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The following is attributed to Gigi B. Sohn, president and CEO of Public Knowledge:
“Millions of consumers and at least two major publications have now discovered that the new iPads which went on sale come with a hidden cost – the caps on data usage which wireless carriers put on consumers.
“It’s a ridiculous situation that the carriers sell millions of these devices specifically designed to view video on one hand, while they restrict the usage of their networks for video on the other.
“It is simply inexcusable that the Federal Communications Commission (FCC) has not even seen fit to ask wireless and landline carriers to explain why those caps are necessary, how they are set and how consumers are affected by them. If the Commission is truly interested in consumer protection, it will ask the crucial questions and come up with some answers before consumers start getting hit with ever-increasing bills just for using the devices they bought in good faith.”
Here are some background resources on the data caps issue:
1) A report Public Knowledge issued last August warning of just the situation that is taking place now with 4G networks and data caps.
www.publicknowledge.org/files/4GDataCapsMagicBeans.pdf (August 3, 2011)
2) The first letter from PK and the Open Technology Initiative asking the FCC to look into the issue.
3) A second letter we sent to the FCC after announcements of more data caps.
www.publicknowledge.org/files/docs/GenachowskiDataCapLetter.pdf (July 14, 2011)