By Wei Shi

Comcasts’s Xfinity Mobile is going to limit video streamed over cellular to 480p resolution and cap hotspot speeds at 600 kbps unless customers pay more.

In a letter sent to current customers, which inevitably got posted online for all to see (on Reddit), Xfinity Mobile announced two changes to its service: it will limit the resolution of video streaming over cellular networks to 480p (so-called “DVD quality”), and it will cap the speed of hotspots powered by mobile device to 600kps. Although it may help customers’ data plans last longer, ultimately this is a measure to control cost. Comcast does not have its own mobile network and is reselling Verizon Wireless’s data.

Limiting the resolution of mobile video streaming is nothing new. YouTube will fall back to SD (240p or 360p) when the network quality degrades, prioritising continuous play over picture quality. For a long time, Netflix had by default capped the resolution of streaming over cellular at 600p before it gave users the choice to go for higher resolution.

Neither is limiting tethering using mobile hotspots. When T-Mobile launched its Uncarrier programme “One”, mobile tethering speed was limited at 128kps. Even with the expensive “One Plus” the hotspot speed was only lifted to 512kps.

However Xfinity could have handled the issues better to avoid the backlash on its reputation. Xfinity should realise that the increasing popularity of video streaming is the main driver for data consumption. Therefore when designing the products it should either raise the data plan cap of its “Unlimited” data plan, currently at 20GB, or go for real “unlimited” but bill different customers based on the speeds offered, like the common practice in Finland, where per capita mobile data consumption is the highest in the world.

More importantly, Xfinity should have given its existing customers the grace period till their current contracts ran out if it wanted to avoid antagonizing them. Exerting new limitations and charging additional fee for services that are in the original contract is even potentially a breach of contract on the service providers’ side.