Data Caps

PK In The Know Podcast: Data Caps and Pricing



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You are missing some Flash content that should appear here! Perhaps your browser cannot display it, or maybe it did not initialize correctly.

On today's podcast we discuss data caps and why data is a bad way to price internet connectivity.

Subscribe to the podcast on iTunes here.
Subscribe to the podcast via the .xml here.
Click here to download the file for this week's podcast directly.

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On today's podcast we discuss data caps and why data is a bad way to price internet connectivity.

Subscribe to the podcast on iTunes here.
Subscribe to the podcast via the .xml here.
Click here to download the file for this week's podcast directly.

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You are missing some Flash content that should appear here! Perhaps your browser cannot display it, or maybe it did not initialize correctly.

On today's podcast we discuss data caps and why data is a bad way to price internet connectivity.

Subscribe to the podcast on iTunes here.
Subscribe to the podcast via the .xml here.
Click here to download the file for this week's podcast directly.

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AT&T CEO: Data Caps Are About Charging Content Providers

By imposing data caps on consumers, ISPs can charge content providers to be exempt from those same caps.


The quest to determine why data caps really exist may be starting to wind down.  ISPs have admitted, either explicitly or implicitly, that monthly data caps have nothing to do with network congestion. And, while some have started to portray data caps as legitimate forms of price discrimination, that argument did not hold up to close scrutinty either. So what's left?  Why are ISPs going to all of this effort to make customers deal with something they hate?

AT&T CEO Randall Stephenson has finally let the cat out of the bag.  Data caps are all about forcing content creators to pay in order to reach subscribers.  By creating data caps, ISPs create a new market that never needed to exist and never existed before: the market for not being counted against data caps.  And that market can be big money.  But it can also fundamentally change the way the internet economy functions.



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By imposing data caps on consumers, ISPs can charge content providers to be exempt from those same caps.


The quest to determine why data caps really exist may be starting to wind down.  ISPs have admitted, either explicitly or implicitly, that monthly data caps have nothing to do with network congestion. And, while some have started to portray data caps as legitimate forms of price discrimination, that argument did not hold up to close scrutinty either. So what's left?  Why are ISPs going to all of this effort to make customers deal with something they hate?

AT&T CEO Randall Stephenson has finally let the cat out of the bag.  Data caps are all about forcing content creators to pay in order to reach subscribers.  By creating data caps, ISPs create a new market that never needed to exist and never existed before: the market for not being counted against data caps.  And that market can be big money.  But it can also fundamentally change the way the internet economy functions.

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By imposing data caps on consumers, ISPs can charge content providers to be exempt from those same caps.


The quest to determine why data caps really exist may be starting to wind down.  ISPs have admitted, either explicitly or implicitly, that monthly data caps have nothing to do with network congestion. And, while some have started to portray data caps as legitimate forms of price discrimination, that argument did not hold up to close scrutinty either. So what's left?  Why are ISPs going to all of this effort to make customers deal with something they hate?

AT&T CEO Randall Stephenson has finally let the cat out of the bag.  Data caps are all about forcing content creators to pay in order to reach subscribers.  By creating data caps, ISPs create a new market that never needed to exist and never existed before: the market for not being counted against data caps.  And that market can be big money.  But it can also fundamentally change the way the internet economy functions.

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By imposing data caps on consumers, ISPs can charge content providers to be exempt from those same caps.


The quest to determine why data caps really exist may be starting to wind down.  ISPs have admitted, either explicitly or implicitly, that monthly data caps have nothing to do with network congestion. And, while some have started to portray data caps as legitimate forms of price discrimination, that argument did not hold up to close scrutinty either. So what's left?  Why are ISPs going to all of this effort to make customers deal with something they hate?

AT&T CEO Randall Stephenson has finally let the cat out of the bag.  Data caps are all about forcing content creators to pay in order to reach subscribers.  By creating data caps, ISPs create a new market that never needed to exist and never existed before: the market for not being counted against data caps.  And that market can be big money.  But it can also fundamentally change the way the internet economy functions.

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Guess Those Wireless Networks Aren’t Congested After All

If networks really were overloaded, would carriers try to cut special deals to bring even more streaming video onto them?


Last week’s announcement that ESPN was in talks with at least one major wireless carrier to exempt its video from data caps raised fundamental net neutrality issues.  But it also raised an important question about the robustness of wireless networks.  If wireless networks were really as congested and starved of spectrum as some carriers like to claim, why would they be negotiating to bring more video onto them?

Wireless carriers have long complained about their network’s inability to meet customer expectations.  It was proposed as a justification to exempt wireless networks from net neutrality rules and destructively consolidate the industry (both failed convince the FCC).  It also shows up as a reason to move away from unlimited data towards more expensive tiered plans, and generally to explain why carriers over-promise and under-deliver on service.



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If networks really were overloaded, would carriers try to cut special deals to bring even more streaming video onto them?


Last week’s announcement that ESPN was in talks with at least one major wireless carrier to exempt its video from data caps raised fundamental net neutrality issues.  But it also raised an important question about the robustness of wireless networks.  If wireless networks were really as congested and starved of spectrum as some carriers like to claim, why would they be negotiating to bring more video onto them?

