fair usage policies

What are broadband fair usage policies and are they really fair?

A fair usage policy, by any other name, is still a way for a provider to cap and/or limit that “unlimited” broadband connection that you are paying for.  Essentially the thoughts behind a fair use policy are to limit heavy internet users during the busiest periods of the day so that everyone has a steady connection.

This is being done in a variety of ways, including purposely slowing a user down.  So that slow evening connection really isn’t your router’s fault.  For example, in the UK Virgin Broadband has varying peak hours depending on the broadband package you have purchased.  Within those peak hours, they will slow your connection speed down by 50%-75%, if you go over a specified Mb usage.

The peak hours range from 9am to 9pm.  However, the higher use packages, such as their fibre optic 100mbps package has a slightly different policy.  The peak times for this package are 5pm to 12am.  Instead of slowing down usage overall, this package slows down peer to peer networks and newsgroup usage.

Each internet provider has their own take on the concept of fair usage.  Many of the providers are moving to high end limited use packages. For example, O2 Broadband is offering a 100 GB to 250 GB monthly allowance plan and others, like Sky offer truly unlimited plans (at least I couldn’t find any fine print on Sky’s website.)

If you are looking for a new provider then here’s what to check first:

- What is their fair use policy?  Remember, it may not be called a fair use policy.  It may be called traffic management or some other label.  You have the right to review it in writing.

- Is there a tool to track your usage?  The company may provide a website or downloadable tool to help you manage your usage.  If they don’t then you can find a great tool at

- What are the consequences of going over your “allowed” usage?  Make sure you understand if you will be given warnings, if your data will slow down, or if your services will be terminated.  Make sure this is outlined in writing.

- Verify what the peak hours are and how they will affect you and your plan.  Since providers vary and the plans from providers vary, it’s always good to request a breakdown of what the peak times are, what the data usage allowances, are and what that means for your specific plan.  I recommend asking for confirmation of these if you can’t find them in the contract as your provider should be able to supply this information.

So the message really is here to make sure you read the fine print to fully understand the usage limits before signing a provider contract.