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Call for Apple to Get Involved in Campaign Against Internet Overcharging

Phillip Dampier June 29, 2009 Internet Overcharging, Public Policy & Gov't, Sunflower Broadband 14 Comments
sunflower

Sunflower Broadband Pricing - Note a $10/month surcharge applies for customers not subscribing to Sunflower's video package.

We’ve covered the story of Sunflower Broadband before here on Stop the Cap! This dubious provider has become well entrenched with its Internet Overcharging schemes in and around the Lawrence, Kansas region, charging top dollar pricing while imposing ridiculous limits on usage.  One Mac owner in the Lawrence area is fed up with Sunflower’s 3GB monthly usage limit for broadband users, charging a ludicrous $27.95 a month for standalone broadband service (that’s $9.32/GB!).  He’s calling on Apple Corporation to get involved in the opposition to price gouging and Internet Overcharging by providers like Sunflower.

Sunflower’s a big proponent of these pricing schemes.  Patrick Knorr, who works for Sunflower and is also ex-officio chair of American Cable Association, wants this kind of pricing for everyone.  No matter how much you consume, you are probably paying too little for your broadband account.  Sunflower’s pricing of its most deluxe Gold plan assumes you’ll never use more than 50GB per month, and for that charges customers $59.95 a month if all you want is broadband service.

Dave Greenbaum, writing for theAppleBlog, considers these kinds of limits to be abusive.

Apple is the leader in multimedia content creation; new Mac users are always pleasantly surprised by how easy it is to buy from the iTunes store, or create their own content. A common question we get in our local user group is “I’m not sure what I did wrong, but all of a sudden I have a substantial overage bill from my cable company.” Of course, the user did nothing wrong, other than subscribe to a few podcasts, and perhaps download a new Apple software update and buy some shows with iTunes! The Mac is also blessed with great online backup services like MobileMe, yet when our user group did a presentation on backup strategy, I had to warn novice users to be careful lest their backups end up costing them an arm and a leg in bandwidth overage fees!

Sunflower Broadband claims, with absolutely no independent verification, that nearly 50% of their customers consume less than ONE gigabyte per month and 98.9% of users had less than 40GB of bandwidth usage.  Of course, despite updates to its website, it curiously only provides statistics from April 2007, more than two years ago.

Greenbaum informs readers of Rep. Eric Massa’s proposed legislation, HR 2902, the Broadband Internet Fairness Act.

Ultimately, without an end to abusive broadband pricing, the implications for consumers go well beyond their own pocketbook:

Unfortunately, using the Internet normally with bandwidth metering is also unsustainable. When Mac owners are worried about downloading movies, doing backups or performing system updates, that hurts the Apple brand. Apple is continually innovating new ways to make the Mac OS the best Internet operating system, creating a whole ecosystem with iTunes, MobileMe and iLife. All of these great products rely on the ubiquity of the Internet. When Internet providers start making normal Internet use an expensive proposition, Mac users lose.

Apple should lead the way and come out against bandwidth caps. Given that many of the offerings on the iTunes store actually compete with cable TV, Apple should be vigilant that cable companies do not use bandwidth metering as a way to stifle alternative ways of viewing content.

Currently there are 14 comments on this Article:

  1. Smith6612 says:

    I highly doubt that half of their subscriber base uses less than 1GB a month of bandwidth. Even the basic e-mailer can rack up a Gigabyte in a month, unless of course there are those too afraid to use their connection because of the capping or those who don’t even use the connection they pay for. Think about it. An Anti-virus update is typically around a megabyte or two. Many companies upload two or more updates a day. Multiply that by 30. Then, you’re talking about Microsoft Updates, that can be a number that is anywhere, from 5MB to 300+MB. Add that to an e-mailer’s usage. Then of course you have the e-mails, with possibly pictures and a YouTube link to it. It’s easy to see how unless all the person does is view text pages with static content and fails to keep their software up to date, how much bluff half a subscriber base using 1GB a month is. That’s worse than what Frontier proposed last summer…

    But then again, their info is out of date, so what someone needs to do is send trustworthy people around, asking Sunflower customers at will about what they use the internet for, for how much, what package they have, how much data they use if possible, and other things such as if they’re not using the internet too much or not taking advantage of it because of the caps.

  2. BrionS says:

    I don’t mean any disrespect to folks in Lawrence, Kansas but I wouldn’t be too surprised if their 50% number is close to accurate.

