FCC Investigates Data Caps and Impact on Consumers

The Federal Communications Commission (FCC) launched an inquiry into the practice of internet providers using data caps, which are monthly data limits.The investigation will explore how data caps impact low-income or small business internet users.“Restricting consumers’ data can cut off small businesses from their customers, slap fees on low-income families, and prevent people with disabilities from using the tools they rely on to communicate.

As the nation’s leading agency on communications, it’s our duty to dig deeper into these practices and make sure that consumers are put first,” said FCC Chairwoman Jessica Rosenworcel.The investigation “specifically seeks comment on current trends in consumer data usage; the impact of data caps on consumers, consumers’ experience with data caps, and how consumers are informed about data caps on service offerings; the impact of data caps on competition; and the Commission’s legal authority to take action regarding data caps.” Some of the stories collected so far by the FCC from internet users with data caps include: “We have had to unplug our modem to prevent going over our data cap.We have to take our kids to find public [Wi-Fi] to complete their school work.

We can’t afford $190 a month for unlimited internet.” — Arkansas “[Provider] has a data cap on our internet and I provide telemedicine services with video for low-income patients … There is no other high-speed provider in my area that is able to provide reliable internet for me to see patients, so I have no choice but to bear the excessive costs they are charging.” — Michigan “[Provider] data cap is too low for my family.It sits somewhere around 1.3 TB/month.In order to have that high of a data cap, I’m required to purchase the fastest internet speed offered.

On top of that, I have to pay either $10/100 GB over my cap, or $40 extra/month to make my data cap 5 TB/month.So the advertised price of $75/month becomes $115.It is unfair.” — New Mexico The FCC will also investigate “why the use of data caps continues to persist despite increased broadband needs of consumers and providers’ demonstrated technical ability to offer unlimited data plans.” ISPs and data caps Some providers that use data caps include Hughesnet, Cox, Xfinity, Rise Broadband and EarthLink.

Charges can range from $7.50 per additional 10 GB to $15 per additional 50 GB.However, not all internet providers use data caps.Some of the largest companies without data caps include T-Mobile, Verizon, AT&T, Frontier, Spectrum, Windstream and Optimum.

Their plans generally have unlimited use, but there may be speed throttling if you reach a soft limit.There won’t be any charges, just a slow internet connection until the monthly limit resets.Know your ISP’s policy An internet usage limit can cause surprise charges on monthly bills.

Customers can check a plan’s Broadband Consumer Label to see if there is a data cap and any extra fees.According to the FCC, “If the plan includes a data usage limit, the provider must disclose on the label any charges or reductions in service for any data used in excess of the amount included in the plan.This is typically displayed as a cost per gigabit.

(For example, ‘$5/GB’.)” “The label may also include a link to the provider’s website with more details about their data usage limits and any costs for additional data.” How data caps work Using EarthLink as an example of a data cap policy, we can explain how speeds are throttled and fees can be added to your monthly bill: “When you sign up for EarthLink Wireless Home Internet, you’ll choose a data plan (unless you qualify for our WFH Unlimited plan!).Currently, we offer 100 GB, 150 GB, 200 GB, 300 GB plans, and an exclusive WFH Unlimited 300 GB plan for those who work remotely.The regular data plans indicate how much high-speed data you can use per month.

This data automatically connects to the best signal and offers speeds of up to 100 Mbps.Once you have reached your data plan limit, your speeds will be slowed.Once 100% of high-speed data has been used in a monthly billing cycle, speeds will be slowed to a maximum of 128 Kbps.

Once 110% of the original data plan has been used (ex: 110 GB for the 100 GB plan), speeds will be temporarily cut off, from a maximum of 128 Kbps to 0 Kbps.At any time, you can either purchase additional data or upgrade your plan.” Like most ISPs, EarthLink uses an app for consumers to add data, “Log onto the EarthLink Wireless Home Internet Mobile App or  Customer Portal to add data or upgrade your plan.You can also contact our EarthLink Internet Experts to assist you.

An additional 5 GB of data costs $5.95.There is no limit to the amount of additional data you can purchase.” To contribute to the report To submit your own internet data caps story, visit: fcc.gov/data-caps.Written by: Robin Layton Editor, Broadband Content Robin Layton is an editor for the broadband marketplace Allconnect.

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