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GCI Rip-Off: Alaskan Broadband Customers Face Wrath of Cable Company for “Excessive Use”

Phillip Dampier August 18, 2010 Data Caps, GCI (Alaska), Rural Broadband, Video 36 Comments

Broadband customers face dramatically higher prices for Internet service from a telecom company that wants to define for Alaskans an “appropriate” amount of “fair usage” of the Internet.

GCI, Alaska’s largest cable company, is currently embarked on a so-called “education” campaign over the summer telling residential customers it might be time for them to log off, or face the consequences of enormously higher broadband bills.

For one Anchorage coffee shop, that added up for several hundred dollars for just a single month of usage — all because they offer free Wi-Fi to their customers.

“People use it for their second space. Their home office,” Kaladi Brothers Coffee COO Dale Tran told KTVA news. “We’ve always offered an open network in our cafes, and after hours some people come by and park out front.”

Tran says the result was a bill from GCI several hundred dollars higher than expected.

GCI Communications Manager David Morris says at least two percent of their 110,000 customers are using “too much” service and violating the company’s “fair use” policies.  Morris also warned customers with wireless equipment that if they don’t take steps to lock down their routers with passwords and security, they could be exposed to a huge bill from GCI for providing free Internet service to the entire neighborhood.

Morris claims the company wants to specifically define what it considers “fair use,” claiming it will make things more equitable for everyone.

But GCI’s Internet Overcharging scheme will never save a single customer a penny.  Instead, customers will see only skyrocketing bills should they not fit within GCI’s arbitrary definition of “fair use”:

The company’s website states, “For a large majority of customers, normal usage activities are not expected to exceed the plan profiles defined below”:

Plan Name Usage
Ultimate Xtreme 40,000 MB
Ultimate Xtreme Family 60,000 MB
Ultimate Xtreme Entertainment 80,000 MB
Ultimate Xtreme Power 100,000 MB

GCI customers are not happy.  One reader of the AK Community forum provided additional insight:

To add a little dimension to this before I start ranting, here are the respective rates for the above service plans:

Plan Monthly Rate
Ultimate Xtreme $39.99
Ultimate Xtreme Family $49.99
Ultimate Xtreme Entertainment $69.99
Ultimate Xtreme Power $99.99

Now, those prices are misleading because they are only for the internet service portion of the “bundle.”  What they’re not telling you (anywhere on the web site that I can find, in fact) is that in order to receive that price, data transfer rate, and monthly bandwidth, you must also pay for GCI’s digital cable television service ($57.99 when part of a bundle), local phone service ($15.49 a month), and long distance service ($5.99 a month plus taxes and surcharges).

Without factoring in the various FCC fees and whatnot, the above information brings the total cost of GCI’s fastest, highest monthly bandwidth package to $179.46 per month!  That’s actually the cost they quoted me on the phone, too, so at least we know their “customer service” staff are at least intelligent enough to figure out an adding machine.

Oh, and did I mention that those speeds and transfer rates are not available for standalone cable modem [subscribers]?

[…] What happens when you do go over?  BAM!  $5.12 per gig tacked on to your bill!  I don’t know about you guys, but I’m sick of getting ripped off by GCI.  Those of you who live outside of Alaska can confirm this, but GCI is just about the only cable company that still meters their customers’ bandwidth.  I have friends who tell me that they’re paying $49.00 a month for 8Mb/s transfer rate and unlimited bandwidth!

What GCI is doing is highway robbery.  How are they getting away with it?  I’ll tell you: no competition.  For very high speed broadband internet, they’re the only show in town, so they can charge whatever they want to anybody who wants more than 3Mbps (standard speed DSL service from Alaska’s other big telecom provider, the phone company).

