It is the year 2024, yet some internet service providers in the United States still impose fees on you if you exceed the maximum data limit allotted for the month. Why? It’s not like access to the internet is a limited material resource. Comcast doesn’t cost more to provide 1001 gigabytes than 999 gigabytes.
Well, the Federal Communications Commission (FCC) is currently considering the matter, focusing on potential regulatory actions.
As of yesterday, the Federal Communications Commission issued a “Notice of Inquiry” (PDF), which is the federal government’s version of saying “we’ve got our eyes on you.” Poetically, the committee addresses the current state of the market for both home broadband internet plans and mobile plans, particularly looking at how audience usage patterns have changed and expanded after the coronavirus pandemic, and whether data caps are an unnecessary burden on American consumers. (It’s clear that 20 percent of us consume over 1 terabyte of internet data every month, while the average is just over 585 gigabytes.)
Many broadband internet service providers suspended their data cap policies during the lockdowns imposed by the coronavirus pandemic with the surge in home data usage. This doesn’t seem to burden these internet service providers, according to a 2021 report by the FCC. Why might that be? Again, Comcast doesn’t incur any additional cost to send you 1001 gigabytes vs. 999 gigabytes.
It’s important to note that the FCC’s new inquiry covers both standard broadband internet access and mobile phone access, with the latter being more frequently regulated by setting supposed justified limits to manage the inflated wireless traffic on limited spectrum. It’s a significant change in the scope of the FCC’s authority.
The inquiry states: “We seek a better understanding of why data caps persist despite increased broadband needs by consumers and the clear technological capacity of providers to offer unlimited data plans.” The actual regulation resulting from the investigation and internet service providers’ responses seems elusive… but the inquiry also outlines the “legal authority of the FCC to take action on data caps.”
If I may editorialize: the FCC seems to be saying, “Give us a valid reason behind the continued existence of these data caps, or we will hit you with significant regulatory sanctions.”
Under the Biden administration and Chairperson Jessica Rosenworcel, the FCC has been notably consumer-friendly and regulation-supportive. The standard American broadband speed has quadrupled, ranging from 100 Mbps downstream to 20 Mbps upstream. The committee has compelled service providers to display service labels akin to familiar nutrition labels, leading to clearer pricing analysis and speed expectations.
However, the FCC is not entirely free in its regulatory efforts. American companies can still appeal before the court system regarding any federal regulations not directly from Congress – and depending on the specific court, these appeals may find a business-friendly judge. The FCC is also historically less active during conservative presidencies and may find itself more on the side of non-intervention towards broadband regulation under a potential second Trump administration.
For example, FCC Commissioner Brendan Carr, appointed by Trump in 2017, opposed Rosenworcel, stating: “I cannot support the Biden-Harris administration’s rush toward price regulations because the FCC does not clearly have the legal authority to do so.”
