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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.

Notifications:

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.):

Alabama

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

Arizona

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

Arkansas

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

Georgia

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

Illinois

62910, 62960

Indiana

47520, 47586

Kentucky

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

Louisiana

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

Maine

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

Mississippi

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

Tennessee

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

Legere

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:

_70717869_countries_with_high_speed_broadband

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.

Comcast Calls Cable Modem Owners to Scare Them Into a $10/mo Alternative

The Don't Care Bears

The “New and Improved” Don’t Care Bears

Rob Frieden has two words for Comcast customers getting scary letters and phone calls threatening to turn their legacy cable modems into paperweights: caveat emptor.

Frieden, author of Winning the Silicon Sweepstakes: Can the United States Compete in Global Telecommunications? knows enough to fend off the misinformation used to upsell customers away from the modems they own free and clear into Comcast’s rented $10/month alternative.

“Despite its commitment to improving its customer service, Comcast keeps writing and robocalling me with an offer I can refuse,” Frieden writes on his blog. “In a rather alarmist tone, Comcast wants subscribers to infer that their modem soon will no longer work.”

At issue are customers still using legacy DOCSIS 2.0 cable modems — one generation behind the current DOCSIS 3.0 modems Comcast wants customers to use. Frieden knows one day Comcast may decide to stop supporting DOCSIS 2.0, an older, less-capable cable broadband standard. Although that day is nowhere in view yet, it hasn’t stopped aggressive Comcast telemarketers from warning customers they “need upgraded equipment” that comes with a never-ending $10 a month rental fee.

“My Motorola DOCSIS 2.0 compliant modem works just fine and it cost me a princely $5 at a garage sale,” Frieden writes.

Frieden

Frieden

As soon as Comcast finds out you are using an older modem you own, Frieden writes they may try to dissuade you from using it and push you towards their alternative.

“Comcast does not want you to know that the new rented modem will not provide any faster service unless you subscriber to a triple digit, high-end service tier,” Frieden adds.

Comcast’s official position is that DOCSIS 2.0 modems will work just fine with all Comcast Internet plans at speeds below 50Mbps. But they infer if you are not using a DOCSIS 3.0 modem (preferably theirs), “you won’t experience the blistering fast speeds now available.” That implies all Comcast customers with DOCSIS 2.0 modems will get less robust performance across the board, but in fact Comcast’s statement refers to the limitation DOCSIS 2.0 customers have upgrading to speeds they may never need.

After Comcast’s telemarketing machine has you convinced you need to upgrade to their perpetually profitable rented modem, they will also ask why not upgrade your router as well? Comcast suggests customers upgrade to at least a 802.11n model because older 802.11g routers only support up to 20Mbps.

“If you lease your modem, router, or gateway device from us, we’ll upgrade it at no extra charge,” Comcast claims, inferring the upgrade will come free. Except it isn’t. It just won’t cost you more than the $10 a month you are probably already paying.

Stop the Cap! readers regularly tell us Comcast often cuts corners and simply bills customers modem rental fees even for customer-owned equipment. Our reader Amanda is the latest victim and she is about fed up:

I took a look at my bill and for no reason Comcast suddenly started charging me $10 a month for a voice/data modem rental that I don’t have. Beware and check your bill thoroughly. Comcast sneaks charges on for services you don’t have. Absolutely hate this company. On top of the bogus $10 they raised all the rates so my bill went from $186 a month to $219 a month. I would never recommend Comcast to anyone. Horribly deceptive company. Oh and then there is the junk equipment that Comcast uses. I have had three X1 boxes replaced in a year. I’m thinking about going with U-Verse for TV and staying with Comcast for Internet.

