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Usage caps on fixed-line networks are a sign of an uncompetitive market. For years, ISP’s have been telling us that usage caps were mandatory for network congestion. Then, ISP’s told us that usage caps were about fairness because bandwidth hogs were hurting those who barely use the internet.

But slowly over the last few years, ISP’s have been quietly admitting that usage caps are, and always have been, about milking consumers out of as much money as possible. Former FCC boss turned top cable lobbyist Michael Powell has even acknowledged that data caps aren’t about congestion. He did, however, try to pass off the ridiculous notion of data caps being about “fairness.”

Asked by MMTC president David Honig to weigh in on data caps, Powell said that while a lot of people had tried to label the cable industry’s interest in the issue as about congestion management. “That’s wrong,” he said. “Our principal purpose is how to fairly monetize a high fixed cost.” – DSLReports

In Nova Scotia, Canadian ISP Eastlink is being publicly hammered over its decision to cap rural broadband packages at a laughable 15 gigabytes a month starting in August. Not to worry though as you can pay $20 more if you watch multiple HD movies on Netflix or stream a few albums on iTunes.

ExtremeTech
ExtremeTech

To make matters worse, the entire area absolutely despises EastLink. Businesses around the area describe the service as “dial-up” while others are angry that their promised speeds aren’t remotely close to the actual speeds received in their homes/businesses.

Just remember, if it were to the ISP’s themselves, the definition of broadband would be what companies advertise to customers, not the actual speeds delivered.