ISP Feebly Tries To Defend Usage Caps By Comparing Them To...Oreos

from the words-are-like-wind dept

Earlier this month, we noted how Netflix had complained to the FCC about broadband usage caps, quite-correctly noting they're little more than price hikes on uncompetitive markets. Netflix also was quick to highlight how caps can be used anti-competitively against streaming video providers, something the FCC opened the door to when it decided to turn a blind eye to the practice of zero rating (or exempting your own or a paid partners' content from counting against the cap). As such, Netflix urged the FCC to finally crack down on usage caps using its authority under Section 706 of the Telecom Act.

Apparently worried the FCC might take Netflix advice seriously (there's zero indication of such), a cable broadband ISP named Mediacom filed its own complaint with the FCC trying to defend the practice. Mediacom, which imposes usage caps as low as 200 GB on its users, tries to complain that criticizing ISPs for imposing caps is hypocritical...because Netflix charges different tiers of service for higher quality content and more streams:

"Ironically, those who think ISPs are greedy pigs or evil villains because they charge based on consumption through caps or usage-based pricing do not direct the same moral outrage toward edge providers who price their services in basically the same way. Netflix, for example, charges $7.99 a month for its “basic” subscription. A basic subscriber does not get unlimited usage of Netflix’s library for that price but, instead, is limited to videos in standard definition format and on only one screen at a time."

Of course, Mediacom knows it's comparing rotten apples to oranges. In broadband, users have no competitive options, so if an ISP (or both of the duopoly ISPs in a market) imposes usage caps, a consumer can't vote with their wallet. In contrast, users frustrated by Netflix's practice of charging more money for HD (or 4K) streams can just go get content from another streaming or traditional cable TV provider.

But this type of ill-suited comparison is trotted out again and again in the FCC filing, with the ISP going so far as to compare broadband service to game consoles, video games, socks, and cloud storage. Ultimately the core of the ISP's astonishingly flimsy argument leans heavily on Starbucks coffee and...Oreos:

"Imagine you are out for a walk and experience a sudden, irresistible craving for Oreo® cookies. You only want to spend two dollars, which means that you will be able to buy a two-pack or maybe even a four-pack but for sure you cannot get the family size of over 40 cookies. For that many, you have to spend more. Of course, it would be nice if your two dollars bought you the right to eat an unlimited number of cookies, but you know that is not the way our economy works. It is the same for the Starbucks latte you might want to drink with your cookies and for socks, gasoline and just about every single one of the thousands of other products and services that are for sale in the United States, including essentials like water and electricity."

Again that's so misleading as to be insulting. Consumers have a myriad of competitive options for both coffee and cookies, whereas Mediacom is very often the only ISP available to its customers. It's that lack of competition that encourages ISPs to begin charging more money for the same money via caps and overage schemes where -- unlike utility markets -- nobody confirms usage meters are accurate. As for how the economy actually works in broadband: incumbent ISPs buy state legislatures and federal regulators to ensure nobody lifts a finger as they price gouge the living hell out of a captive subscriber base.

You know, just like the damn lederhosen industry.

Filed Under: business models, choice, data caps, fcc, oreos, usage caps
Companies: mediacom, netflix

DailyDirt: DIY Junk Food

from the urls-we-dig-up dept

Is it still junk food if you make it yourself? If you feel guilty about buying junk food and have lots of time on your hands, here are a few links that might inspire you to try recreating some popular snacks at home.

• Here's a recipe for homemade Cheez-It crackers, which supposedly taste better than the store-bought version. By the time you're done making these, you'll wish that you had just gone to the store and bought a box of Cheez-Its. [url]
• McDonald's Canada has revealed exactly how they make their fries, "from the farm to the fryer." If you've ever wondered whether their fries are made from real potatoes, the answer is yes. Their fries are cut from whole potatoes harvested from farms in New Brunswick, Alberta, and Manitoba. [url]
• Read about one junk food enthusiast's attempts to recreate Twinkies, Hostess Cupcakes, Oreos, and Fritos. While some of the homemade versions were somewhat "healthier" calorie-wise, the general concensus was that there's just nothing like the real thing. [url]

If you'd like to read more awesome and interesting stuff, check out this unrelated (but not entirely random!) Techdirt post via StumbleUpon.

Filed Under: cheez-it, food, fries, fritos, hostess, junk food, mcd, oreos, recipes, twinkies
Companies: mcdonalds

DailyDirt: Who's That Kid With The Oreo Cookie?

from the urls-we-dig-up dept

We've seen a variety of Japanese Kit Kats that are localized with numerous limited-edition flavors, so it shouldn't be too shocking to see that other snack-makers have adopted similar strategies for their products. Here are just some interesting takes on the Oreo cookie.

• Chinese Oreos are NOT what you'd expect if you grew up in the US. Kraft localized Oreos for the Chinese palate, and Chinese Oreos can be found with green tea flavored filling.. and in rectangular-shaped cookies. [url]
• There are a bunch of recipes for homemade Oreos on the internets. Rolling your own Oreos allows you to make them any size you want... (and vegan if you wish). [url]
• The Oreo turns 100 years old this year on March 6th. That's a pretty long history of "twist, lick and dunk" -- and Kraft is celebrating with a limited edition of Birthday Cake Oreos. [url]
• To discover more food-related links, check out what's floating around in StumbleUpon. [url]  

By the way, StumbleUpon can also recommend some good Techdirt articles, too.

Filed Under: birthday, china, cookies, homemade, japan, kit kat, oreos
Companies: kraft