Cable One kills broadband cap, eliminating overage fees

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Cable One is breaking ranks from major MSOs such as Comcast (Nasdaq: CMCSA) that are beginning to penalize subscribers who exceed monthly data caps, announcing Monday that it will eliminate data plans with overage fees.

Since 2011, Phoenix, Ariz.-based Cable One had given subscribers who take its 50 Mbps broadband service a monthly data cap of 300 gigabytes and had been charging fees of 50 cents per gigabyte to customers who went over the cap. Cable One said Monday that it won't charge overage fees on the 50 Mbps service, and it also said it launched 60 Mbps and 70 Mbps tiers that have "even higher data guidelines."

Cable One may be able to use the elimination of the data caps to market its high-speed Internet service. The company gained 4,491 cable modem customers in the first quarter, while losing 5,435 basic video subscribers.

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