AT&T exempts HBO Max from data caps but still limits your Netflix use

Enlarge / AT&T executive John Stankey at a presentation for investors at Warner Bros. Studios on October 29, 2019, in Burbank, California. (credit: Getty Images | Presley Ann)

AT&T's new HBO Max streaming service is exempt from the carrier's mobile data caps, even though competing services such as Netflix, Amazon, and Disney+ count against the monthly data limits. This news was reported today in an article by The Verge, which said that AT&T "confirmed to The Verge that HBO Max will be excused from the company's traditional data caps and the soft data caps on unlimited plans."

The traditional data caps limit customers to a certain amount of data each month before they have to pay overage fees or face extreme slowdowns for the rest of the month. "Soft data caps on unlimited plans" apparently is a reference to the 22GB or 50GB thresholds, after which unlimited-data users may be prioritized below other users when connecting to a congested cell tower.

"According to an AT&T executive familiar with the matter, HBO Max is using AT&T's 'sponsored data' system, which technically allows any company to pay to excuse its services from data caps," The Verge wrote. "But since AT&T owns HBO Max, it's just paying itself: the data fee shows up on the HBO Max books as an expense and on the AT&T Mobility books as revenue. For AT&T as a whole, it zeroes out. Compare that to a competitor like Netflix, which could theoretically pay AT&T for sponsored data, but it would be a pure cost."

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