dslreports logo
site
spacer

spacer
 
   
spc
story category
Cable One Increases Speeds, Eliminates Overage Fees
Faster 60-70 Mbps Tiers With 300-500GB Caps
by Karl Bode 01:14PM Monday Jun 03 2013
Washington Post owned Cable One has traditionally been one of the most aggressive ISPs when it came to usage caps, but today announced that they're backing off the practice. CableOne has a rather long history of tinkering with low caps and often confusing pricing plans, including imposing different usage restrictions at different times of the day. They're also the only larger U.S. ISP I know of that actually punished customers who didn't bundle with even lower (50 GB) usage caps.

Click for full size
However, according to a press release that hit the wires this morning, all of that is behind them now. Starting June 10, the company says they're launching new faster Internet plans, and eliminating data plans with overage fees. The new plans will offer speeds of 60 and 70 Mbps.

There will still be caps, though they'll be fairly generous, with the 60 Mbps plan coming with a 300 GB cap, and the 70 Mbps plan coming with a 500 GB cap. Previously, users were forced to pay fifty cents per additional gigabyte. Now, they're just be nudged toward a faster residential, or if they're consistently pushing usage into the terabyte territory, a business-grade plan.

It's a nice shift of direction for an industry that has relentlessly tried to argue that imposing completely unnecessary and punitive overage penalties on already expensive Internet service was an inevitability.

"We are very excited to launch these new, more flexible Internet plans. Our customers are spending more time online than ever before and have voiced the need for faster service and no overage charges,” said Joe Felbab, Cable ONE Vice President of Marketing. "We’re committed to listening to our customers and delivering the latest products and technical advancements while maintaining the highest level of reliability and customer care.”

view:
topics flat nest 
fieroloki

join:2007-07-29
Van Alstyne, TX

About time!!!

About. Freaking. Time!!!!

YukonHawk

join:2001-01-07
Patterson, NY
Reviews:
·Comcast

Re: About time!!!

said by fieroloki:

About. Freaking. Time!!!!

Hopefully the rest of the industry catches on and finally realizes caps are a really bad idea.

BimmerE38FN

join:2002-09-15
Boise, ID
kudos:1

How about UpLink Speeds?

Yee Haa, now maybe they will UP the UPlink speeds too.
fieroloki

join:2007-07-29
Van Alstyne, TX

Re: How about UpLink Speeds?

I will be happy with the 4Mb. I am on the 5/512 now. :/

BimmerE38FN

join:2002-09-15
Boise, ID
kudos:1

Re: How about UpLink Speeds?

We only get the 50/2 up here. Hope they include us up here.
sean8102

join:2010-11-23

Re: How about UpLink Speeds?

I know how you feel. The cable company here is 50/2. Asked them about faster upload speeds and they said there is no demand for it right now.

JimThePCGuy
Formerly known as schja01.
Premium,MVM
join:2000-04-27
Morton Grove, IL

And the new plans cost how much?

Hopefully not $500+/mo.

tabernak

@comcast.net

Re: And the new plans cost how much?

Their press release says the 50/2 plan will also get a 300 gB allowance and that's currently $50. I'm on comcast and use around ~160/month, so that new cap suddenly makes cableone the best deal around in my neck of the woods (which includes comcast, att, centurylink and mediacom). I'm in the market for a house and now houses served by cableone look more appealing.

I won't be complaining.
dra6o0n

join:2011-08-15
Mississauga, ON

Re: And the new plans cost how much?

Canadian Cable plan averages at a 28/1 Mbps for 300GB cap to cost about 40-50 dollars.
Unlimited is 50-60.

gatorkram
Need for Speed
Premium
join:2002-07-22
Winterville, NC
kudos:3
Reviews:
·Suddenlink

1 recommendation

WTF generous?

quote:
There will still be caps, though they'll be fairly generous, with the 60 Mbps plan coming with a 300 GB cap, and the 70 Mbps plan coming with a 500 GB cap.
I just can't believe you wrote those words Karl.
--
What the heck is a GatorKram? »www.gatorkram.com

IowaMan
Premium
join:2008-08-21
Grinnell, IA

Re: WTF generous?

