Consumers OK with Data Limits on Wireless, But Not Wired Broadband

Consumers are OK with caps on how much data they can download on their wireless devices every month, but are much more concerned about limits on their home Internet usage.

The Government Accountability Office conducted focus groups in four cities for its report on Internet usage-based pricing, or charging consumers based on how much data they use. While consumers were generally accepting of the data limits on wireless usage, they showed "strong negative reactions" to the idea of capping the amount of data they can use on their wired broadband connections at home, citing the importance of unlimited bandwidth to their lives and fear that broadband providers could use data caps as a way to increase the amount they charge for Internet service. In a finding that could bolster regulators' push for transparency from broadband providers, the GAO found that consumers were largely confused about how much data they use, and that many could opt for a less-expensive data plan without fear of exceeding their monthly data cap.