Is Uncle Sam coming for your internet data cap?

Why is the FCC looking at data caps?

Within the last year, nearly 3,000 people have written to the FCC to complain about data caps, Rosenworcel said. They included the following:

• People who work from home
• Healthcare providers and their patients
• People with disabilities
• Students

Rosenworcel wants the FCC to be a voice for these groups and questions why providers enforce data caps at all. They seem to have the capacity to offer unlimited data, based on the fact that they lifted data caps during the COVID-19 pandemic, she said. She also pointed out that some providers have dropped data caps entirely.

Opposition to the study

Rosenworcel is the chair of the FCC and has the power to authorize NOI studies like this one, but she faces opposition within her ranks.

Commissioner Brendan Carr believes the study is a move toward what he calls “illegal rate regulation” and says it may rob internet shoppers of the power of choice.

“Prohibiting customers from choosing to purchase plans with data caps—which are more affordable than unlimited ones—necessarily regulates the service rates they are paying for,” Carr said.

Commissioner Nathan Simington also dissented, saying the FCC shouldn’t regulate rates. He launched into a complicated metaphor comparing broadband regulation to coffee prices.

“Though only a notice of inquiry, because it is the first step down a path toward further rate regulation, I can’t support the item we’ve brewed up here,” Simington finished. “I dissent.”

The other members of board, Commissioner Geoffrey Starks and Commissioner Anna M. Gomez, did not publish statements regarding the data cap investigation.

Get unlimited internet data if you can

We believe customers deserve access to high-quality internet services, without a lot of confusion or hidden pricing. That means we recommend plans with unlimited data if you can get them.

The chart below can help you figure out how much data you need for everyday activities per person, per month. As you can see, it wouldn’t be hard for a family of four to reach a 1TB cap if they game, stream, and work or study online every day.

Fiber internet, for example, has unlimited data across the board. AT&T , Verizon , and Quantum Fiber are all big providers with fast, unlimited plans. Google Fiber has a smaller footprint, but is another great choice for unlimited data.

It gets more complicated with cable internet. Spectrum and Optimum ​ offer unlimited data, but many other providers have data caps around 1.2TB and charge $10/GB per month if you go over.

Fixed wireless providers like T-Mobile and Verizon have soft data caps of around 1TB. Your speed will be throttled if you use more data than that in a month, but you won’t be cut off and you won’t be charged extra.

Should data caps be allowed?

While we love unlimited data, we aren’t sure providers should be prevented from offering plans that have caps. If it’s possible to pay less for a plan with a low data cap, and you’re willing to deal with the stress of tracking your data, maybe you should have that choice.

Getting completely cut off or charged exorbitant prices after you exceed your cap does seem predatory, though.

In today’s world, having access to the internet is a necessity.

We’re eager to see what the FCC investigation uncovers, and we’re carefully watching internet providers to see how they react.

How you can participate

The FCC has already collected thousands of stories, but it would like to hear more. Tell the agency what you think in a few clicks.

You can also learn about your own data caps by carefully reading your provider’s broadband nutrition label and learning about how much internet data you need.

Learn more in our expert resource library

• What is Unlimited Internet Data?
• Best Unlimited Home Internet Plans Without Data Caps
• Watching Your Wi-Fi Diet? Here’s How Much Data a Hotspot Uses
• How Much Speed Do You Need?