Home » Broadband "Shortage" »Competition »Consumer News »Cox »Data Caps »Editorial & Site News » Currently Reading:

Cox Introducing $50 Option to Waive Data Caps: The ‘Freedom from Extortion Plan’

Phillip Dampier August 14, 2017 Broadband "Shortage", Competition, Consumer News, Cox, Data Caps, Editorial & Site News No Comments

As Cox Communications continues to expand its arbitrary data cap program on its broadband customers, the company has announced a ‘cap relief’ option for customers willing to pay $50 more for the same service they enjoyed last year without a data cap.

Company insiders tell DSL Reports Cox will introduce a new $50 option to avoid the data caps and overlimit fees the company began imposing in 2015 starting in its Cleveland, Ohio service area.

On Wednesday, Cox is expected to introduce two add-on options to help avoid the bill shock likely if customers exceed 1TB of usage per month and face the $10 overlimit fee for each 50GB of data consumed:

  • $30 a month for 500GB of extra data;
  • $50 a month to avoid data caps altogether and get back unlimited service.

Cox customers in Cleveland were unimpressed with Cox’s data caps when they were introduced in 2015.

These fees are in addition to whatever Cox customers currently pay for broadband service.

“An overwhelming majority of data is consumed by a very small percentage of internet users,” a memo to employees documenting the changes reads. “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. In Cox markets with usage-based billing, the less than two percent of customers who exceed the amount of data included in their plan still have the option of paying $10 for each additional 50GB of data when they need it.”

Such claims raise the same questions Stop the Cap! has always asked since we began fighting data caps in 2008:

If data caps only impact <2% of customers, why impose them at all?

Is the actual revenue earned from overlimit fees worth the expense of introducing usage measurement tools, billing system changes, and the cost of customer dissatisfaction at the prospect of an unexpectedly high bill?

What technical reasons did Cox choose 1TB as its arbitrary usage allowance other than the fact Comcast and other operators chose this level first?

Time Warner Cable executives privately admitted in internal company documents obtained by the New York Attorney General’s office that internet traffic costs represent little more than “a rounding error” in expenses for cable companies. But for most consumers, $30-50 to buy a bigger data allowance is hardly that.

In short, the “solution” Cox has decided on this week comes in response to a problem the company itself created — imposing arbitrary, unwanted data caps and overlimit fees on a product that is already intensely profitable at the prices Cox has charged for years. This internet overcharging scheme is just another way to gouge captive customers that will likely have only one alternative — the phone company and its various flavors of DSL or a U-verse product that cannot compete on speed unless you are lucky enough to live in a fiber-to-the-home service area.







Search This Site:

Contributions:

Recent Comments:

  • john doe: The market is kind of saturated. Whoever wanted internet have already subscribed to Comcast/Charter. Beside this Verizon strategy is doomed to failure...
  • Coin: While its possible the connections are being throttled, I think its more likely that the cell network is overwhelmed. I live in a hurricane prone are...
  • Dylan: Just isn’t that nice? I would drop them quickly if they told me that my plan was too “low” and I needed to upgrade and pay more for better service. Wh...
  • Dan: Nice job Verizon first throttle first responders then hurricane victims. Fcc step in oh wait. Ajuit pia is worse than useless he is anti consumer....
  • LG: I didn't hear these speeches, and really don't know if what he said was incendiary or hateful, but I do know the left-wing media cannot be trusted to ...
  • Dylan: 20gigs? Abysmal. I would use that in a couple of hours. Even 50. I’m certainly fortunate to have unlimited internet with Spectrum....
  • EJ: I wonder if they are going to extend service based on demand. That system is used by many telecommunication companies that are coming into a new area ...
  • Phillip Dampier: Just to clarify, I think they are throwing in a free or discounted dish, which isn't such a big deal if you can find a promotion that does the same. I...
  • EJ: Well I guess I should of scrolled down first lol. Question answered by the Verizon article. Good job Phillip. Note to self scroll down a few articles ...
  • EJ: My question is what exactly is HughNet doing with the money? They already offer free installation in most areas so what is this money going towards? A...
  • Mark Wilkinson: This is a nightmare. Life was good until Verizon sold us to Frontier. Our service has been cut off twice for non-payment of an "non-returned equipme...
  • Don: I don't even have Greenlight available yet at my address. I am in Gates and Greenlight is taking orders for my address so I look up to see what would ...

Your Account: