Comcast Corp (NASDAQ:CMCSA) has said it will defer its new data caps policy following concerns that it will disproportionately harm cash-strapped consumers. The cable giant stated that it will delay the new fees for home internet users in twelve Northeast states.
Comcast defers policy in data caps
The company is deferring the rollout until July instead of March thus reversing the course of the policy that would have seen consumers who are working, communicating online, and learning from amid the pandemic. The internet service provider had indicated that it will have data limits on consumers on the 1.2TB plan with users using more charged $10 and up fees from March.
Affected areas include Delaware, Connecticut, Maryland, Massachusetts, West Virginia, Vermont, New Jersey, District of Columbia, New Hampshire, Maine, New York, Virginia, and West Virginia, and parts of Ohio and North Carolina. For consumers in this state, expect your August bill to have overage fees of up to $100 for July use. This will be a lot of money and thus consumers have until then to decide if they will be affected and make a plan.
Comcast to introduce caps on the 1.2TB internet plan
In November the company announced that it will charge the heaviest internet users more, especially those using more than 1.2 terabytes. It said that when the extra charges will apply most families and students will have steered clear of owing Comcast extra every month. The company said that to use the 1.2 TB users have to steam at least five 4K resolution video hours per day for a whole month or conduct 3,500 hours of a video conference to utilize all the data.
The move caused a backlash from Congress and all over the country for its blatant attempt to change rules to boosts its earnings even as the country grapples with the pandemic that has left most families relying on the internet. According to a deal brokered with Shapiro, the company pledged to be transparent about pricing and take other measures like waiving fees for users that cancel their internet and cable contracts early.