[flv width=”478″ height=”380″]http://www.phillipdampier.com/video/KTVA Anchorage GCI Fair Internet Use Crackdown 6-2-10.flv[/flv]

KTVA-TV in Anchorage ran this report about GCI’s plans to force many of their broadband customers to pay more if they enjoy the Internet “too much.”  (3 minutes)

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Scott
Scott
13 years ago

When they first changed their terms on their bundles from Unlimited to Metered as you reported awhile back they never actually listed the ‘acceptable use’ limits, they just marked it with an * asterix and noted the AUP web address in the fine print on the page and marketing literature. When I spoke to their employee’s at the time, 3 different employees, they all promised the 40/60/80/100GB limited customers would only get a “polite” call from an employee if they were exceeded and asked to upgrade. Now less than a month or so since eliminating unlimited bundled package plans they’ve… Read more »

jr
jr
13 years ago

Checking your email is excessive use

HP
HP
13 years ago

Bummer, I didn’t know about they already cut unlimited plan because couple months ago it was still there. Then one guy at work told me they couldn’t sign up for the unlimited package anymore so they advice me to not cancel it. Then today I thought I could downgrade and save some money since before I got 5mb then upgrade to 7mb for $10, well, it was really like $20 upgrade with their hidden fees. Then they try to explain that 5GB/month is really unlimited O_O, only business owner would go over that. Umm, hello, a single blu-ray would already… Read more »

GETITRIGHT
GETITRIGHT
13 years ago

You really should have gotten all your facts correct before slandering GCI. One thing you do have correct are the rates for the Ultimate Extreme. Did you happen to take a look at the new packages and new rates. Unfortunately because people like to abuse the network it has forced GCI to going to a “fair use policy”. As a consumer of GCI I am greatful that they put this cap on. It has allowed my family higher internet speeds. Did you mention that before MISINFORMING the public. Slandering GCI is probably not a great idea. Advise ALL the facts… Read more »

Hankins
Hankins
13 years ago

The public should seek out a reputable cable provider from the lower 48 and petion them by the millons to expand into Alaska and save us from GCI’s unethical buisness practices .
By the wayn How is it that MTA has DTV and ACS doesn’t.If they did GCI would be blown out of the water.

MyThoughts
MyThoughts
10 years ago

In response to why ACS doesn’t have DTV. It would take a significant investment for ACS to roll that service out, outside plant, network hardware, etc.. I don’t think they see a ROI in it for them.

ACS main play in Alaska is Enterprise (large business & Govt) plus wireless and they have long ago abandoned the residential market.

DMJones
DMJones
10 years ago
Reply to  GETITRIGHT

The biggest travesty is that no matter how much they advertise the speed of the package you are buying, they ALWAYS fall woefully short of their advertisement. It happened when they provided WISP services and its happening again with their broadband service. You will NEVER get the advertised speed of say, 10mbps down and 2mbps up even if you pay for the deal with a higher speed.

Scott
Scott
13 years ago

GETITRIGHT is very WRONG. At the time Phillip posted this article his package information was correct, GCI has been changing their plans, pricing, and removing unlimited service and implementing more caps all this time behind our backs as customers without warning. The XTREME XL packages are ONLY available to Cable TV subscribers, that are also forced to buy Digital Phone Service as well, and pay the listed rates for the internet on TOP of their other changes. The absolute MINIMUM that you will be charged by GCI with the following: Digital Cable (61 Channels of basic expanded offerings) Digital Phone… Read more »

GETITRIGHT
GETITRIGHT
13 years ago

What you did was created a hate site to slander GCI. WHY??? Because you were one of those that exceeded a high usage of limits per month? After researching, speaking to their representatives it’s clear to see that they made these changes to accommodate most of Alaska. If you don’t like it.. go elsewhere… Their changing their packages has caused increases in speeds. It’s clear you are frustrated. However, this web page is MISLEADING. (that simple). You have did well by informing those to be aware of what? Anyways, maybe you can find a different hate site to create. This… Read more »

Ron Dafoe
Ron Dafoe
13 years ago
Reply to  GETITRIGHT

I see that you have researched this site just as well as you have researched your bandwidth caps. It is a good thing that there are people who actually know how to manage networks. Ignorance is not an excuse. . Bandwidth caps do not increase the speed of your connection. Please, read up on things before posting. You are either woefully ignorant of technology or an employee of a the above company. BTW, you can use 2.4Gbs of data in 1 month by updating your antirus/antispyware program.everyday. Now, think of the stuff, like above, that you did not even think… Read more »

Hankins
Hankins
13 years ago
Reply to  GETITRIGHT

My dislike (pure seething hatred) Is based on absolute fact .They decive the public and defraud the public for their own gain.

