AT&T to force users to consume less bandwidth

AT&T has confirmed that it will be forcing users to consumer less bandwidth or pay the price. For any user that consumes more than 150 GB in a month, they will be forced to pay an additional $10 for every 50 GB they consume.

This new model will certainly affect users that enjoy streaming movies and video online. It will also put a cramp in Netflix style. Based on different reports from the NY Times and Nielsen, many users will come dangerously close to this cap for just video consumption on PCs (excluding iPads, Blueray, Playstation and other internet connected devices). The growth of HD video could certainly take a performance hit as a result of the new measures.

An additional consideration is that data transfer overhead will account for a significant amount of traffic (consumption).

HD developments may take a backseat with such new bandwidth concerns. Netflix HD video currently streams at 720p, but some companies currently offer 1080p streams. This could be a short-term victory for traditional pay TV over internet TV.