Wireless carriers have long complained about their network’s inability to meet customer expectations.  It was proposed as a justification to exempt wireless networks from net neutrality rules and destructively consolidate the industry (both failed convince the FCC).  It also shows up as a reason to move away from unlimited data towards more expensive tiered plans, and generally to explain why carriers over-promise and under-deliver on service.

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If networks really were overloaded, would carriers try to cut special deals to bring even more streaming video onto them?


Last week’s announcement that ESPN was in talks with at least one major wireless carrier to exempt its video from data caps raised fundamental net neutrality issues.  But it also raised an important question about the robustness of wireless networks.  If wireless networks were really as congested and starved of spectrum as some carriers like to claim, why would they be negotiating to bring more video onto them?

Wireless carriers have long complained about their network’s inability to meet customer expectations.  It was proposed as a justification to exempt wireless networks from net neutrality rules and destructively consolidate the industry (both failed convince the FCC).  It also shows up as a reason to move away from unlimited data towards more expensive tiered plans, and generally to explain why carriers over-promise and under-deliver on service.

[#title] => [#description] => [#printed] => 1 ) [#title] => [#description] => [#children] =>

If networks really were overloaded, would carriers try to cut special deals to bring even more streaming video onto them?


Last week’s announcement that ESPN was in talks with at least one major wireless carrier to exempt its video from data caps raised fundamental net neutrality issues.  But it also raised an important question about the robustness of wireless networks.  If wireless networks were really as congested and starved of spectrum as some carriers like to claim, why would they be negotiating to bring more video onto them?

Wireless carriers have long complained about their network’s inability to meet customer expectations.  It was proposed as a justification to exempt wireless networks from net neutrality rules and destructively consolidate the industry (both failed convince the FCC).  It also shows up as a reason to move away from unlimited data towards more expensive tiered plans, and generally to explain why carriers over-promise and under-deliver on service.

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FCC: This is What a Net Neutrality Violation Looks Like

Content providers paying ISPs special fees to access customers is exactly what net neutrality is supposed to prevent.  It is time for the FCC to heed its own warning.


News broke today that ESPN is in negotiations with at least one major wireless carrier to pay to exempt ESPN content from data caps.  This type of structure, where content providers who pay get better access to customers, is exactly what net neutrality is designed to prevent. 

At its core, net neutrality is all about making sure that the company that connects you to the internet does not get to control what you do on the internet (if you ever forget that, just head on over to WhatIsNetNeutrality.org for a reminder).  Imposing data caps on consumers and then allowing wealthy content holders to buy their way around them is a recipe for stagnation online.



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Content providers paying ISPs special fees to access customers is exactly what net neutrality is supposed to prevent.  It is time for the FCC to heed its own warning.


News broke today that ESPN is in negotiations with at least one major wireless carrier to pay to exempt ESPN content from data caps.  This type of structure, where content providers who pay get better access to customers, is exactly what net neutrality is designed to prevent. 

At its core, net neutrality is all about making sure that the company that connects you to the internet does not get to control what you do on the internet (if you ever forget that, just head on over to WhatIsNetNeutrality.org for a reminder).  Imposing data caps on consumers and then allowing wealthy content holders to buy their way around them is a recipe for stagnation online.

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Content providers paying ISPs special fees to access customers is exactly what net neutrality is supposed to prevent.  It is time for the FCC to heed its own warning.


News broke today that ESPN is in negotiations with at least one major wireless carrier to pay to exempt ESPN content from data caps.  This type of structure, where content providers who pay get better access to customers, is exactly what net neutrality is designed to prevent. 

At its core, net neutrality is all about making sure that the company that connects you to the internet does not get to control what you do on the internet (if you ever forget that, just head on over to WhatIsNetNeutrality.org for a reminder).  Imposing data caps on consumers and then allowing wealthy content holders to buy their way around them is a recipe for stagnation online.

[#title] => [#description] => [#printed] => 1 ) [#title] => [#description] => [#children] =>

Content providers paying ISPs special fees to access customers is exactly what net neutrality is supposed to prevent.  It is time for the FCC to heed its own warning.


News broke today that ESPN is in negotiations with at least one major wireless carrier to pay to exempt ESPN content from data caps.  This type of structure, where content providers who pay get better access to customers, is exactly what net neutrality is designed to prevent. 

At its core, net neutrality is all about making sure that the company that connects you to the internet does not get to control what you do on the internet (if you ever forget that, just head on over to WhatIsNetNeutrality.org for a reminder).  Imposing data caps on consumers and then allowing wealthy content holders to buy their way around them is a recipe for stagnation online.

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Data Caps Freeze Innovation: Higher Quality Video Edition

Of the many problems with data caps, one of the most pernicious is the way they freeze innovation and the evolution of online services. Today’s announcement from Kaleidescape that they will begin offering “Blu-ray quality” video downloads illustrates that beautifully. That means that one video weighs in at over 50 GB of data.

