Comcast Forced To Retreat From Broadband Data Caps (Sort Of) Due To Competition From 5G Wireless And Community Fiber

Techdirt has always made it very clear that broadband usage caps on fixed-line broadband are bullshit.

The costly and confusing restrictions serve no legitimate technical function. They don’t help your ISP “manage congestion.” They exist simply as a way for giant companies like Comcast to nickel-and-dime captive customers in uncompetitive broadband markets. Market failure created by their own tireless efforts to kill competition and government oversight.

But there’s been a small wrinkle over the last few years. Trying to gain market share, wireless giants have been offering home 5G wireless connection for lower prices. We’ve also been seeing a rise in community-owned broadband networks and cooperatives offering cheaper gigabit fiber. The combination has resulted in Comcast losing a growing number of broadband subscribers in some markets.

So Comcast is trying something new. They’re retreating from broadband caps on the new service tiers being offered new customers. According to a press release, they’re offering to eliminate usage caps for new users who sign up for four new tiers of service:

“Following the successful launch and positive consumer reaction to Xfinity’s new 5-year guarantee, the nation’s largest Internet Service Provider (ISP) has launched its everyday pricing (EDP) structure with four simple national Internet tiers that include unlimited data and the advanced Xfinity WiFi Gateway for one low monthly price.”

This being Comcast, there are, of course, some caveats. For one, this is primarily being offered to new customers. And you have to sign up for Comcast’s WiFi gateway, which precludes you simply owning your own modem and router, making it easier (and more profitable) for Comcast to track you and monetize your online behaviors.

The company is claiming to reporters that existing customers can also sign up for these new uncapped plans, but Comcast historically says a lot of things that don’t wind up being true in practice.

It sounds like Comcast wants its cake and to eat it too; it wants to maintain some semblance of pointless caps to soak up extra profit in less competitive markets, but keep itself from losing customers in more competitive areas. It’s the sort of predatory bullshit you can get away with in a country so corrupt that it destroys its own consumer protection regulators for fun.

A more honest and serious approach would be to eliminate usage caps entirely. We’ll see if 5G wireless continues to provide competitive incentive. Wireless giants are temporarily selling 5G home service at a steep discount; but given the congestion-plagued nature of wireless, as those networks see subscription growth eventually those networks will see their own slowdowns and restrictions.

Still, it’s an indication that Comcast is finally being forced to acknowledge that usage caps are anti-competitive bullshit. Hopefully it’s a trend that accelerates for years to come.