{{short description|Restriction imposed on the transfer of data}} {{globalize|date=March 2017}} {{Use mdy dates|date=March 2017}} A '''data cap''', often referred to as a '''bandwidth cap''', is a restriction imposed on data transfer over a network. In particular, it refers to policies imposed by an internet service provider to limit customers' usage of their services; typically, exceeding a data cap would require the subscriber to pay additional fees. Implementation of a data cap is sometimes termed a '''fair access policy''', '''fair usage policy''', or '''usage-based billing''' by ISPs.<ref name="Willcox October 2016" />
American ISPs have asserted that data caps are required to provide a "fair" service to their respective subscribers. The use of data caps has been criticized for becoming increasingly unnecessary, as decreasing infrastructure costs have made it cheaper for ISPs to increase the capacity of their networks to keep up with the demands of their users, rather than place arbitrary limits on usage. It has also been asserted that data caps are meant to help protect pay television providers that may also be owned by an ISP from competition with over-the-top streaming services.
==Example caps== In 2016, ''Consumer Reports'' concluded that a 1TB data cap is unlikely to be exceeded when the bulk of one's data usage is 4K video. In their example, watching all four seasons of ''House of Cards'' in 4K quality would consume slightly over half of a 1TB data cap.<ref name="Willcox October 2016">{{cite web|last1=Willcox|first1=James K.|title=How Easy Is It to Burn Through a 1TB Data Cap?|url=http://www.consumerreports.org/telecom-services/how-easy-to-burn-through-1TB-data-cap/|website=Consumer Reports|access-date=January 23, 2017|date=October 19, 2016}}</ref>
When the internet connection is also used for video games or online back-ups, a 1TB cap can be exceeded more easily. In a 2019 article on ''Vice'', the author shared their experience of draining 14% of their monthly 1TB data cap in two days by downloading ''Destiny 2'' and ''Tom Clancy's Ghost Recon Breakpoint'' from Steam. The author also notes that automatically downloaded patches and updates for modern games can contribute significantly to exceeding a data cap.<ref name="VICE_2019-10-07">{{Cite web|title=How I Learned About My Terrible Internet Data Cap, Thanks to Video Games|url=https://www.vice.com/en/article/how-i-learned-about-my-terrible-internet-data-cap-thanks-to-video-games/|website=VICE|date=2019-10-07|access-date=2025-08-17|language=en-US|first=Patrick|last=Klepek}}</ref>
==Unlimited data== "Unlimited data" is sometimes a marketing promotion in which an Internet service provider offers access to Internet without cutting service at the data cap.<ref name="Gikas June 2015">{{cite web|last1=Gikas|first1=Mike|title=AT&T and the truth about 'unlimited' data plans |url=http://www.consumerreports.org/cro/news/2015/06/truth-about-unlimited-data/index.htm|website=Consumer Reports|access-date=January 23, 2017|date=June 18, 2015}}</ref> However, after a user passes some data cap, the provider will begin bandwidth throttling to decrease the user's data access speed, slowing down the user's internet use.<ref name="Gikas June 2015"/>
==By region== As of October 2015, there were 58 wired broadband providers in the US that used data caps, among them major wireless cell phone providers such as Verizon Wireless and AT&T.<ref>{{cite web |author=Nick Reese |url=http://broadbandnow.com/report/providers-with-data-caps/ |title=Internet Providers with Data Caps |website=Broadbandnow.com |date=October 9, 2015 |access-date=April 15, 2016 |archive-date=June 25, 2016 |archive-url=https://web.archive.org/web/20160625235920/http://broadbandnow.com/report/providers-with-data-caps/ |url-status=dead }}</ref>
Before 2010 there was a trend of providing unlimited data without bandwidth throttling.<ref>{{cite web |last=Goldman |first=David |url=https://money.cnn.com/2015/10/21/technology/unlimited-data/ |title='Unlimited' data plans aren't really unlimited |date=2015-10-21 |archive-url=https://web.archive.org/web/20240815015011/https://money.cnn.com/2015/10/21/technology/unlimited-data/ |archive-date=2024-08-15 |access-date=2025-07-22 |website=CNNMoney}}</ref> In the United States the Federal Communications Commission has fined service providers for offering unlimited data in a way that misled consumers. In June 2015, the FCC fined AT&T Mobility {{US$|100000000}} for misleading consumers.<ref>{{cite web|author1=Federal Communications Commission|author-link1=Federal Communications Commission|title=AT&T Mobility Faces $100M Fine For Misleading Consumers|url=https://www.fcc.gov/document/att-mobility-faces-100m-fine-misleading-consumers-0|website=Federal Communications Commission|access-date=January 23, 2017|language=en|date=June 17, 2015}}</ref> In October 2016 the FCC reached a settlement with T-Mobile in which they would pay {{US$|48000000}} for failing to disclose restrictions on their unlimited data plans.<ref>{{cite web|author1=Federal Communications Commission|author-link1=Federal Communications Commission|title=FCC Reaches $48m Settlement with T-Mobile Over Unlimited' Data Plans|url=https://www.fcc.gov/document/fcc-reaches-48m-settlement-t-mobile-over-%C2%91unlimited-data-plans|website=Federal Communications Commission|access-date=January 23, 2017|language=en|date=October 19, 2016}}</ref>
