Cox to Begin Charging $50 Extra to Avoid Usage Caps This Week Company insiders tell DSLReports.com that Cox Communications will unveil a new option for customers this week allowing them to avoid usage caps and overage fees for an additional $50 more every month. Earlier this year we were the first to report that Cox Communications had started to ramp up deployment of unnecessary and confusing new usage caps and overage fees. Sources familiar with Cox's plans say the company will make a formal announcement about two changes to the company's usage cap and overage plans starting this week, Wednesday August 15.

As it stands, users in capped markets face a one terabyte cap, after which their only option is paying $10 per each 50 GB of data consumed. But under Cox's upcoming new plans, users that head over the company's terabyte plan have two options: • Pay an additional $50 per month on top of what they pay now to avoid usage caps entirely. • Pay an additional $30 per month for 500 GB of additional data. A memo being circulated among employees on the changes downplays the impact of these restrictions on consumers, repeatedly trying to argue that confusing and unnecessary usage limits aren't a big deal because the majority of Cox customers won't run afoul of them...today. "An overwhelming majority of data is consumed by a very small percentage of internet users," a memo to employees documenting the changes reads. "The new choices are great options for the small percentage of heavy users who routinely use 1TB+ per month and prefer a flat monthly rate, rather than purchasing additional data blocks." "In Cox markets with usage-based billing, the less than two percent of customers who exceed the amount of data included in their plan still have the option of paying $10 for each additional 50 GB of data when they need it," the memo insists. Of course this downplays the fact that usage caps and overage fees on fixed-line networks are absolutely unnecessary, don't help manage congestion and are little more than price hikes on captive consumers in uncompetitive broadband markets. And while it's easy to fall into a debate over whether "one terabyte is perfectly reasonable for most people" -- that completely misses the point. Usage caps and overage fees are arbitrary and unnecessary price hikes on consumers, only made possible by the lack of competition. They do not help manage congestion, and flat-rate pricing is perfectly profitable. And if the "very small percentage" of heavy users were really a problem, Cox could shove those users toward business-class tiers -- without having to impose confusing new penalties on all of its subscribers. No, these usage caps and overage fees are solely about charging you more money for the same product, while simultaneously penalizing and cashing in on customer usage of streaming video alternatives as 4K streaming looms on the horizon. Of course companies like Cox can't admit this, so when they No, these usage caps and overage fees are solely about charging you more money for the same product, while simultaneously penalizing and cashing in on customer usage of streaming video alternatives as 4K streaming looms on the horizon. Of course companies like Cox, so when they notify customers of these kinds of changes they don't even bother to provide any sensible justification for the changes whatsoever.







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Most recommended from 90 comments

moulder3

join:2007-05-21

Boston, MA 32 recommendations moulder3 Member Bandwidth caps "And while it's easy to fall into a debate over whether "one terabyte is perfectly reasonable for most people" -- that completely misses the point. Usage caps and overage fees are arbitrary and unnecessary price hikes on consumers, only made possible by the lack of competition. They do not help manage congestion, and flat-rate pricing is perfectly profitable. And if the "very small percentage" of heavy users were really a problem, Cox could shove those users toward business-class tiers -- without having to impose confusing new penalties on all of its subscribers."



Exactly! It's surprising to me how many people on this board actively defend bandwidth caps. When a company like Comcast offered punitive, 250gb caps in only the "select" (aka non-competitive) markets, it's easy to see this is really just a $$$ grab. Especially with OTT looming.... Tchaika

join:2017-03-20

New Orleans, LA 25 recommendations Tchaika Member Go Eff Yourselves Cox If I had stayed with you jerks and elected this option I would now be paying MORE than I'm paying for AT&T U-Verse HSI + TV, which includes unlimited data.



Say what you will about AT&T and/or traditional television service, but at least I'm getting SOMETHING for my increased bill. All Cox is giving you for your $50 is a lighter wallet and the exact same service you had yesterday.



I guess it's not enough that Americans already pay more for HSI than almost any other Western country. The ISPs want more. They will keep squeezing the stone long after it has been drained of blood.



Assholes.

davidc502

join:2002-03-06

Mount Juliet, TN 10 recommendations davidc502 Member Underlying and probably more truthful reason for these additional fees Traditional cable TV is falling to the side, and more and more people are using Netflix, Hulu, Amazon to name a few. I can tell you from experience my family uses approximately 1TB of data per month, and a vast majority of the data consumed is "streaming".



IMHO, Cox is trying to blox... lol Seriously though... I think they are trying to generate revenue as people drop off of Cable TV subscriptions.

runnoft

Premium Member

join:2003-10-14

Nags Head, NC 9 recommendations runnoft Premium Member Cox to Begin Charging Extra For Unlimited Data This Week Wow what a deal. Only $50 more per month to get what you should be getting anyway.



The whole pricing gameplan here--factor in content becoming increasingly exclusive, e.g. Disney (ESPN) opting out of Netflix, and figure prices for streaming and cable broadband will be rising over the next few years as well--that by the time you're finished paying all the various fees for broadband and streaming, it's no cheaper than the cable TV + Internet bundle.

r81984

Fair and Balanced

Premium Member

join:2001-11-14

Katy, TX 8 recommendations r81984 Premium Member Scammers They are complete scammers.

