Home » AT&T »Charter »Cox »Internet Overcharging »Online Video »Time Warner Cable » Currently Reading:

Cable Stock Booster Predicts AT&T Provides ‘Safe Passage’ for Cable Internet Overcharging Schemes

Phillip Dampier March 14, 2011 AT&T, Charter, Cox, Internet Overcharging, Online Video, Time Warner Cable 5 Comments

Craig E. Moffett joined Sanford C. Bernstein & Co. as the Senior Analyst for U.S. Cable and Satellite Broadcasting in 2002.

Craig Moffett, perennial cable stock booster, predicts AT&T’s move to implement usage limits on its broadband customers will provide cover for cable operators to rush in their own Internet Overcharging schemes, starting with budget-priced usage plans.

Moffett released a research note Monday claiming Charter Communications, Cox Communications, and Time Warner Cable are among the first most likely to move towards limiting their customers’ broadband usage, with Comcast standing on the sidelines, at least for the moment.

Moffett thinks AT&T’s announcement is excellent news for wired providers, who could reap enormous new profits on top of some of the world’s most expensive broadband packages.

“AT&T’s move provides air cover that makes it easier for all of them to follow,” Moffett told his clients. “We view the move as good news for all the terrestrial broadband operators.”

Moffett believes usage caps have everything to do with stopping the torrent of online video.  He notes AT&T’s caps are set high enough to target AT&T customers who use their connections to watch a considerable amount of video programming online.

“Only video can drive that kind of usage,” Moffett writes.

Moffett has repeatedly predicted any challenge to pay television models from online video will be met with pricing plans that eliminate or reduce the threat:

“[I]f consumption patterns change such that web video begins to substitute for linear video, then the terrestrial broadband operators will simply adopt pricing plans that preserve the economics of their physical infrastructure,” Moffett said. “Of course, any move to preserve their own economics has far-ranging implications. Any move towards usage-based pricing doesn’t just affect the returns of the operators, it also affects the demand of end users (the ‘feedback loop’).”

Currently there are 5 comments on this Article:

  1. jr says:

    “you need the freedom to only read text”-Craig Moffett

  2. Internet TV says:

    This seems like they are unfairly targeting. It’s odd that Broadband is the most profitable portion of the home market. Something like 90% profit at it’s current monthly rate. It’s also funny the company with the worst Internet service is raising it’s rates.

  3. James Karvey says:

    Just switched from Charter to ATT UVerse because of usage caps. Sales rep at ATT said we have no plans to implement usage caps. So essentially, ATT delays their announcement a few months to soak up disgruntled (and I am disgruntled) cable Internet users before springing the trap.

    I don’t believe their reasoning for the caps. I do believe in a corrupt political system and corrupt politicians. Net neutrality – DOA.

  4. Fred says:

    Can someone help us here in South Carolina force Charter to drop their caps altogether? Also, can someone tell Mr. Moffett no one wants UBB.

Search This Site:

Contributions:

Recent Comments:

  • modal: I pay a visit each day some websites and websites to read content, however this blog offers quality based writing....
  • FredH: If your area is upgraded to be getting 300Mbps down and you aren't, there could be any number of factors preventing it that are your responsibility, n...
  • Ev: Why bother rearranging deck chairs on the titanic? Drop your cable TV service, put up an antenna for a bunch of channels, buy a DVR, and if you still...
  • Ev: People need to start recording ail their phone calls with company reps. They're recording it already, for their benefit. One little app on your phone...
  • beth: Called TWC today. They're the only cable provider in my area. I pay for internet and phone unfortunately still hooked to Direct for the football seaso...
  • Austin: "Responsible usage".... "limited resource"???? Give me a break! It's not like internet is mined out of a pocket in the ground. How can these idiots ke...
  • SendDavid: If you're in NY, you can also submit a claim for a refund with David, Inc. and they'll do all the work for you--50% of claims get refunded: http://bit...
  • SendDavid: If you're in NY, you can submit a claim for a refund with David, Inc.--50% of claims get refunded: http://bit.ly/2cSmmE9...
  • Seluryar: Its very hard for me to see many ISP's getting behind this since it seems many of them seem stingy on their upload speeds....
  • Justin Ayers: They have plans up to just 30 GB in our area, for crazy prices. The cellular Internet is also super-expensive. They charge $10 a month just for their ...
  • Justin Ayers: You think Time Warner is bad? Time Warner is a dream compared with Exede and cellular Internet. Our average data usage was 60 GB a month with Time War...
  • Mike: Lucky you! We got the screw job here in Rochester. We have a slow phone company so we don't have any other option....

Your Account: