Cable Industry Tells Data Caps Have Naught To Do With Internets

Despite experts pointing to fallacy that data caps have anything to do with so-called “congestion curbing tools,” such as data caps, ISPs continued with the myths that data caps are there for our own good and that paying more for broadband is how god intended it to be.

Well, the cat is out of the closet now, as former FCC boss Michael Powell, who is now president of the National Cable and Telecommunications Association (NCTA,) in other words, a chief lobbyist for ISPs, admitted to the fact that data caps are more about enormous, shameless, outrageous profit-chasing because they are – wait for it – in the business of making money:

“Michael Powell told a Minority Media and Telecommunications Association audience that cable’s interest in usage-based pricing was not principally about network congestion, but instead about pricing fairness…Asked by MMTC president David Honig to weigh in on data caps, Powell said that while a lot of people had tried to label the cable industry’s interest in the issue as about congestion management. “That’s wrong,” he said. “Our principal purpose is how to fairly monetize a high fixed cost.” (via TechDirt)

This Gordon Gecko-inspired explanation is a simple and effective one, confirming what we all knew, and what technology experts long-ago stated – the broadband caps have naught to do with p2p traffic or limitations of technology. For one, AT&T’s exemption of its own video content from otherwise limited, capped access is a tell that ISPs are not only in the business of making money, but that they are also in pursuit of creating new “walled garden” approaches to media in order to monetize on content distribution. All this, however, has very little to do with congestion.