FCC Republican opposes regulation of data caps with analogy to coffee refills

Simington argued that regulating data caps would harm customers, using an analogy about the hypothetical regulation of coffee refills:

Suppose we were a different FCC, the Federal Coffee Commission, and rather than regulating the price of coffee (which we have vowed not to do), we instead implement a regulation whereby consumers are entitled to free refills on their coffees. What effects might follow? Well, I predict three things could happen: either cafés stop serving small coffees, or cafés charge a lot more for small coffees, or cafés charge a little more for all coffees.

Simington went on to compare the capacity of broadband networks to the coffee-serving capacity of coffee shops. He said that tiered coffee prices “can increase overall revenue for the café,” which can be invested “in more seats, more cafés, and faster coffee brewing.”

Simington is against rate regulation in general and said that regulation of usage-based plans (aka data caps) is just rate regulation with a different name. “Though only a Notice of Inquiry, because it is the first step down a path toward further rate regulation, I can’t support the item we’ve brewed up here. I dissent,” Simington wrote.

Carr: Data-capped plans “more affordable”

Carr’s statement said, “I dissent from today’s NOI because I cannot support the Biden-Harris Administration’s inexorable march towards rate regulation and because the FCC plainly does not have the legal authority to do so.”

Carr pointed to the recent 6th Circuit appeals court ruling that blocked the Rosenworcel FCC’s attempt to reinstate net neutrality rules under Title II of the Communications Act. Judges blocked enforcement of the net neutrality rules until the court makes a final ruling, saying that broadband providers are likely to win the case on the merits.

Carr said the FCC is “start[ing] down the path of directly regulating rates… by seeking comment on controlling the price of broadband capacity (‘data caps’). Prohibiting customers from choosing to purchase plans with data caps—which are more affordable than unlimited ones—necessarily regulates the service rates they are paying for.”