As per the CEO Daniel McCarthy, Frontier is one among the Internet Service Providers in America that will not do things that the customers hate. The latest news from Frontier is that they will not cap the data their customers use, like the other service providers do.
“We have not really started or have any intent about initiatives around usage-based pricing,” McCarthy told investors at the June 1 Bernstein Strategic Decisions Conference. “We want to make sure our product meets the needs of customers for what they want to do, and it doesn’t inhibit them or force them to make different decisions about how they’re going to use the product,” he added.
This tactic of Frontier is very different from that is being followed by AT&T and Comcast. Both Comcast and AT&T have started capping data volumes for the customers. Comcast CEO Brian Roberts said that the data policy of their company is similar to that of electricity or gasoline.
“Just as with every other thing in your life, if you drive 100,000 miles or 1,000 miles you buy more gasoline. If you turn on the air conditioning to 60 vs. 72 you consume more electricity,” Roberts said. “The same is true for [broadband] usage. Cellular data is already billed this way; the more bits you use, the more you pay,” he remarked.
The data caps of Comcast and AT&T Internet plans will make sense to common people, but the truth be told, Internet data cannot be compared with gas or electricity. These days, data usage does not mean pushing networks to the limit, but this can happen someday, and in such a situation, data caps to control usage may make sense.
According to McCarthy, technology has kept the capacity of data lines much ahead of demand. He also added that data caps could be used to control customer behavior. Some say data cap is a good method to stop people from dropping the traditional TV in favor of online streaming. It is a guard against people cutting the cord, and a way for ISPs to find customers who pay for their data plans.