Former FCC Chairman Admits Data Caps Are More About Making Money Than Preventing Network Congestion

Former FCC Chairman Admits Data Caps Are More About Making Money Than Preventing Network Congestion

The president of the National Cable and Telecommunications Association and former FCC Chairman Michael Powell didn't hold back when discussing data caps as a member of a panel at the Minority Media and Telecom Council's Broadband and Social Justice Summit. 

Back in December, a report from the Open Technology Institute blamed Internet service providers of "using the threat of network congestion to justify data caps when their real motive was profit" and Powell couldn't agree more with that claim. "That's wrong," he said, according to Broadcasting & Cable. "Our principal purpose is how to fairly monetize a high fixed cost." However, Powell did justify the high costs stating that service providers use the money for operational expenses, as well as digging up the streets and laying down wiring. Yeah, OK.  

[via The Verge]

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