FreePress
FreePress

Computer Weekly has an interesting piece reminding consumers that their data caps will continue to be an issue in the future as mobile video usage soars.

It is expected that consumers and enterprises will be responsible for increasing mobile data traffic by 59% in 2015, up to 52 million terabytes (TB). By 2018, it is expected that 173 million terabytes of mobile data will be used by consumers and businesses.

Even today, consumers are scared about hitting their data caps in the US. According to one study, 36% of Americans admit that they tend to wait for a Wi-Fi connection before trying to watch/download a video.

ArsTechnica
ArsTechnica

Data caps are and always have been about broadband providers wanting additional revenue. Period. ISP’s spent years telling us that usage caps were mandatory for network congestion. Now, the same ISP’s are quietly admitting that usage caps are, and always have been, about milking consumers out of as much money as possible.

One of the most common fabrication that has been at the front of ISP’s argument for usage based pricing is that the pricing helps users that don’t use much data save money! Except, there is absolutely no proof that this is the case. In fact, I can’t find any sort of pricing plan from any ISP that truly saves a light user a significant amount of money.

Usage-based pricing simply drives up costs for all broadband consumers. A customer who rarely uses their cable and broadband packages are still charged massive amounts per month, even though they may visit the Weather Channel several times a month. Also, what is the “fair” about laughably low data caps, high overages, multiple yearly rate increases for all customers even though many of the telecom companies see 90% profit margins.

Wireless providers can’t wait for this increase in data usage as it will force many of their customers to sign up/switch to higher monthly allotments and therefore higher monthly fees.