The FCC, or the Federal Communications Commission, released a Notice of Inquiry (NOI) on October 15, 2024, regarding the use of data caps by BIAS, Broadband Internet Access Service providers. Data caps are a limit on the amount of data a user can transfer over a set period of time. They apply to both home internet and mobile data plans. These are set by BIAS providers.
The NOI states that “Access to the internet is not a luxury.” Along with this statement, NOI makes reference to the rapid growth of consumer data usage during and after the pandemic, Covid-19 as the reason for renewing the FCC’s goal on the usage of data caps by BIAS providers.
A series of Commission actions on data caps dating back to the 2015 Open Internet Order is the NOI. This implemented disclosure for “network management providers” by BIAS providers. In 2022, the Commission adopted the Broadband Labels Order requiring fixed and mobile BIAS providers to display.
The commission seeks information on a variety of issues relating to data caps in order to analyze the competitive impact of data caps. The NOI comes at a time when authorizing statutes is under increased scrutiny. To explain, an order reclassifying BIAS as a telecommunications service under Title 2 of the Communications Act of 1934, is under review to impose certain neutrality-style regulations on broadband after the U.S. Supreme Court’s decision in Loper Bright. The order mentioned is called the Safeguarding and Securing the Open Internet Order.
Wondering how data caps affect everyday consumers? The agency released hundreds of stories from consumers about how data caps impact their daily lives on the same day the FCC announced this inquiry. There are families who actually take great measures to save themselves from overcharge like a grandpa stuck at home who does not speak to his family for half a month via video chats so they don’t have to pay extra charges.
Restricting consumers’ data could cut off small businesses from their customers, could affect the fees on low-income families, and many other cases like it. So it is “important to prioritize consumers first before the amendment of such an act”, as said by FCC chairwoman Rosenworcel.
Particularly, the NOI seeks comments on five categories relating to the use of data caps, including consumer data usage trends, the impact of data caps on competition, consumer experience, the impact of data caps on competition, and the commission’s legal authority to promulgate rules on data caps.
In further discussions with the NOI, we get to see the Commissioners Simington, and Carr describe this as an attempt to impose the type of rate regulation the Commission specifically promised to forbear from the Net Neutrality Order 2024. As of now, the specter of rate regulation, in addition to the heightened attention on the FCC foresees an active comment period.
The focus of the NOI is consumer protection and competition, this is a perfect opportunity for stakeholders to take advantage of the opportunity to comment during the NOI period.
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