Cable broadband companies continue to insist that data caps are good for people with low incomes, pushing back against comments filed by consumer advocacy groups. NCTA—The Internet & Television Association urged the Federal Communications Commission to avoid regulating the monthly data limits and overage charges that cable firms such as Comcast and Cox impose on many Internet plans.
Advocacy groups “suggest that usage-based pricing disproportionately harms low-income users, reasoning that these users are least able to afford overage fees if they exceed data thresholds,” the NCTA said in comments filed last week with the FCC. “However, in reality, usage-based pricing benefits low-income or price-sensitive consumers by providing additional options for less expensive plans.”
The NCTA contends that “there is no basis for the assertion that regulation is warranted because low-income consumers are uniquely harmed by usage-based pricing. To the contrary, in many cases usage-based pricing provides more options for consumers, including lower-priced ones, which helps consumers stay connected.”