The US Government Accountability Office (GAO) warns in a new report that Internet service providers could use data caps to impose higher prices on consumers, especially in markets where ISPs face little competition. But the GAO’s recommendations to the Federal Communications Commission are already meeting resistance.
ISPs have argued that consumers could benefit from caps or “usage-based pricing,” because consumers who use small amounts of data would pay less than customers who use a lot more, similar to how the cellular market works. But there isn’t enough competition in all cities or towns to prevent ISPs from abusing data caps, the GAO wrote.
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