Karl Bode over at Broadband Reports offers an additional detail on Frontier’s Internet Overcharging experiment which is now being tested in Minnesota:

Late last week, someone familiar with business operations at Frontier Communications indicated to Broadband Reports that the company was going to begin testing a new capping scheme for heavy users. “Just wanted to let you know that Frontier is sending out letters to the top 50 bandwidth users in Mound Minnesota,” said the individual.

The city of Mound, a suburb located 19 miles to the west of Minneapolis/St. Paul, is home to 9,800 residents.  Mound is the birthplace of the Tonka truck, named after Lake Minnetonka, which surrounds Mound.  Residents of Hennepin County have watched their local phone company change hands several times over the years from Contel to GTE of Minnesota to Verizon to Citizens Telecommunications Company of Minnesota, which does business as Frontier Communications. Frontier has served this part of Minnesota since the end of August, 2000.

Hanus

For a community aggressively pursuing a downtown revitalization and redevelopment program designed to make the community attractive to new residents and businesses, news that the local DSL provider is now going to limit broadband usage and overcharge those who exceed their arbitrary limits is not good.

Among city officials, Mayor Mark Hanus and councilman David Osmek are both Frontier broadband customers.  The city is proud to stream its regular city council meetings online, something Frontier DSL customers will now have to avoid if they want to preserve as much of their 5GB monthly usage allowance as possible.

Action Alert and Alternatives for Mound, Minnesota

For Mound residents who do not want to be forced to limit their broadband activities to the ridiculously low 5GB allowance Frontier is now enforcing, we recommend these actions:

1) Call Frontier Communications at 1-800-921-8101 and tell them you will not keep your Frontier broadband service with a usage cap and you are prepared to take your business elsewhere immediately if they do not rescind their “experiment.”  If they attempt to charge you an early termination fee or cancellation fee if you do decide to cancel, let us know through the Contact link at the top of the page or in the comments attached to this article.

2) Contact your local media — the Minneapolis Star-Tribune, the Lakeshore Weekly News, The Laker, local news radio and television stations and let them know you think they should be covering this story and its potential impact on the local economy in Mound.

3) Your best alternative broadband provider is cable operator Mediacom which does not have a usage limitation on their broadband accounts.  Their speeds and pricing are also much better, based on Frontier’s advertised pricing of  “as low as” $49.99 a month for Frontier High-Speed Internet Max 3Mbps service or “prices starting at” $39.99 a month for Frontier High-Speed Internet Lite 768kps service.

Mediacom offers 3, 12 and 20Mbps broadband service in Mound.  Here are the details:

For New Mediacom customers:

Mediacom offers soon-to-be-ex Frontier customers free standard installation and a 12-month introductory offer for 12/1Mbps service for $49.95 a month.  Telephone service is also available through Mediacom with a bundled service discount.  Customers looking for a budget broadband alternative can sign up for 3Mbps service for $29.95 a month if they also take digital cable or digital phone.  For customers looking for the highest speeds, Mediacom offers 20/2Mbps service for $59.95 a month if you also get digital cable or phone service.

Mediacom is Mound's incumbent cable company

For Current Mediacom Non-Broadband customers:

If you have cable from Mediacom but use Frontier for broadband, you can switch to Mediacom cable modem service and obtain special discounts.  Add Mediacom’s 12/1Mbps service to your existing cable TV account for $19.95 a month for 12 months, or 20/2Mbps service for $59.95 a month for 12 months.  Installation is done by the customer.

Questions about Mediacom service in Mound can be directed to 1-800-332-0245.  Mediacom’s local offices in and around Mound are at:

4) Customers who are absolutely stuck with Frontier broadband who anticipate approaching or exceeding the 100/250GB usage levels should explore a business broadband account with Frontier.  Although pricing may vary from city to city, residents of Rochester who confronted the original effort to impose a 5GB usage cap in western New York found business account DSL service was not much more expensive than residential service, and carried no usage limitations.  Pricing is likely to be less than the punitive rates Frontier wants to charge residential customers for exceeding their allowances.

Frontier Communications has quietly begun testing an Internet Overcharging scheme in Minnesota designed to charge confiscatory prices to residents who exceed the company’s usage allowances, demanding customers pay up to $249.99 a month to keep their broadband service running.

Stop the Cap! has learned Frontier has begun measuring customers’ broadband usage, and for those in Minnesota who exceed 100GB of usage during a month, Frontier is dispatching e-mail messages telling them they’ll have to agree to pay more — much more — or their service will be cut off in 15 days.

Two e-mail messages are being sent to customers who break the 100 and 250GB usage barriers.  Both reference Frontier’s 5GB usage allowance that Stop the Cap! has strongly and repeatedly criticized the company for implementing in the first place.  Using that usage allowance as a baseline, Frontier calls out its customers using more demanding they switch to a higher priced service plan if they want to continue service with the company.

