Cox Communications cleared the air on speculation that it might launch usage-based billing and charge overage fees on its broadband caps, saying it has no such plans. The speculation arose after a Cox customer took a screenshot of message on the company's website that said they would be charged overage fees for exceeding the monthly bandwidth allotment for their service tiers.
This led many to believe that the service provider had adopted a new usage charging policy. While the company does meter usage, it said the message was displayed by mistake. For now, Cox has the policy of working with customers who exceed caps to get them on a more appropriate service plan when they exceed their usage caps, though a company spokesperson acknowledged to Multichannel News that Cox continues to evaluate different billing approaches.
Comcast (Nasdaq: CMCSA) and Charter Communications (Nasdaq: CHTR) are among other cable TV operators that have usage caps, and Time Warner Cable (NYSE: TWC) and Suddenlink have gone as far as to experiment with usage-based billing. Both usage caps and usage-based billing remain sensitive regulatory issues.
-see this Multichannel News story
TWC rolled out usage-based billing on a limited basis in Texas
Cox last year started warning users who exceeded broadband caps