Wyden Introduces Data Cap Bill

Would mandate measurement standards and prevent ISPs from using caps to create 'artificial scarcity' that drives up prices

By John Eggerton -- Broadcasting & Cable, 12/20/2012 4:05:58 PM

Sen.Ron Wyden (D-Ore.) introduced a bill on Thursday to give consumers more control over their data usage in the wake of data caps imposed by some ISPs. The bill would also mandate industry-wide data measurement accuracy standards and impose "disciplines" to ensure that data caps are only used to manage network congestion, not to "extract monopoly rents," citing a New York Times editorial opining on that subject.

The Data Cap Integrity Act would require the FCC to come up with the standards for how ISPs measure data, and gives it the power to "ensure that data caps are designed to manage network congestion rather than monetize data in ways that undermine online innovation."

It also includes a bit of network neutrality language, saying that ISPs "cannot, for purposes of measuring data, discriminate against any content."

Public Knowledge, which has been critical of the caps, branding them as a vehicle for driving up prices, praised the bill.

"Data caps create an artificial scarcity in the broadband market that limits consumer choice and hinders the creation of new competitive content online," said Public Knowledge VP of public affairs, Christopher Lewis. "Public Knowledge supports Sen. Wyden's effort to provide consumers with transparency on their data usage and to ensure that these caps do not limit innovative products and uses on the Internet."

The bill won't be going anywhere in the present Congress, which has only a few days left of legislative sessions.