Um... I'd rather have Mediacom's 50/5 with a 1TB cap Thanks

jazzlady

join:2005-08-04
Tannersville, PA

Re: WTF generous?

Even my crappy local ISP gives me 250GB a month on my 15/2 connection.
Sorry- but I don't see those caps as particularly generous either.
--
“When fascism comes to America it will be wrapped in the flag and carrying a cross.”
Sinclair Lewis

pende_tim
Premium
join:2004-01-04
Andover, NJ
kudos:1
Reviews:
·Comcast

Re: WTF generous?

But the cap meter only runs, at least in my neighborhood, from 5PM to 1AM. Outside those times, there is no measurement.

This works out for me as I am retired.
--
The difference between genius and stupidity is that genius has its limits.
Uplinkpro

join:2008-02-11
Lake Charles, LA
To be fair the rest of the paragraph is important. It seems those caps are only soft caps and if you go over them they won't charge you anymore, but they will start pestering you to upgrade your connection. This is very different from Suddenlink's approach of not informing anyone if their area will be affected and charging you if you go 1 byte over their arbitrary limit.

88615298
Premium
join:2004-07-28
West Tenness
said by gatorkram:

quote:
There will still be caps, though they'll be fairly generous, with the 60 Mbps plan coming with a 300 GB cap, and the 70 Mbps plan coming with a 500 GB cap.
I just can't believe you wrote those words Karl.

We steam quite a bit of video an we've only come close to Charter's 250 GB cap once. And that month my son downloaded 65 GB worth of games from Steam. The average American uses about 40 GB per month. 500 GB is certainly generous for that vast majority of users at this point. All that being said, monthly caps are a crappy way of managing bandwidth.

Squire James

@embarqhsd.net

News Alert!

Karl Bode has written an article about a large ISP that was generally positive in nature.

In other news, the Cubs won the World Series, the Jacksonville Jaguars won the Super Bowl, and Hell froze over.

cork1958
Cork
Premium
join:2000-02-26

Re: News Alert!

said by Squire James :

Karl Bode has written an article about a large ISP that was generally positive in nature.

In other news, the Cubs won the World Series, the Jacksonville Jaguars won the Super Bowl, and Hell froze over.

Yeah,
That was probably the most interesting part of the article, that made me read the whole thing!
--
The Firefox alternative.
»www.mozilla.org/projects/seamonkey/

NotHereNow

@verizon.net

Business-grade plan?

What... you get to pay more for the same network your neighbors use because you and your kids spend more time watching movies and playing games and whatever else you do (to use your connection when your neighbors aren't using theirs) because that's typical "business activity"? (Well, everything's relative--their attitude toward customers may be improving [we'll see], but they still have a ways to go.)
rradina

join:2000-08-08
Chesterfield, MO

No Whining About Lost Revenue?

No company eliminates a practice that generates revenue unless it's regulated away, unprofitable or the profit doesn't make up for some other negative factor such as customer retention.

Lots of questions:
Did most of their customers were not paying overage fees because they either didn't use that much or they were extra careful? If the latter, did the practice then have the desired effect of allowing current (potentially stressed) infrastructure to serve its customers without upgrades? With that protection eliminated, what's changed? Was this smoke and mirrors all along? Lower wholesale connectivity rates? Have they lost enough customers that their network is now no longer stressed? Have they upgraded their equipment or has some other new technology enhanced their capacity? Were the original metrics set arbitrarily low by greed?
Uplinkpro

join:2008-02-11
Lake Charles, LA

Re: No Whining About Lost Revenue?