I currently am wiring new standard phone lines in my home so I can switch to ACS for phone and HS internet and As far as TV. Im Using an XBOX 360 with a $13 a month NETFLIX plan ( unlimited ) and a HD out door antenna for up to date news and weather.

Scott
Scott
13 years ago

Just how is charging a whopping $150.00 for $2.50 worth of Tier1 bandwidth in 25GB of ‘overages’ over their cap an accommodation or fair to Alaskan’s? Yes changing their packages did cause an increase in speeds, they doubled 4Mbit cable modem packages to 8Mbit because they knew customers would go over their rediculously low limit twice as fast and end up paying for bandwidth at a markup of over 60x times their cost. If only my company could have margins like that while duping customers into thinking it was for their best interest. Now they can also continue overselling their… Read more »

Rick Eiben
Rick Eiben
13 years ago

Thanks for all the info guys. Just moved back to anch from rainwood with ACS in tow. Wife wants cable. I think I’ll get an outdoor antenna and netflicks account as well…

Scott
Scott
13 years ago

Good to hear Rick. You might also try HULU Plus for the wife as well (They carry a number of the popular TV series), but their excessive advertising and fairly restricted programming has been a deal killer for me personally. Netflix has been hands down the best value. Then keep an eye out for a media device that has very good support of Netflix/hulu/etc, some TV’s or Blu-Ray players have them built-in, but I’ve found devices like the PS3 and Boxee have much better features for the same apps. I think you’ll be pleasantly surprised later this year too with… Read more »

ndjinn
ndjinn
10 years ago

Your info is a bit out of date. I am a internet only GCI customer I just changed my plan to the highest possible. 500 gig’s for $120 per month. Speed tests average about 30 up and 5 down. Ping to the lower 48 is about 60ms. The new modem with this package is better to.

txpatriot
txpatriot
10 years ago
Reply to  ndjinn

Phillip is a big boy and can defend himself.

I would only mention that, as to your “out of date” claim, those kinds of things happen when you respond to an article that is over three years old. I suspect the numbers were correct when the article was posted.

But I’m not a GCI customer and can’t say for sure.

Scott
Scott
10 years ago
Reply to  ndjinn

Not sure how you’ve managed to get 500Gig’s on your plan for $120/mo unless you’re an employee with a discount. GCI only offers the 500Gig plan in one city in all of Alaska, Anchorage and they charge $209.99 before tax for it. You can get their 22Mbit plan with 200Gigs of metered usage for $119.99, that’s the closest I can find to the rate you’re quoting. Still, I’ll take ACS’s 10Mbit plan which actually delivers 10Mbit of bandwidth all day as promised and uncapped/unmetered usage any day over GCI’s over provisioned plans that only give you 60-70% of advertised speed… Read more »

ALASKALIVE.NET
ALASKALIVE.NET
10 years ago
Reply to  Scott

Somebody posted that ACS, Alaska Communications does not have a cap.. It does, in their Policies… Bandwidth Usage There are some upper limits on customer usage of bandwidth depending upon the type of account. Residential accounts are meant for attended use by an individual or family. Business accounts are meant for similar attended use, but by larger groups of users and with the addition of commercial, revenue-generating activities. ACS wireline data services are not meant for continuous or automated high-volume data transfers, and such excessive usage is a violation of the Acceptable Use Policy. ACS may initiate a Usage Review… Read more »

