Comcast President: Usage-Based Pricing Is 'Nickel-And-Diming'

By Ian Bush

PHILADELPHIA (CBS) -- Most cell service providers charge you more to use more data. Some cable companies are talking about getting in on that action -- but apparently not Comcast.

The average web surfer uses only about 8GB of data a month. For years, Comcast has capped usage at 250 gigs. But with more devices to stream movies and music, other companies might consider changes.

"The rate at which people are using Internet data traffic has grown substantially, and it looks like it's going to continue to grow."

Ryan Lawler with the tech site GigaOM says at the UBS Global Media and Communications Conference on Monday, Comcast Cable president Neil Smit likened usage-based (or tiered) pricing to nickel-and-diming customers and said that would push away subscribers.

But Lawler says not all cable and broadband providers are closing the door, with the argument that lighter users could save money:

"People who don't use that much data traffic shouldn't necessarily be paying the same amount as someone who's streaming movies from Netflix and basically running up the infrastructure cost of the network."