Federal Communications Commission Initiates Investigation on Broadband Data Limits
The Federal Communications Commission (FCC) has announced an official inquiry into data caps and their effects on consumers and competition. The move comes after receiving nearly 3,000 comments from consumers about broadband provider-imposed data caps.
The FCC has released excerpts from these comments, detailing the financial and practical difficulties consumers face due to data caps. For instance, one comment from a family in Arkansas states that they have to unplug their modem to prevent going over their data cap, affecting their children's ability to complete school work. Another excerpt highlights a provider's data cap that affects a telemedicine service provider's ability to serve low-income patients in Michigan.
Data caps can also cut off small businesses from their customers, slap fees on low-income families, and prevent people with disabilities from using necessary communication tools. An excerpt from an Iowa-based comment states that the expiration of the ACP plan increased their internet bill from $20 to $50 and imposed a data cap, forcing them to rely on their phone's hotspot and public Wi-Fi.
The FCC, led by Chair Jessica Rosenworcel, will explore why data caps continue to persist despite an increased consumer need for broadband and providers' demonstrated technical ability to offer unlimited data plans. The commission is seeking input on the current state of data caps, their impact on consumers, competition, and the FCC's legal authority to take action.
The notice seeks comment on current trends in consumer data usage, consumers' experience with data caps, how broadband subscribers are informed about caps, and the impact of data caps on competition. Consumers can submit their own stories and comments to the FCC through a portal launched by Rosenworcel.
In the US, Verizon, AT&T, and T-Mobile are the main carriers offering unlimited data plans, with Verizon typically having the best coverage especially in rural areas. Prices vary but typically start around $60–$90 per month depending on the plan and features. Maya Mobile and Ubigi offer unlimited data eSIM plans for travelers, with Maya Mobile starting from about 9 € for 5 days and Ubigi providing unlimited data in 70+ countries including the US.
However, the FCC's inquiry has received a dissenting statement from Republican commissioner Brendan Carr. Carr argues that the FCC lacks the statutory authority to regulate prices and that the inquiry is legally infirm for want of statutory authority. He also points out that the FCC's Title II decision has been stayed by the 6th U.S. Circuit Court of Appeals, which is based on the same claims of authority that the FCC invokes in this inquiry.
Despite these objections, the FCC remains committed to addressing consumer concerns about data caps. Consumers can read these and other stories on the FCC's website. The commission encourages everyone to share their experiences and opinions on data caps to ensure a comprehensive understanding of the issue.
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