AT&T and Verizon defend data caps on home Internet service2014-09-24 09:16 by Daniela
Tags: AT&T, Verizon
The two major carriers AT&T and Verizon have recently been trying to persuade the FCC to preserve 4Mbps as the latest definition of broadband. According to them, it is best for the FCC to abandon all of its plans to raise the minimum to 10Mbps. The companies also argue now that the FCC should not consider data caps when deciding whether an Internet service qualifies as broadband.
Currently, Verizon does not apply any caps on its home Internet service. AT&T advertises 150GB and 250GB monthly limits with financial penalties when consumers use more than that. Now AT&T sends notices to customers about heavy usage, but it generally hasn't enforced the financial penalties.
Filings with the FCC show that AT&T and Verizon have objected to proposals by Netflix and others that hold an interest in data caps as per the definition of broadband presented by the FCC.
"Despite Netflix's assertion that data usage thresholds should be accounted for in the Commission's deployment benchmarks, the Commission should not utilize pricing plans in its determination of whether advanced capabilities have been deployed to all Americans," AT&T wrote.
"As an initial matter, AT&T is not aware of tiered data plans that actually limit the amount of data a customer can use. Rather, to the extent providers use tiered data plans, those plans attach different prices to different buckets of data and require that customers who exceed the allowance associated with their chosen plan to pay for their additional usage. In this respect, tiered data plans are no different from any other pricing model that relates charges to usage."
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