From AT&T to Cable One: Who has the highest data caps in wireline, wireless and cable?

As consumers' desire for content and other forms of entertainment served over the internet has risen, wireless and wireline service providers have looked for the best way to optimize their networks by implementing data usage caps.

While the overall implementation of data caps varies between service providers, the overall idea is simple: It’s a way a service provider can place monthly limits on the amount of data you can use over your connection. When a user goes beyond that set limit, different network operators engage in different actions, including slowing down data speeds, charging overage fees and, in rare cases, disconnecting a subscriber.

Even before the latest battles over net neutrality began, the notion of capping data has been fraught with controversy. Several wireline, cable and wireless operators implement some form of caps while others don’t.

In this report, we consider which carriers have implemented data caps and how large those caps are. Each provider is ranked by the size of the data cap they offer and the charge they incur for exceeding it. Service provider groups that have no caps are ranked according to company size.

Telco patterns vary

In the telco segment, the implementation of data caps not only varies by company, but sometimes within the telco’s plans themselves. AT&T, for example, does not implement caps for its emerging 1 Gbps FTTH service. But it does charge $10 for every extra 50 gigabyte (GB) when users go beyond their limir on its 300 Mbps FTTH service. It also implements 150 GB and 25 GB caps for U-verse and DSL.

Likewise, CenturyLink does not charge overages for its 1 Gbps FTTH service but implements a 1 TB limit for its DSL subscribers.

And telcos overall aren’t universal with caps. Several other top telcos, including Frontier, Consolidated, Windstream, and Cincinnati Bell, don’t implement any caps regardless of the speed tier.

Cable MSOs remain divided

In the cable segment, MSOs are somewhat divided about implementing caps. Of the top three cable providers, Comcast is the only one that implements a 1 TB limit, whereas Charter and Altice don’t have usage caps.

As one of its provisions to get its acquisition of Time Warner Cable and Charter had to agree not to implement caps. Other MSOs like Cox, Cable One and Mediacom offer users options to purchase higher-speed tiers.

Cable One, for example, will upgrade to a higher tier, while Mediacom charges $10 extra to add more gigabytes. Mediacom, which offers various data limits for each speed tier, says customers should pay for bandwidth the same way they pay for everything else—based on quantity consumed.

Wireless customers face throttling

Given the fact that wireless operators are using spectrum, a resource that has its limitations, the large wireless operators have taken the approach of quietly dumbing down connections, or throttling a connection after a user goes beyond their monthly allotment. But consumers should be aware that the wireless operators’ “unlimited” data plans aren’t exactly limitless.

Several major wireless carriers cap high-speed data usage. Not content to go with the flow of other operators, T-Mobile offers the most generous data allowance at 50 GB for unlimited data.

After T-Mobile, the data allowances for unlimited data plans drops to 23 GB from Sprint and then an average of 22 GB for AT&T, Verizon and US Cellular. Similarly, several of the top wireless operators will also slow down a user’s speed if they exceed the limits on lower speed packages. AT&T and US Cellular will slow all data usage to a 128 Kbps (2G speed) for the rest of the billing cycle.

* All wireless operators throttle service speeds after a user surpasses their data allowance on unlimited and traditional plans

In this report we track three types of providers:

ILECs: Traditional telcos are at a crossroads. As more customers want higher speeds, this group has two options: shortening copper loops to deliver VDSL2 and Gfast, or deploying FTTH. AT&T and CenturyLink, two carriers with sizable copper plant infrastructure, have been deploying a mix of copper-based technology and FTTH. AT&T has committed to build fiber to over 12 million homes by 2019, while CenturyLink has built out FTTH to over 1 million homes and has set a broader goal to provide 90% of homes passed with 40 Mbps, 70% of homes and businesses passed with 100 Mbps and over 20% with 1 Gbps or higher.

Cable MSOs: Cable MSOs made their broadband business by delivering broadband over existing HFC facilities. The advent of DOCSIS 3.1 enabled them to offer 1 Gbps via their existing HFC plant. Some cable operators have opted to implement data caps while others like Charter are banned by the FCC from doing so for several years. Other cable MSOs such as Cox and Mediacom have set limits for bandwidth while Altice has no caps.

Wireless operators: Wireless operators in the United States, which now operate a mix of 3G and 4G LTE networks have been working to attract customers with unlimited wireless data plans. The allure is to play into the consumers ever-growing desire to get their social media, video and other data applications regardless of their location. The drive to unlimited has created a competitive environment among the top five wireless operators.