Commentary
Wireless Carrier's 'Pro-Consumer' Plan Still Discriminates
- by Wendy Davis , Staff Writer @wendyndavis, January 13, 2011
The allegations stem from MetroPCS's new pricing plans -- especially its cheap $40 a month subscription. For that amount, users will get unlimited voice and text and unlimited YouTube, but visits to other sites will be restricted, as will the ability to use Skype or other VoIP services. MetroPCS also is offering less restrictive plans at $50 and $60 a month.
Consumer advocates say that this pricing model violates the FCC's new rules, which prohibit wireless carriers from blocking competing VoIP services or Web sites.
For its part, MetroPCS calls its plans "pro-consumer" and "pro-competitive" and points out that consumers can still purchase plans without restrictions.
"We continue to offer consumers a full service, unlimited data plan," the company told the Washington Posts. "We increased consumer choice by adding two new rate plans that are less expensive and enable consumers to select the service and content they want at a price point they can afford."
But that statement misses the point: It's not the cheap prices that violate neutrality or the data caps in themselves. Rather, the potential neutrality violations come from limits that are based on substantive factors -- including the content of sites and the nature of particular applications.
If MetroPCS wants to offer a cheap plan that comes with low data caps, but where all data usage counts towards the caps, no one would say the company is violating neutrality principles.
As it is, however, a plan that allows unlimited YouTube viewing but not Netflix streaming, and that disallows Skype and other VoIP services, seems to conflict with the FCC's new rules. Of course, there's no guarantee that the FCC's order will hold up in court. But if MetroPCS doesn't back away from its new pricing plans, the company could well find itself litigating a test case of the new regulations.
Wendy Davis is a Senior Writer at MediaPost. You can reach Wendy at wdavis@mediapost.com
"If MetroPCS wants to offer a cheap plan that comes with low data caps, but where all data usage counts towards the caps, no one would say the company is violating neutrality principles.
"As it is, however, a plan that allows unlimited YouTube viewing but not Netflix streaming, and that disallows Skype and other VoIP services, seems to conflict with the FCC's new rules."
Exactly right. Too many people equate a "free" Internet with a "No Cost" Internet, and that is NOT what that word means in this context. Free in this case means unfettered, unhindered, open to all access. It does not mean one prices fits all. It's perfectly fine for MetroPCS to offer the lower speed and data caps at reduced prices. They can even advertise that these lower rate plans are not suitable for those services they were going to block. But blocking those services is NOT the way to approach this...the key is to use the lower rate plans as marketing tools. Let their customers get a taste of what they COULD be getting better and faster with the higher rate plans, and I'm sure you'll get a number of them upgrading to the better service, while still serving those that are only interested in email.