On October 15, 2024, the Commission released a Notice of Inquiry (NOI) which initiates a proceeding seeking input on the current state of broadband data caps and whether they cause harm to competition or consumers’ ability to access broadband internet access services (BIAS). The NOI specifically seeks comments on current trends in consumer usage, the impact of data caps on consumers, consumers’ experience with data caps and how consumers are informed about data caps, and the impact of data caps on competition.
Data caps are restrictions set by BIAS providers on the volume of data that a consumer can transfer during a set period of time and are also sometimes referred to as usage allowances or usage limits. The terms “hard data caps” and “soft data caps” are used to describe data limits which when exceeded incur additional fees and data limits that when exceeded result in reduced upload and download speeds, or throttling respectively.
The NOI seeks input on the following:
* Regarding Consumer Usage, the NOI requests input on how much data the typical household currently needs to provide sufficient capacity for telework, online education, telemedicine, videoconferencing, streaming video, and other online activities. In addition, input is sought on how consumer usage is expected to change in the future.
* The NOI requests comment on how data caps may affect consumers’ online behavior and consumer choice as well as the impact on public safety and service quality. In addition, NOI seeks input as to whether data caps have a disproportionate impact on certain consumers including consumers with disabilities and low-income consumers.
* Through this proceeding the Commission will accept comments from the Public as well as other interested Parties. Input is sought from consumers relative to their experiences with data caps. Further, information is requested regarding current service plan offerings by BIAS providers and the current levels of data allowances. Comments are sought as to the methodologies employed by BIAS providers for measuring data usage and the availability of consumer tools to manage data usage. Finally, the NOI seeks comments to the extent to which consumers exceed their data caps and the enforcement policies of BIAS providers when data caps are exceeded.
* The NOI seeks comment as to whether BIAS providers’ existing disclosures regarding data caps are sufficient to allow consumers to make informed decisions. The NOI cites the disclosure requirements of the FCC’s transparency rules and the requirements embodied in the Broadband Label Order and seeks input as to whether additional disclosure requirements are needed.
* The Commission also seeks comments related to data caps and competition. Input is sought, for example, as to whether BIAS providers employ data caps consistently across their service areas or are data caps not applied in certain areas due to the extent of competition.
As detailed above, this NOI considers a broad range of issues and comments from interested Parties will be extensive. Comments are due November 14, 2024, and Reply Comments are due December 2, 2024. We will provide updates regarding this issue as more information becomes available.