    Lawrence, Kansas (http://en.wikipedia.org/wiki/Lawrence,_Kansas#Demographics) has about 88,000 people in a 28 sq. mile area. The median income is around $35,000 so we’re not talking bustling metropolis with wall-street like salaries. This is a small Midwest town with Internet access and if it’s anything like the small Midwest town I grew up in there’s not a whole lot of massive downloading going on.

    By and large people in these types of towns have access to a single ISP at an outrageous price and simply have learned to live without “excessive” Internet use such that 1GB a month for half their subscribers would be about right if it was primarily used to check email and browse the web once in a while. No streaming video for those sorts of users.

    I’m also not defending Sunflower Broadband and I fully agree that business that rely on the Internet either to find their customers or because they sell products and services online should be in an uproar over these CBB plans.

    Where’s eBay’s outrage? Or Google’s or Microsoft’s? I heard them when they backed Net Neutrality but they’re very quiet about Massa’s bill. I think they’re waiting to see if it gains any traction before they jump on that bandwagon as well.

    • Brian says:

      Some of you should go to that Apple Blog thread. There are obviously sunflower employees defending the cap. I particularly like the line that 3 gig is enough to do updates. Has anyone seen some of the updates programs do lately. And then people want you instead of buying the extra bandwidth in bulk, they want you to buy it in advance. Of course, you need to do that BEFORE you go over and it does NOT carry over to the next month.

      I think Sunflower and the cable companies are going to win these fights because we aren’t speaking up enough on the issue :(

      The whole “people don’t go over” is a crock of bull. I don’t know anyone that HASN’T gone over. Of course, when they own the TV stations in town, all surrounding newspapers, and a computer repair division, consumers have no recourse.

      Am i the only one that finds this all very disturbing? Please comment on that blog to counter the sunflower shills

  3. Corey Williams says:

    Microsoft needs to weigh in and soon.. They just announced their 1080p Instant on Service.. Not to mention xbox live and services Very dependant on available bandwith ..and lots of it! Zune marketplace etc.. they have Many reasons to want cappage gone.. Who is going to want to pay $50-$60 a year for live and then have to worry about going over limit.. and how many instant on 1080p streams do they think we will buy with a paltry 40 gig limit???

    Also.. i put a bandwith meter on all of our computers for the last few months.. my Grandpa (who is 76) only checks e-mail..watches a few news stories a day from yahoo news and such sites and uses paltalk to video chat with family.. he used a little over 8 gig..

    My dad (who is a minister) does the same as above.. and also podcast his ministry and the occasional v-blog and movies and tv shows from i-tunes.. he racked up a nice lil’ 22 gig or so..

    mother checks e-mail and news stories.. uses laptop in kitchen to watch shows and movies while cooking and such.. racked up 16 gig or so..

    wife.. racked up 7.6 gig..

    Brother… 24.4 gig..

    Daughter (4 1/2 yrs old mind you..) 1.3 gig on her disney kidsnet browser (a system similiar to v-smyle but only uses pre set windows for online interactivity)

    and finally…. Myself .. i d/load every movie and tv show (that i watch) from itunes or xbox live (hd at that) and play online games every night. (cod4-5 (and soon mw2) ;-) racked up a nice
    86.4 gig … for a Total of…165.7 gigs of monthly usage…

    We are currently on the roadrunner turbo (plus i think) $70 a month or so… with awesome up and d/load speeds.. so our bill on the similiar plan.. (60 gig cap) and $1 over per would be around $170 plus tax or $200 a month.. That is Insane!!! (not to mention what we already pay for online content!!!!)

  4. dave says:

    Brion,

    I think the numbers about Lawrence on the wiki may be a bit deceiving. Our cable company services the entire county along with selected other cities in the region. Lawrence’s city limits may be small, but computer usage is extremely high due to the University of Kansas as well as people who work at the state capital in Topeka, but live in Lawrence.

    By far, the population using most of the bandwidth in town are the students. More and more college courses require online content and the ISP in town knows it.

    Just food for thought on the issue

  5. jr says:

    Most sites have flash ads these days that start playing when you go to the site. Their limits will be reached before the month is half way through. None of these execs ever surf the web. All they do is play golf all day and pretend they’re “in touch” with their customers

  6. Uncle Ken says:

    JR:
    Flash switch http://www.flashswitch.com/ will take care of that problem. There are a few other programs also. I use this one.

