Is Comcast Imposing Data Caps to Cash in Before the Fixed Wireless Boom?

by | Oct 7, 2016 | Brand Guides | 0 

Comcast announced data caps in 18 more states. Those states look very, very familiar.

If you woke up in The United States of Comcast (and that would be most of us), you woke up to some very unpleasant news.
Comcast is coming for your data, announcing that  1TB caps will roll out in 18 more states and metro areas as of November 1st. Quite a few major metro areas already suffer from crippling data caps, but Comcast is aggressively widening the scope to encompass entire states.
Collective moaning and conspiracy theories won’t help, but perhaps we can find a correlation that’ll explain exactly what’s behind Comcast’s latest effort to alienate its customers. Our first clue is in the email announcement that existing customers received. You’ll see a concerted effort to quell panic and then a follow-up that seems to hint at what Comcast might really be about here.   See what they did there? “Don’t worry,” Comcast says. “You don’t use that much data. See how far you’d have to go to eat it all up and incur overage fees?” Comcast even attempted to take away the sting on their blog with a cutesy video that explains data caps. We’re not distracted, Comcast. Put your adorable animals away.  

If Comcast’s assertion that only 1 percent of their customers actually use 1TB is true, then why even impose a data cap?

Comcast’s XFINITY data plans aren’t staggered to provide more data to faster speed packages, so their move here can’t possibly be to push customers into more expensive packages. Why impose an unpopular policy that will supply limited revenue? The answer may be fixed wireless. Fixed wireless utilizes 5G technology to bring fiber to homes without the messy infrastructure that—so far—has posed extensive issues for Google Fiber. Comcast isn’t a wireless provider yet, although they’d like to be. But this means they aren’t well situated to take advantage of 5G technology to deliver faster speeds to homes, unlike other telecoms such as AT&T. And if you look at the cities and states where Comcast is pushing out data caps, many of them are exactly the areas where fixed wireless is currently being tested. Comcast conspiracy theories aside, this correlation is probably not a coincidence.  
Comcast Data Caps as of 11/1/2016 Avg. Speed # of Providers that offer 100 Mbps or more Major Providers Testing Fixed Wireless?
Alabama 44 11 Yes. AT&T, Google Fiber (Huntsville)
California 58 15 Yes. AT&T, Google Fiber
Colorado 48 14 Yes. Google Fiber (Boulder)
Florida 52 16 Yes. Google Fiber bought Webpass, a fixed wireless provider in Miami.
Georgia 51 25 Yes. AT&TGoogle Fiber (Atlanta)
Idaho 37 12 No.
Indiana 51 16 No.
Kansas 43 16 Yes. AT&TGoogle Fiber
Michigan 56 14 No. But there are many muni-network fixed wireless providers available in Detroit.
Minnesota 50 27 Yes. AT&T
Missouri 49 19 Yes. Google Fiber, AT&T
New Mexico 36 8 Yes. Google Fiber
Ohio 43 9 Yes. AT&T (Columbus)
Oregon 54 28 Yes. Google Fiber (Oregon)
Texas 49 12 Yes. AT&T, Google Fiber (Austin)
Utah 60 24 Yes. Google Fiber (Provo)
Washington 58 30 Yes. AT&T
Wisconsin 53 19 Yes. AT&T
  Most of these states are enjoying pretty fast speeds and there’s enough competition to suggest that Comcast isn’t necessarily exploiting customers who don’t have other choices. But as fixed wireless becomes ubiquitous in the next decade, Comcast could stand to lose a large portion of its heavy internet users, who would likely migrate to the faster speeds that 5G could provide. Is Comcast looking to cash in now in areas where fixed wireless could experience a real boom? It’s possible. For now, we’ll all just need to buckle down and binge watch Netflix like winter is coming. Because if you’re a Comcast customer, it is. And it’s bringing data caps with it.  
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About the Author

Kaz is a writer, blogger and social media junkie. She uses her tenacity to investigate the best of the Internets.

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