Cable companies and Trump’s FCC chair agree: Data caps are good for you
Data caps reflect “highly competitive environment,” cable lobby tells FCC.
arstechnica.com
Broadband industry lobby groups knew they would face no possibility of data-cap regulation once Trump won the election. But they submitted their comments late last week, making the case that data caps are good for customers and that the FCC has no authority to regulate them
The Internet & Television Association, representing cable firms including Comcast and Charter, told the FCC that what ISPs call "usage-based pricing" expands options for consumers and promotes competition and network investment. NCTA claimed that the offering of plans with data caps "reflects the highly competitive environment as providers seek to distinguish their offers from their competitors'."
Cable firms: Usage-based pricing does no harm
Data caps enable "innovative plans at lower monthly rates," the lobby group said. The NCTA also wrote:
Click to shrink...Usage-based pricing is a widely accepted pricing model used not only for communications services, but also for the sale of many other categories of goods and services. Such consumption-based pricing equitably and efficiently ensures that consumers who use goods or services the most pay more than those that do not. Indeed, in the communications context, the notion that requiring very heavy users of a service to pay more than light users has long been determined to be a reasonable pricing structure. It would be economically unsound to prohibit broadband providers from engaging in usage-based pricing in the absence of any harm caused by such practices.
ISPs: Pandemic doesn't show caps are unnecessary
"Requiring all users to pay for unlimited data would raise prices for consumers who use little data," USTelecom wrote. "This difference in price could be the deciding factor in whether an individual can, or wants to, subscribe to broadband. Moreover, requiring flat pricing plans with unlimited data would effectively require those who use less data to subsidize those that use more."