• For those achieving 100GB of usage, the new monthly rate is $99.99 per month
• For those achieving 250GB of usage, the new monthly rate is an incredible $249.99 per month

Sources tell Stop the Cap! the Internet Overcharging scheme Frontier is running is an experiment to gauge customer reaction.  If the furious customer e-mail reaching us is any indication, it’s another public relations disaster for Frontier Communications.  One customer didn’t even realize there was a 5GB usage allowance to begin with, much less a vastly higher new monthly price if he wants to stay with Frontier DSL.  He’s not.

"You can earn this much money just from overcharging Minnesotans for their Internet service!"

Ironically, the experimental pricing plan comes at a time when Frontier is still trying to get state regulators to approve its deal with Verizon to assume control of landline and broadband service in several states.  Residents in West Virginia and a dozen other states might be a bit concerned that their unlimited Verizon DSL broadband service, often the only service provider available, could be replaced with a company that is willing to punish its customers with $250 in monthly charges once a customer hits 250GB in usage.  Even worse, Frontier takes the overlimit penalty concept to a whole new level, telling customers that new high price represents their new monthly rate plan, not just a temporary penalty.

To add insult to injury, Frontier continues to mislead its customers about the experimental pricing on its own website.  As of this writing, Frontier’s Acceptable Use Policy still states:

Customers may not resell High Speed Internet Access Service (“Service”) without a legal and written agency agreement with Frontier. Customers may not retransmit the Service or make the Service available to anyone outside the premises (i.e., wi-fi or other methods of networking). Customers may not use the Service to host any type of commercial server. Customers must comply with all Frontier network, bandwidth, data storage and usage limitations. Frontier may suspend, terminate or apply additional charges to the Service if such usage exceeds a reasonable amount of usage. A reasonable amount of usage is defined as 5GB combined upload and download consumption during the course of a 30-day billing period. The Company has made no decision about potential charges for monthly usage in excess of 5GB.

For customers receiving Frontier’s Scare-o-Gram, it sure sounds like they made up their minds… to charge a lot more for the exact same level of service.

For state regulators, watching Frontier charge ludicrous pricing for broadband service that would make most providers blush should be more than enough evidence that approving Frontier’s plans to take over Internet and landline service in their state is not in the best interests of consumers.  For many, it saddles them with a broadband provider that can charge these kinds of prices knowing full well many customers have nowhere else to go.

Copy of E-Mail Sent to Minnesota Customers Exceeding 100 GB of usage a month [emphasis in bold is ours]:

Dear [Customer]:

Frontier is focused on providing the best possible internet experience across our entire customer base.  We bring you a quality service at a fair price, dependent upon an average monthly bandwidth usage of 5GB.  Over the past months, your account is in violation of our Residential Internet Acceptable Use Policy.

Our policy states that Frontier reserves the right to suspend, terminate or apply additional charges to the Service if such usage exceeds a reasonable amount of usage. A reasonable amount of usage is defined as 5GB combined upload and download consumption during the course of a 30-day billing period.

We realize there are times when our customers use the internet for services such as video and music downloads, however your specific usage has consistently exceeded 100GB over a 30 day period.

We would like to provide you with the option of keeping your Frontier internet service at a monthly rate of $99.99 which is reflective of your average monthly usage.  Please call us within 7 days of the date of this email at 1-877-273-0489 Monday – Friday, 8AM – 5PM CST to review your options.  If you do not wish to switch to this new rate plan, you can have your service disconnected.  If we do not hear from you within 15 days, your internet service will be automatically disconnected.

We continue to manage our network to ensure all of our customers have equal access to the internet and the ability to enjoy all of its available content, at our committed level of service quality.

Sincerely,

Frontier Communications

Copy of E-Mail Sent to Minnesota Customers Exceeding 250 GB of usage a month [emphasis in bold is ours]:

Dear [Customer]:

Frontier is focused on providing the best possible internet experience across our entire customer base.  We bring you a quality service at a fair price, dependent upon an average monthly bandwidth usage of 5GB.  Over the past months, your account is in violation of our Residential Internet Acceptable Use Policy.

Our policy states that Frontier reserves the right to suspend, terminate or apply additional charges to the Service if such usage exceeds a reasonable amount of usage. A reasonable amount of usage is defined as 5GB combined upload and download consumption during the course of a 30-day billing period.

We realize there are times when our customers use the internet for services such as video and music downloads, however your specific usage has consistently exceeded 250GB over a 30 day period.

We would like to provide you with the option of keeping your Frontier internet service at a monthly rate of $249.99 which is reflective of your average monthly usage.  Please call us within 7 days of the date of this email at 1-877-273-0489 Monday – Friday, 8AM – 5PM CST to review your options.  If you do not wish to switch to this new rate plan, you can have your service disconnected.  If we do not hear from you within 15 days, your internet service will be automatically disconnected.

We continue to manage our network to ensure all of our customers have equal access to the internet and the ability to enjoy all of its available content, at our committed level of service quality.

Sincerely,

Frontier Communications

Phillip "Don't over-complicate this" Dampier

Promises made during election campaigns that are later dropped for political expediency are broken promises.

Those are wise words for both the Obama Administration and the FCC as they ponder what to do about broadband regulation.  President Obama campaigned on developing an effective National Broadband Plan and preserving the integrity of the Internet with Net Neutrality policies.  Both will now be tested in how they respond to a recent court decision which has thrown a wrench into broadband policy initiatives.  At issue:

• How Americans access the Internet;
• What kind of Internet they find once they access it;
• How much money is it going to cost at the end of the month for what kind of service.

These are all laid on the table of FCC Chairman Julius Genachowski with a big bow attached, courtesy of Comcast.  The nation’s largest cable company threw a hissyfit when the FCC rebuked them for throttling the speeds of their Internet customers.  They sued and won more than they bargained for when the DC District Court ruled the Commission lacked the authority to regulate broadband as an “information service,” a dubious premise cooked up by former FCC chairman Michael Powell.  The concept was akin to a police officer placing you under arrest on the authority of a bottle of green tea.  Of course you could get away with that too as long as nobody challenged it in court.

Chairman Genachowski could choose to kick the ball down the field to be played another day by appealing the court decision or trying to get Congress to pass new legislation.  Or he can strike decisively and effectively by declaring broadband to be what it actually is — a “telecommunications service.”  Under that declaration, the FCC can implement its National Broadband Plan, which will dramatically improve access for rural America and promote better broadband service for those who already have it.  The Commission can also move forward on common sense Net Neutrality policies that tell providers not to interfere with online traffic for monetary reasons.  It can even give the Commission the authority to keep a watchful eye for the next clever scheme that benefits providers at the customer’s expense.

But that depends on Chairman Genachowski standing up to the broadband industry, their friends in Congress, and the inevitable industry-funded BS Festival from astroturfers designed to sucker people into supporting industry positions.

The threats and concern trolling are already parading across the Beltway:

• “The industry would declare war on the FCC“: That war has been underway ever since the litigious broadband industry first started running to friendly courts whenever it encountered a regulatory nuisance just waiting to be overturned on “free speech for corporations”-grounds.  Chairman Genachowski needs to borrow from President George W. Bush and declare, “bring ‘em on!” He can fight industry propaganda about “lost jobs” and “investment” with facts found in every provider’s quarterly financial reports showing bountiful harvests of profits, while spending and costs decline.  It’s not the FCC’s fault Verizon fired more than 13,000 employees in the past few years.  The FCC didn’t tell Verizon to stop upgrading its copper wire network to fiber optics to remake traditional landline phone service into something far better and eventually even more profitable.
• “Congress would be upset by an overreaching Obama Administration”: That would mostly be the same Republican members who reflexively oppose every aspect of the Obama Administration’s legislative agenda.  Considering warmed-over health care reform is still being called “socialist” and an “apocalypse” by these people, there isn’t a Pick-Me-Up Bouquet in the world that could get them to support this administration.  Ordering a ham sandwich and leaving the Swiss cheese off would probably result in some members of Congress reciting Glenn Beck’s declaration the omission is proof Obama is working with lactose-intolerant high officials of the Chinese Communist regime.
• “Verizon, AT&T, and others will step up spending on Astroturf Campaigns”: If a consumer like myself can sniff out an industry-funded campaign to convince consumers to support policies directly challenging their own wallets, why can’t Washington policymakers?  The industry talking points rarely change anyway, and those shouting the loudest usually try to obscure who paid for the megaphone.  When in doubt, simply ask “is there any industry money funding your organization?”  If they won’t say, you have your answer.
• “But they’ll sue”: When are they not suing?  Of course the industry will challenge the legality of any policy that puts their quest for unlimited profits at a disadvantage.  We live in a system of checks and balances between private enterprise and public oversight and regulation.  The struggle for the perfect balance between the two will persist forever, but after an era of reckless deregulation and abdicated oversight responsibility, the resulting Great Recession should provide strong evidence the pendulum needs to swing in the opposite direction.

FCC Chairman Julius Genachowski

USA Today today published a piece on Genachowski’s coming decision which hit all the aforementioned bases.

Astroturf Campaigns and Legal Threats: “If the FCC changes the way it treats high-speed Internet, then “everybody in the industry would sue,” says Scott Cleland, chairman of NetCompetition.org, an Internet forum supported by cable and phone companies. “It would be like an 8.0 earthquake under the sector,” he adds. “Hundreds of billions of dollars have been invested (in broadband) in the belief that there’d be a market rate of return, not a regulated rate.”

