FCC Chair seeks 'fresh look' at broadband data caps

FCC Chairwoman Jessica Rosenworcel is ready to put broadband data caps back under the regulatory microscope.

In a Notice of Inquiry (NOI) released late last week, Rosenworcel is asking her fellow Commissioners to get behind an investigation into the state of residential broadband data caps and how they impact consumers and competition.

The proposal, which spans both wired and wireless broadband access, will also explore whether the FCC should consider taking action to ensure that data caps and usage-based broadband policies "do not cause harm to competition or consumers' ability to access broadband Internet services."

In Rosenworcel's proposal announcement, she notes that data caps are "a common practice" among some ISPs, but recognizes that some service providers temporarily or permanently dropped those policies during the earlier stages of the pandemic.

Cable One, Comcast and Cox Communications are examples of operators that relaxed their respective usage-based data policies only to restore them later. Antietam Broadband, a small operator that is part of Schurz Communications, decided to scrap its cap for good.

Rosenworcel's proposed NOI will also seek comment to understand why the use of data caps persists as consumer demand for broadband rises and as ISPs have shown a "technical ability to offer unlimited data plans." The NOI also will seek trends on consumer data usage and explore the FCC's legal authority "to take actions regarding data caps."

Some answers, particularly around broadband usage, aren't difficult to find. Last month, OpenVault's Q1 2023 report on broadband usage found that data consumption between households on unlimited plans and those on capped or usage-data-based policies has closed the gap. "UBB [usage-based billing] is gradually becoming a less effective tool for moderating usage," OpenVault noted in the report.

Consumers asked to share their 'data cap stories'

Ahead of any vote on the matter, the FCC has opened a portal for consumers to share how data caps have affected them. Consumers can post their feedback online or print out and mail in the form.

Rosenworcel believes those "data cap stories" will help the agency understand how data caps impact access to broadband for all, including consumers with disabilities, low-income households and people who rely on broadband access for education, telehealth and remote work.

"Internet access is no longer nice-to-have, but need-to-have for everyone, everywhere. As we emerge from the pandemic, there are many lessons to learn about what worked and what didn't work, especially around what it takes to keep us all connected," Rosenworcel said in a statement. "When we need access to the Iinternet, we aren't thinking about how much data it takes to complete a task, we just know it needs to get done. It's time the FCC take a fresh look at how data caps impact consumers and competition."

Rosenworcel's office has been asked about next steps and when her proposal is expected to come up for a vote.

Update: It's not clear when the proposal will be voted on by the Commission. As the item was shared on circulation, the text of the NOI won't become public until it receives a vote by the full Commission and is adopted, an FCC official told Light Reading via email. "Each commissioner has the discretion to vote circulated items on their own timeline. This item has the Chairwoman's strong support," the official added.

Rosenworcel's proposal arrives as the FCC remains deadlocked at 2-2 among Democratic and Republican members, and nearly a month after President Biden appointed Anna Gomez for an open seat that didn't get filled after Gigi Sohn withdrew her nomination after months of debate and haggling.

Rosenworcel's announcement also enters the picture about a month after the seven-year ban on Charter Communications' use of data caps was lifted. Charter, which adhered to that ban as a condition of its acquisitions of Time Warner and Bright House Networks, told Light Reading in April that it had no plans to change its data policies when the condition lifted.

Mix of usage-based and unlimited options

Several large and midsized US cable operators still employ data capping policies alongside unlimited data options that cost extra. Many set a monthly allowance and charge more for additional buckets of data when that allowance is exceeded.

Comcast employs usage-based policies in all regions except the Northeast (where it competes with Verizon Fios), but does offer a standalone unlimited option for an additional $30 per month. Unlimited data is also bundled with xFi Complete, a package that costs $25 more per month and also includes the lease of a Comcast gateway and the company's advanced cybersecurity product. Some new, upgraded tiers from Comcast that include faster upload speeds now come with xFi Complete.

Cable One also has a usage-based data policy in place, but is finding that more of its broadband customers are migrating to unlimited data plans (which cost an extra $30 per month) compared to its capped plans, CEO Julie Laulis said on a recent earnings call.

Mediacom Communications employs usage-based policies for both its cable modem service as well as Mediacom Bolt, a relatively new fixed wireless access (FWA) service. Customers who exceed their monthly limit can pay $10 for an additional 50 gigabytes of data.

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— Jeff Baumgartner, Senior Editor, Light Reading