12/2 Joint Reply Comments Urging the FCC to Adopt Rules that Protect Consumers from Broadband Data Caps

The Open Technology Institute at New America, along with Public Knowledge, Benton Institute For Broadband & Society, and National Consumer Law Center, submitted reply comments in response to the Federal Communications Commission’s Notice of Inquiry on the effect of internet service data caps on consumers and competition. The record shows that:

• Data caps and their attendant costs—surprise fees, overage charges, unclear information, and throttling—are harmful to consumers, especially lower-income consumers.
• Data caps additionally have a negative impact on small businesses and stymie business growth.
• Data caps serve no technical purpose and have no legitimate economic justification.
• Data caps have a negative impact on competition and simply serve as a tool to boost profits.
• Under Section 706, § 257, and Title II, the Commission has the legal authority to proceed with its Notice of Inquiry and to address harmful data caps.

Overall, the record both demonstrates that data caps are harmful to consumers and fails to provide evidence that they serve a necessary technical purpose, but it remains limited. The Commission should further develop the record through additional, targeted inquiries to better understand the full effect of data caps on the marketplace.