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Bandwidth Caps and Fair Usage Policies


Internet Service Providers (ISPs) manage their networks through a careful process of network planning, setting rules and service monitoring. This ensures that they provide the most effective and efficient service, within cost constraints, expected by the user. Users often seek to acquire the maximum available bandwidth but at the lowest possible price - a combination that is mutually incompatible.

ISPs have to provide enough bandwidth capacity on their networks to cater for all their customers. ISPs calculate the average usage of their customers by constantly monitoring traffic flow through their network.  If there are too many individuals consuming bandwidth above the average level then the service is degraded for everyone unless an ISP increases its capacity. Additional capacity requires substantial planning and cost.  It is unfeasible to implement immediate change to reflect consumer demand. To cover the additional running costs of central connections, ISPs must carefully match prices to costs and users.

Bandwidth Caps

To avoid degrading service for the majority of customers, some ISPs set bandwidth caps; a specific limit at which the ISP may make a change to the service they supply to a particular customer. This change may be made by stopping or reducing the capabilities of the connection or by restricting the transfer of certain types of traffic.

Each Internet connection has a maximum bandwidth limit or speed at which data can be transferred along it. An alternative approach is to set a bandwidth allowance and to impose additional charges for use above the allowance level.  This is a method commonly used by the mobile industry when supplying Internet connections and accounts. 

ISPs impose service limitations to ensure the bandwidth available is not entirely consumed by a small number of heavy users reducing the service available to other users.

Bandwidth caps and allowances give ISPs a method of controlling their networks to ensure that the majority of users are not adversely affected by a small and irresponsible minority of heavy users. 

Fair Usage Policies

Some ISPs offer unlimited bandwidth packages without caps or allowances.  In order to stop customers abusing the service by consuming large amounts of bandwidth, for example by downloading large amounts of data such as an inordinate number of music files or films, customers may be asked to conform to a fair usage policy.  These policies are used to protect customers who use the service fairly and to encourage a fair distribution of network resources.

Action is only taken by the ISP when a particular customer exceeds their agreed allowance or infringes their fair usage policy. ISPs can use a variety of methods to monitor usage, and customers should check their provider’s website and Terms and Conditions for details of any caps, allowances or fair usage policies.

ISPs are left to enforce their own bandwidth caps and fair usage policies in different ways.  ISPA advises its members to be transparent and to explain the consequences of breaking their bandwidth caps or fair usage policies prior to a customer signing an agreement. It is essential that users read the information that is provided and make sure that they understand what charges or policies will be applied.

ISPA recommends members to incorporate any bandwidth caps, allowances or acceptable and fair use policies in their general sales and marketing literature, and on their websites.  Information should also be given to the customer at the point of registration for a service.

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Notes to Editors

Notes to editors:
The views expressed in this release are those of the Internet Services Providers' Association (ISPA UK) and do not necessarily reflect the corporate policies of the individual companies that are members of the Association or other organisations that may be mentioned in the release.

For further editorial information please contact the ISPA Press Office, 020 7340 4535

About the Internet Services Providers’ Association:

The Internet Services Providers’ Association (ISPA UK) was established in 1995 as a trade association to represent providers of Internet services in the UK. ISPA promotes competition, self-regulation and the development of the Internet industry. For a list of members or other information about ISPA, please consult the website: www.ispa.org.uk