Cleland is a notorious industry mouthpiece, but at least he openly acknowledges his strings are pulled by the industry that generously funds his anti-consumer, pro-provider rhetoric.

Republicans: The FCC’s two Republican commissioners have said they’d fight a move to reclassify broadband.

No surprises there, and you can expect most Republicans in Congress to also take the industry’s position on these matters.  Guess what?  They still won’t vote for you even if you compromise with the broadband industry.

USA Today, itself headquartered in suburban Washington, delivers up the beltway solution always pressed on pliable Democrats – compromise away your principles and split the difference:

If Genachowski wants to defuse the issue, he could try to engineer a compromise. For example, he could agree to take broadband reclassification off the table as long as providers make legally binding promises to offer consumer protections called for in the National Broadband Plan and to agree to treat all Web services equally. But it will be hard to please everybody as advocates gear up for a fight.

That’s the understatement of the year.   It’s also a classic case of reinventing the wheel.  What USA Today‘s reporter suggests is exactly what the FCC used prior to the Comcast case to regulate broadband — an “understanding” with the industry without clear-cut regulatory authority.  That lasted until the three judge panel laughed it out of court.  The FCC has no authority in its current form to make legally binding promises with an industry that contemptuously dismisses the notion it should have any in the first place.  Without reclassification, the judge certain to hear the next court case challenging the “understanding” will almost certainly throw that out as well.

Declaring regulatory authority does not, as the industry likes to pretend, mean that your Internet Service Provider will be saddled with 1930s telephone rules.  It merely gives the FCC the authority to move forward on its agenda to improve broadband, protect its integrity, and help coordinate a plan for the future that first takes your interests to heart, not simply those on Wall Street.

For a change of pace, let’s choose the clearly marked road of reclassification and avoid the deregulatory dead end of broken promises offered by the broadband industry or the equally awful decision to build a new road in a futile effort to win bipartisan brownie points.

[Article Correction 4/15/2010: The original piece laid blame for the classification of broadband as an "information service" on former FCC Chairman Kevin Martin.  In fact, the classification was made by former FCC Chairman Michael Powell, who served during the first term of the Bush Administration.  We regret the error.]

“It’s FairPoint Communications all over again,” writes Stop the Cap! reader Jenna who is mad as hell with Verizon Communications who first locked her out of her e-mail account, and then accidentally deleted it, along with all of her e-mail, in preparation for the handover to Frontier Communications.

Jenna is referring to similar debacles which caused billing and service nightmares for residents in northern New England who lost their Internet access for days, along with e-mail accounts, followed by months of inaccurate bills when FairPoint moved away from Verizon’s internal systems.

Her problems started the last weekend of March, when Verizon notified Jenna and other Fort Wayne, Indiana residents who use Verizon Yahoo! e-mail service that they would have to take steps to convert their e-mail accounts.

Verizon Yahoo!: Service No Longer Available in Some Areas

Starting March 27, 2010, Verizon Yahoo! for Broadband will be discontinued in the following areas:

AZ, ID, IL, IN, MI, NV, NC (except Knotts Island), OH, OR, SC, Crows-Hermatite (VA), WA, WI, and the following communities in California that border AZ, NV and OR–Big River, Blythe, Coleville, Crescent City, Desert Center, Eagle Mountain, Earp, Felicity, Fort Dick, Gasquet, Klamath, Kneeland, Markleeville, Merced, Needles, Orick, Parker Dam, Ripley, Smith River, Topaz, Trinidad, Vidal and Winterhaven.

These changes will not impact your Verizon Internet service access plan or pricing, and your Verizon.net email primary and sub-account User names and passwords will stay the same.

“They told us we would have to use this service called Verizon TrueSwitch in order to convert our e-mail box and that all of our contacts and existing e-mail would be transferred from the old Yahoo! webmail account to the new Verizon one,” Jenna writes.

But her experience with Verizon TrueSwitch turned into a TrueNightmare when attempts to use the service resulted in error messages.

“First it popped up with ‘unable to authenticate’ error messages, and then we were locked out of our Yahoo! e-mail account.  The Verizon e-mail account worked, but was empty,” she writes. “I tried to use Verizon’s ‘in-home agent’ online support but it suddenly told me it was ‘only available to Verizon customers.’  Apparently they can’t wait to get rid of us.”

Jenna then did what most customers of a phone company might do — she picked up her phone and called customer service.

“That was the second nightmare — I waited on hold 49 minutes the first time before a representative came on the line, sneezed, and then disconnected me.  The second call was a real marathon — over two hours on hold waiting for someone to help me,” Jenna notes.

When a representative did finally speak to Jenna, she apologized for the delay and candidly admitted their call center was swamped with calls regarding the e-mail conversion.

