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Wireless Carriers’ Ho-Hum Economics of Wi-Fi Calling; The Real Money is Still in Data

telecom revenueThe year 2013 marked a significant turning point for phone companies that have handled voice telephone calls for over 100 years. For the first time, the volume of domestic telephone calls and the revenue generated from them was nearly flat. For the last two years, both are now in decline on the wireless side of the business as North Americans increasingly stop talking on the phone and text and message instead.

The U.S. wireline business peaked in the year 2000 with 192 million residential and office landlines. Over the next ten years, close to 80 million of those — 40 percent, would be permanently disconnected, replaced either by cell phones, cable telephone service, or a Voice over IP line. Wireless companies picked up the largest percentage of landline refugees, most never looking back.

Over one-third of more than $500 billion in annual revenue generated by telecom companies in 2013 came from voice services. Although that sounds like a lot, it’s a pittance of a percentage when compared to 2005 when AT&T, Sprint, T-Mobile, and Verizon Wireless earned most of their revenue from voice calls. Ten years ago, wireless companies principally sold plans based on the number of calling minutes included, and many customers often guessed wrong, paying per minute for calls exceeding their allowance.

At first, this represented a revenue bonanza for the wireless industry, which earned billions selling customers minute-based calling plans that came with built-in cost-controlling deterrents for long-winded talkers — the concern of using up their calling allowance.

attverizonStarting in 2008, wireless industry executives noticed something peculiar. While revenue from texting add-on plans was surging, the growth in calling began to level off. Wireless voice usage per subscriber peaked at an average of 769 minutes in 2007 and began falling after that year. By 2011, the average customer was making 615 minutes of calls a month. As customers began downgrading calling plans, wireless carriers shifted their quest for revenue towards text messaging.

For awhile, texting earned wireless companies astounding profits that required little extra investment in their networks. SMS service at most carriers was effectively priced at $1,250 per megabyte, broken up into 160 byte single messages. In 2011, over 2.3 trillion text messages were exchanged. A message that cost a wireless carrier an infinitesimal fraction of a penny to send and receive cost consumers up to 20 cents or more apiece if they lacked an optional texting plan. To further boost revenue, some carriers like Verizon Wireless began to pull back offering customers a variety of tiered texting plans with different messaging allowances, switching instead to a single, more expensive unlimited texting plan. Many customers balked at the $19.95 a month price and began exploring other forms of messaging each other.

chetan sharmaThe industry’s demand for profit eventually threatened to kill the goose that laid the golden egg. At the same time wireless carriers were raising prices on text messages and forcing customers into expensive texting add-on plans, free third-party messaging apps began eating into texting volume. By 2012, the use of SMS declined for the first time, with 2.19 trillion text messages sent and received, down 4.9 percent from a year earlier.

It took little time for the wireless industry to realize the days of offering plans based on calling minutes and texting were quickly coming to an end. Younger users began the cultural trend of talking less, texting more — but using a growing number of free alternative apps to do so. As a result, both AT&T and Verizon shifted their plans away from focusing on revenue from calling and texting and instead moved to monetize data usage. Today, both carriers offer base plans featuring unlimited voice calling and texting almost as an afterthought. The real money is now made from selling packages of wireless data.

Wi-Fi calling allows customers to make and receive voice calls over a Wi-Fi connection, not a nearby cell tower. The prospect of bundling that option into a cell phone just a few years ago would have been unlikely at some providers, unthinkable at others. It was never considered a high priority at any traditional carrier, although T-Mobile began offering the service all the way back in 2007.

Since most calling plans now bundle unlimited calling, letting calls ride off the traditional cellular network is no longer much of an economic concern.

wifi callingSome even expect carriers to eventually embrace Wi-Fi calling, declaring it superior to alternatives like Hangouts and Skype, which require an app to handle the call. A Wi-Fi call can be received by anyone with a phone.

This month, the last holdout, Verizon Wireless, capitulated and announced it had won approval from the FCC to introduce Wi-Fi calling to customers, joining Sprint, T-Mobile, and AT&T. But Verizon plans to initially limit that service, offering an app that must be installed to make and receive Wi-Fi calls. The other three carriers integrate Wi-Fi calling directly into the primary phone call app already on the phone.

The introduction of the service is unlikely to have a significant economic impact on any wireless carrier. Most have ample room on their networks to handle cell call volumes. Whether a call is placed over Wi-Fi or traditional cellular service, it will ultimately end up on the same or a similar IP-based phone switch as it makes its way to the called party.

With little revenue-generating opportunities for voice calling or SMS messaging, companies have nearly stopped the practice of monetizing individual telephone calls, preferring to offer unlimited, all-you-want calling and texting plans that used to cost consumers considerable amounts of money.

Now wireless carriers see fortunes to be made slicing up and packaging gigabytes of wireless data, sold at prices that have little relation to actual cost, just as carriers managed with text messaging for the last 20 years. A Verizon Wireless customer using 12GB of data in October that kept a now-grandfathered unlimited data plan paid just under $30 for that usage. (This month Verizon raised the price of that coveted unlimited plan by $20 a month.) Verizon charges $80 for that same amount of data on its new “XL” data plan. Verizon’s cost to deliver that data to customers is lower than it was five years ago, but customers wouldn’t know it based on their bill. As always with the wireless industry, costs often have no relationship to the price ultimately charged consumers.

Corporate Puppets on Parade: Mercatus Center Writer’s Ridiculous Ranting for Usage Caps Debunked

att string puppetOnce again, a writer from the corporate-funded Mercatus Center is back to shill for the telecom industry.

Eli Dourado landed space in Slate to write a ridiculous defense of Comcast’s expanding trials of usage caps. When we first read it, we assumed a Comcast press release somehow managed to find its way into the original article. It quickly became impossible to discern the difference.

Before we take apart Mr. Dourado’s nonsensical arguments, let’s consider the source.

Sourcewatch calls Mercatus one of the best-funded think tanks in the United States. And why not. Its indefatigable advocacy of pro-corporate policies is legendary. The Center itself was initially funded by the Koch Brothers to advocate against consumer protection and oversight and for deregulation.

With that kind of mission and money, it’s no surprise the authors coming out of Mercatus are in rigid lock-step with the corporate agendas of Comcast, AT&T, and other large telecom companies. The Center is also a friend of the American Legislative Exchange Council (ALEC), a group that counts Comcast and AT&T as dues-paying members. ALEC’s corporate members ghostwrite legislation that ends up introduced in state legislatures across the country.

We have never seen a Mercatus-affiliated author ever write a piece that runs contrary to the interests of Big Telecom companies. They oppose community broadband competition, Net Neutrality, and have defended wireless mergers that would have killed T-Mobile, turn Time Warner customers into Comcast customers, and believed AT&T’s buyout of DirecTV was just dandy and Charter’s buyout of Time Warner Cable is even more consumer-y.

They favor usage caps/usage pricing, defend higher bills, and laughingly claim Americans are probably underpaying for broadband compared to the rest of the world.

Life must be good on Broadband Fantasy Island, where those in favor of Comcast’s usage pricing experiments live. In a style that eerily resembles a Comcast corporate blog post, Dourado unconvincingly tells readers, “metered data is good for most consumers and for the Internet.”

Dourado’s defense of Comcast’s idea of reasonable pricing only had one slip-up, when he accidentally told the truth. He effectively derailed Comcast’s usual talking point that “it is only fair for heavy users to pay more” when he correctly noted, “broadband networks are composed almost entirely of fixed costs—costs that don’t vary very much with usage.”

two peas

(Image: Jacki Gallagher)

That ripping sound you hear is a corporate executive starting to tear up their contribution check to Mercatus Center for being off message. But hang on, Mr. Corporate Guy, Mercatus Center has always had your back before, let’s see if Dourado can pull his feet out of the fire.

“But when users pay for data use, cable companies have an incentive to make it easier than ever to use a lot of data—that is, to invest in speed upgrades. They want you to blow right by your habitual usage amounts, which you will probably do only if you are on a superfast connection. In this way, metered data encourages broadband network upgrades,” Dourado claims, back on message.

Dourado’s core argument is one we’ve heard from telecom companies for years: heavy users are responsible for the allegedly high fixed costs of delivering broadband to America. Because networks must be built to accommodate all users, those ‘data hogs’ force providers to charge top dollar to everyone to assure access to promised speeds, unfairly penalizing light users like grandma along the way just to satiate someone else’s desire for more downloading.

comcast money pileIf that were true, broadband costs everywhere would be around the same and Frontier’s DSL service wouldn’t be so universally awful. Unfortunately for Dourado’s argument, we have the ability to look at broadband pricing and service quality beyond the monopoly/duopoly marketplace we have in North America. Fixed costs to deliver broadband service here are comparable in western Europe and Asia and somehow they manage to do a lot more for a lot less.

Closer to home, newly emerging competitors like Google Fiber, municipal/community broadband, and private overbuilders like Grande Communications and WOW! also manage to deliver more service for less money, without any need to gouge and abuse their customers. The fact Time Warner Cable, Verizon, Charter and Bright House have seen no need to impose compulsory usage caps or usage pricing (AT&T does not enforce their cap on U-verse service either) and also do business in the same states where Comcast is imposing caps is just the first of many threads that unravel Dourado’s poorly woven argument.

Let’s break Dourado’s other arguments down:

Phillip Dampier

Phillip Dampier

Dourado’s Claim: “Broadband networks are composed almost entirely of fixed costs—costs that don’t vary very much with usage. Cable companies have to spend many billions of dollars to build and maintain their networks whether or not we use them. One way or another, users of the network have to collectively pay those billions of dollars.”

