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Internet Service Providers (ISPs) regularly insist that data caps are a legitimate tool to ease congestion on their networks and an effective way to signal value to consumers. But, as we have argued, data caps do not resolve congestion, are confusing to consumers, and lend themselves to unfair and anticompetitive behavior.
In light of this disagreement, it is a promising sign that a recent study published by the National Cable & Telecommunications Association (NCTA) and co-authored by Steven S. Wildman, the new Chief Economist of the FCC, moves beyond some of the previous rhetoric and takes a significant step towards focusing the debate on real areas of conflict.
Unfortunately, it stops short of recognizing a critical distinction in understanding the heart of the disagreement.