Are Internet providers ripping off some of their biggest customers? This data may tell.

Author: 
Coverage Type: 

Federal regulators are finally releasing a huge trove of pricing and network data they've spent months collecting on the massive $40 billion market for business broadband, part of an effort to determine whether Internet providers such as Verizon and AT&T are charging hospitals, universities and other enterprises fairly for data and communications services. Most of us may be more familiar with the retail market for broadband, where Internet providers charge consumers a monthly fee for access to the Web. Although it's more obscure, the business market for high-speed data is no less important: It's what helps ATMs connect to your bank account, and how smaller cellular carriers like Sprint route your phone calls across the country. Some firms argue that, just as in the residential broadband space, a lack of competition among Internet providers drives up prices.

Unfortunately, there's no way for the general public to review the data, which is highly sensitive. Only analysts who've been specially cleared by the Federal Communications Commission will be able to access the information -- which includes network maps, pricing information, and confidential company documents -- from a secure facility. Critics of the FCC allege that the agency is looking for ways to impose new price regulations on the communications industry. But the market for special access has always been subject to regulation, said the FCC official, who spoke on condition of anonymity. "What the commission is trying to do is figure out, 'Where is it appropriate to move away from [the old rules] and where is it appropriate to leave them in place?' "


Are Internet providers ripping off some of their biggest customers? This data may tell.