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Netflix pans AT&T's plan to cap data

By Sara Jerome - 03/16/11 06:10 AM ET

Netflix is not pleased about AT&T's decision to cap data use on fixed Internet connections, a decision the company announced this week. 

The video rental company has consistently argued against data caps, which it has portrayed as anti-consumer. Opponents to usage caps say they could deter the growth of streaming services such as Netflix.

A Netflix spokesman confirmed Tuesday that the company is unimpressed with AT&T's plans. "It’s moving in the absolute opposite direction from what consumers want," said Steve Swasey.

Swasey said he is not in a position to comment on whether Netflix affirms that the pricing plan is legal. The FCC has said usage-based pricing is inbounds. 

AT&T is planning to cap the amount of data consumers can use beginning in May. It will charge overage fees for those who exceed the cap, while providing alerts to help consumers monitor their usage levels.  

The company says the new limits will only affect 2 percent of consumers. It already caps usage for wireless customers.


Source:
http://thehill.com/blogs/hillicon-valley/technology/149831-netflix-pans-atats-plan-to-cap-data
Phillip J. Bond’s ‘Tech Execs’ appears here on The Hill's Hillicon Valley Blog occasionally.

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