Home » Astroturf »BH (See Charter) »Charter Spectrum »Consumer News »Internet Overcharging »Net Neutrality »Online Video »Public Policy & Gov't »TWC (see Charter) » Currently Reading:

Corporate/Koch Brother-Linked Group Asks FCC to Repeal Charter/Spectrum’s Data Cap Prohibition

A conservative group funded by corporate interests and the Koch Brothers has asked FCC chairman Ajit Pai to answer its petition and move expeditiously to cancel the prohibition of data caps/usage-based pricing as a condition for FCC approval of Charter Communications’ acquisition of Time Warner Cable and Bright House Networks.

A number of pro-consumer deal conditions were included as part of the merger transaction’s approval, and won the support of a majority of FCC commissioners under the leadership of former FCC chairman Thomas Wheeler, appointed by President Barack Obama.

The Competitive Enterprise Institute (CEI) is hopeful that with Wheeler out of office and a new Republican majority at the FCC under the Trump Administration means the FCC will end requirements that Charter offer unlimited data plans, discounted internet access for low-income consumers, and start allowing Charter to charge fees to Netflix and other content providers to connect to its broadband customers. CEI has every reason to be hopeful, pointing out Chairman Pai is a fan of data caps on residential broadband service, opposes Net Neutrality, and recently effectively killed a Lifeline program that would have extended inexpensive internet access to the poor.

CEI:

As then-Commissioner Pai wrote in 2016, this condition is neither “fair” nor “progressive.” Instead, he called this “the paradigmatic case of the 99% subsidizing the 1%,” as it encourages Charter to raise prices on all consumers in response to costs stemming from the activities of a “bandwidth-hungry few.” Other problematic conditions include the ban on Charter charging “edge providers” a price for interconnection and the requirement that the company operate a “low-income broadband program” for customers who meet certain criteria.

The group is optimistic Pai will oversee the unwinding of Charter’s deal conditions largely pushed by former FCC chairman Thomas Wheeler, after Pai recently led the charge to revoke another condition required of Charter in return for merger approval – a commitment to expand its cable network to pass at least one million new homes that already receive broadband service from another provider.

Pai also opposed the low-income internet program, calling it “rate regulation.” The CEI claimed the requirement will “undermine Charter’s ability to price its services in an economically rational manner.”

“Hopefully, the FCC’s new leadership will seize this opportunity to take a stand against harmful merger conditions that have nothing to do with the transaction at hand—by granting CEI’s petition,” the group wrote on its blog.

Currently there are 3 comments on this Article:

  1. Adam Leite says:

    Data cap is a shame to America. It is bad enough what Microsoft is and the cell phone companies are doing to our power as consumers (with no rights, thank you).
    In today’s world data cap is unspeakable. The opposite makes more sense, since ore and more our lives depend on the Internet.

  2. NRM says:

    As the current FCC is basically responsive to the wishes of cable and telecom companies, our only hope here in NY State is that our own state regulators would intervene if Charter attempts to impose data caps. Was there any condition in the NY State merger approval against data caps? If not, could the state claim that it didn’t include a condition pertaining to data caps because it took into account the FCC’s 3-year ban? Could any change by the FCC in this regard be enough for the state to revisit it’s merger approval? In the Syracuse area I have the option of switching to Verizon FiOS, and I would cancel my TWC (Spectrum) services a minute after I hear that the FCC removed the data cap 3-year condition.







Search This Site:

Contributions:

Recent Comments:

  • Josh: Ugh. If I used Comcast for TV I'd be using it with my TiVo...never with their box. And I always figured the "Xfinity" thing was just to trick people...
  • Josh: LOL! Sounds like basically "we're a huge corporation, so you should do this for us for free". At least hopefully they'll pay now... Of course this ...
  • FredH: Like cable company CEOs need to be told to raise prices by some a-hole Wall Street analyst....
  • Roger W: Go ahead. Raise it to $90. I dare you. I guarantee you it will be the last day I subscribe to cable service. That'll be your loss....
  • FredH: Charter/Spectrum is rapidly catching Comcast in the "race to the bottom"....
  • Phillip Dampier: Yeah, because Charter is hurting so much it cannot afford to extend service itself so it wants welfare to do it. Keep in mind most techs have no clue...
  • Matthew H Mosher: Guaranteed. "BROADBAND FOR ALL (that matter)"...
  • Matthew H Mosher: I spoke with a Time Warner/Spectrum tech today, a very nice guy by the way. (Some background - I am the only house on my road without cable) I had s...
  • Matthew H Mosher: Give me a minute while I pick my jaw up off the floor....
  • JayS: Another of the Mentally Indigent self-identifies by spouting-off all of the tiresome Looney-Tunes, the sky-is-falling, end of the world, " the worst...
  • FredH: $13 Million is chump change - and they're not even being fined that amount (only $1M so far) - $12M is a "set-aside" in case they don't meet their fut...
  • Paul Houle: A Sprint/T-Mobile merger makes no sense to me. Sprint uses CDMA technology (like Verizon) and T-Mobil uses GSM technology (like AT&T) for voice. ...

Your Account: