Why More Home Internet Providers Are Limiting Data Usage

Netflix customer Arthur Michelson demonstrates the online Netflix movie service Roku at his home in Palo Alto, Calif., Thursday, July 23, 2009. (Paul Sakuma/AP)

Most Americans with cell phones are familiar with tiered plans that limit a user’s data and charge fees for extra usage. Those limits are now becoming more common for home Internet providers, as companies roll out the new plans to cities across the United States.

This month, several towns and cities in Arkansas, Louisiana, Tennessee and Virginia became the latest to see those limited plans from Comcast.

Comcast, like other providers, have not been clear as to why it is moving away from unlimited home Internet service, but on Monday, a memo to employees and reportedly leaked online may have some insight.