Stop the Cap!: This is true, but Mr. Dourado forgets to mention most of the costs to construct those networks were paid off years ago. DSL and fiber to the neighborhood services avoided incurring the most costly part of network construction — wiring the last mile to the customer’s home. Phone company broadband, excepting Verizon’s complete fiber-to-the-home service network overhaul, benefits from the use of an existing copper-based network built and paid for long ago to deliver basic telephone service.

The cable industry did even better. It used the same fiber-coax network last rebuilt in the early/mid-1990s to deliver more television channels to also deliver broadband, which initially took up about as much space as just one or two TV channels. The cable industry introduced broadband experimentally, spending comparatively little on network upgrades. This was important to help overcome skepticism by corporate executives who initially doubted selling Internet access over cable would ever attract much interest. It shows how much they know.

So while it is true to say the telecommunications industry spent billions to develop their infrastructure, for most it was primarily to sell different services — voice grade telephone service and cable-TV, for which it received a healthy return. Selling broadband turned out to be added gravy. For a service the cable industry spent relatively little to offer, it collected an average of $30 a month in unregulated revenue. That price has since doubled (or more) for many consumers. Cost recovery has never been a problem for companies like Comcast.

In 2014, Techdirt showed broadband investment wasn't increasing at the rate the cable industry claimed. It has been flat, and not because of broadband usage or pricing.

In 2014, Techdirt showed broadband investment wasn’t increasing at the rate the cable industry claimed. It has been largely flat, and not because of broadband usage or pricing.

It is easy for providers to show eye-popping dollar amounts invested in broadband improvements. Most providers routinely quote these numbers to justify just about everything from rate increases to further deregulation. When the numbers alone don’t sufficiently sell their latest argument, they lie about them. Adopting any pro-consumer policy like Net Neutrality or a ban on usage pricing would, in their view, “harm investment.” Only it didn’t and it won’t.

What these same providers never include on those press releases are their revenue numbers. Placed side by side with capital expenses/infrastructure upgrades, the clarity that emerges from showing how much providers are putting in the bank takes the wind right out of their sails. It turns out most providers are already earning a windfall selling unlimited broadband at ever-rising prices, while network upgrade expenses remain largely flat or are in decline. In short, your phone or cable company is earning a growing percentage of their overall profits from the sale of broadband, because they are raising prices while also enjoying an ongoing decline in the cost of providing the service. Despite that, they are now back for more of your money.

Dourado’s basic argument is the same one providers have tried for years — attempting to pit one customer against another over who is responsible for the high cost of Internet access. They prefer to frame the argument as “heavy users” vs. “light users.” Hence, it is isn’t fair to expect grandma to pay for the teen gamer down the street who also enjoys BitTorrent file sharing. Their hope is that the time-tested meme “someone is getting a free ride while you pay for it” will act like shiny keys to distract people from fingering the real perpetrator of high pricing — the same phone and cable companies laughing all the way to the bank.

It’s easy to prove and we’ve done it here at Stop the Cap! since 2008.

bullWe have a BS detector that never fails to uncover the real motivation behind usage pricing. It’s simply this. If a provider is really in favor of usage billing, then let’s have a go at it. But it must be real usage pricing.

Here’s how it works. Just as with your electric utility, you will pay a monthly connection/facilities charge to cover the cost of the transport network and infrastructure, typically $15 or less per month (and it should be less because utilities have to maintain physical meters that cable and phone companies don’t). Next come usage charges, and because the industry seems to have adopted AT&T’s formula, we will use that.

Your broadband will now cost $15 a month for the connection charge and usage pricing will amount to $10 for each 50GB increment of usage. Because even Mr. Dourado admits there is no real cost difference supplying broadband at different speeds, you deserve the maximum. If you turn in average usage numbers, you will have consumed between 50-100GB each month. So your new broadband bill will be $25 if you consume 50 or fewer gigabytes, $35 if you consume between 50-100GB. Deal?

Considering what you are probably paying today for Internet access, you will fully understand that howling sound you hear is coming from telecom company executives screaming in opposition to fair usage pricing. That is why no provider in America is advocating for fair usage pricing. In reality, they want to charge current prices –and– impose an arbitrary usage allowance on you, above which they can begin to collect overlimit penalty fees. It’s just another rate hike.

Dourado is stuck with a bad hand trying to play the second part of the “usage pricing fairness” game. While claiming heavy users should be forced to pay more, he is unable to offer a real example of light users paying substantially less.

bshkAt this point, Dourado’s proverbial pants fall off, exposing the naked reality that few, if any customers actually pay less under usage pricing. That is because providers are terrified of the word “cannibalization.” In the broadband business, it refers to customers examining their options and downgrading their service to a cheaper-priced plan (shudder) that better reflects their actual usage. To make certain this happens rarely, if ever, Comcast offers customers scant savings of $5 from exactly one “Flexible Data Option” available only to those choosing the improbable Economy Plus plan, which offers just 3Mbps service. Customers agree to keep their usage at or below 5GB a month or they risk an overlimit fee of $1 per gigabyte. It’s like Russian Roulette for Bill Shock. Where can we sign up?

In fact, Time Warner Cable has already admitted a similar plan open to all of its broadband customers was a colossal flop, attracting only “a few thousand” customers nationwide out of 15 million qualified to choose it. We suspect the number of Comcast customers signed up to this “money-saving plan” is probably in the hundreds. Time Warner was smart enough to realize forcing customers into a massively unpopular compulsory usage plan would make them a pariah. For Comcast, “pariah” is a matter of “same story, different day.” Alienating customers is their specialty and despite growing customer dissatisfaction, executives have ordered all ahead full on usage pricing.

Dourado also can’t help himself, getting his own cheap shot in at government-mandated Lifeline-like discounts designed to make Internet access more affordable, calling it a “tax and spend program.” He omits the fact Comcast already offers its own affordable Internet plan voluntarily. But mentioning that would further undercut his already weak argument in favor of usage pricing.

Dourado: “If everyone paid equal prices for unlimited data plans, cable company revenues would be limited by the number of people willing to pay that equal rate.”

Stop the Cap!: Providers have already figured out they can charge higher prices for all sorts of things to increase revenue. General rate increases, modem fees, and charging higher prices for faster speeds are also proven ways companies are earning higher revenue from their existing customers.

Dourado: “But when users pay for data use, cable companies have an incentive to make it easier than ever to use a lot of data—that is, to invest in speed upgrades. They want you to blow right by your habitual usage amounts, which you will probably do only if you are on a superfast connection. In this way, metered data encourages broadband network upgrades.”

comcast whoppersStop the Cap!: Nice theory, but companies like Comcast have found an easier way to make money. They simply raise the price of service. Dourado should learn more about the concept of pricing elasticity. Comcast executives know all about it. It allows them, in the absence of significant competition, to raise broadband prices just because they can and not risk significant customer number defections as a result.

After they do that, the next trick in the book is to play games with usage allowances to expose more customers to overlimit fees or force them into more expensive usage plans. In Atlanta, Comcast even sells its own insurance plan to protect customers… from Comcast. For an extra $35 a month, customers can avoid being molested by Comcast’s arbitrary usage allowance and overlimit fees and get unlimited service back. As customers rightfully point out, this means they are paying $35 more a month for the same service they had just a few months earlier, with no improvements whatsoever. Is that innovative pricing or highway robbery?

What inspires companies to raise speeds and treat customers right is competition, something sorely lacking in this country. Just the vaguest threat of a new competitor, such as the arrival of Google Fiber was more than enough incentive for companies to begin investing in waves of speed upgrades, bringing some customers gigabit speeds. Usage pricing played no factor in these upgrades. The fact a new competitor threatened to sell faster Internet at a fair price (without caps) did.

Dourado: “The DOCSIS 3.1 cable modem standard, just now being finalized, will allow downloads over the existing cable network up to 10 Gbps (10 times faster than Google Fiber). Cable companies are now facing a choice as to how fast to roll out support for DOCSIS 3.1. As the theory predicts, Comcast, now experimenting with metering, is planning an aggressive rollout of the new multi-gigabit standard.”

Stop the Cap!: While Dourado celebrates Comcast’s achievements, he ignores the fact EPB Fiber in Chattanooga offers 10Gbps fiber broadband today, charging the same price Comcast wants for only 2Gbps service, and does not charge Comcast’s $1,000 installation and activation fee. EPB did not require the incentive of usage billing or caps to finance its upgrade. Dourado also conveniently ignores the fact almost every cable operator, many with no plans to add compulsory usage caps or usage pricing, are also aggressively moving forward on plans to rollout DOCSIS 3.1. It’s more efficient, allows for the sale of more profitable higher speed Internet tiers, and is cost-effective. Some companies want the right to gouge their customers, others want to do the right thing. Guess where Comcast fits.

Usage Cap Man

Usage Cap Man

Dourado: “It’s not fun to continually calculate how much you are spending. But we all gladly accept metering for water and electricity with no significant mental accounting costs—why should broadband be so different? Both Comcast and Cox make it easy to track usage. And even if we can’t just get over our mental accounting costs, are they really so significant that we should cite them as an excuse for keeping the poor and elderly offline and letting our broadband networks stagnate?”

Stop the Cap!: Assumes facts not in evidence. First, once again Mr. Dourado’s talking points come straight from the cable industry and are fatally flawed. While Dourado talks about usage pricing for water and electricity — resources that come with the added costs of being pumped, treated, or generated, he conveniently ignores the one service most closely related to broadband – the telephone. The costs to transport data, whether it is a phone call or a Netflix movie, have dropped so much, phone companies increasingly offer unlimited local -and- long distance calling plans to their customers. When is the last time anyone bothered to think about calling after 11pm to get the “night/weekend long distance rate?” For years, broadband customers have not had to worry how much a Netflix movie will chew through a broadband usage allowance either. But now they might, because the cable industry understands that Netflix viewer may have cut his cable television package, cutting the revenue the cable company now wants back.

