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Data Caps

Data Caps

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Published by Bennet Kelley
New American Foundation Study
New American Foundation Study

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categoriesTypes, Research
Published by: Bennet Kelley on Dec 22, 2012
Copyright:Attribution Non-commercial

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12/22/2012

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Data caps do not address network congestion.
The main challenge for network en-gineers is how to deal with demand during peak hours. The critical factor is the
time of day
when an indi-vidual uses data, not an individual’s aggregate data consumption over the course of a month. Even majorISPs have acknowledged this:
In a disclosure document required by the FCC, Comcast admitted that data

levels that vary from minute to minute.” 
 
The cost of delivering broadband service is decreasing, not increasing.
 The price of service is often cited as a justification for data caps. However, declines in network equipmentcosts and costs to move data, including IP transit, mean that ISPs are now spending less while profitingfrom more customers.
17%
decrease in cost of network operation
 
-

-tomer base from Q4 2007 to Q4 2010.

CAPPING THE NATION’SBROADBAND FUTURE?

Forecasts of a flood of mobile data have been overblown.
 Carriers have justified caps by pointing to the imminent explosion in mobile datausage. However, the projections they relied on have since been proven inaccurate: in2008, for example, Cisco Systems projected that mobile data traffic would increase18-fold by 2012. In 2011, when it became clear that this prediction would not cometrue, the number was reduced to roughly 60% of the original projection.
25%
increase in number of subscribers
Comcast’s High-Speed Internet Service Explained: Customer Growth vs. Network Expenses
$150$143$122$136$1292007 2008 20102009
 Avg. No. of High-Speed Internet Customers Avg. Quarterly Operating Expenses
1716131514
   H   i  g   h  -   S  p  e  e   d   I  n   t  e  r  n  e   t   E  x  p  e  n  s  e  s   (   M   i   l   l   i  o  n  s  o   f   D  o   l   l  a  r  s   )   N  u  m   b  e  r  o   f   C  u  s   t  o  m  e  r  s   (   M   i   l   l   i  o  n  s   )

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