As we recently noted, the Biden FCC has announced that it is finally “taking a look at” broadband usage caps. We’ve noted for decades how such limits are completely artificial, technically unnecessary constructs that exist specifically so your local telecom monopoly can rip you off. They don’t “manage congestion” or anything else; they exist exclusively to price gouge captive broadband customers trapped in markets without broadband competition (read: most of you).
It’s embarrassing (and a clear sign of corruption) that U.S. regulators haven’t taken aim earlier.
To be clear: the Biden FCC only said they were going to take a look at the problem. That doesn’t mean the inquiry will result in any substantive action. And even if they rushed forward with some kind of ban (which they lack the time to do), the telecom-industry-captured Trump FCC is most assuredly going to come in and dismantle all broadband consumer protection anyway.
Just in case, the big ISPs (and the captured regulators that love them) are still trying to undermine the usage cap inquiry. Back in October, Republican FCC Commissioner Nathan Simington openly applauded usage caps using a very stupid and inaccurate coffee analogy. And in new filings with the FCC, the cable lobby trotted out another false and silly metaphor for caps, the open salad bar:
“The cable group argued that data-capped plans are “a way for providers to distinguish their offerings from those of their competitors, which is beneficial for consumers. The use of different pricing models by a broadband provider is no different than a restaurant choosing to offer a tasting menu, a buffet, or unlimited soup and salad as an alternative to a purely à la carte menu.”
This is another lie. Again, there is no technical reason for broadband caps to exist. They serve no technical function whatsoever outside of jacking up the bills of captive customers who can’t switch ISPs. And they can’t switch ISPs because companies like Comcast and AT&T have dismantled most meaningful broadband competition via lobbying.
It’s price gouging only made possible by market failure, corruption, and regulatory capture.
To pretend that usage caps are a consumer net benefit (which they’ve been doing this whole proceeding) is just an outright lie. Though again, this is all a moot point because Trump’s FCC boss, Brendan Carr, loves costly and pointless broadband caps and will be dismantling whatever’s left of FCC broadband consumer enforcement. You know, for “populism” or whatever.