Comcast’s “new and improved” customer service becomes especially hostile when customers like Amanda catch the company cheating, forcing her and others into lengthy investigations and appeals to get the bogus fees removed and earlier charges refunded:

So I talked with Comcast today and got nowhere. They basically don’t want my business after 18 years and are giving me a hard time about refunding me the charge for the modem. They said it will take at least 14 days for them to look into the issue with the modem being mine and not being leased from Comcast. I told them I want to cancel and they transferred me to a recording telling me how to send in my equipment via UPS. 18 years and they will not budge on changing my pricing without signing a two year contract! So after 40 minutes on the phone with them I am extremely mad and frustrated. Now I have to waste my time filing complaints with the Better Business Bureau and the attorney general. And even more time switching my services to another provider. It seems that Comcast has changed its tactics and now instead of trying to retain their customers they are saying go ahead and leave. And can only imagine the nightmare of returning all the equipment.

return fee

If you can’t prove your cable modem doesn’t belong to Comcast, they may conveniently bill you an unreturned equipment charge of $70, like one customer experienced in 2014.

Global Broadband Prices Drop 9%, But Not for North Americans

The cost of residential broadband service around the world dropped an average of 9%, but not in the United States and Canada where providers are effectively raising prices while justifying the added cost with occasional speed boosts.

Point Topic, which tracks residential and business broadband pricing found prices are affected the most when competition increases and incumbent providers are forced to respond with lower prices and/or better service.

Residential-broadband-tariffs-and-speeds-by-region-in-Q1-2015-source-Point-Topic

Point Topic’s chart shows North Americans pay a significant price for service, but receive some of the worst broadband performance in return when compared against better value for money providers in Central Asia, Eastern Europe, Western Europe, and the Asia-Pacific region. (Chart: Point Topic)

By far the poorest value broadband tracked by Point Topic is traditional DSL from the telephone companies. Speeds have barely budged in many areas while prices wildly fluctuate depending on whether fiber or cable broadband providers are competing for the same customers. The research firm found DSL to be the worst choice for consumers — combing the lowest speeds and the highest per megabit cost among wired providers.

The price of residential DSL is also going up — it was just under $10 per Mbps in the second quarter, an increase from nearly $9 per Mbps the phone companies charged late last year.

DSL is a dreadful value. (Chart: Point Topic)

DSL is a dreadful value. (Chart: Point Topic)

Cable operators facing fiber competition have been forced to improve speeds but are still managing to raise prices. Globally, the average price of cable and fiber broadband based on speed alone is $1 per Mbps, down from $3 per Mbps in the second quarter of 2010. But North Americans are paying more for the service through annual rate increases and ancillary modem rental fees.

The reason North Americans are paying more for broadband service is because providers are attempting to make up for lost television revenue.

The New York Post noted most broadband bills are now up to between $50 and $70 a month for standalone service.

James Dolan, CEO of Cablevision, explained how broadband pricing has evolved in the cable industry.

“We’re going to see a re-stratification of the cable business .… One thing we see is significant uses of data, increasing exponentially,” Dolan told investors late last year. “We think that’s where the growth is going to come from.”

Dan Cryan, research director for digital at IHS, told the newspaper that revenue from U.S. broadband providers in 2014 topped $49 billion, up from $42.1 billion in 2012.

Cable companies collected an average of $4.75 per month more from broadband customers in 2014 over what they paid in 2012.

“Broadband is strategically more important than the number of subscribers indicates because it has the potential to be higher margin,” Cryan said.

Residential-trends-over-time

(Chart: Point Topic)

Microsoft’s Windows 10 Updates Cost Some Users Hundreds of Dollars in Internet Overlimit Fees

badbillAbbes Nacef was not very happy when he opened his web browser a few days ago to see a message inserted at the top of his screen.

“Your Internet service has reached the maximum limit of allowable overage charges. If you wish to continue service, please contact our business office to discuss your account.”

Nacef, who lives in Monastir, a Tunisian city best known for its tourism, was surprised because it was the first sign his Internet account had gone over the limit.

