Setting standards for Internet caps
Published 4:00 am Saturday, December 29, 2012
U.S. Sen. Ron Wyden has introduced legislation that would set industry standards for Internet service providers that impose limits on the amount of data their customers use.
Under Senate Bill 3703, the Federal Communications Commission would establish the way providers measure data to ensure limits on monthly usage are designed to manage network congestion, not just create revenue for businesses, according to a news release from Wyden’s office.
The bill, which was sent to the Senate Committee on Commerce, Science, and Transportation, would also help consumers manage data usage and promote Internet use and innovation, the news release stated.
“Internet use is central to our lives and to our economy,” Wyden, D-Ore., said in his statement introducing the Data Measurement Integrity Act on Dec. 20. “Future innovation will undoubtedly require consumers to use more and more data — data caps should not impede this innovation and the jobs it creates.”
As consumers increase the amount of music, videos and other digital content they access over the Internet, some providers have set monthly limits, or caps, on the data usage.
If an ISP imposes a data cap, Wyden’s bill states, it must manage network congestion without unnecessarily discouraging Internet use, accurately measure consumers’ data usage and give customers tools to monitor and control their usage, according to the bill.
An explanation of the bill on the senator’s website states: “It is unclear how these ISPs measure data usage, and there is mounting evidence that ISPs are inaccurately measuring data.”
Britt Wehrman, vice president of marketing for BendBroadband — the Bend cable TV, Internet and telephone company — said that statement does not represent BendBroadband’s data-measurement practices.
“We were one of the first Internet providers to provide a tool for customers to monitor their data usage,” he said. BendBroadband uses an Internet Protocol Detail Report, which provides the company with a usage report per cable modem that is then provided to customers. The company also provides email alerts when usage levels reach a certain amount.
Heather Koch, marketing development manager for CenturyLink, said the company’s high-speed DSL Internet service has no data caps, but does have recommended maximums to help minimize network congestion.
“CenturyLink, unlike some providers, does not charge an overage fee for download data usage so that people have access to the Internet and can do what they want with it,” she said.
For high-speed Internet service, she said there’s a 250 gigabyte maximum per month. To go over that maximum, she said a customer would have to stream 1,000-3,000 half-hour shows from Netflix, send more than 15 million unique emails or download 300,000-500,000 photos.
In response to recent consumer usage trends, Wehrman of BendBroadband said the company increased its data allowances by up to 50 percent in February. Depending on which package the customer selects, usage allowances vary between 125 GB and 225 GB per month.
Customers may pay more to increase the limit, according to BendBroadband’s website. Those who exceed the limits may be charged $1.50 per GB.
Wehrman said only about 1 percent of households go over the monthly allowance.
Some customers check email and update Facebook, while others stream music and movies for hours each day, said Amy Tykeson, president and CEO of BendBroadband. Usage-based pricing helps keep high-speed Internet affordable for all users, and does not saddle light users with the additional cost of network investment needed to support heavier users.
“Unfortunately, Senator Wyden’s proposed legislation does not address the substantial pro-consumer fairness benefits of usage-based pricing, the impact on broadband adoption from higher prices that would result absent usage tiers or the considerable investment required to maintain high performance broadband networks,” Tykeson said.