Internet Data Caps and Use

By: Mary Fitzpatrick, Associate Analyst January 22, 2021 | 2021-R-0030

Issue This report provides information on internet data plans offered to residential customers in Connecticut and summarizes available data on customer internet use. Plans described below represent those prominently advertised on company websites in January 2021 and are not exhaustive. (The Office of Legislative Research is not authorized to provide legal opinions and this report should not be considered one.)

Summary At least 10 companies offer home internet service in Connecticut, whether through DSL, cable, fiber, or satellite connections. Three companies offer plans that charge customers a fee for using data in excess of a data cap (Atlantic Broadband, Comcast, and Cox), though these companies may also offer unlimited plans or the option to upgrade a plan to an unlimited data plan for an additional price per month. Two companies explicitly inform customers that data use in excess of a specified amount will result in slower service (HughesNet and Viasat – both satellite internet providers). Companies advertising plans without explicit data caps may have provisions in their user agreements or acceptable use policies to address customers who use excessive amounts of data. These policies frequently allow companies to fine customers or suspend or terminate their service. Providers, rates, and plans vary based on location; Connecticut residents’ options vary based on where they live.

All major wireless mobile carriers offer data plans with caps as well as unlimited plans. Unlimited plans are often subject to lower speeds after a customer uses a certain amount of data. Additional devices connected through the mobile device may be subject to their own data caps. Mobile carriers may also use network management policies to address excessive data use. www.cga.ct.gov/olr Connecticut General Assembly (860) 240-8400 [email protected] Office of Legislative Research Room 5300 Stephanie A. D’Ambrose, Director Legislative Office Building

An industry consulting group reports that the U.S. customers’ average data use for first quarter of 2020 was 402.5 gigabytes (GB). Comcast stated that, as of June 2020, Xfinity internet customers’ median monthly data usage was 308 GB during the previous six month period. Reporting in 2019 quoted Charter officials as stating that their median residential usage was around 200 GB, and customers who did not bundle video service with their broadband had a higher average monthly data use at 400 GB.

Cable, DSL, and Fiber Providers Altice Optimum The company’s website advertises at least three options at 300 megabits per second (Mbps), 500 Mbps, and 940 Mbps. The website states that the plans have unlimited data “subject to reasonable network management practices employed to minimize congestion or other service degradation.” According to the company’s Open Internet Disclosure Statement, its network management practices include allocating a fixed maximum bandwidth for peer-to-peer file uploads and allocating a fixed maximum amount of bandwidth to subscribers who consume disproportionate amounts of bandwidth for limited time periods.

The company’s acceptable use policy addresses atypical data consumption, which, as described by the company, is “wholly uncharacteristic of a typical user of the service as determined by the company in its sole discretion.” The policy allows Altice to impose limits on excessive bandwidth consumption via any means available to the company.

Atlantic Broadband (and Thames Valley Communications) Atlantic Broadband currently advertises at least four plans, three of which have no data caps. These plans have download speeds of 100 Mbps, 400 Mbps, and 1,000 Mbps. The company’s 50 Mbps plan has a 200 GB data cap. Customers with this plan pay $10 for every 50 GB over the cap.

Under its acceptable use policy, Atlantic Broadband requires customers ensure their activities do not improperly restrict, inhibit, disrupt, degrade, or impede the company’s ability to deliver and monitor internet service and related components. The company may impose excessive bandwidth charges for violations.

Additionally, Atlantic Broadband’s residential subscriber agreement (Section 16.7) notes that the company has no stated limits on bandwidth use, but states that the company may take any of the following actions to address bandwidth use that interferes with its network operation:

1. limit excessive bandwidth use;

2021-R-0030 January 22, 2021 Page 2 of 7

2. suspend or terminate accounts for excessive bandwidth use;

3. require a customer to upgrade service levels and pay additional fees in accordance with its price list; and

4. charge fees, including a payment of 1.5 times the internet service charges for past excessive usage.

