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Netflix asks FCC to ban data caps, calling it bad for business

Shawn Price
Netflix has sent a letter to the FCC to request the agency review the possibility that internet data caps are hurting new technology like internet TV. Photo by scyther5/
Streaming video giant Netflix has asked the Federal Communications Commission to study whether data caps for mobile and internet services are harming the growth of internet TV.
In the letter, Netflix essentially told the FCC data caps are bad for their business.
"Watching television shows and movies on the Internet is no longer a novelty," Netflix said, arguing data caps don't manage congestion, they only make internet providers richer.
"Data caps ... and usage-based pricing discourage a consumer's consumption of broadband, and may impede the ability of some households to watch Internet television in a manner and amount they would like," the company contends.
Netflix also argued raise consumer costs and "an unnecessary constraint" on new technology, which the company argues, is a violation of the Telecom Act. The law requires the agency to help ensure new technology is accessible to the public.
The agency told PCMag it would "keep an eye on new developments in this area."
Common 300GB data caps like those from Comcast or AT&T aren't enough for most households, with the Wall Street Journal reporting in April nearly 8,000 complaints over usage caps in just the second half of last year.

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