Comment on Please ban data caps, Internet users tell FCC

JoMiran@lemmy.ml ⁨1⁩ ⁨week⁩ ago

Arguing against a ban or regulation, the paper says that “usage-based pricing can improve broadband affordability and, in turn, foster increased adoption. Under flat-rate pricing, all consumers pay the same amount regardless of usage, potentially leading to overuse by heavy users and cross-subsidization by light users. With usage-based pricing, consumers who use less data pay less, consumers who use more pay more, and no group of consumers cross-subsidizes usage by other users. Service that was unaffordable to some consumers under flat-rate pricing may become affordable to those who use less data, thereby expanding adoption among that cohort.”

Except that in markets with a single provider they use data caps a s a way to charge more for the same service. In Austin I had a choice between multiple providers and ended up paying $50/month for uncapped bidirectional 500mbps service. In Wyoming, the same service costs $349 because there is only one provider.

source
Sort:hotnewtop