• by Wendy Davis , Staff Writer @wendyndavis, October 17, 2024

During the early months of the COVID-19 pandemic, some of the country's largest broadband providers suspended monthly caps on data that could have otherwise restricted subscribers' ability to work remotely, virtually visit doctors or stream tv shows.

The move didn't appear to affect the quality of broadband service, suggesting that caps aren't technically necessary. That's according to the Federal Communications Commission, which this week launched a study of data caps -- including both maximum allotments of data and usage-based billing, which involves charging subscribers higher fees after they exceed a cap.

“We seek to better understand why the use of data caps continues to persist despite increased broadband needs of consumers and providers’ demonstrated technical ability to offer unlimited data plans,” the FCC said Tuesday in its notice of inquiry.

“Reports indicate that the temporary suspension of data caps does not appear to have significantly affected fixed network performance, despite the fact that demand for broadband data significantly increased during the pandemic,” the agency added, citing its 2021 report on broadband access.

Chairwoman Jessica Rosenworcel noted Tuesday that data caps can thwart people's ability to use the internet for purposes including work and telemedicine, adding that the FCC has received complaints about caps from around 3,000 people in the last year.

“The bottom line is that in our post-pandemic world, so much in our lives depends on internet access and so many consumers are writing us frustrated by these restrictions. We are going to get to the bottom of it with this inquiry,” she stated.

The two Republican commissioners, Brendan Carr and Nathan Simington, dissented from the decision, arguing that the agency was inching toward rate regulation.

“Prohibiting customers from choosing to purchase plans with data caps -- which are more affordable than unlimited ones -- necessarily regulates the service rates they are paying for,” Carr stated.

The broadband lobby, which earlier this year urged the FCC to continue to allow data caps, predictably opposed the decision to open an inquiry.

"Today’s competitive internet marketplace offers consumers a wide range of service choices, including wired and wireless technologies, a range of speed tiers and innovative features, and flexible pricing options, such as usage-based billing,” the NCTA – The Internet & Television Association stated this week.

“Instead of launching a proceeding that needlessly questions the accepted, pro-consumer benefits of more competitive options, the FCC should return its focus to clearing the real obstacles that impede our national drive to bring internet to all.”

Consumer advocates, on the other hand, praised the agency's move, arguing it will shed needed light on how and why internet service providers impose data caps, as well as their impact on subscribers.

“There’s no way today to make a categorical judgment about all data caps, usage-based pricing plans and other structures that carriers employ,” Free Press vice president of policy Matt Wood stated this week.

He added that some providers “may face real bandwidth constraints at particular times and places in their network,” but others “may impose caps and overage fees without any technical justification, just because they face no real competition and can get away with penalizing their customers.”

“Data caps remain one of the most mysterious -- and abusable -- limits for consumers using broadband,” Harold Feld, senior vice president at Public Knowledge added.

“Are bandwidth caps preventing people from using the applications they need? How widespread are bandwidth caps? How much extra do consumers pay to use services they already pay for? Right now, we have no way to know,” he added.