Remember, there was a time when this video was "good enough" for most people. | image by flickr user Louis Abate


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Of the many problems with data caps, one of the most pernicious is the way they freeze innovation and the evolution of online services. Today’s announcement from Kaleidescape that they will begin offering “Blu-ray quality” video downloads illustrates that beautifully. That means that one video weighs in at over 50 GB of data.

Remember, there was a time when this video was "good enough" for most people. | image by flickr user Louis Abate
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Of the many problems with data caps, one of the most pernicious is the way they freeze innovation and the evolution of online services. Today’s announcement from Kaleidescape that they will begin offering “Blu-ray quality” video downloads illustrates that beautifully. That means that one video weighs in at over 50 GB of data.

Remember, there was a time when this video was "good enough" for most people. | image by flickr user Louis Abate
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Of the many problems with data caps, one of the most pernicious is the way they freeze innovation and the evolution of online services. Today’s announcement from Kaleidescape that they will begin offering “Blu-ray quality” video downloads illustrates that beautifully. That means that one video weighs in at over 50 GB of data.

Remember, there was a time when this video was "good enough" for most people. | image by flickr user Louis Abate
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The Wrong Tool for the job: Data Caps, Price Discrimination, and Bandwidth Pricing

April 03, 2013

A brief by Michael Weinberg, VP of the Institute for Emerging Innovation, Public Knowledge. This paper is also available as a PDF. For more information, read the white paper Know Your Limits.


As the discussion surrounding data caps shifts from one about “data hogs” to one about pricing models, it is critical to examine the issue with precision. This short paper examines the role that price discrimination can play in broadband pricing, and considers the different ways to implement a price discrimination strategy. It concludes that, while price discrimination can be an effective way to increase access to broadband, data-based pricing is an inefficient and counter-productive means to that worthy end.

The Shift From Congestion to Discrimination

PK In The Know Podcast: ISPs Don't Know How to Count



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On today's podcast we discuss ISPs that can't count data usage, how close we are to free national wifi, and the coming telephone network transition.  We also mention 3D printing copyright and companies that are leveraging 3D printing to connect with customers.

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On today's podcast we discuss ISPs that can't count data usage, how close we are to free national wifi, and the coming telephone network transition.  We also mention 3D printing copyright and companies that are leveraging 3D printing to connect with customers.

[#title] => [#description] => [#printed] => 1 ) [#title] => [#description] => [#children] =>

You are missing some Flash content that should appear here! Perhaps your browser cannot display it, or maybe it did not initialize correctly.

On today's podcast we discuss ISPs that can't count data usage, how close we are to free national wifi, and the coming telephone network transition.  We also mention 3D printing copyright and companies that are leveraging 3D printing to connect with customers.

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Public Knowledge Calls on ISPs to Immediately Suspend Data Caps

Background: Today it was reported that an auditor of major ISP broadband meters could not certify the accuracy of five of seven usage meters.  This report follows earlier reports of discrepancies by independent network engineers and ongoing complaints of meter errors in consumer forums.

The following statement can be attributed to Michael Weinberg, Vice President, Public Knowledge:

“Public Knowledge calls on all ISPs who use data caps to suspend those caps immediately.  Until ISPs can prove to an independent technical expert that they can accurately measure consumer data consumption, they have no business charging consumers overage fees for allegedly going over their cap.

ISPs Must Suspend Data Caps Until They Can Count

Please sign this petition to tell the FCC to investigate data caps.

Public Knowledge is calling on all ISPs who use data caps to suspend them until an outside auditor can certify that their data usage meters are accurate.  ISPs have no business imposing data caps on consumers without the ability to accurately determine how much data consumers are actually using.



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Please sign this petition to tell the FCC to investigate data caps.

Public Knowledge is calling on all ISPs who use data caps to suspend them until an outside auditor can certify that their data usage meters are accurate.  ISPs have no business imposing data caps on consumers without the ability to accurately determine how much data consumers are actually using.
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Please sign this petition to tell the FCC to investigate data caps.

Public Knowledge is calling on all ISPs who use data caps to suspend them until an outside auditor can certify that their data usage meters are accurate.  ISPs have no business imposing data caps on consumers without the ability to accurately determine how much data consumers are actually using.
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Please sign this petition to tell the FCC to investigate data caps.

Public Knowledge is calling on all ISPs who use data caps to suspend them until an outside auditor can certify that their data usage meters are accurate.  ISPs have no business imposing data caps on consumers without the ability to accurately determine how much data consumers are actually using.
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Public Knowledge Sees Net Neutrality Issue With AT&T Wireless Product

Issues: 

AT&T is using the data caps that it imposes on its home broadband subscribers to disadvantage competitors to AT&T Wireless. 

The AT&T 3G MicroCell acts as a miniature cell tower that can be used to supplement and improve cell phone service for voice calls or data applications. However,  AT&T is exempting data from AT&T Wireless MicroCells from the data caps it imposes on its wireless home broadband users. This is similar to Comcast's decision last year to exempt its own online video service from its data cap.  

The following can be attributed to Michael Weinberg, Vice President:

"AT&T is egregiously abusing data caps to give its own services advantages over competitors. There is no reason why AT&T should treat AT&T Wireless MicroCell data different than any other data - including data from a Verizon or Sprint MicroCell - on a subscriber's home connection.