Dave Burstein was quick to point out that installing caps has little to do with cost (see previous post: The Incumbents' solution is in search of a problem). So which are the true reasons?
- Make an extra buck. There's nothing wrong with that, except that AT&T is not being fair about why they are doing this.
- Fight OTT. This write-up reveals that IPTV (U-verse) usage does not count toward the cap. By installing a cap, users may be led to think twice before using Netflix or Google TV. If you are used to leaving the TV on all day, this turns into a real problem.
- Insufficient competition. In a competitive market, there would be little room for installing caps just to make an extra buck (see above). Put bluntly: caps prove that competition is insufficient.