Second, heavy Internet users are not the ones responsible for keeping the poor and elderly offline and allowing broadband infrastructure to stagnate. The blame for that lies squarely in the executive suites at Comcast, AT&T and other telecom companies that make a conscious business decision charging prices that guarantee better returns for their shareholders (and their fat executive salary and bonuses).

But it isn’t all bad news.

Comcast’s Internet Essentials already exists today and is priced at $9.95 a month. Only Comcast’s revenue-cannibalization protection scheme keep it out of the hands of more customers. It limits the program to customers with school age children on the federal student lunch program and is off-limits to existing Comcast broadband customers even if they otherwise qualify. Why? Because if the program was available to everyone, it would quickly cut their profits as customers downgraded their service.

Comcast’s abysmal performance is legendary, and that isn’t a result of heavy users either. That is entirely the fault of a company that puts its own greed ahead of its alienated customers, something plainly clear from forcing captive customers into usage trials they don’t want or need. Verizon FiOS uses technology far superior to what Comcast is using, offers better speeds and better service. Customers are happy and routinely rate FiOS among the nation’s top providers. They don’t need usage pricing or caps to manage this. Comcast sure doesn’t either.

Mr. Dourado’s arguments for usage pricing are so weak and provably false, it is almost embarrassing. But we understood he was given the impossible challenge trying to mount a defense for Comcast’s latest Internet Overcharging scheme. Nobody can defend the indefensible.

Miami Vice: Florida Comcast Customers Furious About New Data Caps, $30 Fee to Avoid Them

comcastRicardo Bolán was not happy while reading his latest Comcast bill informing him he was about to be included in Comcast’s creeping trial of usage caps, which has slowly spread across the cable company’s service areas in the south and western U.S.

“Customer service said we were one of the communities ‘opting in’ to Comcast’s data usage plan, which is their way of saying Comcast forced it on us,” said Bolán, who lives in Hialeah, Fla.

Several South Florida customers are writing Stop the Cap! to complain about Comcast’s Oct. 1 imposition of a 300GB usage cap on its broadband service. Customers exceeding their allowance will now pay $10 in overlimit fees for each 50GB increment.

“Comcast’s usage meter hasn’t reliably worked down here for weeks, so you are flying blind over how much data you are using, and we’re talking about Comcast, so who can trust them?,” said Dave — a Stop the Cap! reader in Miami Beach. “I guess it’s back to AT&T.”

When the usage tool does work, some customers claim their reported usage levels suddenly doubled or tripled after Comcast’s usage cap started.

miami vice“Since this new data plan trial for Florida went into effect, I decided to check my usage,” Batchman27 wrote on Comcast’s support forum. “I am at 11GB in one day. I looked back at my usage for the past three months (July 1-Sept 30) and my average for those 92 days was 5.86GB per day. I find it very odd and extremely convenient that my usage [nearly doubled] on the day this ‘trial’ began.”

Over the next several days, his usage stayed consistently at or above 11GB a day.

“At this rate, I will exceed the 300GB before the end of the month and will be billed for the additional blocks of data (note: my highest usage during those three months was 202GB in August),” he added.

Another customer has had to banish Netflix, Hulu, and all other subscription video services from his home because they make all the difference whether or not his family of four will face overlimit bill charges and bill shock from Comcast.

“It’s no surprise what they are targeting with these caps,” said Austin Chilson. “If you watch Netflix or Hulu on a regular basis, 300GB is not enough. Netflix alone is responsible for about 17GB of video usage during the first three days of the month, and we were gone most of the day on Saturday the 3rd.”

Another customer echoes Chilson.

Comcast-Usage-Meter“I feel like we’re a pretty average family of four,” GuitarManJonny wrote Oct. 2 on Comcast’s support forum. “Of course we stream Netflix and we do a little downloading although nothing approaching what I’d consider excessive (no torrents, for example) and I have gone over the limit every month since July. I’m already at 13GB for this month, so it’s a pretty safe bet that I will go over again.”

Florida customers have an option other Comcast customers do not — a way back to unlimited usage by paying an extra $30 for an “unlimited use option.”

That seemed to only infuriate customers more.

“It’s amazing that a cap is being turned on and yet I’m asked to pay the same amount that I have been for unlimited and then being asked to pay MORE to continue the same plan I’m on now,” writes Gldoori. “It’s also ironic that I get the ‘We’re sorry. We can’t load your Internet usage meter right now’ [error message] when I try to monitor my usage on the website.”

“I’ll be cancelling my TV and home phone with them in a couple of months when my plan expires and then dropping my Internet speed to fit a “need” rather than a “want,” Gldoori wrote. “I’m not paying $30 more (for unlimited) just to have the same Internet plan I’ve been paying for already.”

A Comcast spokesperson tried to defend the implementation of usage caps in Miami-Dade, Broward and the Florida Keys by suggesting almost none of their customers will be impacted by it.

“To put things in perspective, 300 GB is an extremely large amount of data to use,” Comcast Florida spokeswoman Mindy Kramer told the Miami Herald. “The median data use for our customers is 40GB per month; about 70 percent of our customers use less than 100GB per month. About 92 percent of our customers will see absolutely no impact on their monthly bills.”

Kramer claims the new usage caps are about fairness.

reached 100“Our data plan trials are part of our ongoing effort to create a fair, technologically-sound policy in which customers who use more data pay more, and customers who use less pay less,” Kramer said.

Except no customers are paying less. Comcast’s broadband rates have not changed as a result of the market trials, only a usage cap was introduced.

In other cities living under Comcast’s usage caps, the first notice many customers take of the new caps comes in the form of a much higher bill. Clark Howard, a consumer reporter for WSB-TV in Atlanta, has heard from local residents reporting serious bill spikes if they ignored Comcast’s warning or failed to curtail their usage.

Another reader in South Florida reports Comcast does inform Floridians when their usage allowance runs out, including automated phone calls and a browser-injected warning message appearing on all non-https websites when a customer reaches 80 and 100% of their monthly allowance. Once that allowance is exceeded, your Internet will not stop working. Comcast will instead add $10 for each additional 50GB you use until the end of your billing cycle.

comcast cartoon“There is no way to opt out of accruing overlimit fees and when the usage tool is down, you have no idea what your bill will look like,” said Bolán. “To keep this in perspective, if you manage to use 500GB in a month, the overlimit fee will add $40 to your bill. If you cut your cable TV and watch Hulu and Netflix, that kind of usage is not surprising.”

Chilson’s parents have been impacted by Comcast’s usage caps in another way — they are having trouble selling their home because Comcast is the only service provider. AT&T isn’t providing U-verse service to several homes on the street, including theirs.

“The realtor reports would-be buyers are shying away because they don’t like the Internet options, which are Comcast, Comcast, or Comcast,” Chilson said. “My parents have offered to split closing costs and even tried lowering the price, but because everyone hates Comcast, they just don’t want to be stuck living in a home with Comcast as their only choice.”

Chilson suggested offering would-be buyers $720 — the cost of two years of Comcast’s $30 a month unlimited add-on plan. Still no takers, and several buyers cited Internet availability and Comcast as reasons for backing away.

Jerome Stokes of Palm Springs, Fla. has managed to collect almost 2,000 signatures on his Change.org petition demanding Comcast remove the usage caps from all of their Internet plans. He calls data caps “barbaric,” and thinks they should be illegal. Other customers are also complaining to the FCC.

Sean Miranda thinks they are just bad for business:

“If this doesn’t affect most people anyway, why bother implementing this change? All it does is make people like myself, less inclined to continue using your service, and instead switch to a different ISP that doesn’t put such silly restrictions on their customers. AT&T is starting to look better and better right about now, but where do I go once they start implementing this too, huh? I want no involvement in this “trial” and hope you discontinue this monopoly scheme immediately, or I will have no choice but to take my business elsewhere or to create new competition.”

Interference Alert: Wireless Carrier Coalition Advocates Barging Into Your Free Wi-Fi Space

Critics question the wireless industry's claim LTE-U and Wi-Fi can co-exist peacefully.

Critics question the wireless industry’s claim LTE-U and Wi-Fi can co-exist peacefully. (Image: EVOLVE)

Consumer groups and cable operators are warning the Federal Communications Commission a plan by the nation’s largest wireless carriers to introduce premium Wi-Fi services for their mobile customers may create serious interference problems for existing Wi-Fi users.

AT&T, Verizon, and T-Mobile are all members of EVOLVE, a group advocating for LTE-U and LAA, technologies that will depend largely on the unlicensed Wi-Fi bands to deliver wireless data to their mobile customers.

Cable operators fear the proposal will give mobile providers an unfair advantage, introducing more traffic into the already crowded Wi-Fi bands while mobile operators reserve the right to use a licensed control channel to shift their customers’ traffic back and forth between unlicensed and licensed spectrum at will. Cable industry critics of the plan claim allowing mobile operators to dump customer traffic into the Wi-Fi bands is likely to worsen interference, harming the cable operators’ investment in a growing network of Wi-Fi hotspots and in-home Wi-Fi.

Consumer groups agree with the cable industry.

The Open Technology Institute at New America, Public Knowledge, Free Press, and Common Cause have filed a joint statement with the FCC warning the agency “mobile carriers will have both the ability and strong incentives to use LTE-U and LAA to engage in anti-competitive behavior harmful to consumers,” all while making a tidy profit charging customers for the use of a service comparable to Wi-Fi, now a free alternative to the carriers’ 3G and 4G data networks.

