Monday, June 05, 2023

Broadband Usage Caps Now Drive MORE Broadband Usage, Study Finds } Karl Bode writing in TechDirt today

Usage caps were always a bullshit construct designed to flimsily justify greed, and big telecom companies (and their various allies) still can’t candidly admit it, decades later.

Broadband Usage Caps Now Drive MORE Broadband Usage, Study Finds

from the nickel-and-dime-you-to-death dept

"We’ve noted for years how broadband usage caps are a pointless, unnecessary cash grab by telecom monopolies looking to nickel-and-dime consumers who already pay too much for broadband.

The telecom industry’s original claim that the caps were necessary to “manage network congestion” were never true. Companies like Comcast used that claim for years to sell a gullible press on the need for the confusing, unpopular restrictions, but eventually even telecom giants stopped making the claim, after data and internal company leaks repeatedly showed it to be complete bullshit.

Interestingly, a recent study by OpenVault brought the subject to the forefront again, after it showed that capped customers now pretty routinely use more data than uncapped users:

Home internet customers who pay extra for exceeding certain data thresholds consumed, on average, 562.7 gigabytes of data from January – March vs. 555.5 for subscribers who pay one flat rate for unlimited data. 

In short, knowing they’re paying more for access has these users using their connection more, resulting in more network load than if you’d just left these users on unlimited data plans. Oh ironies of ironies.

Again, usage caps were never about “managing network congestion.” There was never any evidence that was true. But if you look at coverage about this new study from two different trade magazines, you’ll notice that the idea that caps meaningfully helped reduce network congestion is still held as established truth, even if its primary function was always just to make more money off of captive customers. . ."


Read more between-the-lines > TechDirt

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