A recent Wall Street Journal (WSJ) article (requires subscription) chronicles the increasingly problematic effect of data caps on the quality of residential subscribers' Internet access experience.

Also known as a bandwidth cap, a data cap is a monthly bandwidth usage limit Internet Service Providers (ISPs) sometimes impose on subscribers at their standard monthly rates. While some ISPs charge customers more for exceeding their monthly bandwidth caps, in other cases ISPs may even cut off a customer’s service completely.

The problem is also harming companies like Netflix and Sling TV who are losing customers who can’t justify paying for a high capacity video streaming service that’s only available until they hit their data caps partway through the month. In response, Netflix lowered the video quality for users on ISP networks that use data caps as a way to help them avoid the limitations. The plan worked, but in the process Netflix angered customers, who blamed both the ISPs and the streaming service for the lowered video quality.

It's Not All About The Money

The problem goes beyond the extra fees charged to customers who use a lot of data. The WSJ article cites two Internet users who’d like to join the growing number of “cord cutters” who are dropping television service for Internet-based video. As one man put it:

“I wouldn’t have regular TV if not for the data cap,” he says. “Comcast has got me by the throat.”

Another added:

“I was planning to cut the cord when my DirecTV contract is up,” he says. “This is essentially a ploy to keep people from cutting cable in my opinion.”

An increasing number of subscriber complaints and suspicions about the accuracy of measuring bandwidth usage heighten concerns.

Feds Take Notice

A recent Wall Street Journal (WSJ) article (requires subscription) chronicles the increasingly problematic effect of data caps on the quality of residential subscribers' Internet access experience.

Also known as a bandwidth cap, a data cap is a monthly bandwidth usage limit Internet Service Providers (ISPs) sometimes impose on subscribers at their standard monthly rates. While some ISPs charge customers more for exceeding their monthly bandwidth caps, in other cases ISPs may even cut off a customer’s service completely.

The problem is also harming companies like Netflix and Sling TV who are losing customers who can’t justify paying for a high capacity video streaming service that’s only available until they hit their data caps partway through the month. In response, Netflix lowered the video quality for users on ISP networks that use data caps as a way to help them avoid the limitations. The plan worked, but in the process Netflix angered customers, who blamed both the ISPs and the streaming service for the lowered video quality.

It's Not All About The Money

The problem goes beyond the extra fees charged to customers who use a lot of data. The WSJ article cites two Internet users who’d like to join the growing number of “cord cutters” who are dropping television service for Internet-based video. As one man put it:

“I wouldn’t have regular TV if not for the data cap,” he says. “Comcast has got me by the throat.”

Another added:

“I was planning to cut the cord when my DirecTV contract is up,” he says. “This is essentially a ploy to keep people from cutting cable in my opinion.”

An increasing number of subscriber complaints and suspicions about the accuracy of measuring bandwidth usage heighten concerns.

Feds Take Notice

A recent Wall Street Journal (WSJ) article (requires subscription) chronicles the increasingly problematic effect of data caps on the quality of residential subscribers' Internet access experience.

Also known as a bandwidth cap, a data cap is a monthly bandwidth usage limit Internet Service Providers (ISPs) sometimes impose on subscribers at their standard monthly rates. While some ISPs charge customers more for exceeding their monthly bandwidth caps, in other cases ISPs may even cut off a customer’s service completely.

The problem is also harming companies like Netflix and Sling TV who are losing customers who can’t justify paying for a high capacity video streaming service that’s only available until they hit their data caps partway through the month. In response, Netflix lowered the video quality for users on ISP networks that use data caps as a way to help them avoid the limitations. The plan worked, but in the process Netflix angered customers, who blamed both the ISPs and the streaming service for the lowered video quality.

It's Not All About The Money

The problem goes beyond the extra fees charged to customers who use a lot of data. The WSJ article cites two Internet users who’d like to join the growing number of “cord cutters” who are dropping television service for Internet-based video. As one man put it:

“I wouldn’t have regular TV if not for the data cap,” he says. “Comcast has got me by the throat.”

