FCC Urged to Investigate Broadband Caps

06.05.2011

Broadband caps may undermine the FCC's own Net neutrality goals, the letter suggests, and could ultimately lead to "anticompetitive and monopolistic" practices. The two groups are particularly critical of AT&T's new data limits.

"Unlike competitors whose caps appear to be at least nominally linked to congestions during peak-use periods, AT&T seeks to convert caps into a profit center by charging additional fees to customers who exceed the cap," the letter states. And since AT&T will profit from users who exceed its cap, it has a "perverse incentive" to avoid raising the cap, even as its network capacity increases.

The groups also point out that AT&T's new caps seem suspiciously low: "It remains unclear why AT&T's recently announced caps are, at best, equal to those imposed by Comcast over two years ago. The caps for residential DSL customers are a full 100GB lower than those Comcast saw fit to offer in mid-2008."

Let's call the broadband caps what they are: A Netflix tax. More accurately, they're a streaming tax designed to penalize users of third-party video services. Consider the evidence: