
"This is not a rate increase, this is about fair pricing for everyone, seriously."
It’s always awful when you wake up with a bad taste in your mouth. That’s the flavor of industry hacks and sock puppets who spent a good part of yesterday and last night on the attack against Rep. Eric Massa and your consumer interests. Part of this battle is about engaging those who claim to represent consumers, but actually turn out to be paid by a lobbyist firm or “think tank,” usually located either in or near Washington, DC. They are typically unwilling to disclose that involvement. I’m not. When called out, the typical response ranges from silence to ‘I would be saying the same things even if I didn’t get paid by them.’
Sure they would.
Consumers need to be particularly vigilant about the Say for Pay crowd of sock puppets that arrive in quotations in articles that attack common sense pro-consumer positions, or in the comments below an online article.
Now you may be asking what in the world is a “sock puppet.” Craig Aaron at Free Press explains:
Sock puppets, for those unfamiliar with the creatures commonly found inside the Beltway, are mouthpieces who rent out their academic or political credentials to argue pro-industry positions. These pay-to-sway professionals issue white papers, file comments with key agencies, and present themselves to the press as independent analysts. But their views have a funny way of shifting depending on who’s writing the checks. (To be clear, at Free Press we take no industry money.)
Sock puppets and astroturf groups go hand in hand. If you remember, we’ve exposed a number of these groups that claim they are standing up for consumers, but in reality are paid to sit down and absorb their industry backer’s talking points. The snowjob that typically follows claims that if you do the pro-consumer common sense thing, such as not allowing Internet Overcharging schemes to rip people off, you’ll destroy the Internet, America, and maybe even freedom itself. Besides, just look at the “expert credentials” of our guy telling you that.
When you boil it all down, sock puppets are people who feel morally fine with taking money for being willing to assume any position you want them to take. It’s vaguely familiar to another profession that’s been around for a very long time. One just has better office space than the other, and better business cards, too.
If you want to explore a perfect example of sock puppetry at work, with a group trying to get public taxpayer money to benefit big telephone and cable companies with few strings attached, check out Craig Aaron’s article on the subject this past January.
In Stop the Cap!’s history, we’ve debated a representative from Nemertes Research who refuses to disclose who pays for their industry research reports that conveniently say exactly what the telecommunications industry’s positions are on the broadband issues of the day. We’ve questioned a group that claims that “openness” or “neutrality” of the Internet is irrelevant, and called out the American Consumer Institute Center for Citizen Research (you gotta love the name — it’s a delicious consumery-sounding word salad… with special interest croutons sprinkled all over the top), who applauded Internet Overcharging as a great thing for customers, except they were packed with lobbyists to really satisfy big telecom interests.
Readers of this site should be well-qualified to engage industry propaganda and consumer misconceptions about the fairness of Internet Overcharging schemes. You’ve gotten the information you need to effectively educate consumers and expose the sock puppetry. The entire reason this group exists is because we realized the fight is not over, and we’d need an army prepared to combat the Re-education campaign we were promised back in April. The battle is fully engaged now, and I’ve been happy to see many of you joining conversations on other sites where misconceptions and sock puppets prevail, and helping to educate consumers with facts, not focus group-tested propaganda.
We need many more of you to do likewise. If your local newspaper runs an article on Rep. Massa’s bill, or our issues, take a look at the article online and look at the comments being left by readers. Encounter misconceptions? Help educate people. Discover a sock puppet browbeating consumers for standing up for common sense reform of the broadband industry? Defend the consumer’s point of view and don’t allow anyone to berate you with smug, fact-free answers. Most are unprepared to respond with actual evidence to back their views, just a load of industry rhetoric and evidence-free claims they have expertise you don’t.
I encountered this myself last evening, when an industry sock puppet alternated between allusions that people who oppose Internet Overcharging were content thieves and pirates or were a “special interest group” that wanted someone else to pay more for their usage. A few minutes of basic research revealed a fact he failed to disclose — he’s employed by a Washington, DC-based think tank, appropriately located on K Street in Washington. The same group that tangled with Free Press’ Aaron, who rightfully objected to their proposal to hand $30 billion in taxpayer money over to big telecom for, essentially, anything they want. They don’t call them “K Street” lobbyists for nothing. Stop the Cap! reader Michael was there as well, also asking for the evidence he couldn’t produce.

Here comes the Astroturf
After a few rounds, the debate ended over his insistence his employer wasn’t located on K Street at all. Wow.
Moving forward to industry hackery, which is more or less the same thing, only more direct, the opposition was predictable and transparent.
The American Cable Association, which is made up primarily of smaller, independent providers who likely are too small to even face scrutiny by this bill told Multichannel News:
“Consumption-based billing plans will give consumers the ultimate control over how much they spend each month for their Internet access. Rep. Massa’s bill would have a chilling effect on broadband operators offering these types of consumer-friendly options,” said ACA president Matthew Polka in a statement. “During his Senate confirmation Tuesday, Federal Communications Commission member Robert McDowell noted that Americans today are watching a staggering 17 billion online videos each month, a use of the Internet that he said is growing at 16% per month. With these increases coming, Internet usage payment models will allow broadband providers to better manage their networks by imposing higher costs on the heaviest users who often are the ones responsible for slowing speeds for all users on the Internet.”
ACA represents small and medium-sized cable operators. At its convention last month, ACA members made clear to reporters that consumption-based billing was definitely in their future.
Of course, when consumers empower themselves to verify these claims, we discover the manufactured “panic attack” over broadband growth and the “consumer-friendly” choice of overcharging people for their accounts, is not borne out by the staggering profits earned by the industry based on the current pricing model, especially as bandwidth costs continue their rapid decline (along with the investments many companies make to ‘better manage their networks.’)
As we’ve learned, this is much more about managing high profits and investor return, and controlling the threat of online video from eating into the cable industry’s cable TV package business.
At least the ACA is consistent. They always leave the consumer out in the cold.
Broadband Reports, which has been around far longer than most, has years of experience in identifying what’s fact and what’s fiction. They pick up on AT&T’s response:
AT&T, who’s conducting metered billing trials in both Beaumont Texas and Reno, Nevada, was quick to respond when asked for comment. “The Free Press Solution advocates for a radical and unprecedented government mandate that will demand that consumers have only one all-you-can-eat pricing model for Internet services,” says the carrier. “Free Press prefers that grandma – who simply wants to download their grandchildren’s online photos a few times a month – to pay for the heavy-using teenager who is downloading HD movies.”
The argument that light users (grandma) “cross subsidizes” heavier users is a familiar — and incorrect — talking point. Taken to its logical conclusion, “grandma” should be paying $3 a month for bandwidth — a service tier you’ll surely never see AT&T offer. Likewise, if AT&T was truly only interested in managing heavy users, they could target them specifically by migrating them to business class tiers or by instituting a high cap only those users would hit. Instead, these metered billing efforts are aimed at impacting all users.
Again, regardless of the ocean of carrier rhetoric on this front, the push toward metered billing isn’t about the users of today, it’s about nickel and diming the Internet video users of tomorrow. Should users begin getting TV content online and find that subscribing to AT&T U-Verse wasn’t necessary, AT&T then has a way to ensure that they can offset this lost revenue with bandwidth surcharges.
The push is primarily focused on pleasing investors, who likewise see the protectionist aspect, but also adore the idea of consumers paying more money for the same product — a product that’s getting incrementally cheaper to supply. There’s a huge push for this coming from the investment community, and as we predicted, the industry’s giants are going to spend millions on farmed data, lobbyists and public relations in order to get their way.
When weighing who actually represents consumers more fairly, Free Press or AT&T, it’s a debate that ends before it gets started. Free Press doesn’t take a penny of industry money and advocates for consumers and wants faster, cheaper, and more competitive broadband. AT&T -IS- industry money, which it gives to astroturf groups, wants to accept government money to construct broadband networks and, hopefully, impose Internet Overcharging schemes on them, and has a track record of opposing Net Neutrality and competition, as several communities working towards municipal broadband have come to learn.
Grandma’s wallet is safer with the Free Press. AT&T wants to take out all of the cash for her own ‘best interests’ and then hand it back, empty.

Subscribe
The sad thing is this is a war of attrition. They will wear the consumer advocates down. Eventually we will have no choice but to pay exhobitant rates or loose the internet. We will look around and say “how did this happen/”, with noone to blame but ourselves. The internet was formed for the free exchange of ideas. It has morphed into something used for entertainment, exchange of information and ideas, delivery of news and commentary, and a host of other vital uses.
Most that want to restrict internet use (caps are certainly restricting use), have a vested interest in keeping the public “dumb”. The car dealer that does not want you to know how much a car really sells for, the tv provider that does not want to ala cart your channels but can’t stand compitition from online providers, the inefficient postal service that wants an email tax, the list could go on. Every time you buy something in a small town you have beniffited from the compitition that the internet has provided. Without the “heavy” user tere would not have been the innovation and expansion we have seen or even the need for broadband in the first place. If usage caps become common place the internet will be shrivaling not expanding. Just look at the DOD asking twitter not to upgrade so twitter is not down during the Iranian turmoil.
I reject your defeatist reality and substitute my own!
VIVA LA REVOLUCION!!!!!
Mark, the people that know me have seen me do battle with cable and telephone company abusive practices since 1988. I still haven’t given up, most of you haven’t either, and we’ve gotten results.
Need I remind you:
1) We created such a nightmare for Time Warner Cable in four cities, thanks to our great friends in Rochester, the Triad region of NC, Austin, and San Antonio that a United States senator flew to Rochester and had me stand beside him as he announced the grand experiment was shelved.
I’m perfectly aware that didn’t mean a wooden stake was driven through the plan’s heart, and like Dracula, it would revive to suck our wallets once again, but it gave us time to prepare with more wooden stakes in the form of you folks.
2) A United States congressman, Rep. Eric Massa, went even further. He knew the ripoff the second he saw it, and he’s been working on this issue since April, with legislation now introduced to call out the practice. Our enemies want to call him a grandstander. That’s crap. He understands the implications for a broadband backwater in his district and districts around the country just like ours, and what that will mean to families, jobs, and our economy (western NY has hardly been a growth leader). The only time he would have deserved criticism is if he didn’t act.
3) We stopped not one, but two anti-consumer bills in the North Carolina legislature from drive-thru passage that would have impeded communities in that state from taking the bull by the horns and installing their own fiber networks to deliver the service big telecom wouldn’t provide. We called out one of cable’s BFF, a state representative who didn’t realize he was being used, and was later thrown under the bus by big cable -and- alienated his constituents at the same time. He ended up running away from his own bill!
If I have a dollar for every pessimist who says, “you’ll never make a difference,” I wouldn’t need a Paypal link on this website and I wouldn’t care about Internet Overcharging because I’d have enough money to pay whatever they wanted.
YOU FOLKS HAVE ALREADY MADE AN ENORMOUS DIFFERENCE.
These companies are now forced to run focus groups to try and sucker people into supporting their schemes. They are hounded by the press and forced to issue damage control statements to an angry population. Go back and look at the news footage from April. It was headline news day after day and beyond the Soviet TV styling of one Time Warner-owned North Carolina news channel, the media wasn’t buying in.
Do I think one piece of legislation will solve the problem? Of course not. This is not a struggle that gets solved tomorrow. Working with like-minded consumer advocacy groups, we intend to take apart the all-too-convenient friendship society that has formed between regulators, legislators, and telecom lobbyists.
It’s going to take time, energy, money, and investment of a different kind – action on the part of every reader here to not just sit and scroll through articles and then do something else. Either people get involved and make a difference, or else you better start preparing for those $150 broadband bills. Oh, and if they can overcharge you for access, they can also find a way to throttle your speeds as well for “unauthorized” activities.
It starts with educating people with facts, then giving them the confidence to use that to educate others, including our elected officials. Because once they confront an educated voter who understands whether that official stands with you or the special interest, it becomes much harder to cash the check and vote against you. They know what happens next. You vote them out of office.
The only time these companies get away with their nonsense is when they think you aren’t paying attention.
I have shared this article on my Facebook profile.
I DO believe that this issue is MORE IMPORTANT then a LOT of people think!!
If Time-Warner, AT&T, and Comcast are allowed to impose these “bandwidth caps” and Internet overcharging schemes NOW, then it will only be a matter of time before MORE Cable & Phone companies…large, medium, and small, will impose similar Internet Overcharging schemes!!
If you think this Internet Overcharging scheme is a “difficult nut to crack” NOW, how difficult will it be once the practice gets more widespread in the next few years?
That is WHY I say it’s better off to KILL this UNFAIR practice NOW…while it’s in its INFANCY…BEFORE MORE companies jump on the “Internet Overcharging” bandwagon!!
Dean
“Consumption-based billing plans will give consumers the ultimate control over how much they spend each month for their Internet access.”
HA! If I have the ultimate control over how much I spend each month, then I choose to spend the $60 a month to consume as may bits as a damn well please……just as I’ve always done!
Keep up the good work Phillip. I just don’t see any way out without regulation. I don’t like that either but without compitition it seems the only way. I sure would like to see an end to these monopolistic fanchise agreements. The last statement at the “focus group” run by ATT was “this IS going to happen it is inevatible”. I will keep up my personal struggle against these consumer abusers but I don’t see the critical mass we need. I need some suggestions on how to get my neighbors involved. So many don’t care or know what is going on.
Thanks for the pep talk anyway and keep up the fight!
I feel your pain. I am in the software development business and even all my co-workers don’t care about this as they are under the proposed useage limits. It’s a “It’s a dumb idea, but it dosn’t bother me so why fight it” mentality.
I sure wish being a sock puppet for the good guys was a paying gig; I figure I’d be fairly good at it.
I think one of the things that’s been lacking in all this talk back against the consumption tiers is the notion that somehow infrequent users are subsidizing frequent users of the system.
Let’s think about that for a moment (and I give credit to another reader on Stop the Cap! for getting me thinking about this)…. if we take two scenarios to their logical extremes we can more clearly see what makes sense.
Scenario 1: Low-volume users are subsidizing high-volume users. If there were no high-volume users and low-volume users didn’t have to pay as much (as Time Warner claims they won’t under their new plan) then Time Warner would probably go out of business eventually because they only have low-volume users who barely pay enough to keep the lights on at TWC. Either that, or the low-volume users will still end up paying way more than they should for the amount of data they consume. Doesn’t seem like a win for low-volume users at all.
Scenario 2: High-volume users actually subsidize low-volume users! If there were no low-volume users (which I’m sure TWC hopes is one day true), then everyone would be paying the most they can afford (like, $150/mo). With this level of subscription not only would TWC have enough money to keep the lights on but their investors can take showers in the windfall profits and maintaining the network is merely a drop in the bucket. Meanwhile all those users end up clashing with one another because of network congestion and they don’t actually see the full bandwidth they’re paying for. Doesn’t seem like a win for high-volume users at all either.
In both scenarios the users lose and in one scenario Time Warner wins big. To make the first scenario more realistic from a TWC perspective, the price for low-volume users would probably be high enough that TWC could still shower in the windfall profits of how little they have to maintain the network while still charging whatever they want.
Usage based fees simply don’t add up because if people really were charged only for what they used at cost or just slightly above cost Time Warner could not be profitable. The only way for them to be more profitable than they are now (off the low-volume users) is to severely overcharge *all* users. It’s just harder to overcharge everyone equally if there’s only a single monthly flat rate — that doesn’t account for individual variance. By introducing usage-based fees they can more accurately overcharge each user proportionately to their actual usage.
Story time:
Tim and Jane are TWC Internet users that subscribe to RoadRunner for $45/mo. This means TWC gets $90/mo from these two combined, but TWC doesn’t know (in theory) how much each user actually uses. Let’s say Tim uses an average of 20GB/month and Jane uses an average of 60GB/month. Neither users are particularly heavy or light, but opposite ends of the “middle” of the spectrum.
If Tim and Jane are placed on an Overcharging Fee Schedule, then TWC can find out quickly that Jane is a higher-bandwidth user than Tim by a ratio of 3-to-1. So Tim gets a new plan of $45/mo, 20GB cap with $1/GB over and Jane gets a new plan of $55/mo, 60GB cap with $1GB over. TWC’s new base income is $100/mo before overage fees. At this point Time Warner is already making out on the new deal. Tim didn’t save any money and got a chance to be charged more if he uses more than is current average (or he can hedge his bets and pay for the next tier up — even more money in TWC’s pocket). Jane lost money and gained a cap in the “deal”.
“But that’s just a straw-man,” I hear you say, “That doesn’t prove anything except that you can come up with a convenient scenario!” Fair enough. So let’s look at the edge cases then:
Bobby and Waldorf are two users on complete opposite ends of the spectrum. Bobby downloads music, movies and games; is constantly playing and chatting with his friends online, and even when he’s asleep he’s transferring files via BitTorrent to and from his computer maxing out his connection all the time.
Waldorf on the other hand checks his “electronic mailbox” twice a week, plays some solitaire (not online) and checks the weather a couple times a day on his favorite weather site. He doesn’t surf the web or even really care about speed all that much, just so long as he can do what he wants to do in those times he goes to do it.
Bobby easily pulls down over 250GB per month. Waldorf will be lucky if he uses 1GB. So Time Warner suggests the lowest tier for Waldorf and the highest one for Bobby. Previously Waldorf was paying $45/month for Standard RoadRunner and Bobby was paying $55/month for RoadRunner Turbo (because he needed the extra speed). TWC’s base income from these two was $100/month.
Waldorf goes on to the lowest tier @ $15/month with a severe degradation in speed that he only notices when trying to look at the large animated weather radar maps — they take a bit longer to load and animate than they did before. He never goes over his 1GB limit.
Bobby moves to the highest tier @ $99/month for 50Mbps with a 120GB cap. Since his average throughput is over 250, we’ll assume for the sake of argument that it’s only 250GB/month. At $1/GB over the cap and a $75 overage fee limit, Bobby pays $174 / month for his service which may or may not be further throttled by Time Warner (it’s unclear what they would do to your usage beyond the $75 limit). TWC’s new income for these two is $199/month. That’s nearly a 100% increase in revenue simply by moving users to an overcharging fee scheme.
Both users experiences suffer (Waldorf’s connection is slower and Bobby’s far poorer than he was plus his connection may still be throttled) and Time Warner makes out like a bandit.
There is no scenario in which Time Warner does not gain from this pricing scheme when their own SEC filings already show huge profit margins most other businesses would kill to have. Users never win in these schemes either because either it costs more, the service is degraded, or there are artificial limits imposed with the possibility of incurring overage charges if you exceed those limits.
Someone who still thinks this is a good idea please explain how.
Thanks,
Brion
Reply to myself because I forgot to subscribe to follow-up comments.
Brion: A couple of comments to you comments. You mentioned Turbo and that tells me there is not the congestion they say there is. Does a turbo user gain speed at the expense of regular users? I doubt it fact is I think Turbo could be 4X or more faster if they wanted to. There is a lot of wiggle room in their plans and words. To me Turbo is a false prophet. Turbo users are not going to agree but all they are getting is faster within the TWC system not outside of it and to me that shows throttling of non Turbo users but is sure a great way to make an extra $10 per user now $4.95 a month for a limited time as seen on TV.
Consumption billing in the true sense of those words if I turn my computer off for a month I should not see a bill. How can 0 use be billed? Oh I forgot they need $50 a month to keep track of your account and paperwork. They have more excuses then banks and CC users that depends on fees and over usage fees as part of doing business.
You make a good point about true consumption billing however in that same sense (and I apologize for falling to a utility analogy) you still have to pay a base rate for water and electricity even if you don’t use it. For me I think the base water bill is $17 per quarter plus any water I use.
As for Turbo, I had that service until just recently and when I got it I had run several tests to make sure I was actually getting faster speeds. The short answer is yes you get faster speeds on TW’s network but not so much out of it.
The longer (more accurate) answer is that Turbo customers get an upgraded modem that can handle WAN speeds faster than 10Mbps and so even if you can’t get 15Mbps (or higher with SpeedBoost) from a single site, you can have multiple connections to multiple hosts across the Internet that will max out your connection speed.
When I ran speed tests on and off the TWC network (they have a speed test they provide on-network which of course shows you the full max speed) most of the off-network tests (to San Fran, Toronto, NYC, etc.) were still above 10Mbps down and very close to 1Mbps up. With Turbo I had no problem using my VoIP service while downloading large files. However, while I liked the Turbo service I can’t say I’ve noticed much of a difference since dropping it other than having $10 in my pocket each month. I think their introduction of SpeedBoost to regular RoadRunner customers has pretty much made Turbo a waste of money.
Except for upload! 384kbps standard / 1Mbps Turbo.
That’s why I have it.
That’s why I originally got it, but if you’re not running a server (or two or three) then there’s not much of a reason (aside perhaps from BitTorrent) to have Turbo.
Plus dropping to Standard is a way of hinting to TWC that their moves against their customer’s interests are not welcomed and they will be punished with less money for it.
Might I add, if you guys have ever seen me link to FileFront on this site, that’s where I upload many of my files and use it to get game trailers and related content. They can easilly break 20Mbps+ on FiOS and on Roadrunner 99% of the time. But yes, multiple connections does help increase the speed if the bandwidth is there. A lot of servers still have the webmasters capping them at 3-4Mbps of transfer, despite the server having gigabit or even fiber connections going to them.
Brian I thought of the utility companies doing the same things as I wrote that so no need for you to say you forgot it…I did also. I read your entire comment and liked it very much! There is always a service fee, a connection fee, always something. Problem is between interest rates rising, gas prices going up (speculators are aiming at $5 a gallon this time), and OB spending trillions we don’t have on stupid things we are quickly headed into economy crash #2 and it will be worse. Now pile on things like TW wanting more and we are headed for the perfect storm. The internet crashes because people have to bail out of it to eat, No TV, maybe no phone and you have to consider the million people that make content, games, news, whatever that will go under as well. We truly are becoming a forth world nation. Yes I did say fourth. The entire system is going to come crashing down soon. $150 a month I would have to drop TW completely. That’s $150 for TV and $150 for the net. $300 a month is not going to work and the senate is going to have to get its face out of the pig trough to do anything about it. Won’t happen because free money is good.
[...] Phillip Dampier of Stop The Cap notes, the push began in earnest this week, with a flood of astroturfers and paid policy goofs [...]
“Turbo” anything as I see it is pointless if you are going to be capped anyway.
Continuing to publish good information about this to counter what the broadband providers (aka Internet Capping Providers) are claiming, however, is not – without that, one must accept their “data” which can be used to justify just about anything where there is monopolistic control.
This is absurd. Why is someone a “sock puppet” merely because he or she points out that people who consume more expensive resources ought to pay more? Bandwidth costs money. A lot of it, especially in rural areas. There’s nothing wrong with asking people to pay in proportion to what they use.
Brett….Oh just stop. Your “proportion to what they use” argument is absurd and unfounded. We all understand marginal costs and their is no real marginal cost to bandwidth. At the risk of beating a dead horse, “bandwidth has no production cost and is theoretically limitless, unlike water, gas electricity and other commodities. The cost of bandwidth is the cost of maintaining infrastructure, and current uncapped pricing models have proven to be profitable and sustainable business models. The only (albeit false) justification to apply caps and overage charges is to prop up lost revenue in other business units such as VoD cable. Get a life and quit trying to push your propaganda BS in a forum frequented by intelligent consumers. It doesn’t play well and is truly obnoxious.
Phil you still did not fix the character limit per line before wrap If PHP its easy.
Rick: I certainly won’t go as far as Brett but I think a middle of ground solution could be to charge an extra $5 a month and I do not mean every year. After all my internet bill has been the same for years. Their costs to provide service may be going down but the costs they have little control over are going up just like for me and you. Think what it would be like if that energy bill make it through congress. Caps and tiers are certainly a VERY HUGE money grab for CEO salaries and stockholders and to protect their precious little catalog of video nothing more. At least around here there is a sure lot of extra capacity. Today is a perfect example it’s raining so think of all the people doing all the high data things people do video and games to pass the time. One would think my connection would be slow but an out of TWC’s system speed check shows the same speed numbers. (Speak easy test to NYC I used) When I see a slow down somebody usually dug up a main line somewhere and the story shows up later. Those you can’t avoid. So Rick let me know what you think of that idea. $48 extra a year I could handle. That being said the proposed granny tier should cost the same as a regular user, bandwidth being the cheap part of the equation. They still have to provide the wire, relays, switches, service, and who knows what else to a slow connection the same as a high data regular user. That being said all our modems are being throttled right now. How else could they magically increase speeds to turbo users? By telling the modem it can change speeds. They send commands to your modem all the time but you knew that. Same as a TV control box. Disclaimer!! Im not for any caps or tiers of any kind and would have to bail out if it did happen.
Phil be aware im now using Firefox so I took your advice and I love it.
Ad blocker add-on better then se-x. This is when I noticed word the
word wrap issue.