Sprint Moves on Data Throttling Show Market Forces Work, AEI Fellow Says

Sprint’s decision last week to remove the 600 kbps limitation on streaming video, in response to customer complaints (see 1507010011), shows the market works, said Gus Hurwitz of the American Enterprise Institute’s Center for Internet, Communications and Technology Policy, in a blog post. But Hurwitz questioned whether Sprint’s proposal was really better for consumers than AT&T's and Verizon’s attempts to control use of their networks. “On its face, Sprint’s policy seems fairer,” he wrote. “It applies to everyone, and it’s a simple, bright-line rule. Verizon and AT&T’s plans, on the other hand, are unpredictable and target only specific users under specific conditions. From another perspective, however, Sprint’s rule merely harms everyone equally. AT&T and Verizon’s rules are permissive: they allow users access to as much bandwidth as is available, so long as it doesn’t harm other users by slowing down the network for others.” But the FCC has clamped down on both AT&T and Verizon for their policies, including a proposed $100 million fine against AT&T, Hurwitz said.