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.).

ATTUverse2WireRG.jpg

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