Netflix Pushes FCC to Crack Down on Usage Caps Netflix is urging the FCC to crack down on broadband usage caps, stating that they unfairly limit consumers' ability to consume streaming video services. Netflix has long has an adversarial relationship with ISPs, and often for good reason. Usage caps on fixed-line networks are specifically designed to protect ISP TV revenues from Netflix competition, allowing an ISP to both complicate and generate additional profit off of the shift away from legacy TV.

"Data caps (especially low data caps) and usage based pricing (“UBP”) discourage a consumer’s consumption of broadband, and may impede the ability of some households to watch Internet television in a manner and amount that they would like," said Netflix in a new filing with the FCC "For this reason, the Commission should hold that data caps on fixed �line networks ��and low data caps on mobile networks�� may unreasonably limit Internet television viewing and are inconsistent with Section 706." Netflix's filing comes as ISP's increasingly turn to broadband usage caps to take advantage of the lack of broadband competition in many markets. Fearing FCC crackdown both Comcast and AT&T raised their caps to one terabyte, though many ISPs still cap usage at much-lower allotments. 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. "Data caps on fixed �line networks do not appear to serve a legitimate purpose: they are an ineffective network management tool," notes the company. (ISPs) have stated that data caps on fixed line networks do not serve a traffic management function....the Commission should recognize that data caps and UBP on fixed line networks are an unnecessary constraint on advanced telecommunications capability." 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. "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," said Netflix. "An above average television watcher, a multi-occupant household, or a consumer wishing to watch in 4K requires a much higher cap." The FCC has historically shown very little interest in cracking down on usage caps or potential anti-competitive abuse of them (zero rating). In fact, the agency has shown little interest in cracking down or even highlighting price gouging of any kind. For example the FCC's $300 million The FCC has historically shown very little interest in cracking down on usage caps or potential anti-competitive abuse of them (zero rating). In fact, the agency has shown little interest in cracking down or even highlighting price gouging of any kind. For example the FCC's $300 million broadband availability map omits even including price data, and the agency has long turned a blind eye to the ISP use of misleading fees to covertly jack up advertised rates. As such, if you're waiting on the FCC to seriously police usage caps (or even ensure ISP meter accuracy), you may not want to hold your breath.







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Most recommended from 110 comments



davidc502

join:2002-03-06

Mount Juliet, TN 38 recommendations davidc502 Member Users already pay Users already pay high prices for access to the internet... Additional charges, like metering, is just a cash grab.



In many cases ISP's already charge Netflix to peer with them, so to charge customers for data usage coming from Netflix is completely absurd. amungus

Premium Member

join:2004-11-26

America 18 recommendations amungus Premium Member fixed it... "...a consumer customer wishing to watch in 4K anything requires a much higher no cap."



Good for Netflix trying to do something about it. There's no need for this cap nonsense in the first place. Throttle folks if needed and be done with it.

ieolus

Support The Clecs

join:2001-06-19

Danbury, CT 10 recommendations ieolus Member Netflix and Google Netflix needs to team up with Google Fiber in a joint effort to bring better broadband to the country, instead of fighting incumbents till the end of time. goonierag (banned)

join:2003-07-18 4 recommendations goonierag (banned) Member maybe with google complaining The stuff like what altice/foreign company is doing in its uncompetitive areas will stop. In WV the slowest speed is 50/5 250 gig cap so what do they do. Put a restriction on their service that to pay extra for unlimited you must have at least 100/7.5 in your area.

In parts of the state there is only 50/5 250 and 75/7.5 350 availible, no 100/7.5, so them people just using 700 gig have to pay 39 for the broadband and another $90 for the overage. Of course in most of the state you can move up to 100/7.5 for $59 then pay another 15-20 at the 24 month mark for the unlimited. Making that 100/7.5 unlimited $74-$78.

All it is for is to make as much money as they can and stop the competition to their cable in the state. Lots of people in WV are cordcutters and use an outdoor antenna and the broadband is to extend their video viewing. The unlimited for a price should be on all their tiers even the 50/5 250 gig and the 75/7.5 350 gig. Better yet the fcc should just eliminate caps and zero rating altogether. So it is fair to all the people,the video providers like netflix,hulu,sling,vue,youtube,amazon,etc.

Not just what the isp's think is fair to them. And screw the costomers.

I mean the internet wasn't even invented by the isp's,it was invented by the defence department off of the taxpayers backs and was suppose to be free for all.

Go netflix and hopefully the other video providers,like amazon,dish,sony,etc and different sites will join in and they can send a big list to the fcc of complainant's besides the people and the fcc will do something about caps and zero rating,hopefully get rid of them.

. davidhoffman

Premium Member

join:2009-11-19

Warner Robins, GA 4 recommendations davidhoffman Premium Member Cap elimination. This is an interesting tactic by Netflix to attempt to get the FCC to do something stupid that invites a massive retaliation by the US Congress. Even if during the next election the Democratic Party gets majorities in both the House and Senate, they will be small majorities. No way they will be able to stop a Senate filibuster. The Republican Party members will do everything they can to block any attempt by the FCC to regulate ISP data pricing or caps.



Netflix's real goal may be to push the US Congress to get the states to stop interfering with municipal broadband buildouts or municipal attempts at bringing in new ISPs to create competition.

Anond361a

@charter.com 3 recommendations Anond361a Anon Throttling is best for network management Caps are a dumb way to fix true congestion issues. They only begin to "fix" a problem after many people reach the cap which might not be until the end of the month. What about the rest of the month. Also doubt ANY congestion exists at 3 AM. Why even count that usage?



The best solution is to throttle connections at the busiest times if necessary. Of course this would cause customers to complain that their connection is "broken" since most won't know what's going on even if the ISP sent them notice in bold type. Ignorant customers aside this is the best way to manage the network no caps needed.



Personally while I'm glad Charter has no caps if they had 1 TB caps like at&t and Comcast it wouldn't even be close to an issue for me or most people I feel. But maybe 1 TB caps while exempting any use from 12 AM - 8 AM would assuage some, but I doubt it. Also get rid of overages if one insists on a cap. Just throttle down to a lower speed say 10 Mbps( except during 12 AM - 8 AM ) jazneo

join:2014-08-25

Hazel Green, WI 2 recommendations jazneo Member Data Cap should never been on home internet I have charter it dont even data caps I think FCC force them to remove data caps