Say it with me now. Data caps are about profits, not recovering fixed costs

[Commentary] There are lies, damned lies, and the arguments the cable industry makes about broadband caps. As more Internet service providers cap their broadband service, more questions are raised about the practice, which has put cable providers on the defensive. I’m not actually against the 95 percent profit margins or even caps if the market for broadband were competitive. Unfortunately, when more than three-quarters of American homes have the choice between only two providers it’s clear that competition for the basic broadband service is limited. And when you look at how competitive the services are based on speeds there are big differences. For example, AT&T U-Verse tops out at 24 Mbps on the download side while cable tops out at 50 Mbps or even 100 Mbps. But as someone who has documented legitimate questions about caps; their size, their spread, their rationale and their effect on innovation, I’m hoping that more and more consumers, lawmakers and regulators wake up to the fact that these caps aren’t necessary and that they pose a tax on innovation.