“When she thought she put me on hold, I was able to overhear her talking with someone else about getting word from a supervisor that the problem was somewhere on their end, and she felt bad because she had spent a good part of the morning blaming TrueSwitch, which I later found out was not even owned by Verizon — it’s a service sold by Esaya, a private third-party company,” Jenna says.

Jenna was transferred to a supervisor when attempts to correct her e-mail account lockout were not working.

“The guy they transferred me to wouldn’t listen to me and kept telling me he knew what the problem was, claiming I had ‘sub-accounts’ and they were messing up their systems,” said Jenna. “But Mr. Expert ended up permanently deleting the account, along with all of my e-mail, contacts, and everything else Verizon claimed I was able to store online.  Years of e-mail and contacts — gone.”

Jenna was right when she noted Verizon’s call centers were jammed with customers experiencing similar problems.

Verizon’s own customer support forum is hot with angry customers who are going through the same thing:

• Verizon/Yahoo! ‘Devilish Switch’
• Verizon Sold Everything to Frontier
• I’m Not Able to Receive E-Mail
• New Set-Up
• Verizon E-Mail Has Been Down for a Week

Verizon spokesman Harry Mitchell acknowledged the significant e-mail conversion issues were partly in preparation for the pending transition some customers face to Frontier Communications.

“The systems realignment will facilitate the closing of the transaction with Frontier, which we expect at the end of the second quarter, subject to conditions including regulatory approval,” Mitchell told the Fort Wayne Journal-Gazette.

Mitchell released a statement to the paper regarding the problems:

“In advance of a planned systems conversion over the weekend of March 27-28, Verizon online users who maintain e-mail accounts with Yahoo were notified that a customer-initiated service change would be required following the systems conversion in order to maintain their e-mail service,” he said in an e-mail.

“Customers were given instructions to use a ‘Trueswitch’ service to migrate their existing e-mail and contact information from Verizon Yahoo to Verizon servers in order to maintain e-mail access. Some customers have experienced difficulty when trying to initiate the service change. We’re working to address this as quickly as possible with those customers.”

Mitchell stressed that customers should make sure they validate their passwords in both the Verizon.net e-mail system and the Verizon Yahoo e-mail system. And they should “take extra care to write down those passwords so that, if they want to migrate their old e-mail and contact information, it will go smoothly through the Trueswitch process.”

Unfortunately, that won’t help Jenna.

A supervisor contacted her this week to apologize for the problems and the loss of her e-mail, which may not be gone for good if Verizon and Yahoo! can figure out a way to get the deleted account back, but for Jenna the damage has been done.

“I have read Stop the Cap! since 2008 and followed the misadventures of FairPoint Communications and the endless promises from Frontier they won’t repeat the mistakes the others have made, but it’s a case of ‘here we go again,’ and Frontier isn’t even in the picture yet,” she says.  “Verizon clearly can’t wait to get rid of us and Frontier will probably make us wish we had Verizon back, which should tell you the people of Fort Wayne now live on the corner of Rock Avenue and Hard Place.”

A survey released this week by Arbitron Inc. and Edison Media Research found, for the first time, that Americans are more willing to give up TV than the Internet.

Asked to choose the ”most essential” medium, 42 percent of the survey’s 1,753 respondents picked the Internet, 37 percent picked TV, 14 percent said radio and 5 percent said those dead-tree format newspapers.

That represents more evidence that major telecommunications companies will need to lasso control of the Internet before the cable television profit train derails.  That’s because the Internet delivers the prospect of a two-for-one deal.  Enjoy your online web surfing -and- stream your favorite television shows online at the same time — no more ever-increasing cable-TV bill for channels you never asked for and don’t watch.

Even more worrying for big cable — young people are increasingly never bothering to sign up for cable television in the first place.  In the 18-24 age group, 74 percent said they would quit TV before surrendering the Web, and many never bothered with subscription television to begin with.

The last time Arbitron and Edison posed this question in a survey was in 2001, back when dial-up access still predominated.  Back then, 72 percent of respondents said they could do without Internet and 26 percent said they’d give up TV.

“The shift over these nine years has been steady and profound,” said Edison Research president Larry Rosin.

Some consumers don’t want to watch television over their computers and would prefer to be entertained in a comfortable chair in the living room.  But Internet video innovation is increasingly solving that problem by coupling your television or DVD player to the web.  Several providers like Netflix even deliver their streaming video service through video game consoles.

How do cable companies stop the herd mentality to broadband video, leaving those big cable TV bills behind?  Stick a meter on broadband service, and charge consumers for every TV show they watch or simply put a limit on their broadband service.  The broadband usage cap or meter can, indeed, kill the online video star.

WJW-TV in Cleveland reports that more people are ready to ditch their televisions than being willing to part with their Internet connection.  (3 minutes)

How would you like to open your AT&T bill and discover you were overcharged more than $1,000?

