Please ensure Javascript is enabled for purposes of website accessibility

Comcast to Delay Imposing Northeast Data Caps

By Rich Duprey - Updated Feb 9, 2021 at 11:33AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A new agreement applies to a dozen Northeast states that currently live without limitations.

Customers in the Northeastern states that were about to have limits imposed on their internet data by Comcast (CMCSA -0.02%) got a six-month reprieve after the Pennsylvania attorney general got the cable giant to agree to wait.

Because many people are still working from home and communities still have not allowed their kids to go back to school because of COVID-19, hitting the 1.2 terabyte cap on data is much more readily achieved. Consumers now have until July before Comcast will charge them $10 for every 50 gigabytes of data in excess of the limit, up to a maximum fee of $100.

Scissors cutting coax cable over $100 bills

Image source: Getty Images.

Most of Comcast's Xfinity customers already live under a data cap regime, but a dozen states in the Northeast escaped the limits until the cable company said in November it would begin imposing them on Jan. 1.

It says 95% of its customers never reach the limit, but those who do regularly can pay $30 per month extra on their Xfinity bill to have unlimited data.

The agreement with Pennsylvania will allow low-income customers to avoid the data caps for the rest of 2021, delay the data caps for everyone else until July, and waive early termination fees for Xfinity customers through the end of December.

Josh Shapiro, the state's attorney general, said in a statement, "This is not the time to change the rules when it comes to internet data usage and increase costs."

The cable operator has suffered a wave of defections from customers cutting the cord and switching to streaming services for content (Comcast operates as a government-permitted monopoly in many communities, so it's the only choice for internet service).

In 2020, the media company lost 1.4 million cable subscribers and 275,000 phone customers, but gained over 1.9 million internet subscribers.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Comcast Corporation Stock Quote
Comcast Corporation
$42.01 (-0.02%) $0.01

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/20/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.