I think a lot of those questions can be answered with their "about Cable ONE" paragraph:
quote:
Serving 730,000 customers in 19 states with high speed Internet, cable television, and telephone service, Cable ONE provides consumers a wide range of the latest products and services, including wireless Internet service, High-Definition programming, and phone service with free, unlimited long distance calling in the continental U.S.
What I see here is they're a small ISP and they want to attract more subscribers. They probably had people say "hey, all these people hate caps and overages, maybe we can draw more customers if we remove them." Of course, that would be true. As pointed out before most people won't even hit usage caps and all they do is add to bad press. Said bad press can, of course, damage your company's appeal to the regular consumer and thus lead to less subscribers and less money due to maybe a few people giving you a little bit of money every so often.

tl;dr They probably realized that the caps and overages were costing them more in potential subs than it was bringing them in with people going over.
rradina

join:2000-08-08
Chesterfield, MO

Re: No Whining About Lost Revenue?

But caps have been sold by all as the necessary "fine print" of "unlimited" service. What part of this strategy is necessary to maintain the health of the network, guarantee acceptable service for all and fund future network upgrades and maintenance? If speeds and CAPs can be generously increased and overage fees eliminated (granted, replaced by nudging users to the next highest tier), are they thinking like an insurance company? (i.e. A steady flow of new subs that won't hit the old CAP provides sufficient revenue to more than sustain the network stresses by those that will immediately use up to the new maximums). Does that work if the new higher caps attract new "heavy" users who see the true value of higher CAPs and more speed?
Uplinkpro

join:2008-02-11
Lake Charles, LA

Re: No Whining About Lost Revenue?

Yes, they been sold as such, but time and again has shown that even without caps all the money they make from being an ISP is profit. There's a reason Google can do 1/1gb service for only $70, and why that company in Japan can do 2/1gb for around $60 USD. They can do it because they can make a large profit even without the caps. If only .01% of the people hit the cap, but removing it would increase your customers by a mere 1% you're looking at a large increase in income. Of course those numbers are pulled out of thin air, but for this example .01% of their customer base would be a mere 75 people while 1% would be 7500 people. Now, I'm sure they have analysts and whatnot that have more accurate numbers but let's face it, if the caps drive away people and they admittedly affect a very tiny portion of your customers then it is only good business sense to gut the caps.

Also there's another angle people should be looking at. All of a sudden this company a good deal of us has probably never heard of are talking about it. The company has, at least temporarily, become relevant and is doing so in a positive way compared to Suddenlink. Just talking about it like this will bring people searching about the company towards such conversations and will make them more likely to do business with said company. Effectively, this has now become an advertisement for the company, and when there's a stark contrast like there is today between this company removing caps and Suddenlink re-instating them it makes this company look even better.

thaddiusjude

@simplot.com

As an interesting side note.....

I am on there 50/2 plan and they have quit adding my internet usage to my usage graphs for the last two months. I stream Netflix everyday and use quite a bit of bandwidth and it hasn't been showing up on the meter. I think they have just quit metering me. I used to have 100gb/mo cap. Looks to be no cap now.....

Not again

@50.59.173.x

Speed

It looks like they now need to expand the fiberoptics in their obsolete system. Still using Jerrold gear? Cable One in my market has outage after outage and so on.

Pashune
Caps stifle innovation
Premium
join:2006-04-14
Gautier, MS
Reviews:
·Vonage
·CableOne

Re: Speed

said by Not again :

It looks like they now need to expand the fiberoptics in their obsolete system. Still using Jerrold gear? Cable One in my market has outage after outage and so on.

According to a recent press release in May they're in the process of upgrading their infrastructure with a $60 million plan:

quote:

Cable ONE is working to better serve its customers by investing nearly $60 million in an infrastructure upgrade which will provide Cable ONE customers with enhanced speed, reliability, and quality in their internet, cable, and phone service. The project, which began in 2012 and will continue through 2014, will impact the majority of Cable ONE's 42 markets.
--
CableOne 10m/1m

AZ_OGM

join:2007-01-12
Phoenix, AZ

Upgrades will not be forced

The new pricing structure for ala carte internet is:
50/2 $50 with a 300GB data guideline
60/2 $75 with a 400GB data guideline
70/2 $100 with a 500GB data guideline

Bundle package pricing will be coming out in July.

I guess that residential customers aren't worthy of higher upload speeds.

But here is the key, they CAN'T force you to a higher tier if you are going over you guideline.