An AT&T-admitted “computer glitch” is routinely overbilling customers in Tennessee several hundred dollars a month for charges that are supposed to be included in their service plan at no additional cost.

One Clarksville woman has been getting bills nearing $1,000 a month every month since January, and AT&T is well aware of its mistake, crediting her bill each times she calls.

But Belinda Horton wonders what happens to other customers, especially the poor and elderly, who may not be up to scrutinizing their phone bills every month and aggressively pursuing credits from the phone company.

“This is crazy. This keeps happening over and over,” Horton told WSMV-TV in Nashville. “When I got the next bill, it was $921.”

Now she’s fed up.

“At this point, they can correct my bill, and then they can just keep AT&T,” said Horton. “Everyone needs to check their bills.”

WSMV-TV in Nashville tells the story of Belinda Horton, a resident of Clarksville who is routinely overbilled by AT&T up to $1,000 every month since January.  She isn’t alone.  (3 minutes)

Some odds and ends regarding Bright House Networks you may have missed over the past several weeks:

Hernando County, Florida Ticked Off About Bright House Rate Hikes

Hernando County commissioners were united in their opposition to a recent $3 rate increase from Bright House Networks that spiked bills for standard service to $55.49 a month.  They voted unanimously for a resolution condemning the rate increase, noting it comes as a result of insufficient cable competition.

The commissioners want local consumers to shop around for alternative providers, but outside of satellite, Bright House is the only cable television provider for local residents.  Despite tough economic times, the rate increases just keep on coming.

“This, for lack of better words, really frosts me,” County Commissioner Dave Russell told Hernando Today. “As a retailer and a business owner in Hernando County, we’ve done what we can to keep our prices down.”
Bright House, he said, should do the same and “suck it up just like the rest of us have,” he said.

Additional rate increases of $2 per month for HBO and $1 a month each for digital phone, voicemail, and DVR service are also now in effect.

Vandals cut fiber optics on Bright House Networks in Birmingham area

Vandalism can result in major service disruptions for cable customers, especially when a fiber optic link is cut.  The Birmingham, Alabama area suffered a major outage in late February when vandals sliced an important fiber link.  Service was knocked out on the west side of Birmingham, including Five Points West, Ensley, and part of Ross Bridge for almost a day.

Customers generally have to call and request service credit for outages — most cable companies don’t automatically credit accounts.

Make Room for More HD Channels

Bright House Networks has been aggressively adding new HD channels to its lineups across the country.  In central Indiana, Bright House customers can spend even more time channel surfing through these additions:

• BBC America HD - Channel 847 on December 14
• Fuse HD – Channel 840 on December 16
• G4 HD – Channel 810 on December 16
• HLN HD – Channel 726 on December 14
• IFC HD – Channel 794 on December 11
• Investigation Discovery HD – Channel 804 on December 18
• MAV TV HD – Channel 753 on December 18
• NBA TV HD – Channel 862 on December 18
• NHL Network HD – Channel 863 on December 11
• Outdoor Channel HD – Channel 865 on December 11
• Style HD – Channel 860 on December 14
• Tennis Channel HD – Channel 864 on December 11
• TV One HD – Channel 866 on December 16
• BET HD – Channel 736
• Cinemax HD – Ch. 228
• CMT HD – Ch. 743
• Comedy Central HD – Ch. 725
• Crime & Investigation Network HD – Ch. 852
• Game HD – Ch. 904
• Hallmark  Channel  HD – Ch. 757
• HD Pay Per View Events – Ch. 304
• History International HD – Ch. 817
• MTV HD – Ch. 775
• Nickelodeon HD – Ch. 744
• Spike TV HD – Ch. 724
• Team HD – Ch. 886
• The Movie Channel HD – Ch. 262
• VH1 HD – Ch. 741

Wayde Klein, vice president of marketing and customer operations for Bright House Networks Indiana, said “In October, we announced that Bright House Networks had a goal of offering more than 100 high-definition channels in early 2010. We started by launching 17 HD channels in 17 consecutive days in November and then launched 13 new HD channels in December. Our launch of 15 HD channels this week is one step closer to our goal.”

In Orlando, Bright House added these networks in March:

• Hallmark Channel HD at channel 1315
• Nickelodeon HD at channel 1333
• Comedy Central HD at channel 1366
• Spike HD at channel 1368
• BET HD at channel 1367
• CMT HD at channel 1371
• VH1 HD at channel 1372
• MTV HD at channel 1374

Questions Answered from Bright House Customers

The St. Petersburg Times tackled this one from a Bright House customer:

Why doesn’t Bright House tell their customers that they have to pay for faster connection?

-Stephen, St. Petersburg

Like Big Mama always said, “you can’t get something for nothing.”