“While you can get uncapped DSL in Tunisia, it is not very good service and in my area it is not offered,” Nacef told Stop the Cap!. “Most in our neighborhood rely on a wireless ISP service which is less costly than 3G or 4G mobile service, but is capped and charges roughly $25 for each extra gigabyte allotment.”

Nacef’s call to his provider was not pleasant. He had already accumulated almost $180 in charges for the month of August, most in overlimit fees. The culprit was quickly identified — Microsoft Windows 10, which took several attempts to reach Nacef’s computer over a challenging Internet connection. But Nacef also learned his computer was repeatedly requesting updates from Microsoft, including three software patches that would not complete and were sent over and over for almost two weeks.

“It was the fifth call my ISP had received about this problem, and they were very annoyed also because Microsoft Windows 10 assumes you will use their Edge browser which defeats the early warning messages from my ISP that usage limits are approaching,” Nacef said. “When I switched back to my old browser the bad news was there, but it was too late.”

Windows-10His ISP has agreed to cut the charges in half and has warned all of its customers if they want Windows 10, the ISP will offer them a copy on a returnable USB memory device for free.

Nacef thinks the huge multiple download attempts to receive Windows 10 itself was responsible for most of the extra usage, but he is wary about the frequent software updates and the fact they are shared with other users by default.

That is what may have tripped up Rob DuGrenier who paid an exorbitant $150 this month for 1.5Mbps Internet service just to get a 75GB usage allowance for his immediate family in far northern Québec. The alternative was an overlimit fee of $20 for each 5GB allotment of usage over the usual 30GB allowance granted to “Power” users.

“Internet is not an option for our family for medical reasons, but this hurts,” DuGrenier writes. “It is definitely Windows 10 and there is something wrong with it because our ISP reports we are sending a lot more data than we are receiving, and there are no viruses or malware on the computers.”

Internet access is northern Québec is slow and costly.

Internet access is northern Québec is slow and costly.

His ISP now suspects Microsoft is using his connection to distribute software updates to a number of other users across northern Canada. When DuGrenier’s family disabled the option that opted them in to distributing Microsoft updates to other customers, upstream traffic dropped 98%.

“Were we sending Windows 10 itself all over northern Quebec and Nunavut? We just don’t know and Microsoft has not responded,” DuGrenier reports. “They have billions, I do not. They should be paying my Internet bill this month.”

The worst of the reported problems of bill shock are occurring in remote areas where Internet service can be a mixture of wired and wireless connections that are often slow and usually usage-limited. Windows 10 was designed to reduce bandwidth demand on wireless connections, assuming they would be metered. But how Microsoft detects which networks are wireless and metered and which may only partly be so is apparently a work in progress.

This morning, the Sydney Morning Herald reports at least one customer on a Pacific island was slammed with a catastrophically high Internet bill. Maureen Hilyard in the Cook Islands owes her ISP $390 this month, all because of automatic updates from Microsoft for Windows 10.

“In this context, where Internet access is both painfully slow and seriously expensive, these forced updates are almost literally forcing people off the Internet and are resulting in massive excess data charges,” EFA executive officer Jon Lawrence told the newspaper.

cook islands

The Cook Islands

Hilyard is a customer of Bluesky, primarily a satellite Internet Service Provider that dominates the Cook Islands, which have no other options for Internet access. A basic account costs $31.50 a month, but that provides just 3.5GB of data for the entire month. Automatic overlimit charges of $0.03 per megabyte accrue after the allowance is used up.

The most likely victims of Windows-induced bill shock subscribe to usage-limited wireless or satellite Internet services. While many providers throttle the speeds of customers who reach the usage limit, others charge penalty rates. Microsoft has no way to know which is true. Instead, the company claims it looks for evidence of a wireless connection before performing updates and when it finds one, it assumes it to be metered. But wired connections stay firmly in the unmetered category, whether they are usage-capped or not. Customers are invited to choose by digging through confusing settings menus.

