Netflix Miffed Over Data Caps

(RTTNews) - Netflix Inc. (NFLX) has urged the Federal Communications Commission or FCC to pressure broadband Internet service providers to end the practice of data caps, saying they are unreasonable and do not appear to serve a legitimate purpose.

In a letter to the FCC, the streaming video service has argued that data caps limit consumers choice and infringes upon fair competition. The data plans allow Internet providers to charge customers more when they exceed a monthly data allotment.

Netflix said it supports the FCC's move to define mobile advanced telecommunications capability at the proposed 10/1 Mbps threshold. It also urged the Commission to evaluate the effects that broadband caps have on the deployment of advanced telecommunications capability.

According to Netflix, data-limited plans and usage based pricing or UBP discourage consumers from using broadband and watching Internet television whenever they want to.

"For this reason, the Commission should hold that data caps on fixed-line networks and low data caps on mobile networks may unreasonably limit Internet television viewing and are inconsistent with Section 706," Netflix said.

According to Netflix, an average American needs an allotment of 300 gigabytes of data per month just to meet Internet television needs.

Further, the streaming video service noted that discriminatory application of data caps are an impediment to advanced telecommunications capability.