The groups argue Wi-Fi standards were developed with unlicensed users in mind, able to co-exist peacefully with other similar Wi-Fi signals. The proposed LTE-U technology from wireless carriers is far less sensitive to neighboring signals.

“LTE-U/LAA is designed to be centrally controlled by a network anchored in a separate, exclusively licensed frequency band,” the consumer groups wrote. “3GPP, the mobile industry standards body, may ultimately design LAA in a manner that shares fairly with Wi-Fi and other unlicensed technologies; yet several studies filed by commenters demonstrate that the version of LTE-U that U.S. carriers plan to deploy by next year coexists poorly with Wi-Fi, degrading both throughput and latency (delay).”

LTEUWiFiCritics contend the wireless industry’s proposed service is not as likely to use “Listen Before Talk” effectively, a standard that checks for existing traffic before powering up on an unlicensed frequency. Consumer groups fear mobile carriers will have both the ability and a strong incentive to use LTE-U and LAA to charge consumers for the use of unlicensed spectrum and give themselves an unfair advantage by escaping the interference its own technology can cause other users.

“Carriers also have powerful incentives to use LTE-U to deter mobile market entry by ‘Wi-Fi First’ providers, such as wireline ISPs,” argue the consumer groups, also referring to independent providers like Republic Wireless that depend primarily on Wi-Fi for smartphone connectivity. “Carriers deploying LTE-U will have the apparent option to adjust their access points to introduce just enough latency to frustrate consumer use of real-time applications, such as video calling.”

Another incentive is money. For several years, wireless carriers have encouraged customers to offload their mobile data traffic to Wi-Fi. But since Wi-Fi traffic does not count against the customer’s usage allowance, it also reduces revenue opportunities. LTE-U is a variant of LTE, and carriers traditionally do count that traffic against a customer’s usage allowance. For the first time, mobile customers will accrue usage charges based on their use of unlicensed frequencies. For some, they may have no other choice.

Ellen Satterwhite, a spokesperson for WifiForward, a coalition of companies advocating for more unlicensed spectrum for Wi-Fi, said LTE signals never play well with traditional Wi-Fi.

“When LTE and Wi-Fi signals collide, LTE wins,” Satterwhite said.

“The wireless carriers have completely changed their tune about Wi-Fi—because they have to,” said David Callisch, vice president of corporate marketing for Ruckus Wireless, a Sunnyvale, Calif.-based maker of Wi-Fi hardware, whose customers include Verizon and AT&T. “Wi-Fi for them is like a train going down the track,” Callisch told Bloomberg BNA in an interview. “You could get hit by it or you could jump on the train. They’re jumping on the train.”

“Carriers have historically hated Wi-Fi, because they can’t control it,” Callisch added. “They’ve always liked the licensed band, because they can buy it and they can control it and they can deliver a quality of service to customers over it. With Wi-Fi, you can’t do that.”

But with LTE-U they have the control they crave, able to use network management technology that prioritizes their customers over other conventional Wi-Fi users. Even better, they can charge customers for using it.

Both cable operators and consumer groups want engineers, not business executives, to carefully develop standards and rules that guarantee Wi-Fi users can co-exist with other users of unlicensed frequencies before the technology is switched on.

FCC Demands Details About Charter’s Suddenly Retired Usage Caps

charter twc bhLess than three months before announcing it would acquire Time Warner Cable in a $55 billion deal, Charter Communications quietly dropped usage caps, in place on its broadband plans since 2009, without explanation and the FCC wants to know why.

FCC officials have sent a letter to Charter requesting a range of information about the company’s broadband services, including information about Charter’s since-dropped usage cap program. The federal agency reviewing its buyout of Time Warner Cable wants to know when Charter dropped its usage caps and why.

Charter Communications has promoted “no usage caps” as a selling point to convince regulators its purchase of Time Warner Cable is a consumer-friendly transaction. Charter has promised a cap-free Internet experience for Time Warner Cable customers for three years, but has not committed to offer unlimited broadband service beyond that date.

Two months before Time Warner Cable planned a since-dropped 2009 market test of usage caps in New York, North Carolina and Texas, Charter Communications confirmed it was introducing “monthly residential bandwidth consumption thresholds” on its broadband customers ranging from 100GB for customers with speeds of 15Mbps or slower and 250GB for customers subscribed to 15-25Mbps service.

“In order to continue providing the best possible experience for our Internet customers, later this month we will be updating our Acceptable Use Policy (AUP) to establish monthly residential bandwidth consumption thresholds,” Charter’s Eric Ketzer told DSL Reports at the time. “More than 99% of our customers will not be affected by our updated policy, as they consume far less bandwidth than the threshold allows.”

Few customers realized Charter had placed a cap on Internet usage because the cable company treated the limits as “soft caps” — guidelines they could cite if they found a customer using a very large amount of bandwidth. But customers were not charged overlimit fees and few ever heard from Charter about their usage, even if it well-exceeded their allowance.

In front of Time Warner Cable protesting Internet Overcharging in 2009.

In front of Time Warner Cable offices in Rochester, N.Y. protesting Time Warner Cable’s proposed usage caps. (April 2009)

Only a handful of companies, including national providers like AT&T (for DSL) and Comcast (in usage cap market trial areas), have followed up usage allowances with stinging overlimit fees for those exceeding them, applied to customer bills. The practice is far more common among smaller and regional cable companies like Alaska’s GCI, which earned 10 percent of its broadband revenue billing customers for excess usage.

In March of this year, Stop the Cap! reported Charter quietly dropped usage caps (or “thresholds”) from their Acceptable Use Policy, ending six years of usage capped service — less than three months before announcing it was acquiring Time Warner Cable.

Time Warner Cable’s own experience with usage caps was short-lived after Stop the Cap! and other consumer advocates and elected officials launched a protest campaign against Time Warner Cable’s plans to expand a test of usage-based billing beyond Beaumont, Tex. to Rochester, N.Y., Greensboro, N.C., and the cities of Austin and San Antonio in Texas.

Time Warner proposed four tiers of usage allowances: 5, 10, 20, and 40 GB priced from $29.95 to $54.90 a month. The overlimit fee was to be $1/GB. Sanford Bernstein, a Wall Street research firm, predicted an average family subscribed to Time Warner’s top 40GB usage plan would pay around $200 a month in overlimit fees if they used Netflix more than 7.25 hours a week.

Within two weeks of launching protests in the four cities where Time Warner was planning to add caps, the plan was shelved permanently. But many Time Warner Cable customers have remained wary of the company’s plans regarding usage caps. Time Warner’s retooled, optional usage capped tiers offered to customers looking for a discount have proved dismal failures since their introduction, with fewer than 1% of Time Warner customers finding usage-limited Internet access compelling.

Rationing Your Internet Experience?

Rationing Your Internet Experience?

Consumer advocates also fear usage caps could reappear under Charter as quickly as they disappeared. Stop the Cap! is suspicious of Charter’s time-limited commitment to keep customers free of usage caps for three years. We are lobbying state and federal regulators to permanently extend that commitment as a condition of approving any merger between Charter and Time Warner.

“Customers must be assured they can always choose a reasonably priced unlimited use Internet option,” said the group’s founder Phillip Dampier. “If Charter/Time Warner Cable/Bright House wants to offer optional discounts for customers volunteering to limit their personal use, we are not opposed to that. But based on Time Warner’s own record, you can count on only a few thousand customers willing to voluntarily surrender unlimited, flat rate access.”

Stop the Cap! believes there is no credible reason Internet providers should be imposing compulsory usage caps or usage billing on anyone.

“Broadband is a huge money-maker and the costs to offer it continue to drop even as provider profits rise,” said Dampier. “Rationing broadband with a usage allowance is as credible as rationing Niagara Falls or breathing.”

The FCC is also requesting documentation detailing Charter’s proposed expansion of Wi-Fi hotspots in Time Warner Cable areas and company plans to boost standard broadband speeds from 15Mbps to 60Mbps. Charter has until Oct. 13 to respond.

Blue Ridge Communications Rations Internet Usage With Hard Usage Caps

blue-ridgeA tiny cable company serving communities around the Blue Mountain in eastern Pennsylvania has a big appetite for rationing Internet usage by imposing data caps and overlimit fees on their 170,000 customers.

Effective Sept. 1, Blue Ridge dropped off-peak unlimited use service and imposed a 24-hour rationing plan on its customers, including a familiar overlimit fee of $10 per 50GB of excess usage — the same fee created by AT&T and adopted by several other cable and phone companies.

Customers on the lowest priced plans are most at risk of encountering overlimit fees, which most providers claim are designed to make heavy users pay more for access. In the past, the company maintained rarely enforced “soft caps” and off-peak unlimited usage starting at 5pm. The “hard caps” arrived Sept. 1 with claims the company generously doubled the allowance for some customers, without mentioning it also eliminated off-peak unlimited usage. In terms of “fairness,” the heaviest users signed up to the fastest speed tiers get the most generous allowances while those at lower-price tiers are most likely to encounter an overlimit penalty fee:

  • Web Surfer $42.95 (1.5Mbps Download/384kbps Upload) – 150GB per month (no change)
  • G5 $52.95 (5Mbps/384kbps) – 300GB per month (was 250GB)
  • G10 $57.95 (10Mbps/800kbps) – 400GB per month (was 250GB)
  • G15 $67.95  (15/2Mbps) – 500GB per month (was 250GB)
  • Dream 60 $84.95 (60/3Mbps) – 600GB per month (was 250GB)
  • Dream 100 $124.95 (100/5Mbps) – 700GB per month (was 250GB)
Blue Ridge Communications is headquartered in Palmerton, Pa.

Blue Ridge Communications is headquartered in Palmerton, Pa.

To avoid a higher bill, customers will have to check a company-sponsored, unverified usage meter on Blue Ridge’s website and be ready to upgrade to a more costly Internet plan. Blue Ridge customers already pay substantially more for Internet service than other customers pay in the region. A Comcast subscriber in eastern Pennsylvania now pays $29.99 a month for the first 12 months of 25Mbps service, after which the price increases to as much as $66.95 a month. A less expensive 6Mbps tier costs $49.95 from Comcast, and a much faster 150Mbps tier is also available for $78.95, $46 less than what Blue Ridge charges for service that is 50Mbps slower.

“It’s no dream at 60 or 100Mbps, it’s a straight up gouging nightmare wrapped in greed and lies,” says Stop the Cap! reader Thomas, who lives in Palmerton and calls Blue Ridge’s parent company a local media and entertainment dictatorship. “My friends and relatives are stunned when I tell them one local company controls cable, telephone, wireless, the newspaper and the local news channel. It’s all Pencor through and through.”

Pencor Services, Inc., (Pennsylvania ENtertainment, COmmunications and Recreation) holds a unique position in eastern Pennsylvania. The rural character of the region has allowed Pencor to own and operate a large number of media and telecommunications companies. Pencor owns both Blue Ridge Communications — the cable operator and two local phone companies — Palmerton Telephone and the Blue Ridge Telephone Company. DSL service is offered, but it is “powered by” PenTeleData, another Pencor-owned operation. Wireless service is provided by Pencor-owned Pencor Wireless. In certain other markets, phone companies like Frontier Communications offer some competition, mostly low-speed DSL.

Pencor and its businesses have a substantial presence throughout the Blue Mountains region.

Pencor and its businesses have a substantial presence throughout the Blue Mountain region.

Residents get much of their local news from BRC TV-13, the local news channel on the Blue Ridge system serving Carbon, Monroe, Wayne & Pike counties and parts of Lehigh, Schuylkill, Northampton and Berks counties. BRC TV-11 provides local news on the Blue Ridge system serving Northern Lancaster County. Both stations are also owned by Pencor. So is the Lehigh Valley Press and the Times News newspaper operations.

A Facebook group has been organized to fight Blue Ridge on its new data caps.

A Facebook group has been organized to fight Blue Ridge over its new data caps.

Coverage of the usage cap imposition and customer reaction to it, best characterized as hostile, came from media not owned by Pencor.

Milfordnow! reported “when analyzing similar cap programs that have been implemented by other cable companies, it is apparent that bills may be rising substantially for heavy users.”

The cable company countered it expected only 3% of customers to affected by the new caps, which has some customers wondering why they need them at all.

“You have to wonder if caps affect almost nobody, why do companies spend so much time and energy imposing them,” said Thomas.

“Everything from downloads to YouTube, Netflix and even online gaming count against their new 24-hour cap,” Milford resident John Ferry III told the Pocono Record, reporting his latest bill was about $46 over previous charges. “They are telling people they have doubled the cap, but this is not true. By removing the off-peak time, which was essentially a free period, there is no math that makes it double.”

Blue Ridge customers have begun to organize a pushback against the data caps through a new Stop Blue Ridge Cable Data Caps Facebook page.

Comcast Introducing Usage Caps in Florida, Then Offers $30 Option to Get Back Unlimited

comcast money pileComcast today quietly announced its broadband customers in Fort Lauderdale, the Keys and Miami, Fla., will find a broadband usage cap of 300GB per month imposed on their Internet access starting Oct. 1, 2015, along with the option of buying a new $30 insurance plan to protect against overlimit fees and restore unlimited access.

Stop the Cap! reader Jose from Hialeah informed us Comcast formally began notifying affected customers in e-mail earlier today and updated their website (thanks to DSL Reports):

***An important update about your XFINITY Internet service:

We’re writing to let you know that we will be trialing a new XFINITY Internet data plan in your area. Starting October 1, 2015, your monthly data plan will include 300GB. We’ll also trial a new “Unlimited Data” option that will give you the choice to purchase unlimited data for $30 per month in addition to your monthly Internet service fee.

The majority of XFINITY customers use less than 300GB of data in a month, and therefore will not be affected by these changes. If you are not sure of your monthly data usage, please refer to the Track and Manage Your Usage section below.

Here are the details of the plan:

You’ll get 300GB of data each month. If for any reason you exceed the 300GB included in your plan in a month, we will automatically add blocks of 50GB to your account for an additional fee of $10 each. We’re also implementing a three-month courtesy program. That means you will not be billed for the first three times you exceed the 300GB included in the monthly data plan.

Here are the details of the Unlimited Data option:

If you don’t want a 300GB data plan, the new Unlimited Data option is an alternative that provides additional choice and flexibility, especially for customers who use lots of data. You can choose to enroll in the Unlimited Data option at any time for an additional $30 a month, regardless of how much data you use. Enrollment in this option goes into effect on the first day of the subsequent calendar month.


If you are on the 300 GB plan, we will send you a courtesy “in-browser” notice and an email letting you know when you reach 90%, 100%, 110%, and 125% of your monthly data usage plan amount. You can also elect to receive notifications at additional thresholds as well as set up mobile text notifications. Notices will not be sent to customers who enroll in the unlimited data option.

$30 a month will let Floridians bypass Comcast's overlimit usage tolls.

$30 a month will let Floridians bypass Comcast’s overlimit usage tolls.

What is remarkable about the introduction of Comcast’s latest usage cap trial is the naked monetization scheme that accompanies it. Comcast’s old arguments that usage caps provide an even usage experience and fairness for all customers has been replaced with a new $30 insurance plan that effectively restores the unlimited usage plan customers had until this month… for $30 more a month than they used to pay. Once Comcast collects your $30, the sky is the limit as far as usage is concerned.

Customers are howling about the changes on Comcast’s social media platforms and customer support forums. Stop the Cap! strongly urges Comcast customers to also complain to the Federal Communications Commission using this online complaint form. The more Americans that complain about capped Internet, the more likely the FCC will act on the issue.

“Comcast can just do whatever they want without asking or giving notice,” writes Jason. “So basically we all just got a $30 a month increase in our Comcast bill, such BS! I’ve been a Comcast customer over 20 years. I am done. This was the last straw.”

“Kiss my business goodbye,” wrote another customer. “I have had nothing but trouble with Comcast since I’ve had it.  Weekly outages, incompetent techs on the phone, etc. AT&T U-verse may not have speeds that are as fast as Comcast, but the service was reliable, and they didn’t try to stab us in the back with ridiculous fees. Hasta la vista, Comcast!”

For now, the Unlimited Data Option is only available to customers in Florida. All other Comcast customers living under the company’s usage caps will continue to face overlimit fees of $10 for each 50GB of usage they run up past their 300GB usage allowance.

Comcast has also suddenly clarified exactly which customers are facing a life with usage caps by publishing a lengthy list of zip codes where unlucky customers will not be allowed to receive unlimited broadband. (Last week, Stop the Cap! shared with readers the story of Comcast customers in Georgia being misled about usage caps by Comcast employees. Woodstock’s two zip codes – 30188 and 30189 – appear on the below list.):


35020, 35021, 35023, 35111, 35211, 35401, 35403, 35404, 35405, 35406, 35440, 35444, 35446, 35447, 35453, 35473, 35475, 35476, 35486, 35487, 35490, 35630, 35631, 35632, 35633, 35634, 35645, 35660, 35661, 35674, 35677, 35741, 35748, 35750, 35756, 35758, 35759, 35763, 35773, 35801, 35802, 35803, 35805, 35806, 35810, 35811, 35816, 35824, 35899, 35901, 35903, 35904, 35905, 35906, 35907, 35952, 35953, 35954, 35961, 35972, 35987, 36528, 36571, 36572, 36575, 36582, 36587, 36602, 36603, 36604, 36605, 36606, 36607, 36608, 36609, 36610, 36611, 36612, 36613, 36615, 36617, 36618, 36619, 36652, 36693, 36695


85145, 85619, 85653, 85658, 85704, 85705, 85709, 85712, 85713, 85715, 85718, 85719, 85735, 85737, 85739, 85741, 85742, 85743, 85745, 85746, 85749, 85750, 85755, 85757


72301, 72303, 72331, 72364, 72373

Florida – New Area for 300GB Usage Cap; Unlimited Data Option available for $30 extra per month.

