Saturday, September 13, 2014

Living in a Capped World

The data rich world that we now live in allows us to stream music and video easily and regularly.  This causes a lot of data to be streamed or downloaded to the user.  For a long time cellular providers and ISPs allowed there to be no data cap.  Fairly quickly cellular provides realized that they were able to set data caps, or limits, on how much data you could use a month.  At the time they were created the data caps were palatable, but now with the improvement of cellphones, 4G/LTE, and video and music streaming these caps are easily hit-able within a day without being careful.  The plans have severely limited users of the service in what they can do with their devices and what they pay for.

Cellular providers knew that data consumption on mobile was gaining in popularity, so to take advantage of this they created the worst of all evil, data caps.  These creations have forced numerous early adopters to change how they used their device.  It was all the way back in 2010 and 2011 that both Verizon and AT&T began rolling out their tiered data services.  The normal plan for many users was 2GB for ~$25-30 a month.  This was a stark change compared to their previous plans that allowed for unlimited data in the same price tier.  Around the same time in 2011 when Verizon create their tiered data plans their LTE roll out was hitting full swing with the release of their first LTE phone users would be able to take full advantage of the speed boost that LTE has over 3G.  Creating this cap was very lucrative for Verizon, users would be able to hitting data caps faster within a month, allowing them to charge exorbitant amount of money for data overages.  These same level caps are still in place, even though technology has advanced to make cellular data transmission cheaper.  Especially with the rise of Netflix and YouTube cellular providers are making it tougher and tougher on users.  The data limits are not likely to increase even though LTE-A is become a more solidified wireless transmission protocol, with speeds as fast as 300Mbps in real use.

Video streaming is one this that major ISPs and cable providers fear, usually the same company offers both services.  Conglomerate companies such as Comcast have had data caps in place on customers for a fair bit of time.  With TV packages become less lucrative since many people stream video instead many cable providers have decided to have their internet service to have tiered data caps themselves.  Comcast has minimally increased their cap from 250GB/mo to 300GB/mo.  This cap is insanely easy to hit if you have household members who watch Netflix or Youtube regularly.  Based on HD, 720p, an hour of Netflix will consume 2.2GB and Youtube will consume 1.1GB.  If you have three people in a household, streaming 3 hours of Netflix and 3 hours of Youtube on an average day you will consume 297GB of data in a month.  This is all fine if you want to stream at 720p but now 1080p has become the norm for streaming you will easily hit and go over a 300GB cap.  Which makes it extremely lucrative to them because it will either force you to upgrade to a higher speed rate to increase the data cap or shell out $10 per 50GB of data you are over.  ISPs squeezing you like a rock for blood coincides with the fact that data transmission of ISPs has become much cheaper while they still have these small data caps.  With 50 to 100 Mbps becoming more of a norm and top tier plans pushing into the gigabit range it will become extremely easy for these data limits to forever hinder how we use the internet and stagnate the advances in technology.


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