Although the FCC typically focuses on internet speed and availability, Netflix has asked the commission to include data caps as well – a suggestion the National Cable & Telecommunications Association opposes.
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Despite making relative strides with ISPs, the comment to the FCC reflects the broader stance Netflix takes with the notion of a broadband cap.
That, according to Netflix, violates a section of the Telecom Act that requires the FCC to keep tabs on whether advanced telecom services are being deployed to all Americans in a reasonable and timely fashion.
So it’s not surprising that Netflix feels strongly about the emerging trend of data caps, but the company really pulled no punches in a letter to the FCC. As such, Netflix (and other similar providers) would benefit from a structure that allows for unlimited data consumption. High, low, or somewhere in between, Netflix highlights that there is no good reason to implement caps on well-managed fixed-line networks, despite a decade of ISPs trying to justify the price gouging.
“Because of a low data cap, an online service may need to pay an ISP to zero rate its traffic to enable that ISP’s customers to access the online service”.
In a letter sent to the Federal Communications Commission last week, Netflix said that the commission should consider banning data caps on wired internet connections and banning “low” data caps on mobile connections. “Consumers increasingly expect more from their broadband connection, and they expect that broadband Internet will deliver a television experience that is the same or better than what they receive from their cable service, satellite provider, or local broadcaster”.
A data cap or allotment of 300 GB of data per month or higher is required just to meet the internet television needs of an average American. Netflix has gone on to emphasize that the above-average usage of today is simply the average usage of tomorrow.
Netflix hates data caps, which make it harder for people to watch Netflix. ISPs could employ data caps in a way that explicitly discriminates in favor of one content source or another, further limiting consumer choice.
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Netflix is also quick to point out that as 4K streaming becomes the norm (not to mention services we haven’t even invented yet), seemingly “generous” usage caps will still likely limit consumer options.