Scott
Scott
10 years ago
Reply to  ALASKALIVE.NET

That’s a standard Term of Service (TOS) or Acceptable Use clause for ANY ISP that offers unlimited internet. No ISP offers truly “unlimited” usage without covering themselves legally, otherwise you could setup your own file hosting service at home, link it to a WiFi Mesh network across the neighborhood offering free WiFi, etc.. utilizing significant more bandwidth than they’ve based their fee’s on for ‘home consumer’ use. Even Google has the same TOS/AUP for their Gigabit Fiber service. As long as you do use your 10Mbit home internet and don’t abuse it for commercial or massive amounts of 24/7 transfers… Read more »

Sean
Sean
10 years ago
Reply to  Scott

I am being a bit pedantic, but there is a hard physical cap on DSL. It works out to roughly a linear line of 303GB per 1 Mbps or service over a 30-day standard month. Or for a 10 Mbps line it grants a 3 TB limit per month.

A ton more than GCI by any stretch of the imagination.

Rod
Rod
10 years ago

GCI is a big rip off in rural ak with their cell phone system…dinosaur age data at anchorage prices! We cannot even open a web page! This is the biggest rip off in Alaska!

ALASKALIVE.NET
ALASKALIVE.NET
10 years ago

You can get TRULY UNLIMITED 10 MEG DOWN, 2 MEG UP SERVICE FROM MTA, A BUSINESS ACCOUNT if you sing a 5 year contract for around 180 a month. I would check into it though, as I would not want to lie to you. I have had it for 4 years and we have up and downloaded I know for sure over 300 gigabytes in a 1 month period and not gotten charged extra. We have netflix, youtube, lots of computers.. all on the net up and downloading every day.. never an extra fee! Just saying and for the record,… Read more »

DMJones
DMJones
10 years ago

The biggest travesty is that no matter what advertised speed you sign up for, you will NEVER receive advertised speed that you sign up for. It happened when they provided WISP services and its happening with their broadband services. It matters not one bit to them just as long as they charge you for whatever they say you have to pay. Their “supervisors” are paid to receive an ear full of complaints while everybody else that is over their pay grade shielded from the legit complaints of the customers.r

Brenda
Brenda
10 years ago

It is like telling heavy set people they can only take so much food at a buffet. It doesn’t happen because the people who eat like a bird compensate for the larger appetites. A lot of those people who go to cafés are GCI customers. I say cast a vote and go with ACS. ACS sees the bigger picture.

Terry
Terry
10 years ago

What they really aren’t saying is- GCI wants the money for ALL internet users! No free wifi!! Duh. Ripoffs

janalee gage
janalee gage
10 years ago

I cancelled them 3 yrs ago for this very reason!

Brett
Brett
10 years ago

I’m keeping my nose out for a class-action lawsuit against their extortion. I have a feeling it wouldn’t be difficult to populate that list…

Rikki
Rikki
10 years ago

The “other telecom company” mentioned is basically the only other person to go through and even in anchorage in the middle of town I can only get 1Mbps for 89.95. Both options are ridiculous.

Clara k. Kious
Clara k. Kious
10 years ago

Up here on the slope. We don’t even get on demand or National Geographic channel. There’s a lot of channels we don’t get and specials too.

Marlene
Marlene
10 years ago

I had GCI and it got to the point when I have problem had to call the toll free number.. Got Anchorage and all they can tell me is that it was my computer or they will have a tech person come out…. I would have to wait I don’t know how many days before or if I get a local tech come and half of the time they don’t don’t know how to fix the problem when it was admitted it was on there end…. And if would be several weeks sometimes I could NOT call our local store… Read more »

t rav
t rav
10 years ago
Reply to  Marlene

Gci use to send emails notifying me of usage. a few months back I stopped receiving them and started receiving huge bills. I am not the only one. I have several friends who are getting the same treatment . I received a almost $300 bill from GCI. I called them and asked about the courtesy email letting me know about my usage. ” our records show it was sent” bullsh#$!  . so I upped my package, set limits on usage for the kids..   I just got a bill Today for almost $400!!  how the hell do they expect people to pay for… Read more »

joe kim
joe kim
9 years ago

Plain n simple gci is rip off its bull sh*t

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