Cox’s data plan limbo dance. How low can they go?

Cox Communications has cut by half the data usage allowance of one of its fastest broadband plans targeting so-called “heavy users,” exposing unsuspecting customers to expensive overlimit fees, while claiming usage caps are now mandated by law.

Stop the Cap! reader John C. wrote to tell us he discovered his allowance for Cox’s “Ultimate” Plan, delivering 200/20Mbps, has been slashed from 2,000GB to 1,000GB, with little warning except in an obscure support FAQ.

“About 95% of Cox customers are currently on a data plan that more than adequately meets the monthly needs of their household,” Cox claimed. “However, some households, particularly those with multiple Internet users that enjoy streaming TV or movies, may want to select an Internet package with a larger data plan. That is why we offer plans for all types of users so you can choose what is best for your household.”

The plan that most customers want is a flat rate, unlimited-use plan, one that Cox has unilaterally decided to stop offering. Just as bad: targeting the most widely available premium plan for a major usage allowance cut with no explanation whatsoever. It’s bad news for John, who says after paying Cox their asking price for Ultimate service, he cannot afford to also pay overage fees on top of that (currently $10 for each 50GB allotment, charged only in the Cleveland, Oh. area for now).

Customers who contact Cox and complain about their usage caps or allowance changes are being told false fables by Cox’s customer service specialists, who claim data caps are now the law in the United States.

Here is an example of an actual support session with Cox employees, (emphasis ours, edited (…) for brevity):

You: I also learned that you have internet data cap?

Jenna: Data limits were implemented by the FCC in 2011. By law, we have to have them. If you exceed the limit for 3 consecutive months, you will be contacted to discuss your options for upgrading.

You: FCC? can you send me details about that

[…]

Jenna: As I mentioned, there’s no fee for exceeding those limits. If you exceed the limit for 3 consecutive months, you will be contacted to discuss your options for upgrading. You can save a copy of this chat transcript for your records if you wish.

Jenna: I can also get you over to Customer Care for more information.

You: so why would you mention FCC rules then?

Jenna: Because you asked about our data limits.

Jenna: That’s why we have them.

You: Sure so can you tell me what FCC rule from 2011 you are referrind to?

Jenna: Sure, I’ll get you the link to the FCC website.

[…]

Jenna: Sure thing. Allow me a moment to get you over to Customer Care chat for further information about our Data Caps policies, and why we have them.

[…]

Christian O.: I see, well our Internet packages have a data usage limit however if you exceed that limit we won’t downgrade your speed or restrict your access to Internet or charge you more.

Christian O.: I think I found some information on the date usage and the FCC on 2011. One moment, please.

You: but it says right there that you will cahrge $10 for 50GB after I reach data cap

You: And FCC is very strict about data caps

Christian O.: Give me a moment to check something.

You: ok thanks

Christian O.: If you exceed your data plan, Cox may notify you by email to alert you. Your service will not be interrupted if you choose to stay on your existing package except in the rare cases of excessive usage. In those extremely rare situations, Cox may suspend service after attempting to resolve the issue.

Christian O.: Cox is conducting a limited data usage trial in Cleveland, Ohio. In all other markets, Cox does not currently charge additional fees if your data plan is exceeded.

You: what you are doing with data caps / usage is illegal

You: But please send me the FCC rule from 2011 that Jenna and you mention

You: “Jenna: Data limits were implemented by the FCC in 2011. By law, we have to have them.”

Christian O.: I don’t have such rule that talks about that. Do you have the rule where it says that is illegal?

Christian O.: Just asking.

[…]

Christian O.: Honestly I don’t have any idea about the rule that Jenna was speaking about. Let me go ask my supervisor. One moment, please.

[…]

Christian O.: Unfortunately we couldn’t find any information about that rule established by the FCC.

To clarify, the FCC neither has rules for or against data caps. It has remained neutral on the subject, although FCC chairman Thomas Wheeler recently advocated imposing a moratorium on data caps or usage billing for up to seven years as a condition of approving Charter Communications’ acquisitions of Time Warner Cable and Bright House Networks.

Here are Cox’s current data plans, which are effective for all residential customers. However, only customers in Cleveland will face penalties for exceeding them at this time.

After four years of a gradually expanding “beta test” no customer wanted to be part of, Comcast’s never-ending data cap trial has increased data allowances for the first time since 2012.

Comcast customers in data cap trial areas tell Stop the Cap! their Comcast usage meter now reflects the new 1,024GB allowance Comcast promised back in April (some customers in Atlanta seem to have gotten a 2,048GB allowance for an unknown reason). It’s a major improvement over the old 300GB cap many customers endured with expensive overlimit fees that applied when they exceeded their allowance. Comcast will continue to bill those overlimit fees of $10 for each 50GB increment of excess usage over the allowance, but now plans to cap those overlimit fees at $200 a month.

“The new meter showed up June 1st in southern Florida, and it’s about time,” said our reader Javier from Miami. “But wouldn’t you know, Comcast screwed us out of one more month of paying their $30 extortion fee to keep unlimited.”

300GB was not enough for many Comcast customers.

Javier is referring to Comcast’s unlimited usage insurance plan. For $30-35 extra, the cable company removes your data cap and you face no overlimit fees. But since Comcast bills one month ahead, a customer enrolled in the insurance plan paid for an unlimited June on their May bill. Now that usage allowances have more than tripled, Javier wanted to cancel his insurance for this month because he doesn’t come close to Comcast’s new cap.

No dice, replied Comcast, who canceled his unlimited insurance plan effective July 1.

“Once you begin a new month, you cannot stop the charges until the following month,” Javier explained, even though he canceled the plan on the 1st of the month. “They told me it was too late.”

Javier is still glad he canceled the insurance.

“If I didn’t, they planned to auto-enroll me in their new unlimited option, which costs a ridiculous $50 a month,” said Javier.

Not all Comcast service areas are subject to data caps. Comcast issued broad clarifications about the usage cap trial changes on its website:

A terabyte still isn’t enough for some customers. (Image: NAM)

New Data Usage Trials

On June 1, 2016, we will be migrating all customers currently in usage trials to a new 1 Terabyte plan, and the following is an overview. For more details on this trial plan, see Questions & Answers About Our Data Usage Plan Trials. For a detailed list of trial locations, see Is my area part of the data usage plan trials? For trial start dates, see Where will these plans be launched?

In the markets of Huntsville, Mobile and Tuscaloosa, Alabama; Tucson, Arizona; Little Rock, Arkansas;Fort Lauderdale, the Keys, and Miami, Florida; Atlanta, Augusta and Savannah, Georgia; Central Kentucky; Houma, LaPlace, and Shreveport, Louisiana; Maine; Jackson and Tupelo, Mississippi;Chattanooga, Greeneville, Johnson City/Gray, Knoxville, Memphis and Nashville, Tennessee;Charleston, South Carolina; and Galax, Virginia, we will increase our monthly data usage plan for all XFINITY Internet tiers to 1 terabyte (1,024 GB) per month and will offer additional gigabytes in increments/blocks ($10 per 50 GB, up to $200 each month). You will also be able to choose to enroll in an Unlimited Data Option for an additional recurring flat fee of $50 per month. Under this option, the 1 Terabyte data usage plan will not be enforced on your account. For more information on the Unlimited Data Option, see What is the Unlimited Data Option?

If you are an XFINITY Internet Economy Plus or Performance Starter customer, you can instead choose to enroll in the Flexible Data Option to receive a $5 credit on your monthly bill if you reduce your data usage plan to 5 GB. If you choose this option and use 6 GB of data or more in any given month, you will not receive the $5 credit and will be charged an additional $1 for each gigabyte of data used over the 5 GB included in the Flexible Data Option. For more information on the Flexible Data Option, see What is the Flexible Data Option?

TDS DSL customers have a 250GB data cap in their future.

Arch, a Stop the Cap! reader in eastern Kentucky, just received a notification letter informing him his Internet access is about to be rationed, and unless he buys additional usage before June 1, TDS is likely to charge him penalty overlimit rates.

Like some data caps of the past, TDS is giving customers a small break by remaining unlimited during the overnight hours, but for many customers, it won’t be enough to prevent a higher broadband bill.

“We are writing to you inform you TDS s implementing data-usage allowance plans in your area,” reads TDS’ letter. “Beginning with the June billing period, data usage will be measured during peak time (6am-midnight CST). Data usage during non-peak time will be unlimited. In June and thereafter, if your monthly data usage exceeds the 250GB allowance you will be assessed a $20 overage fee for every 250GB exceeded (up to $60).”

TDS advises Arch that based on his prior usage, he’s very likely to exceed his cap and face overlimit fees.

“My mother got a similar [letter],” writes Arch. “Mine states I am likely to be affected by the cap and my mother’s letter says she will likely not be affected.”

Of course, customers can make the usage cap less of an issue by agreeing to buy more usage up front:

• a 500GB Data Allowance runs $10 extra a month;
• 750GB costs an extra $20 a month;
• 1TB (1,000GB) is priced at an additional $30 a month.

TDS does not offer any justification for their data caps, but it doesn’t have a lot to fear imposing them.

“TDS has no competition at all in my area except for fraudband satellite,” Arch reminds us.

That is also likely true across many other TDS service areas, where the company’s 1.2 million customers live in more than 150 different communities, many rural or suburban.

With the FCC’s increasing skepticism that Comcast’s data caps are about fairness and not an attempt to discourage cable TV customers from cutting the cord and watching all of their shows online, Comcast today announced it was overhauling its data cap allowance and unlimited add-on plan.

Effective June 1, Comcast will increase its current 300GB monthly data cap to a terabyte (1,000GB) for all speed plans. For those exceeding one terabyte in usage, Comcast will sell you an unlimited add-on plan for an extra $50 a month to avoid the overlimit fee of $10 per 50GB of excess usage.

“In our trials, we have experimented with different offers, listened to feedback, and learned a lot,” said Marcien Jenckes, executive vice president of Consumer Services at Comcast Cable. “That is what we said we would do when we launched our trials four years ago – analyze and assess our customers’ reaction to the data plans, including being open to increasing them over time. We have learned that our customers want the peace of mind to stream, surf, game, download, or do whatever they want online. So, we have created a new data plan that is so high that most of our customers will never have to think about how much data they use.”

Comcast is also likely responding to thousands of customer complaints filed with the FCC complaining about Comcast’s data caps and the cost of their insurance plan (previously $30-35 depending on market) to avoid overlimit fees.

Despite near universal opposition to Comcast’s data caps, the company has gradually introduced them in a growing number of cities, mostly in the southern United States.

“Comcast doesn’t listen to its customers,” complains Miguel Santos, a Comcast customer in Miami. “It never has and never will. Our family was facing a $200 Internet bill after Comcast introduced caps in Miami-Dade. Now we grudgingly pay them more than $100 a month just for unlimited Internet. It is totally ridiculous.”

Comcast’s decision comes almost a month to the day after AT&T announced it was increasing usage allowances for its U-verse and DSL customers, albeit less generously than Comcast. Most AT&T DSL customers will face 300GB caps, while most U-verse customers will get a boost to 600GB. Only U-verse customers with speeds over 100Mbps will get 1TB of usage.

“We’ve always said that we’d look carefully at the feedback from our trials, continue to evolve our offers, and listen to our customers,” said Jenckes. “We’re currently evaluating our plans to roll this out in other markets, we’ll keep listening – and we’ll be open to making further changes in the future to deliver the best high-speed data service to our customers.”

“That probably means Comcast’s version of generosity will be coming to your city soon,” predicts Santos.

Stop the Cap! has learned customer complaints about Suddenlink Communications’ data caps have made an impact, and the company is planning to rollout a new campaign starting April 1 allowing premium customers to get their unlimited data back, eventually at a price.

A source tells us residential customers will now qualify for unlimited if they subscribe to either of Suddenlink’s two fastest Internet plans in any respective market. In most areas, that means signing up for 100/10 or 200/20Mbps service. Where gigabit plans exist, customers will need to subscribe to either 200/20 or 1,000/50Mbps service.

Customers will need to call Suddenlink to sign up for the offer (we’ve reached out to the company to learn the details we will share if we receive them), which provides unlimited service free for the first year. In year two, unlimited will cost $5 extra a month and after the second year Suddenlink will charge customers $10 extra.

Suddenlink claims its Internet plans already come with “generous” allowances, but fails to disclose them upfront to customers. In fact, there is no apparent way for a prospective customer to learn what their usage cap is without calling in or waiting until after they sign up for service:

Quoted from Suddenlink’s customer FAQ

Kent

As with every other Internet Service Provider implementing data caps, Suddenlink claims practically nobody is affected by them.

“The residential data we offer should be more than sufficient for the vast majority of our customers,” the company says. “The relatively few customers who desire more may wish to consider upgrading to a faster speed with a larger data plan, where available, or purchasing one or more supplemental data packages.”

But in November 2015, the outgoing CEO of Suddenlink Jerry Kent told Wall Street an entirely different story.

“Overage charges have become a significant revenue stream for us,” Kent said, noting usage cap overlimit fees were a major factor for the company’s 3.6% year over year growth in revenue, which reached $605.1 million.

Customers were given this explanation for Suddenlink’s decision to implement data caps:

“Data plans are one step among several that help us continue delivering a quality Internet experience for our customers. Other steps include the sizable investments we’ve made and continue making to provide greater downstream and upstream system capacity and more bandwidth per home. Even with those investments, a relatively few customers use a disproportionate amount of data, which can negatively affect the Internet experience of those who use far less. That’s why, as a complement to our network investments, we’ve established data plans.”

But Kent explained things back in 2010 somewhat differently to Wall Street and his investors:

“I think one of the things people don’t realize [relates to] the question of capital intensity and having to keep spending to keep up with capacity,” Kent said. “Those days are basically over, and you are seeing significant free cash flow generated from the cable operators as our capital expenditures continue to come down.”