T-Mobile Data Roaming Petition Proves Wireless Data Caps Are About Market Power

[Commentary] The extremely aggressive bandwidth caps that most mobile providers impose -- particularly AT&T and Verizon -- don’t make any sense as a way to manage congestion and that they seriously undermine the value of mobile broadband to consumers.

The wireless carriers -- particularly AT&T and Verizon -- argue that they need to use caps to manage congestion and stop “bandwidth hogs” from destroying our national wireless networks with their cat videos. Now comes T-Mobile with fairly rock solid evidence that bandwidth caps have nothing to do with technical constraints and everything to do with AT&T and Verizon holding most of the good wireless spectrum used for mobile broadband.

Subscribers not using streaming media for fear of surpassing data caps hurts not only our ability to use broadband to its fullest potential, but has serious implications for the Open Internet and network neutrality. As we’ve argued all along, there’s no real reason to cap broadband. It’s not because AT&T and Verizon are protecting our networks from bandwidth hogs. It’s because AT&T and Verizon are leveraging their spectrum market power so they can overcharge subscribers and drive out competitors.

The FCC needs to fix data roaming. Separately, it needs to crack down on data caps that increasingly look like nothing more than a way to leverage market power to inflate prices and hurt potential competitors.