Atlantic Broadband recently purchased Thames Valley Communications, as reported in The Day. Thames Valley Communications currently advertises at least four plans at various speeds, each with its own data consumption threshold, as shown in Table 1. The company’s acceptable use policy states that service in excess of these amounts is excessive use and is a violation of the company’s policy. Generally, violations of the policy may result in service suspension or termination, but the company also states that users with usage consistently in excess of the thresholds may wish to subscribe to a service more aligned with the customer’s usage patterns.

Table 1: Thames Valley Communications Plans and Data Thresholds Service Tier Speed Monthly Data Threshold 6.6 Mbps 150 GB 110 Mbps 350 GB 330 Mbps 1 terabyte (TB) 1,000 Mbps 2 TB

Charter (Spectrum) According to company representatives, Spectrum has no data caps in any of its currently available internet plans. The company’s acceptable use policy states that the company reserves the right to immediately suspend, terminate, or restrict use of its services if the use interferes with the company’s systems, networks, or others’ use of the service.

Comcast Xfinity For the Stamford area, Comcast advertises at least three plans at three speeds: 100 Mbps, 300 Mbps, and 1,200 Mpbs, all subject to a 1.2 TB data cap. In Connecticut and other northeastern states, the company will credit customer accounts for overages in January and February so that customers will not incur fees during those months. Customers may begin incurring fees in March, with one-time credit for the first time customers exceed the cap. For every 50 GB customers use over the cap, Comcast charges $10, up to a $100 maximum. Customers can eliminate the data cap by purchasing an additional plan component for $14 per month for the first five months and $25 for months after that. (According to Comcast representatives, fees will be waived until June for

2021-R-0030 January 22, 2021 Page 3 of 7 customers who signed up for these options in December 2020 and January 2021.) Customers who use their own model and router can add unlimited data to their plan for free for the first five months, then $30 per month after that.

Comcast also advertises prepaid internet plan where customers purchase internet for a specific amount of time (e.g., 30 days) without an annual contract. These plans are not subject to the data cap.

According to Comcast, the company does not block, throttle, or otherwise interfere with a customer’s service regardless of the customer’s plan or data use.

Cox Cox Communications advertises six plans at various speeds (940 Mbps, 500 Mbps, 150 Mbps, 50 Mbps, 10 Mbps, and a prepaid plan at 25 Mbps). According to the company’s website, all residential internet plans are subject to a 1.25 TB data cap. The company notes that they recently increased the cap by 25% to respond to increased data use due to the COVID-19 pandemic. For every 50 GB customers use over the cap, Cox charges $10, up to a $100 maximum, with a one- time credit for the first time a customer exceeds the cap.

According to the company website, customers may upgrade their data plans by (1) adding an additional 500 GB of data for $29.99 per month or (2) purchasing an unlimited data plan upgrade for an additional $49.99 per month.

Earthlink Earthlink’s website advertises at least four plans for residential internet at various speeds (25 Mbps, 100 Mbps, 500 Mbps, and 1,000 Mbps). The website notes that the company never uses data caps and provides a “no throttle guarantee,” meaning that customers will not experience “data slowdowns or shutoffs.”

Frontier Frontier advertises at least 10 tiers of residential internet service with various speeds and at least six tiers of residential fiberoptic internet (FiOS) with various speeds. The company’s website states that their residential internet plans do not have data caps, and company representatives stated that Frontier does not throttle or restrict usage.

The website notes that other terms and conditions apply, including the company’s acceptable use policy and network management policy, and that these are subject to change without notice.

2021-R-0030 January 22, 2021 Page 4 of 7

According to its acceptable use policy, Frontier may suspend, terminate, or apply additional charges if the company determines that a customer’s usage is excessive.

Verizon Company representatives stated that Verizon Fios internet plans have no data caps or restrictions, and noted that previous plans have sunset and cannot be purchased by new customers. The company’s website advertises at least three plans at 200 Mbps, 400 Mbps, and 940 Mbps. (According to the company’s website, Verizon’s 5G home internet service is not currently available in Connecticut.)

