RON WYDE COMMI1TEES: OREGON COMMITTEE ON THE BUDGET COMMITTEE ON ENERGY AND NATURAL RESOURCES SUBCOMMITTEE ON PUBLIC LANDS AND FORESTS 223 DIRKSEN SENATE OFFICE BUILDING WASHINGTON, Dc 20510 ?znatz SPECIAL COMMITTEE ON AGING (202) 224?5244 SELECT COMMITTEE ON INTELLIGENCE (202) 224?1280 (TDD) WASHINGTON, DC 205 10?3703 COMMITTEE ON FINANCE November 1, 2016 The Honorable Tom Wheeler Chairman Federal Communications Commission 445 12th Street, sw Washington, DC 20554 Dear Chairman Wheeler, I write to raise concerns about the proposed merger between Time Warner and in particular, how it could dramatically increase the use of data caps and zero-rated content, two anti-competitive practices that harm consumers. Internet Service Providers (ISPs) are already using so-called ?data caps,? which are arti?cial limits on how much data can be used in a month, to squash competition and gouge consumers under the unconvincing guise of limiting network congestion. Nearly all data caps, and particularly those attached to wireline broadband plans, have nothing to do with network management and everything to do with pro?ting from of an ever-more- consolidated broadband market. Data cap plans that zero-rate data at the discretion of the ISP violate the principle of net neutrality by creating an internet where one bit is favored over another bit absent user control. Troublingly, proved itself to be an early and enthusiastic adopter of zero-rating in order to monetize data and boost its bottom line. I am deeply concerned that if acquires Time Warner?s content, the new mega-company will have incentives to prioritize its own content over content created by small business, independent artists or by its rivals. For example, should decide to zero-rate data associated with streaming HBO, one can easily foresee a quick uptick in Game of Thrones streaming, instead of Mr. Robot, which is owned and produced by a rival network. has already announced that it will zero-rate online video from DirecTV, including its forthcoming streaming service (DirecTV Now). The merger would eliminate competition from Time Warner?s own over-the-top Video services, and could give even more incentives and abilities to disadvantage other competitors, such as Net?ix and Sling. In 2012, I introduced the Data Cap Integrity Act, a bill which prohibits an ISP from imposing a data cap unless it is certi?ed by the Federal Communications Commission (FCC). The Data Cap Integrity Act also disallows any data cap plan from providing preferential treatment based on the source or content of the data, effectively disallowing harmful zero-rating. As Chairman of the FCC, you have a strong record of consumer protection, and by vigorously pursuing and defending net neutrality you have laid the groundwork for a thriving open internet. Under the authority, it may regulate data caps and zero-rating - something the agency has said it will consider on a case-by-case basis. 911 NE 11TH AVENUE 405 EAST 8TH AVE SAC ANNEX BUILDING COURTHOUSE THE JAMISON BUILDING 707 13TH ST, SE SUITE 630 SUITE 2020 105 FIR ST 310 WEST 6TH ST 131 NW HAWTHORNE AVE SUITE 285 PORTLAND, OR 97232?4169 EUGENE, OR 97401 SUITE 201 ROOM 118 SUITE 107 SALEM, OR 97301 (503) 326?7525 (541) 431?0229 LA GRANDE, OR 97850 MEDFORD, OR 97501 BEND, OR 97701 (503) 5894555 (541) 96277691 (541) 858~5122 (541) 330?9142 PRINTED ON RECYCLED PAPER Over the coming months, I will continue to keep an on data caps and zero?rating, with the full intention of zealously pursuing legislation like the Data Cap Integrity Act, should it be required. I ask you to do the same and to please reach out to me if you believe we can partner on protecting consumers in this arena. Sincerely, Ron Wyden United States Senator