  7. Uncle Ken says:

    Thanks much Tim: I just got the 3.5 update and beside a couple of new small buttons its going well. I will follow yoru advice and get it now. Thanks again. Ken

  8. Saul M says:

    They’re capping speeds as well. I pay for the Gold packaging, 2.2mb/s is what I expect. Instead I get a capping
    of 500kb/s. I just talked to customer service, they spit the same ‘stats’ that haven’t updated since 2007. “Maybe its the server you’re downloading from”. Everything from itunes, xbox live, the University of Kansas, my premium megaupload account, to torrents are capped to 500kb/s. It drives me crazy. I’ve troubleshooted every possible reason on my end to why this is happening to me, from the modem and router to the OS, same shit. Fuck sunflower and their price gouging asses. I pay for gold, but I don’t even get silver level service, and I get less than copper customer service.

  9. Alex D says:

    Several posts and comments on this site have rubbed me the wrong way, especially high handed and misguided comments on Sunflower and Lawrence in general. First, Sunflower is hardly a podunk or rural provider. Lawrence is a city of almost 100,000 less than 30 minutes from the Kansas City metropolitan area and home to a major research university (KU). The median income is $35,000 because nearly a quarter of the population is composed of students. Second, complaints about Sunflower as some type of cruel overlord depriving the city of Lawrence of good internet grossly over simplify the situation. The city of Lawrence has essentially allowed the World Company, owners of Sunflower Broadband, the local newspaper, TV station and etc to develop a media monopoly. Usually I´d be concerned about this situation, but with it Lawrence has been able to keep a thriving and independent local press that has developed some seriously innovative open source technology used across the country (Django, http://www.djangoproject.com/, for instance). In addition, the World company has built one of the best newspaper websites (ljworld.com, lawrence.com) I´ve seen, with what has to be the highest level of involvement (comments, blogs, etc) for a newspaper of its size. Much of the revenue that developed this site and other projects has come from the higher than average broadband prices. In essence, broadband is one part of a more holistic view of media that the city has developed, and in my opinion, benefited from. Finally, Sunflower recently rolled out DOCSIS 3 (how many ¨podunk providers¨ are doing that?) and got rid of caps. So, anyone complaining here, feel free to refute these arguments or observations. Otherwise, stop complaining.

    -Alex

    • Sunflower Broadband is a tiny provider when compared against others. Having tens of thousands of customers is a far cry from serving tens of millions, as larger providers do. The economy of scale does factor in broadband pricing, particularly for connectivity. Smaller providers pay more in connectivity costs (per customer) than large ones do, and that is reflected in Sunflower’s higher than average pricing, for capped broadband service (at the time this article was originally written.)

      I am not sure residents of Lawrence want to pay higher than average pricing for broadband in order to, as you suggest, subsidize their other businesses. No matter, that formula you suggest is in place will be thrown to its knees should AT&T enter Lawrence and provide U-verse service. Consumers will consider providers based on price, and the subsidies possible from a near monopoly (AT&T only offers a lower speed DSL service for now) will likely fade rapidly with the entry of a competitor that does not overcharge for broadband and can compete on speed.

      Virtually every cable provider faced with imminent competition that can beat them on speed will commit to DOCSIS 3 to prepare themselves for a more competitive arena. It’s actually quite affordable for providers, even smaller ones. I’ll bet AT&T’s U-verse platform does have Sunflower looking over its shoulder, even if it’s not imminent there.

      Now, onto Sunflower and the caps. I noticed several days ago that Sunflower had created a new tier that does offer an uncapped option, and am planning to write about it, but there are asterisks all over this one. First, the company retains caps for its lower priced, lower speed tiers (albeit increased them in several cases), and has now created a cap-free tier, but there is a catch: your speeds may vary and are not defined.

      Now, $50 for uncapped broadband is not a bad deal, especially if the speeds are close to the next best premium tier. But until I get clarification about what provisions the company defines for the uncapped tier’s speeds, and what mechanism is involved to change them, I am holding off on writing it up.

      Apparently this is discussed in the company’s forums, but as far as I can tell, those forums are linked through the online customer portal, and you need an account to access them.

  10. jack says:

    i just got sunflower broadband about a month ago to do homework on my computer, and now i can’t even use it for my assignments because media files won’t completely download(i feel this is because of my internet service). i have to go down to the campus to do all my homework. i have the silver internet package because, face it, bronze is completely worthless. these guys are complete crooks and they get away with it because these college kids all have rich parents and nobody bothers to speak up about it. it makes me sick yet i still subscribe to not only their internet but their overpriced cable too. i get like 30 channels (4 of which are home shopping) no good channels like comedy central or amc. and they still charge me about $40 a month.

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