Wyden Unveils Bill That Limits Data Caps

Senator-Ron-Wyden-B

A lawmaker on Thursday introduced a bill that would limit Internet service providers' ability to impose data caps on broadband.

The "Data Cap Integrity Act," unveiled by Sen. Ron Wyden, specifies that ISPs can only restrict data if doing so effectively manages congestion and doesn't also discourage Web use. ISPs that intend to implement data caps also must provide tools that enable subscribers to accurately measure their data consumption.

The restrictions would apply to outright limits on data, as well as pricing structures that charge people fees for exceeding the caps.

The measure also tasks the Federal Communications Commission with evaluating ISPs' plans and certifying that any potential data caps "reasonably limit network congestion in a manner that does not unnecessarily discourage use of the Internet."

The FCC also would have to certify that the ISP is accurately measuring subscribers' data use.

Wyden's bill contains language prohibiting ISPs for giving "preferential treatment" to material based on either its source or content. Wyden's office said in a separate statement that the restriction will prevent ISPs from entering into "sweetheart deals with content providers so their data does not count toward users’ data cap, which would provide large, deep pocketed providers with a competitive advantage."

Consumer advocacy group Public Knowledge praised the bill. Christopher Lewis, vice president of government affairs, said in a statement that the organization "supports Sen. Wyden's effort to provide consumers with transparency on their data usage and to ensure that these caps do not limit innovative products and uses on the Internet."

Data caps and usage-based billing have drawn scrutiny from watchdogs in the past, but some FCC commissioners have endorsed pay-per-byte billing models.

Earlier this year, Comcast drew criticism when it said it would allow Xfinity subscribers to stream shows to their Xboxes without counting that data toward the monthly cap. That news sparked complaints from Netflix CEO Reed Hastings, who pointed out that Comcast's move disadvantages other streaming services. That's because data streamed through Netflix or other competitors will count toward the caps. 

The Department of Justice launched an investigation of Comcast's move over the summer, according to  The Wall Street Journal.

In September, Comcast began testing a pricing model that imposes data caps that range from 300 GB to 600 GB, depending on the subscription package. Users who exceed the limits face charges of $10 per 50 GB.

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2 comments about "Wyden Unveils Bill That Limits Data Caps".
  1. Paula Lynn from Who Else Unlimited , December 21, 2012 at 10:51 a.m.
    If. The bane of civilization.
  2. Robert Repas from Machine Design Magazine , December 21, 2012 at 11:36 a.m.
    The New America Foundation just released a report (http://www.newamerica.net/publications/policy/capping_the_nation_s_broadband_future) that bashes the idea of data caps, which is what prompted Sen. Wyden's action. The report claims, "Data caps encourage a climate of scarcity in an increasingly data-driven world." In addition, "The evidence suggests that the imposition of costly or punitive data caps are largely a business decision by ISPs to boost revenues per subscriber or protect legacy services in a market where consumer have few choices and where consumers only switch services on a very limited basis." I've argued against data caps since they were born...there was no reason for them other than to milk additional monies. They play absolutely no role in controlling congestion, which is what most ISPs claim as their reason for imposing these monstrosities.