FCC Chairwoman Jessica Rosenworcel announced the agency’s formal inquiry into how data caps affect consumers and competition in the United States. This exploration comes as consumer stories pour in, detailing the detrimental impacts of these limits on households and small businesses across the country.
“For most people in the United States, rationing their internet usage would be unthinkable and impractical. But for millions, limitations on how much data they can use online is a constant concern. And many are not happy about it,” Jessica Rosenworcel stated.
FCC is assisting broadband customers to share their own issues. You can visit: https://www.fcc.gov/data-caps
She emphasized that data restrictions can sever small businesses from customers, impose fees on low-income families, and hinder people with disabilities from using essential communication tools.
Examples of data caps
AT&T’s data caps vary by internet service type: For instance, AT&T Fiber is offering unlimited data, AT&T Internet is offering 1,024 GB. AT&T’s DSL connection promises 150 GB per month. AT&T’s Fixed Wireless Internet is offering 350 GB per month.
“If you go over your data allowance, you’ll be charged $10 for each 50 GB of overage. The most you’ll be charged for overages in a bill period is $100 for AT&T Internet and $200 for DSL and Fixed Wireless Internet,” AT&T said in its website.
Comcast’s Xfinity Internet service has a 1.2 terabyte (TB) data cap per month. If you use more than 1.2 TB in a month, you’ll be charged an overage fee of $10 for each 50 GB block you use. However, Comcast offers one courtesy month per 12-month period, so you won’t be charged the first time you exceed 1.2 TB in a month.
Verizon’s unlimited Internet plans have no data usage caps. However, data speeds may be temporarily slower than other traffic during times of congestion.
Impact on customers
The FCC has shared hundreds of consumer stories describing how data caps have negatively impacted their lives, ranging from families having to limit their internet usage to small business owners facing steep fees.
For example, one consumer in Arkansas reported having to disconnect their modem to avoid going over the data cap, forcing them to find public Wi-Fi for their children to complete schoolwork. “We can’t afford $190 a month for unlimited internet,” the Internet user said.
Another in Michigan, providing telemedicine services for low-income patients, highlighted how they face exorbitant fees due to a lack of other reliable internet providers in the area.
One customer in New Mexico said data cap of around 1.3TB/month is low for the family. “For high data cap, I’m required to purchase the fastest internet speed offered. On top of that, I have to pay either $10/100GB over my cap, or $40 extra/month to make my data cap 5TB/month. So the advertised price of $75/month become $115. It is unfair,” the broadband customer said.
One customer with family of 6 and limited resources in Arizona is finding it difficult to pay for broadband. The family has kids in school and high school that requires a lot of online work. They also do remote work. Data cap is difficult for them. “We are force to use the present provider since it’s the only provider we have in my area and forced to pay for unlimited or otherwise get penalised to use more data,” the Internet user said.
FCC actions
The Commission’s Notice of Inquiry opens a formal proceeding that invites public comments on data caps’ current state and whether they harm competition and consumer access to broadband services. The agency will explore why data caps persist despite growing consumer broadband needs and providers’ ability to offer unlimited plans.
Through this investigation, the FCC aims to ensure that consumers are prioritized over restrictive industry practices. The public is encouraged to share their experiences with data caps and submit feedback via the FCC’s website.
Baburajan Kizhakedath
