Quantcast
Connect with us

Study: ISP data caps only serve to increase company profits

Published

on

Bandwidth caps implemented by major American Internet service providers (ISPs) in recent years don’t actually help networks deliver reliable service and instead only serve to inflate company profits, a study published Monday found.

“Internet service and mobile providers appear to be one of the few industries that seek to discourage their customers from consuming more of their product,” The New America Foundation’s study stated. “The reason for this counterintuitive business model is that in the noncompetitive US marketplace, it is highly profitable.”

ADVERTISEMENT

The study found that as the subscriber-base for companies like AT&T, Comcast and Charter has expanded, the cost for data delivery has hit record lows. Meanwhile, about 64 percent percent of American Internet subscribers are now on bandwidth-limited plans.

Companies that implemented such policies have without exception told customers that they’re intended to head off network congestion ostensibly caused by heavy Internet users. Most caps, however, allow the user to purchase more bandwidth for a fee, as if it were a tangible object instead of a continuous service.

But even Comcast itself, the study notes, admitted in a letter to the Federal Communications Commission (FCC) that its bandwidth caps “does not address the issue of network congestion.”

“Some estimate that cable broadband providers enjoy gross margins as high as 95 percent, an exceptionally high rate of revenue relative to the supposed costs associated with offering the service,” the study explains. “For these companies, selling broadband packages even to the heaviest users is still quite profitable.”

Critics of the caps often suggest that they’re designed to both inflate profits and impede competition in an increasingly consolidated marketplace, particular when it comes to video delivery.

ADVERTISEMENT

“Law professor Susan Crawford sums up the problems of the residential broadband marketplace, observing ‘the cable operators have a built in, giant conflict of interest,'” the study noted. “‘They want to make sure that only their own premium video products are successful, and they can twist all the dials to make sure that happens.'”
——

Photo: Shutterstock.com, all rights reserved.

(H/T: Ars Technica)

ADVERTISEMENT


Report typos and corrections to: [email protected].
READ COMMENTS - JOIN THE DISCUSSION
Continue Reading

Breaking Banner

West Virginia mail carrier busted for helping GOP by tampering with absentee ballot requests

Published

on

A mail carrier in West Virginia is facing jail time after he was caught tampering with absentee ballot requests in a way that suppressed turnout in local Democratic primary elections.

BuzzFeed News reports that 47-year-old Thomas Cooper pleaded guilty this week to attempting to defraud the residents of West Virginia of a fair election when he switched West Virginia residents' ballot requests from Democratic to Republican ballots.

Cooper altered a total of eight different ballot requests, although he told investigators that he did it "as a joke" and didn't mean to cause any harm. Cooper's attorney, Scott Curnutte, similarly told BuzzFeed News that Cooper's actions had just been a "silly lark."

Continue Reading

Breaking Banner

Former acting CIA director explains why Trump’s inaction on Russian bounty scandal will make things worse

Published

on

It was revealed nearly two weeks ago that the Russian government is paying a bounty to the Taliban for killing American soldiers.

Since then, President Donald Trump has denied that he and his administration didn't know anything about it. Then he claimed it was a hoax. Now it has become clear that the stories are not only true but that if Trump read his presidential daily briefing in 2019, he would have been aware of the problem.

Speaking to the House Thursday, Trump's former acting CIA director Michael Morell explained that things are being made far worse by the president's denial.

Continue Reading
 

Breaking Banner

Here are 7 hilarious videos about wearing COVID-19 masks to send people who won’t wear them

Published

on

While late-night shows are off for a Summer break, Americans are glued to TikTok and Twitter for their humor and every folks have delivered.

The latest trend is to mock fools who refuse to wear masks. While many people who refuse to wear a mask tuck their tails and sulk as they walk away, some take it to a whole new level of fury. Those precious souls are being mocked and shamed all around the world.

Here are seven videos that are hilarious or adorable that encourage wearing masks during the COVID-19 pandemic:

Wearing a mask is like wearing a lifejacket.https://twitter.com/mattbooshell/status/1280933495674732544

Continue Reading
 
 
You need honest news coverage. Help us deliver it. Join Raw Story Investigates for $1. Go ad-free.
close-image