Bright House says customers are informed that the faster connections cost more. The higher speed Internet connections are not automatically given to customers.

“You have to request it,” says Joe Durkin, a spokesman for Bright House Networks.

Standard roadrunner Internet service is about $48. Then you can get Roadrunner turbo for $15 more or the fastest, Roadrunner lightning, for $30 above the standard.

The additional charges are listed, even online.

Bright House serves a large part of central Florida.  Comcast Cable serves territories further south.

Bright House launched a new ad campaign this spring emphasizing bright colors and product bundles.

Here is how DataJack was marketing themselves back in January

DataJack, the 3G mobile broadband service that was promising unlimited wireless broadband service for $39.99 a month is back — with an all-new 5GB monthly usage cap, a new provider, and hassles for existing customers who must swap out their existing wireless modem.

Stop the Cap! first covered DataJack back in January, when customers were howling about the company’s lousy customer service and its tendency to “stretch the truth” about its coverage area, speeds, and even the availability of the product itself.

Rumors about a major spat between its original data service provider, presumably T-Mobile (based on the fact DataJack and T-Mobile had identical coverage maps back in January) and DataJack led the company to stop signing up new customers.  Since January, DataJack’s website has told would-be customers that the wireless modem necessary to use it was “out of stock.”

DataJack remained in limbo until the first week of April, when the company began e-mailing updates to dealers and customers about major changes to the company and its marketing:

1. “Unlimited” service is history, not that DataJack ever really offered it.  Many customers who used the service in excess of 5GB per month were notified their account would be closed at the end of the month’s billing cycle.  “Companies like DataJack have an English language comprehension problem,” writes Stop the Cap! reader Kevin. ”The word ‘unlimited’ means ‘without limit,’ — a concept DataJack routinely ignored when throwing people off their service.”  New customers will be subject to a formal 5 GB usage cap.
2. Customers who did manage to get modems from DataJack may find they may no longer work after this Thursday.  The company is dropping GSM-based network service and moving to a CDMA network (either Sprint or Verizon — most believe the former), which means obtaining a new modem.  At least that will be offered free of charge to inconvenienced current customers.
3. The price for new customers is going up $10 per month — to $49.99 for 5 GB of service.  Existing customers get to retain service for $39.99 a month, albeit with the new usage cap.  The DataJack website has still not been updated to reflect the new pricing.

Kevin is taking a walk far away from DataJack:

“These people don’t have the first clue how to run a business.  Their entire marketing plan just a few months earlier was based on the premise of unlimited service.  They apparently got into trouble with their provider, another sign that doesn’t inspire confidence, and now they’re e-mailing customers telling them they literally have days to complete an equipment swap or lose service?  In the end, they were punishing people for actually believing their marketing nonsense about “unlimited” service and now they want people to believe a $10 price hike for less service is good news?  After everything that has happened with these people since January, who knows what will happen next month.  I’m not about to wait around to find out.”

Dealers were the first to be notified about the company changes.  Stop the Cap! obtained this copy of a message sent to DataJack retailers:

Dear DataJack Dealer,

Please note that Effective April 2, 2010, the following changes were made to our terms and conditions:

Service Usage. We reserve the right to safeguard our network from abuse, excessive bandwidth consumption or any activity that compromises the performance of our network. We may limit throughput speeds, control the amount of data transferred, and suspend, modify or terminate service, without notice, if your usage adversely impacts our network or exceeds 5 GB in a given month. We may monitor your compliance with the above but will not monitor the content of your transmissions except as otherwise expressly permitted or required by law.

Prohibited Uses. The service may not be used in a manner that violates any law (including without limitation, copyright and intellectual property laws); or the Service Usage clause.

We have found it necessary to implement these measures to ensure our DataJack customers are given the opportunity to access reliable, high speed, wireless internet service at a reasonable price.

95% of our customers will not be impacted by these new provisions; however, if a customer who is impacted visits your store and requests a refund due to no longer having access to the service, please direct them to the DataJack customer support team at 1-888-693-4522. Our team will work directly with the customer to resolve the issue.

Additionally, we are in the process of rolling out a new and improved Dealer Portal. Benefits of this portal include a more user friendly interface, virtual training videos, and enhanced functionality. Our systems will be down for a short period of time while making the transition. Please refer to customer service to process pins and activations for your customers.

If you have any questions, please feel free to contact dealerservices@datajack.com.

The "unlimited service" so prominently mentioned in January is gone from today's marketing of DataJack (click to enlarge)

Existing customers were next to be notified by this e-mail message sent last week:

Dear Valued Customer,

To address recent quality and connectivity issues, DataJack is migrating our service on April 15, 2010 to a new Tier 1 network which delivers faster data speeds and an expanded coverage area. The move to this new network means that DataJack must replace your existing device by April 15th to ensure uninterrupted service. Realizing this could be an inconvenience to you, DataJack is offering our customers a FREE MIFI unit for use as your replacement device at absolutely no extra charge (M.S.R.P. $299.00).

