Cable Industry Admits That Data Caps Have Nothing To Do With Congestion
Cable Industry Admits That Data Caps Have Nothing To Do With Congestion – The Consumerist
A month after one study called shenanigans on the cable industry’s repeated assertion that data caps and usage-based pricing are intended to relieve congestion, the president of the National Cable and Telecommunications Association has admitted as much.
NCTA president, and former FCC chair, Michael Powell recently told a Minority Media and Telecommunications Association audience that usage-based pricing isn’t about congestion, but “how to fairly monetize a high fixed cost.”
He said that charging more to customers who use the Internet the most “is a completely rational and acceptable process to figure out how to fairly allocate those costs among your consumers who are choosing the service and will pay you to recover those costs.”
