Cell phone companies are not the only ones capping your data usage, Internet Service Providers (ISPs) are too.
I’ll be upfront, I’m strongly against capping data usage on from both phone companies and Internet Service Providers.
In October 2008, Comcast enacted a data cap of 250GB. You go over, you pay.
The problem is many consumers don’t realize there is a data cap and how to check how much data they are actually using.
During my research for this article, there hasn’t been concrete data on how much data users are actually consuming. If so, ISPs are being quite mum about it.
Gigaom.com reports:
“As the basic pricing for broadband service has changed, the FCC has not kept up. It hasn’t distributed data on the consumers affected, established any sort of independent group to ensure that ISPs were tracking customers’ broadband usage fairly and doesn’t even insist that ISPs who implement caps provide meters to their customers.”
If these data restrictions are in place should Internet Service Providers be obligated to show you how much data you are using? I think so, especially if the charges are going to hit your wallet.
If, according to the New America Foundation, costs for Internet use continue to decrease then why do we need these caps?
Reasons for Bandwidth Cap
Internet use among Americans has been increasing over the years. In order to keep up with demand, ISPs need to continue to maintain and improve their equipment to ensure quality of service.
A Michigan State University report supports the bandwidth caps stating, “the effects of well-designed [usage-based pricing] plans on consumers are likely to be beneficial, as are the effects of UBP on investments in the broadband infrastructure.”
The high demand also creates network congestion and slow downs when trying to get access to content online. However, Comcast admitted to the New America Foundation that data caps do not address the issue of network congestion.
I think it’s important to evaluate the quality of service that these ISPs are providing their customers. A FCC report released in July 2012 found there have been “striking across-the-board-improvements on key metrics underlying user performance” from August 2011 to April 2012.
Room for Improvement
While these ISPs are improving, the speed and rural penetration of broadband Internet in rural communities could be better.
Gigacom reports that the average U.S. broadband speed is 6.6 mbps and ranks 9th in speed worldwide. The country with the fastest speed is South Korea with an average broadband speed of 14.2 mbps.
The U.S. Senate tried to intervene, by
introducing a bill in the Senate called the Data Cap Integrity Act. The act created by Sen. Ron Wyden (D-OR) wasn’t enacted and was referred to committee in the 112th Congress.
Caps Hurt Digital Journalism
As a digital journalist these data caps hurt our ability to provide meaningful and in-depth content. If users fear they’re consuming too much data will that stop them from visiting and engaging with our content?
Regulation, not restriction is needed to help digital journalism thrive. These data caps will ultimately influence how media companies share and distribute content.
I’m curious how many consumers know about these data caps. Do you?
Photo by: Steve Rhode