons. Thank you.

Source: Ars Technica