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Tech Report: Rate Hikes For Online Data Usage

(KCBS) – As the demand for online video is growing, more and more companies are moving content to the cloud, and charging more for data use. KCBS Technoloy Analyst Larry Magid said businesses like Comcast and At&T are putting data caps in place.

“What they’re saying is that about two percent of their users are using 20 percent of their data,” he said.

Magid said, for example, Comcast is making it at 250 gigabytes a month. Magid said this means if you watch a lot of high definition movies, you can quickly use that amount.

KCBS Technology Analyst Larry Magid:

Magid said the company spokespeople are claiming if they don’t do this, they’ll be overwhelmed. It’s a real issue, Magid said, with the demand for streaming video growing, but he said customers will get upset, and the policy may need to be changed.

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