The cable industry recently changed its tune on data caps. Previously, the industry insisted that caps on Internet usage were necessary for managing network capacity and preventing congestion. Now, they argue that caps promote fair pricing and more affordable broadband. Michael Powell, president of the cable association NCTA and a former chairman of the Federal Communications Commission (FCC), echoed this theme in January at an event held by the Minority Media and Telecommunications Council (MMTC). Mr. Powell conceded that data caps are not about congestion management, but rather that “[the] principal purpose is how to fairly monetize a high fixed cost” and offer lower cost plans to encourage broadband adoption.
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