Michael Powell, a former Federal Communications Commission chairman who is now the cable industry's top lobbyist, said yesterday that cable companies "should be moving with some urgency and purpose" toward implementing data caps.

After serving as chairman of the FCC under President George W. Bush, Powell is now president and CEO of the National Cable and Telecommunications Association. At the Cable-Tec Expo in Atlanta, he was asked about data caps, or "usage-based billing." Multichannel News has the details:

Powell was also asked about usage-based broadband policies, which are permissible by the FCC. He disagreed with arguments that the window for usage-based broadband is closing or that it’s too late for MSOs [multiple-system operators] to implement usage-based policies when consumers have grown accustomed to unlimited access. Cable, he said, “should be moving with some urgency and purpose” with respect to usage-based billing. Powell said operators have sound economic reasons to pursue a new model but acknowledged that the industry faces perceptions that usage-based billing is viewed as an anti-competitive move designed to disadvantage over-the-top video providers. “I don’t think it’s too late,” Powell said, noting later that the wireless industry has been acclimating consumers on the concept of usage-based Internet access. “But it’s not something you can wait for forever.”

There was no transcript of Powell's remarks, the NCTA told Ars, but the organization pointed us to a page on its website that makes the case that usage-based billing can be good for consumers.

"Since Americans are accustomed to paying for what they use, some broadband providers are developing usage plans that promote fairness by asking high capacity Internet users to shoulder a greater proportionate share of network costs," the NCTA argues. "But instead of applauding increased consumer choice and common sense pricing, some critics want to force average users to pay a flat fee akin to a 'universal' service, no matter if they are an occasional visitor or frequent 'super user.'"

Pricing based on monthly allotments protects customers "from subsidizing the heaviest users," the NCTA further says. If such pricing schemes resulted in substantial savings for people who don't use many data-heavy services, it would be hard to argue against the potential benefits for some users. But the positives aren't necessarily going to be huge. As DSLReports notes, "Time Warner Cable and Comcast are both trialing... plans that offer a measly $5 discount if users accept a 5GB cap with $1 per GB overages."

As streaming video becomes increasingly prevalent, data caps are going to have to be pretty high to keep consumers from paying overage charges.

Powell also discussed cable's competitive situation compared to Google Fiber. "I don’t get too flustered about 1Gig or Google Fiber," he said, according to Light Reading. "With DOCSIS 3.1 capable of supporting downstream speeds as high as 10Gbps and upstream speeds as high as 2Gbps, we're there and beyond."