To ensure we get your replacement device to you in a timely manner, it is imperative that you verify the name and address we have on file for you as soon as possible by replying to this email. The name and address on file is as follows:

(address removed)

Upon verifying your address, we will send your new WIFI unit and a postage paid return envelope so you may mail back your current DataJack device. We ask that you please return the used device within 10 business days. South Florida customers also have the option of exchanging their device on April 14th, 15th, and 16th from 10AM – 9PM EST at the following location: 6365 NW 6th Way Suite 160 Fort Lauderdale, FL 33309.

If you do not want to take advantage of the FREE MIFI unit offer, please contact customer service at 1-888-693-4522 to discuss alternative equipment options.

Please note that new customers will be required to pay $49.99 per month for service. This price increase will not affect you, your service fee will continue to be $39.99 per month. Additionally, we have changed our terms and conditions to include service usage and prohibited uses clauses. The terms and conditions apply to all customers.

Again, time is of the essence. We must get your new unit to you by April 15th to avoid service interruption. Thank you for your patience and we look forward to serving you on our new and improved network.

Best Regards,

The DataJack Team

Here is how DataJack dispenses with customers who use their “unlimited” service “too much”:

Dear DataJack Customer,

In accordance with our terms and conditions, more specifically the Service Usage and Prohibited Usage clauses, we are unable to renew your service upon expiration.

We regret that we can no longer provide service and wish you the best in finding a new provider for your wireless internet access needs. Our customer service representatives are available 8AM – 5PM Monday through Friday to address any questions you may have.

Best Regards,
DataJack, Inc.
888-693-4522

Under Terms & Conditions

Effective April 2, 2010

Service Usage. We reserve the right to safeguard our network from abuse, excessive bandwidth consumption or any activity that compromises the performance of our network. We may limit throughput speeds, control the amount of data transferred, and suspend, modify or terminate service, without notice, if your usage adversely impacts our network or exceeds 5 GB in a given month. We may monitor your compliance with the above but will not monitor the content of your transmissions except as otherwise expressly permitted or required by law.

Gerace

The former head of corporate communications for Verizon Wireless will now serve as head lobbyist for Verizon Communications’ New York and Connecticut region.

As president of the New York region, Jim Gerace will be responsible for Verizon’s corporate interests — including public policy, government and external affairs, regulatory matters and philanthropy — in New York and Connecticut.

Gerace began his wireless communications career with NYNEX Mobile Communications in 1986 as a manager in employee communications.  He went on to serve in a variety of communications positions and was named director-public relations in 1991.

In 1995, he directed the announcement of the merger between Bell Atlantic Mobile and NYNEX Mobile, then the largest merger in the wireless industry, and was named vice president- public relations and a member of the senior staff of the new business.  In 2000, he directed the communications for the merger of Bell Atlantic Mobile and AirTouch, which launched the Verizon Wireless brand.

Verizon has a track record of signing up non-profit groups to support its telecommunications causes.  In addition to providing corporate executives for board positions of various community service groups, Verizon financially supports a wide range of not for profit groups, many of which later turn up writing letters of support in favor of Verizon’s policy positions.

Verizon FiOS has upped the ad war against Comcast, one of its competitors in several northeastern cities.  In a new series of ads, Verizon is taking on Comcast’s “name change” to Xfinity, implying it’s the same old Comcast just using a new name.

Comcast may be fighting back, but not with a response ad.  Today, Broadband Reports hears word from a Comcast insider the company is planning on boosting broadband speeds later this year.

According to the source, the new Comcast tiers will be 12/2 Mbps, 20/4 Mbps, 50/10 Mbps, and 100/25 Mbps. Current 22/5 customers will be grandfathered, according to the source, and Comcast apparently hopes to get that 100 Mbps tier into about 20% of their footprint this year.

Comcast’s current speeds differ depending on whether you’re in a DOCSIS 3.0 upgraded market or not. Non DOCSIS 3.0 market customers currently have the choice of three tiers: 6/1 Mbps, 8/2 Mbps, and 16/2 Mbps. DOCSIS 3.0 upgraded markets have their choice of 12/2 Mbps, 16/2 Mbps, 22/5 Mbps, or 50/10 Mbps.  Much later this year it looks like Comcast users will also start seeing some faster upstream speeds.

Verizon FiOS has the capability to beat Comcast’s broadband speeds over its entirely-fiber-based network, but not everyone can sign up for FiOS.  Comcast may not want to give away the broadband speed store in areas where the now indefinitely-grounded FiOS service will never go.

Comcast’s new Xfinity brand is the target of a new round of advertising from Verizon FiOS.  (2 minutes)