Even more problematic is the built-in peer-to-peer technology that gives Microsoft’s servers a break and uses your Internet connection to share the latest Windows software updates with other Windows users across town and beyond. Microsoft has offered no provision to track this usage, but users can opt out with this advice from the Sydney Morning Herald:

Users can tweak their Windows 10 system settings by enabling a “metered connection” by searching for “Change Wi-Fi settings” in the start menu, clicking on “Advanced Options” and enabling “Metered connection.” This lets Windows 10 know the Wi-Fi connection you’re on is capped, so instead of forcing a software update onto your PC or tablet, it will notify you first. You can then choose to delay the upgrade until you are on an uncapped connection, or until you’ve rolled over into a fresh month of data.

This workaround only applies to Wi-Fi connections, however, not Ethernet connections.

A second workaround actually comes in an update which Microsoft itself released. It’s a bit more fiddly though, as it involves manually uninstalling driver updates and then downloading a special troubleshooter app to prevent them from installing again automatically. The full instructions are available online.

Comcast VP: Our 300GB Usage Caps are a “Business Policy,” Not an Engineering Necessity

What makes 300GB so special? It happens to represent the monthly usage allowance Comcast customers in several southern and western service areas receive after more than two years of “Data Usage Plan Trials.”

One of most asked questions posed to Comcast is why one of the nation’s largest and most profitable Internet Service Providers needs to impose usage caps at all, especially as the company has repeatedly raised broadband speeds for customers.

It took a parody Twitter account known as “Cable Cares” to get a cogent answer from Comcast’s vice president of Internet services, Jason Livingood: he doesn’t know.

caps

Livingood admitted Comcast’s “data usage plans” a/k/a “usage caps” are a “business policy” far removed from his work as a Comcast engineer helping to keep Comcast’s broadband service up and running efficiently.

comcastStop the Cap! never doubted it for a moment.

Internet Service Providers have often claimed usage caps are a matter of “fairness” — first to control congestion on their broadband networks and later as a way to pay for needed upgrades. But neither has proved true.

Starting in 2008, Comcast imposed a 250GB usage cap on its broadband service and issued warnings to customers that rampaged past it, threatening to cut their service off if they did not curtail usage. Those contacted were told their heavy use could impact broadband service for other customers who used it much less.

Internet providers told the Government Accountability Office another story entirely, admitting congestion is not a problem for cable operators or phone companies at all.

“Some wireless ISPs told us they use usage based pricing to manage congestion,” the GAO reported in June 2014. But “wireline ISPs said that congestion is not currently a problem.”

As upgrades have exponentially increased network capacity, the story told to defend usage caps changed dramatically. The new claim is that usage-based pricing and caps can “generate more revenue for ISPs to fund network capacity upgrades as data use grows,” the GAO reported.

Except as the New York Times reported last year, the United States is hardly a broadband speed leader and the quality of service “has nothing to do with technology. Instead, it is an economic policy problem — the lack of competition in the broadband industry.”

Usage caps for one and all.

Usage caps for one and all.

For now, Comcast isn’t commenting at all about the reasons for its usage cap trials. But a few years ago, Comcast VP David Cohen believed caps would be rolled out across Comcast’s entire nationwide service area anyway. 

Comcast executives have repeatedly told investors customers had accepted the usage cap trials and few have exceeded their usage allowances. But judging from Comcast’s customer support forums, the issue of usage caps and measurement rises near the top of complaints.

Comcast’s unregulated usage meter is a frequent target. What it registers is what Comcast uses to bill its customers.

“I have the ability to track my inbound and outbound data usage at my router.  Nothing in my house can talk to the Internet (the cable modem) without going through the router,” one customer wrote on Comcast’s support forum. “The traffic meter on the router is significantly less than the Xfinity Usage Meter.  As of right now, my router says my inbound/outbound usage since 7/1/2015 is 67.34GB, but the Xfinity Usage Meter says I am at 114GB.”

comcast-data-meter-513x650 (1)“At Comcast, the meter is right and the customer is wrong,” complains another customer.

“I am sick of calling customer service and being told that the Xfinity usage meter is right, but that there is absolutely no data that can be given to me to support that answer.  This is beyond ridiculous and I am beyond frustrated.  I have no options for recourse and am just supposed to accept that I am flying blind.

Flying blind can be costly. One Comcast customer opened his broadband bill to discover $260 in charges conveniently automatically removed from his checking account after Comcast claimed he used almost 2TB of usage in a month.

“My wife and I browse emails, browse the Internet with Facebook and sometimes watch Youtube,” the customer wrote. “We don’t even have Netflix or any other streaming service here at the house.”

The customer complains Comcast refuses to refund or document the 2TB of usage. As long as Comcast “verifies” a customer’s modem handled that traffic, the customer is billed without recourse.

But customers do have some recourse: complaining to the Federal Communications Commission or the Better Business Bureau.

“I have seen other posts from customers with similar issues,” a Comcast customer noted. “It seems that they get help once they threaten to go to the FCC or the BBB.”

The FCC’s online complaint form often results in substantial billing credits and charge reversals for shocking cable bills. The FCC is gradually turning its attention to the issue of usage caps, perhaps proportionate to the number of consumer complaints about the issue.

The Better Business Bureau helps put customers in touch with executive level customer service agents empowered well beyond the usual offshore customer service center employees. It appears they did exactly that 35,281 times in the last three years — 14,052 in the last year alone. Most of those complaints were evidently resolved to the customer’s satisfaction.

AT&T Social Engineers Its Data Plans to Push You Towards a Family Mobile Share Plan

att changesAT&T is obviously a supporter of bringing its wireless customers closer together… in family plans, that is.

The wireless carrier has adjusted its wireless data plans once again, this time in response to recent changes at Verizon and to better compete against T-Mobile — the carriers AT&T’s plans now most closely resemble.

Pricing wireless data has become a marketing art. Push people into too-small data plans and they will get stung with bill shock. Give them ample data at a high price and customers feel justified trying to use every last bit of it to get their money’s worth. So what is AT&T up to?

Light User/Budget Customers Squeezed

att_logoIf you keep your phone turned off except during special occasions, road trips, and landline service outages, AT&T has a plan for you. Actually, Verizon thought up most of these plans first — AT&T is now matching them as a consequence of the “competitive” market.

AT&T’s $20 a month entry-level data plan offers a paltry 300MB of data, an amount so low it is likely to be consumed quickly just updating apps, reading web pages, and checking email. Although intended for light users, it is likely to expose customers to a nasty overlimit fee identical to the cost of the 300MB plan itself ($20 per 300MB). With embedded video advertising, bloated web pages, and growing-size apps that require regular upgrades, this kind of allowance is no longer tenable.

AT&T’s old 1GB and 3GB plans are also gone. Heads you may lose, tails AT&T usually wins. Customers on 1GB plans will now be herded into a 2GB plan that delivers twice the amount of data, for $5 more per month ($60 a year). That is a good value as far as wireless pricing is concerned, but only if you need twice the data. Customers with 3GB plans lose one-third of their allowance but get a $10 price break… unless they go over their limit and expose themselves to AT&T’s dastardly $15/GB overlimit fee. Then the savings evaporate.

The 2GB usage plan seems designed to keep you worried. Will you come perilously close to the overlimit fee again this month after watching those videos on the train? What about the 15 app updates that chewed through 300MB last week? With the average 4G iPhone customer in the United States using 1.8GB of mobile data each month during the summer of 2014, 2GB+ average usage is likely this year. Avoiding the overlimit fee will involve a costly leap into a more generous 5GB plan at a higher cost.

