Netflix is urging the United States Federal Communication Commission (FCC) to review its stance on data caps. In a letter sent to the agency, the video streaming site requested that the FCC studies whether data ceilings harmfully impact the deployment of advanced telecom services. The letter was sent in response to an FCC inquiry related to the deployment of high-speed internet.
Netflix submitted the letter to the FCC last week during a review of the Telecommunication Act. The review is done to ensure that new technologies are reasonably accessible to the masses. Netflix claims that usage-based pricing and data caps hinder the consumption of broadband by users. According to Engadget, cable companies resort to data caps to lure viewers back to their TV service.
Netflix also stressed that the current cap of 300GB monthly data on home connections is not adequate for the average user. While the FCC has broad powers to regulate telecom and cable companies, its recent attempt to protect municipal broadband service failed. According to PC Mag, an FCC spokeswoman said that the agency would "keep an eye on new developments in this area."
Various ISPs have responded positively to complaints about data caps. AT&T and Comcast increased their data limit to 1TB, up from 300GB for specific tiers. The FCC recently revamped its set-up box plan, which requires cable companies to develop TVs streaming apps. However, this plan does not focus on data caps in any way.
Netflix claims that such caps violate a section of the Telecom Act.