The company’s acceptable use policy lists as a violation generating “excessive amounts of email or other internet traffic.” According to the policy, Verizon may deny, restrict, suspend, or terminate service for violating the terms of the acceptable use policy or if usage interferes with the proper functioning of the company’s network.

Satellite Providers HughesNet HughesNet advertises at least four plans on its website at various speeds (10 GB, 20 GB, 30 GB, and 50 GB). According to the website, customers who exceed the data plan will experience reduced speeds, typically at one to three Mbps, but the company will not terminate the connection or charge a fee. According to the website, customers may purchase additional data (“data tokens”) to return their internet service to its normal speed. The plans also include a “bonus zone,” providing customers with 50 GB per month of additional data during off-peak hours (2 a.m. to 8 a.m.). According to the website, the plans adjust data rates for streaming video to use less data than high- definition formats normally require but customers can opt out of this feature.

Viasat Viasat’s website advertises at least three plans at various speeds (12 Mbps, 25 Mbps, and 30 Mbps), all of which include unlimited data. However, the company notes that after a customer uses a certain amount of data, the company may prioritize the data of other customers during network congestion, which will result in slower speeds for the affected customer. This occurs at 40 GB of data for the 12 Mbps plan, at 60 GB of data for the 25 Mbps plan, and at 100 GB of data for the 30 Mbps plan.

2021-R-0030 January 22, 2021 Page 5 of 7

Mobile Wireless Providers Data caps are more common and more complicated for mobile data plans. All the major carriers offer plans with data caps and unlimited plans. Unlimited plans may still include separate data caps for “mobile hot spot” or similar capability, which allows a customer to use cellular data as an internet connection for other devices. As is the case with other providers, mobile carriers may also address excessive data use through network management practices.

Other components of mobile data plans may include:

1. tablet-only unlimited data plans, sometime as an option that customers may add to their smartphone plans;

2. high-speed data until a specified data amount, then service at slower data speeds;

3. cable providers partnering with mobile providers to provide unlimited data on customers device, with reduced speeds after a certain data amount;

4. the ability to purchase high-speed unlimited data for a short amount of time (e.g., an hour); and

5. video throttling to lower resolution formats.

Representatives from AT&T stated that the company offers several unlimited plans. Only one plan charges for data overages and, according to the company, this plan is offered as a lower cost option for customers who do not need much data. According to its website, the company does reduce data speeds for unlimited mobile data plans during periods of congestion. Some plans have a data usage threshold where this practice only occurs after the customer has used a specified amount of data.

Charter representatives stated that the company sells Spectrum Mobile plans both by the gigabyte and with unlimited service. Spectrum Mobile is only available to Spectrum internet customers; the company noted that customers may use the internet on their mobile device while at home, thereby reducing their reliance on mobile data.

Average Data Use OpenVault (a telecommunications consulting organization) reported that average internet consumption in the United States at the end of the first quarter of 2020 was 402.5 GB, an increase of 47% from the same period in 2019, and that 10% of customers used 1 TB or more.

2021-R-0030 January 22, 2021 Page 6 of 7

We asked companies for information on average customer monthly data use. Some declined to provide this, stating that this information is proprietary, but companies have made related public statements. On its website, Cox states that its 1.25 TB cap is more than enough for most people to cover extra usage due to the COVID-19 pandemic. Comcast stated on their website that, as of June 2020, Xfinity internet customers’ median monthly data usage was 308 GB during the past six months. Comcast representatives also stated that a typical Xfinity internet customer tends to use less than 400 GB per month. Reporting in 2019 quoted Charter officials as stating that their median residential usage was around 200 GB, and customers who did not bundle video service with their broadband had a higher average monthly data use at 400 GB.

MF:kc

2021-R-0030 January 22, 2021 Page 7 of 7