The GAO has taken a look at broadband caps on behalf of Congress and has uncovered a few troubling things.
Bandwidth caps are a bad idea, but a story from earlier this month shows how our love of connected devices and the increasing prevalence of caps could lead to consumer angst.
Spotify, one of the most popular music streaming services in Europe and other regions, today launched in the U.S., as expected. But mobile users will have to pay for the Premium plan, a $9.99 monthly subscription. What features do you get and is it worth it?
Sure, most of us can get pretty fired up over the thought of a monthly 250 GB bandwidth cap, but what about the companies that provide online video services? After all, as Om pointed out, the cap isn’t about excessive bandwidth usage as much as it is about stymieing online video sources like Hulu, Netflix and Amazon.
Roku, which makes the Netflix player, isn’t worried about the cap. The $99 set-top box maker is more of a facilitator than a provider, but its entire business is built upon delivering video to you over your broadband connection, so a cap could impact its sales.
“It really doesn’t give me a lot of concern,” said Tim Twerdahl, Roku’s vice president of consumer products. “It’s unfortunate that the limitless possibilities are being capped by an ISP, but it has no direct business impact on us.”