The International Center for Law & Economics today published a white paper arguing that data caps are good for users and ISPs. It argues that “usage-based pricing provides more options for consumers than flat-rate pricing and can generate additional revenue to fund network improvements and expansion.”
Arguing against a ban or regulation, the paper says that “usage-based pricing can improve broadband affordability and, in turn, foster increased adoption. Under flat-rate pricing, all consumers pay the same amount regardless of usage, potentially leading to overuse by heavy users and cross-subsidization by light users. With usage-based pricing, consumers who use less data pay less, consumers who use more pay more, and no group of consumers cross-subsidizes usage by other users. Service that was unaffordable to some consumers under flat-rate pricing may become affordable to those who use less data, thereby expanding adoption among that cohort.”
ICLE on the FCC’s Data Caps Inquiry
Ars Technica
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An ICLE white paper on broadband data caps was cited by Ars Technica in a story about the Federal Communications Commission’s inquiry into the subject. You can read the full piece here.
The group, which plans to submit the white paper to the FCC docket, says it “has received financial support from numerous companies, foundations, and individuals, including firms with interests both supportive of and in opposition to the ideas” presented in the document. The law and economics group has consistently opposed net neutrality regulations, taking positions similar to those advanced by the broadband industry.