Iranian Communications Regulatory Authority set a Fair Usage Policy in 2017.<ref>{{Cite web|title=Iran Telecom Regulator to Ease Internet Fair Usage Policy|url=https://www.en.eghtesadonline.com/Section-technology-13/26084-iran-telecom-regulator-to-ease-internet-fair-usage-policy|access-date=2020-11-24|website=Eghtesad Online|language=en}}</ref><ref>{{Cite web|date=2017-11-21|title=Iran Regulator Introduces Internet Fair Usage Policy|url=https://financialtribune.com/articles/sci-tech/76548/iran-regulator-introduces-internet-fair-usage-policy|access-date=2020-11-24|website=Financial Tribune|language=En}}</ref>
== Justification == American internet service providers have asserted that data caps are needed to provide "fair", tiered services at different price points based on speed and usage.<ref name="cio-comcastcap"/><ref name="money-caps">{{cite web |last=Wolff-Mann |first=Ethan |date=June 7, 2016 |title=Broadband CEOs Admit There's No Real Reason For Data Caps Besides Boosting Profit |url=https://money.com/internet-data-caps-bogus-ploys/ |url-status=live |archive-url=https://web.archive.org/web/20211220062736/https://money.com/internet-data-caps-bogus-ploys/ |archive-date=December 20, 2021 |access-date=March 20, 2017 |website=Money.com}}</ref><ref>{{cite web|last=Brodkin |first=Jon |url=https://arstechnica.com/business/2014/05/comcast-plans-data-caps-for-all-customers-in-5-years-could-be-500gb/ |title=Comcast plans data caps for all customers in 5 years, could be 500GB |publisher=Ars Technica |date=May 14, 2014 |access-date=April 15, 2016}}</ref>
In 2016, Sonic.net CEO Dane Jasper criticized the historical assertions that data caps are meant to conserve network capacity, arguing that the cost of actually delivering service had "declined much faster than the increase in data traffic". When Sonic was first established in 2008, its infrastructure costs were equivalent to 20% of its revenue, but these had fallen to only 1.5% by 2016 because of the declining equipment costs.<ref name="cio-comcastcap">{{cite web|title=What big ISPs don't want you to know about data caps|url=http://www.cio.com/article/3075975/internet-service-providers/what-big-isps-dont-want-you-to-know-about-data-caps.html|website=CIO|access-date=March 20, 2017|archive-date=March 21, 2017|archive-url=https://web.archive.org/web/20170321085606/http://www.cio.com/article/3075975/internet-service-providers/what-big-isps-dont-want-you-to-know-about-data-caps.html|url-status=dead}}</ref> Suddenlink CEO Jerry Kent made a similar assertion in an investors' call, stating that the "days" of having to make investments to keep up with customer demand were "over", and there would be "significant free cash flow generated from the cable operators as our capital expenditures continue to come down."<ref name="money-caps"/>
As most major U.S. internet providers own television providers, it has also been suggested that data caps are intended to discourage users from dropping their pay television subscriptions by placing ''de facto'' restrictions on the use of competing streaming video services that are delivered over the internet, such as Netflix.<ref name="cio-comcastcap"/><ref>{{cite web|url=https://www.bloomberg.com/news/2012-06-27/netflix-wants-help-from-u-s-against-cable-data-caps.html |title=Netflix Wants Help from U.S. Against Cable Data Caps |publisher=Bloomberg |date=June 27, 2012 |access-date=April 15, 2016}}</ref> The lobbying group Internet Association additionally argued that data caps are meant to create "artificial scarcity", especially in markets where there is limited competition in broadband, also pointing out that some providers offer their own streaming video services that are exempted from data cap policies, such as Comcast's Stream TV. Comcast defended the exemption by stating that the service is not delivered over the public internet; it can only be used while connected to the provider's home Wi-Fi router.<ref name="tc-streamtv">{{cite web|title=Comcast rolls out a new Stream TV app for its cable and internet TV customers|url=https://techcrunch.com/2017/02/15/comcast-rolls-out-a-new-stream-tv-app-for-its-cable-and-internet-tv-customers/|website=TechCrunch|date=February 15, 2017 |access-date=21 March 2017}}</ref><ref name="bloomberg-artificialscarcity">{{cite news|title=Comcast Wants to Limit Your Netflix Binges|url=https://www.bloomberg.com/news/articles/2016-01-28/comcast-draws-customer-ire-by-putting-netflix-addicts-on-a-meter|newspaper=Bloomberg.com|date=January 28, 2016 |access-date=March 20, 2017}}</ref>
==See also== * Bandwidth (computing) * Bandwidth management * {{section link|Internet in Canada|Usage-based billing}} * Uncapping
==References== {{reflist}}
==External links== * [http://www2.broadbandreports.com/shownews/61108 BroadbandReports.com review of Optimum Online policies] * [https://www.fcc.gov/sites/default/files/Data-Cap-Complaints-Redacted.pdf FCC.com what are people saying about data caps]
Category:Broadband Category:Data transmission Category:Net neutrality Category:Limiting mechanisms