33001, 33004, 33009, 33010, 33012, 33013, 33014, 33015, 33016, 33018, 33019, 33020, 33021, 33023, 33024, 33025, 33026, 33027, 33028, 33029, 33030, 33031, 33032, 33033, 33034, 33035, 33036, 33037, 33040, 33042, 33043, 33044, 33045, 33050, 33051, 33054, 33055, 33056, 33060, 33062, 33063, 33064, 33065, 33066, 33067, 33068, 33069, 33070, 33071, 33073, 33076, 33109, 33122, 33125, 33126, 33127, 33128, 33129, 33130, 33131, 33132, 33133, 33134, 33135, 33136, 33137, 33138, 33139, 33140, 33141, 33142, 33143, 33144, 33145, 33146, 33147, 33149, 33150, 33155, 33156, 33157, 33158, 33160, 33161, 33162, 33165, 33166, 33167, 33168, 33169, 33170, 33172, 33173, 33174, 33175, 33176, 33177, 33178, 33179, 33180, 33181, 33182, 33183, 33184, 33185, 33186, 33187, 33189, 33190, 33193, 33194, 33196, 33199, 33233, 33242, 33301, 33304, 33305, 33306, 33308, 33309, 33310, 33311, 33312, 33313, 33314, 33315, 33316, 33317, 33319, 33321, 33322, 33323, 33324, 33325, 33326, 33327, 33328, 33330, 33331, 33332, 33334, 33337, 33351, 33355, 33388, 33394, 33434, 33441, 33442, 34142, 34974


30002, 30004, 30005, 30008, 30009, 30011, 30012, 30013, 30014, 30016, 30017, 30018, 30019, 30021, 30022, 30024, 30025, 30028, 30030, 30032, 30033, 30034, 30035, 30038, 30039, 30040, 30041, 30043, 30044, 30045, 30046, 30047, 30052, 30054, 30055, 30056, 30058, 30060, 30062, 30064, 30066, 30067, 30068, 30069, 30071, 30072, 30075, 30076, 30078, 30079, 30080, 30082, 30083, 30084, 30087, 30088, 30090, 30092, 30093, 30094, 30096, 30097, 30098, 30101, 30102, 30103, 30104, 30105, 30106, 30107, 30108, 30109, 30110, 30111, 30114, 30115, 30116, 30117, 30120, 30121, 30122, 30123, 30125, 30126, 30127, 30132, 30134, 30135, 30137, 30139, 30141, 30142, 30144, 30145, 30146, 30147, 30149, 30150, 30152, 30153, 30157, 30161, 30165, 30168, 30171, 30172, 30173, 30176, 30178, 30179, 30180, 30182, 30183, 30184, 30185, 30187, 30188, 30189, 30205, 30213, 30214, 30215, 30220, 30223, 30224, 30228, 30230, 30236, 30238, 30248, 30250, 30252, 30253, 30257, 30260, 30263, 30265, 30266, 30268, 30269, 30272, 30273, 30274, 30276, 30277, 30281, 30288, 30290, 30291, 30292, 30294, 30296, 30297, 30303, 30304, 30305, 30306, 30307, 30308, 30309, 30310, 30311, 30312, 30313, 30314, 30315, 30316, 30317, 30318, 30319, 30320, 30322, 30324, 30326, 30327, 30328, 30329, 30330, 30331, 30332, 30334, 30336, 30337, 30338, 30339, 30340, 30341, 30342, 30344, 30345, 30346, 30349, 30350, 30354, 30358, 30359, 30360, 30361, 30363, 30369, 30410, 30411, 30413, 30414, 30417, 30423, 30427, 30428, 30429, 30434, 30439, 30442, 30445, 30457, 30467, 30471, 30477, 30501, 30504, 30506, 30507, 30517, 30518, 30519, 30520, 30527, 30529, 30530, 30533, 30534, 30542, 30543, 30548, 30549, 30554, 30558, 30564, 30567, 30575, 30606, 30607, 30620, 30622, 30624, 30634, 30635, 30643, 30655, 30656, 30666, 30673, 30677, 30680, 30701, 30733, 30735, 30746, 30802, 30805, 30807, 30808, 30809, 30812, 30813, 30814, 30815, 30816, 30817, 30824, 30828, 30830, 30901, 30904, 30905, 30906, 30907, 30909, 30912, 30914, 31002, 31063, 31064, 31068, 31096, 31301, 31302, 31304, 31305, 31307, 31308, 31309, 31312, 31313, 31314, 31315, 31316, 31318, 31320, 31321, 31322, 31323, 31324, 31326, 31328, 31329, 31331, 31333, 31401, 31404, 31405, 31406, 31407, 31408, 31409, 31410, 31411, 31415, 31419, 31421, 31543, 31545, 31546, 31555, 31560, 31566, 31568, 31569


62910, 62960


47520, 47586


40150, 40160, 40162, 40175, 42001, 42002, 42003, 42027, 42029, 42048, 42053, 42058, 42069, 42082, 42086, 42127, 42134, 42141, 42152, 42223, 42321, 42323, 42324, 42326, 42330, 42332, 42337, 42344, 42345, 42367, 42374, 42701, 42702, 42712, 42716, 42718, 42724, 42726, 42732, 42733, 42740, 42748, 42749, 42754, 42757, 42758, 42764, 42783, 42788


71201, 71202, 71203, 71209, 71225, 71227, 71229, 71234, 71238, 71280, 71291, 71292, 71294


03901, 03903, 03904, 03905, 03908, 04003, 04008, 04011, 04032, 04066, 04078, 04079, 04086, 04222, 04287, 04530, 04562, 04565, 04579


38611, 38618, 38619, 38621, 38632, 38635, 38637, 38641, 38649, 38651, 38654, 38661, 38664, 38666, 38668, 38670, 38671, 38672, 38674, 38676, 38680, 38683, 38801, 38802, 38803, 38804, 38824, 38826, 38828, 38829, 38834, 38835, 38843, 38846, 38849, 38855, 38856, 38857, 38860, 38862, 38866, 38868, 38869, 38876, 38879, 39041, 39042, 39043, 39046, 39047, 39056, 39066, 39071, 39073, 39079, 39110, 39145, 39151, 39154, 39157, 39167, 39170, 39174, 39175, 39193, 39201, 39202, 39203, 39204, 39206, 39208, 39209, 39210, 39211, 39212, 39213, 39216, 39217, 39218, 39232, 39269, 39272, 39301, 39302, 39303, 39304, 39305, 39307, 39309, 39320, 39325, 39335, 39338, 39342, 39347, 39348, 39355, 39364, 39366, 39367, 39401, 39402, 39406, 39422, 39437, 39439, 39440, 39441, 39442, 39443, 39455, 39465, 39475, 39477, 39481, 39773

South Carolina

29108, 29127, 29401, 29403, 29404, 29405, 29406, 29407, 29408, 29409, 29410, 29412, 29414, 29418, 29420, 29424, 29425, 29426, 29429, 29438, 29439, 29445, 29449, 29451, 29455, 29456, 29461, 29464, 29466, 29470, 29482, 29483, 29485, 29487, 29488, 29492, 29628, 29803, 29822, 29829, 29831, 29841, 29842, 29847, 29860, 29901, 29902, 29904, 29906, 29907, 29911, 29920, 29924, 29944, 29945


37010, 37013, 37014, 37015, 37020, 37022, 37025, 37026, 37027, 37029, 37030, 37031, 37032, 37033, 37036, 37037, 37042, 37046, 37048, 37049, 37051, 37055, 37059, 37060, 37062, 37064, 37066, 37067, 37069, 37071, 37072, 37073, 37074, 37075, 37076, 37080, 37082, 37083, 37085, 37086, 37087, 37090, 37098, 37115, 37119, 37122, 37127, 37128, 37129, 37130, 37131, 37132, 37135, 37137, 37138, 37141, 37143, 37145, 37148, 37149, 37150, 37152, 37153, 37165, 37166, 37167, 37172, 37179, 37181, 37185, 37186, 37187, 37188, 37189, 37190, 37201, 37203, 37204, 37205, 37206, 37207, 37208, 37209, 37210, 37211, 37212, 37213, 37214, 37215, 37216, 37217, 37218, 37219, 37220, 37221, 37228, 37229, 37232, 37235, 37236, 37238, 37240, 37243, 37246, 37306, 37318, 37324, 37330, 37352, 37366, 37398, 37701, 37705, 37709, 37710, 37713, 37714, 37716, 37719, 37721, 37722, 37725, 37726, 37737, 37738, 37742, 37748, 37754, 37755, 37756, 37757, 37763, 37764, 37766, 37769, 37770, 37771, 37772, 37777, 37779, 37801, 37803, 37804, 37806, 37807, 37820, 37821, 37828, 37829, 37830, 37840, 37841, 37843, 37845, 37847, 37849, 37852, 37853, 37854, 37862, 37863, 37871, 37872, 37876, 37882, 37886, 37887, 37892, 37902, 37909, 37912, 37914, 37915, 37916, 37917, 37918, 37919, 37920, 37921, 37922, 37923, 37924, 37929, 37931, 37932, 37934, 37938, 37996, 37998, 38002, 38010, 38011, 38014, 38015, 38016, 38017, 38018, 38019, 38028, 38029, 38036, 38039, 38046, 38048, 38049, 38052, 38057, 38060, 38061, 38066, 38067, 38068, 38069, 38075, 38076, 38103, 38104, 38105, 38106, 38107, 38108, 38109, 38111, 38112, 38113, 38114, 38115, 38116, 38117, 38118, 38119, 38120, 38122, 38125, 38126, 38127, 38128, 38131, 38132, 38133, 38134, 38135, 38137, 38138, 38139, 38141, 38152, 38157, 38305, 38326, 38339, 38357, 38365, 38367, 38375, 38504, 38547, 38549, 38553, 38555, 38556, 38557, 38558, 38560, 38565, 38570, 38571, 38572, 38577, 38583

HissyfitWatch: Witch Hunt – T-Mobile Declares War on “Abusive LTE Tethering”

heavy user

Burn Her! T-Mobile CEO John Legere announces a data hog crackdown.

T-Mobile’s CEO has declared war on about 3,000 current customers caught “stealing data from T-Mobile” by using workarounds to avoid T-Mobile’s tethering usage allowance.

T-Mobile customers with unlimited 4G LTE plans get a fixed allowance to be used for tethering when using the Smartphone Mobile HotSpot feature, which allows laptops, tablets, and other wireless devices to share a T-Mobile wireless data connection.

“These violators are going out of their way with all kinds of workarounds to steal more LTE tethered data,” said John Legere, CEO of T-Mobile USA. “They’re downloading apps that hide their tether usage, rooting their phones, writing code to mask their activity, etc. They are ‘hacking’ the system to swipe high-speed tethered data.”

