Charter tries to convince FCC that broadband customers want data caps
Charter petitioned FCC to eliminate merger condition that forbids data caps. …
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Charter Communications has claimed to the Federal Communications Commission that broadband users enjoy having Internet plans with data caps, in a filing arguing that Charter should be allowed to impose caps on its Spectrum Internet service starting next year.
Charter isn’t currently allowed to impose data caps because of conditions the FCC placed on its 2016 purchase of Time Warner Cable. The data-cap condition is scheduled to expire on May 18, 2023, but Charter in June petitioned the FCC to let the condition expire two years early, in May 2021.
With consumer-advocacy groups and Internet users opposing the petition, Charter filed a response with the FCC last week, saying that plans with data caps are “popular.”
“Contrary to Stop The Cap’s assertion [in an FCC filing] that consumers ‘hate’ data caps, the marketplace currently shows that broadband service plans incorporating data caps or other usage-based pricing mechanisms are often popular when the limits are sufficiently high to satisfy the vast majority of users,” Charter told the FCC.
Charter’s filing continued:
There is also evidence that some consumers—either those who do not consume a lot of data and/or those who are looking for a lower-cost plan—may want a service where prices are based on the amount of data used… These different plans are proliferating in the market because they offer consumers a cost-effective alternative to unlimited data plans that are more than adequate to meet their needs. The DC/UBP [data caps and usage-based pricing] Condition, however, prevents Charter from keeping pace with
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