High Speed Internet Providers Impose Data Caps To Stop Competition: Critics
Internet video companies like Netflix are the reason that many ISPs continue to impose an increasing array of data caps on their customers, critics are saying. The latest news is that two major cable internet companies have recently expanded their caps in the form of tiered service, which offers a number of service levels, each having their own data usage and download speed limits. It used to be that data caps were explained as a solution to those heavy internet users who caused network congestion. Interestingly, many ISPs have abandoned this argument, stating now that fairness in pricing is now the reason for the caps, namely, that heavy internet users should pay more for more data usage.
But critics are saying that this doesn’t make sense, because ISPs pay the same to deliver content in large amounts to a single user as they do for content in small amounts. Critics also say that the bulk of the money that high speed internet providers use is spent on the building of networks and other variable, but negligible costs. The problem with this theory, however, is that the cost of most built networks has already been paid in full. The status of a Department of Justice probe into competition suppression from ISPs is not known.