Legere claims the “clever hackers are willfully stealing for their own selfish gain” and are running up as much as two terabytes of usage a month over T-Mobile’s network. Legere thunders he won’t allow this on his watch and the company is starting a campaign of countermeasures this week to go “after a small group of users who are stealing data so blatantly and extremely that it is ridiculous.”

Legere was not specific about how T-Mobile identifies customers it considers to be abusing its network, but a new FAQ on the carrier’s website explains what will happen to those deemed to be exploiting workarounds to exceed T-Mobile’s standard 7GB tethering allowance:

We’re first warning these customers that they’re illegally using more data than they bought. We hope folks will stop on their own so they can keep their current plan. These customers are on an unlimited 4G LTE smartphone plan that includes a set amount of Smartphone Mobile HotSpot data, but they’re using workarounds to make their tethering look like smartphone usage which helps them use significantly more 4G LTE tethering than their plan includes.

Customers who continue to do this will be warned, then lose access to our Unlimited 4G LTE smartphone data plan, and be moved to an entry-level limited 4G LTE data plan.



Legere is clearly concerned the crackdown could be interpreted by the Federal Communications Commission as a Net Neutrality violation.

“These abusers will probably try to distract everyone by waving their arms about throttling data,” Legere wrote. “Make no mistake about it – this is not the same issue. Don’t be duped by their sideshow. We are going after every thief, and I am starting with the 3,000 users who know exactly what they are doing. The offenders start hearing from us tomorrow. No more abuse and no risk to the rest of our customers’ experience. It’s over. If you are interested, you can find more info in our [FAQ].

The FCC has no rules prohibiting usage caps, but the issue of speed throttling is less settled and Legere’s comments are intended to frame the issue in terms of data theft and violations of the company’s terms and conditions.

Carriers are often less lenient with hotspot usage because desktop computers and laptops often consume much more data than portable handheld devices like tablets and smartphones. T-Mobile admits that customers who need to consume a lot of data should find another ISP:

[Wired] Broadband services would be a better solution for customers who need more high-speed for tethered devices.

Comcast Still Lying About Its Data Caps: Woodstock, Ga. Customer Misled to Believe There Are None

comcast whoppersBefore regulators, the media, and elected officials, Comcast’s executive vice president David Cohen has repeatedly told all who can hear that there are no usage caps on Comcast’s broadband service.

“There isn’t a cap anymore. We’re out of the cap business,” Cohen began saying in May 2012 after the cable company dropped its nationwide 250GB usage cap. But in several markets, mostly in the southern and western United States, Comcast snuck the caps back on residential Internet customers, only this time they claim it isn’t a usage cap at all.

“We effectively offer unlimited usage of our services because customers will have the ability to buy as much data as they want,” says the cable company these days.

But if the “usage caps” are actually gone, why is Comcast issuing executive-level memos to its customer service representatives and supervisors that repeatedly state the company does, in fact, have “data caps” in about a dozen cities across the country — part of an ongoing market trial that suggests Comcast is considering extending a new 300GB usage allowance nationwide.

Stop the Cap! reader Joe, an AT&T U-verse customer in Woodstock, Ga. — 30 miles north of downtown Atlanta — was offered a deal to switch to Comcast for 75Mbps Internet service at an attractive price. All Comcast had to do was convince Joe he would never have to deal with Comcast’s 300GB cap that is being tested in Atlanta. Joe, like many Internet customers, will not sign up with a company that imposes usage allowances on its wired broadband customers. He isn’t interested in checking a usage meter and considers broadband usage overlimit fees a deal-breaker.

So Joe called Comcast to get some straight answers. Does Comcast impose its usage cap on customers in Woodstock, which is part of Comcast’s greater Atlanta service area? Current Comcast broadband customers in Woodstock tell Stop the Cap! the company absolutely does impose a 300GB usage cap on Internet service, and some have the overlimit fees to prove it. But Comcast’s customer service representative insisted it just was not true. To back her up, not one but two Comcast supervisors also swore Woodstock is not affected by “data caps.”

Joe knew enough to record the call. Because if he did sign up for service and maintained his current usage, often in excess of 400GB a month, that “good deal” offered by Comcast would be replaced by nightmarish overlimit fees of $10 for each 50GB increment he exceeded his allowance.

Stop the Cap! reader Joe recorded his Aug. 22, 2015 conversation with Comcast — a company that really, really, really wants to convince potential customers in Georgia there are no Internet data caps on its broadband service outside of the city of Atlanta. Except there are, including in Joe’s city of Woodstock, Ga.

Comcast executives repeatedly claim Comcast doesn’t have “usage caps” on its Internet service anywhere, but you will quickly lose count adding up the number of times Comcast’s representative specifically refers to Comcast’s “data caps” and its official “data cap document.”

(This recording has been edited for brevity and clarity. Tones indicate where significant edits were made, during the time Joe was left on hold and as the representative moves towards a last ditch sales pitch. At the end of the clip, Joe shares his first impressions after he hung up with Comcast. (8:28)

You must remain on this page to hear the clip, or you can download the clip and listen later.

“What makes me laugh is the fact she is so uncertain. Obviously Comcast doesn’t properly train their employees,” Joe writes. “Comcast reps spreading bad information like this is negligent [when they tell] unsuspecting customers that there is no data cap. I honestly cannot tell if this woman was flat-out lying, or was just poorly trained.”

woodstockJoe isn’t the only one being misinformed by Comcast.

“I’ve been lied to so many times about this,” Jamil Duder wrote. “Sometimes I will get in touch with their online support just to see what they will tell me this time for my own amusement. I’ve been told everything. It has been removed, it never existed, it’s actually 600GB not 300GB, etc.”

In fact, Comcast’s enforcement of its data cap has spread well beyond the city limits of Atlanta. Despite claims from Comcast to the contrary, customers around the state report they are now limited to 300GB of usage before overlimit fees kick in.

“Absolutely unacceptable, and you wonder why they have the reputation as the worst company in America,” Joe writes.

So why would Comcast blatantly misinform customers about usage caps. The company is in an unenviable position in several of the cities where they are testing their caps. Most of Comcast’s competition in the usage cap trial markets comes from AT&T U-verse, which itself claims a 250GB usage cap — one that customers also know isn’t being enforced.

For Joe, sticking with AT&T’s slower Internet speeds in return for peace of mind his usage is not being limited is a better prospect.

comcast cartoonEric Ravenscraft suspects Comcast isn’t too happy with complaints it is getting about data caps from its customers either. He recently received a call from Comcast seeking feedback on what customers would like to see changed about the caps. But in typical Comcast fashion, getting rid of the caps does not seem to be an option. Instead, the representative claimed “obviously, the plans are outdated,” which suggests Comcast will adjust your allowance, not get rid of it.

Ravenscraft believes the most effective force to convince Comcast to ditch its caps altogether might be the Federal Communications Commission.

“If you want to do something about it, rope the FCC in. Let them know how you feel about this,” Ravenscraft writes. “Not only does this give the FCC another complaint to add to the pile, Comcast is required to respond to your complaint—by contacting you directly—within 30 days after the FCC forwards your complaint along.”

Several readers are doing exactly that every time they are charged an overlimit fee by Comcast. Within 30-60 days, Comcast has reportedly credited back the overlimit charges to complaining customers.

“I’ve filed 10 complaints with the FCC each time I get an overlimit fee on my bill, and I always get the overlimit fees credited back,” reports Stop the Cap! reader Jeff in Atlanta. “It takes about five minutes to fill out the complaint form — a minor nuisance, but now I effectively don’t have a Comcast usage cap and I am costing them more money dealing with my complaints every month than they would ever get charging me extra in the first place. Imagine if we all did that.”

“Comcast sucks but we might actually have a shot at making things better if we all do this,” Ravenscraft adds. “Most cities aren’t subject to these restrictive data cap trials, but they’ll eventually roll out nationwide if customers here don’t speak up loudly enough. We’ve got a weirdly unique opportunity to actually change how the internet works in the U.S.”

Cable Operators Told to Get Ready for a Gigabit, But Will Rationed Usage Make It Meaningless?

Phillip Dampier: A cable trade publication is lecturing its readership on better broadband the industry spent years claiming nobody wanted or needed.

Phillip Dampier: A cable trade publication is lecturing its readership on better broadband the industry spent years claiming nobody wanted or needed.

Remember the good old days when cable and phone companies told you there was no demand for faster Internet speeds when 6Mbps from the phone company was all you and your family really needed?

Those days are apparently over.

Multichannel News, the largest trade publication for cable industry executives, warns cable companies gigabit broadband speeds are right around the corner and the technological transformation that will unleash has been constrained for far too long.

Say what?

Proving our theory that those loudest about dismissing the need for faster Internet speeds are the least equipped to deliver them, the forthcoming arrival of DOCSIS 3.1 technology and decreasing costs to deploy fiber optics will allow cable providers to partially meet the gigabit speed challenge, at least on the downstream. Before DOCSIS 3.1, consumers didn’t “need those speeds.” Now companies like Comcast claim it isn’t important what consumers need today — it’s where the world is headed tomorrow.

Comcast 2013:

Comcast executive vice president David L. Cohen writes that the allure of Google Fiber’s gigabit service doesn’t match the needs or capabilities of online Americans.