Another added:

“I was planning to cut the cord when my DirecTV contract is up,” he says. “This is essentially a ploy to keep people from cutting cable in my opinion.”

An increasing number of subscriber complaints and suspicions about the accuracy of measuring bandwidth usage heighten concerns.

Feds Take Notice

A recent Wall Street Journal (WSJ) article (requires subscription) chronicles the increasingly problematic effect of data caps on the quality of residential subscribers' Internet access experience.

Also known as a bandwidth cap, a data cap is a monthly bandwidth usage limit Internet Service Providers (ISPs) sometimes impose on subscribers at their standard monthly rates. While some ISPs charge customers more for exceeding their monthly bandwidth caps, in other cases ISPs may even cut off a customer’s service completely.

The problem is also harming companies like Netflix and Sling TV who are losing customers who can’t justify paying for a high capacity video streaming service that’s only available until they hit their data caps partway through the month. In response, Netflix lowered the video quality for users on ISP networks that use data caps as a way to help them avoid the limitations. The plan worked, but in the process Netflix angered customers, who blamed both the ISPs and the streaming service for the lowered video quality.

It's Not All About The Money

The problem goes beyond the extra fees charged to customers who use a lot of data. The WSJ article cites two Internet users who’d like to join the growing number of “cord cutters” who are dropping television service for Internet-based video. As one man put it:

“I wouldn’t have regular TV if not for the data cap,” he says. “Comcast has got me by the throat.”

Another added:

“I was planning to cut the cord when my DirecTV contract is up,” he says. “This is essentially a ploy to keep people from cutting cable in my opinion.”

An increasing number of subscriber complaints and suspicions about the accuracy of measuring bandwidth usage heighten concerns.

Feds Take Notice

A recent Wall Street Journal (WSJ) article (requires subscription) chronicles the increasingly problematic effect of data caps on the quality of residential subscribers' Internet access experience.

Also known as a bandwidth cap, a data cap is a monthly bandwidth usage limit Internet Service Providers (ISPs) sometimes impose on subscribers at their standard monthly rates. While some ISPs charge customers more for exceeding their monthly bandwidth caps, in other cases ISPs may even cut off a customer’s service completely.

The problem is also harming companies like Netflix and Sling TV who are losing customers who can’t justify paying for a high capacity video streaming service that’s only available until they hit their data caps partway through the month. In response, Netflix lowered the video quality for users on ISP networks that use data caps as a way to help them avoid the limitations. The plan worked, but in the process Netflix angered customers, who blamed both the ISPs and the streaming service for the lowered video quality.

It's Not All About The Money

The problem goes beyond the extra fees charged to customers who use a lot of data. The WSJ article cites two Internet users who’d like to join the growing number of “cord cutters” who are dropping television service for Internet-based video. As one man put it:

“I wouldn’t have regular TV if not for the data cap,” he says. “Comcast has got me by the throat.”

Another added:

“I was planning to cut the cord when my DirecTV contract is up,” he says. “This is essentially a ploy to keep people from cutting cable in my opinion.”

An increasing number of subscriber complaints and suspicions about the accuracy of measuring bandwidth usage heighten concerns.

Feds Take Notice

A recent Wall Street Journal (WSJ) article (requires subscription) chronicles the increasingly problematic effect of data caps on the quality of residential subscribers' Internet access experience.

Also known as a bandwidth cap, a data cap is a monthly bandwidth usage limit Internet Service Providers (ISPs) sometimes impose on subscribers at their standard monthly rates. While some ISPs charge customers more for exceeding their monthly bandwidth caps, in other cases ISPs may even cut off a customer’s service completely.

The problem is also harming companies like Netflix and Sling TV who are losing customers who can’t justify paying for a high capacity video streaming service that’s only available until they hit their data caps partway through the month. In response, Netflix lowered the video quality for users on ISP networks that use data caps as a way to help them avoid the limitations. The plan worked, but in the process Netflix angered customers, who blamed both the ISPs and the streaming service for the lowered video quality.

It's Not All About The Money

The problem goes beyond the extra fees charged to customers who use a lot of data. The WSJ article cites two Internet users who’d like to join the growing number of “cord cutters” who are dropping television service for Internet-based video. As one man put it:

“I wouldn’t have regular TV if not for the data cap,” he says. “Comcast has got me by the throat.”

Another added:

“I was planning to cut the cord when my DirecTV contract is up,” he says. “This is essentially a ploy to keep people from cutting cable in my opinion.”

An increasing number of subscriber complaints and suspicions about the accuracy of measuring bandwidth usage heighten concerns.

Feds Take Notice

A recent Wall Street Journal (WSJ) article (requires subscription) chronicles the increasingly problematic effect of data caps on the quality of residential subscribers' Internet access experience.

Also known as a bandwidth cap, a data cap is a monthly bandwidth usage limit Internet Service Providers (ISPs) sometimes impose on subscribers at their standard monthly rates. While some ISPs charge customers more for exceeding their monthly bandwidth caps, in other cases ISPs may even cut off a customer’s service completely.

The problem is also harming companies like Netflix and Sling TV who are losing customers who can’t justify paying for a high capacity video streaming service that’s only available until they hit their data caps partway through the month. In response, Netflix lowered the video quality for users on ISP networks that use data caps as a way to help them avoid the limitations. The plan worked, but in the process Netflix angered customers, who blamed both the ISPs and the streaming service for the lowered video quality.

It's Not All About The Money

The problem goes beyond the extra fees charged to customers who use a lot of data. The WSJ article cites two Internet users who’d like to join the growing number of “cord cutters” who are dropping television service for Internet-based video. As one man put it:

“I wouldn’t have regular TV if not for the data cap,” he says. “Comcast has got me by the throat.”

Another added:

“I was planning to cut the cord when my DirecTV contract is up,” he says. “This is essentially a ploy to keep people from cutting cable in my opinion.”

An increasing number of subscriber complaints and suspicions about the accuracy of measuring bandwidth usage heighten concerns.

Feds Take Notice

In a recent editorial, the New York Times recognized that cord cutting is the wave of the future. They agree with the Coalition for Local Internet Choice, and other advocates for local telecommunications authority that the FCC should take steps to remove barriers to local Internet choice created by states on behalf of cable and telco lobbyists. The Editorial Board notes that laws limiting municipal networks block the ability for consumers to take full advantage of this phenomenon:

Among other things, they should override laws some states have passed that make it difficult or impossible for municipalities to invest in broadband networks.

Even though consumers are moving away from cable TV subscriptions, large corporate providers are making up for losses by an increase in Internet access subscriptions. As a result, they still maintain a significant leverage and consumers still face the same old problem - a lack of competition. Striking down anti-competitive state laws blocking munis would create a healthier balance, argues the Times Editorial Board.

This is an opportunity to respond to customer demand and make policy changes the consumers need, argues the NYTimes. Time to act! 

Customers are clearly saying that they want to watch and pay for TV in a different way. Regulators and media executives ought to heed and respond positively to that message — policy makers by encouraging more competition in the broadband market, and media businesses by making more of their content available online.

In a recent editorial, the New York Times recognized that cord cutting is the wave of the future. They agree with the Coalition for Local Internet Choice, and other advocates for local telecommunications authority that the FCC should take steps to remove barriers to local Internet choice created by states on behalf of cable and telco lobbyists. The Editorial Board notes that laws limiting municipal networks block the ability for consumers to take full advantage of this phenomenon:

Among other things, they should override laws some states have passed that make it difficult or impossible for municipalities to invest in broadband networks.

Even though consumers are moving away from cable TV subscriptions, large corporate providers are making up for losses by an increase in Internet access subscriptions. As a result, they still maintain a significant leverage and consumers still face the same old problem - a lack of competition. Striking down anti-competitive state laws blocking munis would create a healthier balance, argues the Times Editorial Board.

This is an opportunity to respond to customer demand and make policy changes the consumers need, argues the NYTimes. Time to act! 

Customers are clearly saying that they want to watch and pay for TV in a different way. Regulators and media executives ought to heed and respond positively to that message — policy makers by encouraging more competition in the broadband market, and media businesses by making more of their content available online.