Comcast Ruling Means Web Usage Fees

Stock quotes in this article: CMCSA , AAPL , T , TWC , NFLX  

That likely means a push by network operators to a usage-based pricing model may be on the horizon.

For some companies, usage-based pricing is already being employed. Last month, Time Warner Cable (TWC Quote) imposed monthly caps on the amount of data Internet users in Beaumont, Texas, would be allowed to upload and download. Subscribers who go over these caps will be charged $1 per gigabyte.

While a usage surcharge isn't expected to affect users who simply browse Web pages or check email, Internet users who download high-definition movies from Apple's (AAPL Quote) iTunes store or Netflix's (NFLX Quote) download service could be subject to extra fees if they go over their quota.

Based on Time Warner Cable's provisional pricing plan in Beaumont and his own estimates, Moffett says that an average TV household would end up spending $185 a month on broadband usage fees. Of course, that hefty amount assumes that the household subscribes to the "Turbo" tier service and streams 57 hours of HD video per week, which is the amount the Nielsen Media Research estimates the average amount of TV consumption in the U.S. to be. Certainly, this is one extreme example, but it illustrates the rising costs of Internet usage that could slam subscribers.

"Throw in some music downloads, some photo sharing perhaps, maybe a website or two, and the costs start to spiral further," Moffett writes. "A 'Lite' tier customer would spend even more."

The practice of usage-based pricing wouldn't confined to cable operators. AT&T (T Quote) is also mulling a surcharge for DSL customers who go above the normal amount of downloaded data on the Internet.

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