“For some, the discussion about the broadband Internet seems to begin and end on the issue of ‘gigabit’ access,” Cohen says, in a nod to Google Fiber. “The issue with such speed is really more about demand than supply. Our business customers can already order 10-gig connections. Most websites can’t deliver content as fast as current networks move, and most U.S. homes have routers that can’t support the speed already available to the home.” Essentially, Cohen argues that even if Comcast were to deliver web service as fast as Google Fiber’s 1,000Mbps downloads and uploads, most customers wouldn’t be able to get those speeds because they’ve got the wrong equipment at home.

Comcast 2015:

“We’ve consistently offered the most speeds to the most homes, but with the current pace of tech innovation, sometimes you need to go to where the world is headed and not focus on where it is today.”

“The next great Internet innovation is only an idea away, and we want to help customers push the boundaries of what the Internet can do and do our part to inspire developers to think about what’s possible in a multi-gigabit future.  So, next month we will introduce Gigabit Pro, a new residential Internet service that offers symmetrical, 2-Gigabits-per-second (Gbps) speeds over fiber – at least double what anyone else provides.”

Nelson (Image: Multichannel News)

Nelson (Image: Multichannel News)

Rich Nelson’s guest column in Multichannel News makes it clear American broadband is behind the times. The senior vice president of marketing, broadband & connectivity at Broadcom Corporation says the average U.S. Internet connection of 11.5Mbps “is no longer enough” to support multiple family members streaming over-the-top video content, cloud storage, sharing high-resolution images, interactive online gaming and more.

Nelson credits Google Fiber with lighting a fire under providers to reconsider broadband speeds.

“Google’s Fiber program may have been the spark to light the fuse — Gigabit services have fostered healthy competition among Internet and telecommunications providers, who are now in a position to consider not ‘if’ but ‘when and how’ to deploy Gigabit broadband in order to meet consumer’s perceived ‘need for speed’ and maintain their competitive edge,” Nelson wrote.

But the greatest bottleneck to speed advances is spending money to pay for them. Verizon FiOS was one of the most extravagant network upgrades in years among large American telecom companies and the company was savaged by Wall Street for doing it. Although AT&T got less heat because its U-verse development costs were lower, most analysts still instinctively frown when a company proposes spending billions on network upgrades.

Customer demand for faster broadband is apparent as providers boost Internet speeds.

Customer demand for faster broadband is apparent as providers boost Internet speeds.

The advent of DOCSIS 3.1 — the next generation of cable broadband technology — suggests a win-win-win for Wall Street, cable operators, and consumers. No streets will have to be torn up, no new fiber cables will have to be laid. Most providers will be able to exponentially boost Internet speeds by reallocating bandwidth formerly reserved for analog cable television channels to broadband. The more available bandwidth reserved for broadband, the faster the speeds a company can offer.

Many industry observers predict the cable line will eventually be 100% devoted to broadband, over which telephone, television and Internet access can be delivered just as Verizon does today with FiOS and AT&T manages with its U-verse service.

The benefits of gigabit speeds are not limited to faster Internet browsing however.

Nelson notes communities and municipalities are now using gigabit broadband speeds as a competitive tool selling homes and attracting new businesses to an area. According to a study from the Fiber to the Home (FTTH) Council, communities with widely available gigabit access have experienced a positive impact on economic activity — to the tune of more than $1.4 billion in GDP growth. Those bypassed or stuck in a broadband backwater are now at risk of losing digital economy jobs as businesses and entrepreneurs look elsewhere.

The gigabit broadband gap will increasingly impact the local economies of communities left behind with inadequate Internet speeds as app developers, content producers, and other innovative startups leverage gigabit broadband to market new products and services.

The Pew Research Center envisioned what the next generation of gigabit killer apps might look like. Those communities stuck on the slow lane will likely not have access to an entire generation of applications that simply will never work over DSL.

But before celebrating the fact your local cable company promises to deliver the speed the new apps will need, there is a skunk that threatens to ruin your ultra high speed future: usage-based pricing and caps.

At the same time DOCSIS 3.1 will save the cable industry billions on infrastructure upgrade costs, the price for moving data across the next generation of super high-capacity broadband networks will be lower than ever before. But cable operators are not planning to pass their savings on to you. In fact, broadband prices are rising, along with efforts to apply arbitrary usage limits or charge usage-based pricing. Both are counter-intuitive and unjustified. It would be like charging for a bag of sand in the Sahara Desert or handing a ration book to shoreline residents with coupons allowing them one glass of water each from Lake Ontario.

skunkCox plans to limit its gigabit customers to 2TB of usage a month. AT&T U-verse with GigaPower has a (currently unenforced) limit of 1TB a month, while Suddenlink thinks 550GB is more than enough for its gigabit customers. Comcast is market testing 300GB usage caps in several cities but strangely has no usage cap on its usage-gobbling gigabit plan. Why cap the customers least-equipped to run up usage into the ionosphere while giving gigabit customers a free pass? It doesn’t make much sense.

But then usage caps have never made sense or been justified on wired broadband networks and are questionable on some wireless ones as well.

Stop the Cap! began fighting against usage caps and usage pricing in the summer of 2008 when Frontier Communications proposed to limit its DSL customers to an ‘ample’ 5GB of usage per month. That’s right — 5GB. We predicted then that usage caps would become a growing problem in the United States. With a comfortable duopoly, providers could easily ration Internet access with the flimsiest of excuses to boost profits. Here is what we told the Associated Press seven years ago:

“This isn’t really an issue that’s just going to be about Frontier,” said Phillip Dampier, a Rochester-based technology writer who is campaigning to get Frontier to back off its plans. “Virtually every broadband provider has been suddenly discovering that there’s this so-called ‘bandwidth crisis’ going on in the United States.”

That year, Frontier claimed most of its 559,300 broadband subscribers consumed less than 1.5 gigabytes per month, so 5GB was generous. Frontier CEO Maggie Wilderotter trotted out the same excuses companies like Cox and Suddenlink are still using today to justify these pricing schemes: “The growth of traffic means the company has to invest millions in its network and infrastructure, threatening its profitability.”

Just one year later, Frontier spent $5.3 billion to acquire Verizon landline customers in around two dozen states, so apparently Internet usage growth did not hurt them financially after all. Frankly, usage growth never does. As we told the AP in 2008, the costs of network equipment and connecting to the wider Internet are falling. It still is.

“If they continue to make the necessary investments … there’s no reason they can’t keep up” with increasing customer traffic, we said at the time.

We are happy to report we won our battle with Frontier Communications and today the company even markets the fact their broadband service comes without usage caps. In many of Frontier’s rural service areas, they are the only Internet Service Provider available. Imagine the impact a 5GB usage cap would have had on customers trying to run a home-based business, have kids using the Internet to complete homework assignments, or rely on the Internet for video entertainment.

So why do some providers still try to ration Internet usage? To make more money of course. When the public believes the phony tales of network costs and traffic growth, the duped masses open their wallets and pay even more for what is already overpriced broadband service. Just check this chart produced by the BBC, based on data from the Organization for Economic Co‑operation and Development. Value for money is an alien concept to U.S. providers:


The usual method of combating pricing excess is robust competition. With a chasm-sized gap between fat profits and the real cost of the service, competitors usually lower the price to attract more customers. But the fewer competitors, the bigger the chance the marketplace will gravitate towards comfort-level pricing and avoid rocking the boat with a ruinous price war. It is one of the first principles of capitalism — charging what the market will bear. We’ve seen how well that works in the past 100+ years. Back in 2010, we found an uncomfortable similarity between broadband prices of today with the railroad pricing schemes of the 1800s. A handful of executives and shareholders reap the rewards of monopolistic pricing and pillage not only consumers but threaten local economies as well.

special reportThe abuses were so bad, Congress finally stepped in and authorized regulators to break up the railroad monopolies and regulate abusive pricing. We may be headed in the same direction with broadband. We do not advocate regulation for the sake of regulation. Competition is a much more efficient way to check abusive business practices. But where an effective monopoly or duopoly exists, competition alone will not help. Without consumer-conscious oversight, the forthcoming gigabit broadband revolution will be stalled by speed bumps and toll booths for the benefit of a few giant telecommunications corporations. That will allow other countries to once again leap ahead of the United States and Canada, just as they have done with Internet speeds, delivering superior service at a lower price.

China now ranks first in the world in terms of the total number of fiber to the home broadband subscribers. So far, it isn’t even close to the fastest broadband country because much of China still gets access to the Internet over DSL. The Chinese government considers that unacceptable. It sees the economic opportunities of widespread fiber broadband and has targeted the scrapping of every DSL Internet connection in favor of fiber optics by the end of 2017. As a result, with more than 200 million likely fiber customers, China will become the global leader in fiber infrastructure, fiber technology, and fiber development. What country will lose the most from that transition? The United States. Today, Corning produces 40% of the world’s optical fiber.

Global optical fiber capacity amounted to 13,000 tons in 2014, mainly concentrated in the United States, Japan and China (totaling as much as 85.2% of the world’s total), of which China already ranked first with a share of 39.8%. Besides a big producer of optical fiber, China is also a large consumer, demanding 6,639 tons in 2014, 60.9% of global demand. The figure is expected to increase to 7,144 tons in 2015. Before 2010, over 70% of China’s optical fiber was imported, primarily from the United States. This year, 72.6% of China’s optical fiber will be produced by Chinese companies, which are also exporting a growing amount of fiber around the world.

John Lively, principal analyst at LightCounting Market Research, predicts China could conquer the fiber market in just a few short years and become a global broadband leader, “exporting their broadband networking expertise and technology, just like it does with its energy and transportation programs.”

Meanwhile in the United States, customers will be arguing with Comcast about the accuracy of their usage meter in light of a 300GB usage cap and Frontier’s DSL customers will still be fighting to get speeds better than the 3-6Mbps they get today.

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