There is no logic in charging extra for usage. briansgs2

join:2013-04-25 8 recommendations briansgs2 Member no viable competition This is what companies do when there is no viable competition in the market. If there was, they'd be laughed out of business.

Anonc9c05

@verizon.net 5 recommendations Anonc9c05 Anon saw this coming 5 years ago THOUGHT YOU COULD GET AWAY WITH NOT PAYING FOR TELEVISION HUH? THINK AGAIN! Unfortunately, I don't watch TV man, I download Linux ISOs!

P Ness

You'Ve Forgotten 9-11 Already

Premium Member

join:2001-08-29

way way out 4 recommendations P Ness Premium Member sign up, use your unlimited and they will cut you off! anyone want to bet if you gave them the 50 bucks, and proceeded to use 10000000gb they would cut you off.



i'd figure out a way to legally run the thing full tilt 24/7 just to see what happens.

The Beer

I Love It When A Plan Comes Together

Premium Member

join:2001-07-24

Lincoln, NE 4 recommendations The Beer Premium Member Cox has become big telecom



Remember that time back in the late 90's when Cox was scrappy? You could call tech support and get a real person?

US West started offering TV service so Cox started offering phone service.



Cox then used pro-consumer deals to pull all the US West/Qwest/Century Link customers away.



THEN Cox became so big they became the Baby Bell, dropped everything pro-consumer.



What other market do you even know of where the ILEC traded places with the CLEC and was then named the Monopoly?



Cox absolutely CRUSHED them into submission then took the exact same Monopolistic approach of the competitor they killed.



Anyone following this whole T-Mobile thing? Wonder how that will turn out? Speaking as a former Omaha resident...Remember that time back in the late 90's when Cox was scrappy? You could call tech support and get a real person?US West started offering TV service so Cox started offering phone service.Cox then used pro-consumer deals to pull all the US West/Qwest/Century Link customers away.THEN Cox became so big they became the Baby Bell, dropped everything pro-consumer.What other market do you even know of where the ILEC traded places with the CLEC and was then named the Monopoly?Cox absolutely CRUSHED them into submission then took the exact same Monopolistic approach of the competitor they killed.Anyone following this whole T-Mobile thing? Wonder how that will turn out?

jchambers28

Premium Member

join:2007-05-12

Alma, AR 3 recommendations jchambers28 Premium Member At this point you have 4 ptions Option 1 stay with 1Tb

Option 2 pay for unlimited

Option 3 businesses account

Option 4 Switch providers

If I ever need more than one terabyte of data I will be taking option 4.

rradina

join:2000-08-08

Chesterfield, MO 920.3 39.3

·Charter

3 recommendations rradina Member Cox's Casual $10/50GB Response said by article : "In Cox markets with usage-based billing, the less than two percent of customers who exceed the amount of data included in their plan still have the option of paying $10 for each additional 50 GB of data when they need it," the memo insists. While caps and overage fees may be unnecessary, my biggest beef is the nonchalant and seemingly cavalier attitude with which 50GB of data is priced. $10/50GB is ridiculous. amungus

Premium Member

join:2004-11-26

America 3 recommendations amungus Premium Member Um, no AT&T might be getting my business.

$40 +$30 for unlimited (50Mbps) is a LOT less. In fact, it's a little less non promo Cox pricing in my area. Cox still hasn't bumped me to 100Mbps, either. Still 50Mbps.



This is a pure grab at those who want TV via the Internet.



Time to haggle. Even then, not sure it's worth keeping cable anymore. To get a better price, I'd probably have to drop to their 15Mbps service, which is a huge drop, even compared to AT&T



$100+ for "unlimited" internet is insane. It's not even gigabit.

KrK

Heavy Artillery For The Little Guy

Premium Member

join:2000-01-17

Tulsa, OK 2 recommendations KrK Premium Member Impose Caps, then charge people to escape them... I've seen this business model before.



Yeah, the Mafia, selling "insurance" to business inside their areas of operation.



Another word for it is "extortion"... kherr

Premium Member

join:2000-09-04

Collinsville, IL 2 recommendations kherr Premium Member GLAD ...... .... I'm nowhere near Cox territory ...... tired_runner

Premium Member

join:2000-08-25

New York 230.4 37.3

·callwithus

1 edit 2 recommendations tired_runner Premium Member It can go either way You have to view both sides of the argument, and draw your own conclusions.



On one hand, you have a growing number of customers going stream-only. No need to explain the Pandora's box of choices when you do this.



When more customers do this, you have less TV-backed revenue in your coffers, and more consumption on the data side.



Suddenly, that 1-gig pipe oversubscribed to let's say, 40 customers is now inadequate and customers call complaining about not getting the speeds they're paying for, and those same customers start firing off their SamKnows router reports to the FCC. So now operators have no choice but to split that pipe or start replacing with 10-gig pipes where needed, which as I'm sure you could all imagine, are not cheap to build at all.



Then there's what typical monopolies do which is putting lipstick on the same pig; provide same speeds or maybe a little more speed for more money, and start setting up tolls in additional to those hikes under the guise of equal access for all.



Pick your poison, I suppose.