The New Normal: The 5GB Individual Plan/15GB Family Plan

family share

It won’t be hard for AT&T to sell most customers on either a 5GB data plan if they have an individual account or a 15GB shared data plan for families.

The 5GB plan is $20 less than the 6GB plan it replaces. It’s presumably AT&T’s idea of a “sweet spot” for customers with a single line choosing between a $30 2GB plan that might not include enough data or a much more expensive 15GB plan — the next step up AT&T’s data plan range.

A close look at AT&T’s price chart shows the plan options and prices are designed to encourage individual line customers to migrate into a family plan. Here’s how AT&T does it:

Two AT&T customers with individual plans now pay $75 each for unlimited talk and text and 5GB of data. That adds up to $150 a month. But watch what happens when those customers take their vows as AT&T family plan customers. First, they each get a $10 break on the Plan Access charge ($15/mo each instead of $25). Second, there is more justification to spend $100 on a data plan that offers a more generous 15GB of data. Let’s look at the math:

Monthly Plans (now) Monthly Plans (old) Data (now) Data (old) Plan Access charge
$20 $20 300MB 300MB $25
$30 $25/$40 2GB 1GB/3GB $25
$50 $70 5GB 6GB $25
$100 $100 15GB 10GB $15
$140 $150 20GB 20GB $15

Individual Plan (2 Lines)

2 x $25 Plan Access charge
2 x $50 5GB data plan

$150/month

Family Plan with 2 Lines

2 x $15 Plan Access charge
1 x $100 15GB data plan

$130/month — a $20 savings

Family plan customers pay $20 less and get an extra 5GB of mobile data. Customers choosing a data plan of 15GB or more also receive free unlimited calling and texting in Canada and Mexico.

Customers can be forgiven if they fall into the value trap – saving yourself into poverty. While AT&T’s recent price changes offer significant savings for certain customers, it is instructive to remember not so long ago AT&T charged $30 a month for unlimited mobile data, making the prospect of spending $100 for 15GB sanity-questionable. But that was then and this is now.

AT&T expects it will increase the amount of money it collects from each customer with the advent of these new plans, with the hope customers won’t remember back to the days where data usage was not monetized like a commodity.

Blow Your Usage Allowance With New Unlimited Pornhub Premium, the “Netflix of Porn”

pornhubThe unstated reality of Internet traffic growth usually leaves out what impact streaming pornographic videos can have on network traffic, and for consumers, their broadband usage allowance. We are about to find out with last week’s arrival of Pornhub Premium (noted by DSL Reports), a new on-demand Internet streaming service its owners believe will quickly become the “Netflix of porn.”

Pornhub Premium ($9.99/mo) “offers an all new ad-free experience to its users, complete with faster playback and higher quality streaming on the millions of videos currently on Pornhub as well as the largest collection of exclusive full length HD adult titles available in crisp 1080p resolution.” Customers get a free seven-day trial before the charges begin. They can use it to test what kind of impact HD video will have on their usage allowance. It could prove considerable for frequent return visitors.

“Simply put, Pornhub Premium, is setting the new standard. Users will benefit from enhanced access to all of the content they already enjoy on Pornhub.com – with improved streaming quality – as well as over 100,000 full-length premium exclusive scenes at the touch of a finger or click of the mouse,” said Corey Price, vice president, Pornhub. “We’re looking to take the crown as the ‘Netflix of porn,’ and with the colossal amount of content we’ll be providing – and adding tons more daily – we’re confident our fan base will totally embrace this product and reinforce our position as the top provider of on-demand adult video.”

Pornhub Premium's ad campaign has sparked an international incident. Cheese producers in Italy are not pleased.

Pornhub Premium’s ad campaign has sparked an international incident. Cheese producers in Italy are not pleased.

Or not.

The publicity campaign introducing the adult entertainment service has already caused one international incident. The Parmigiano-Reggiano Cheese Consortium is weighing legal action against Pornhub after referring to their aged family friendly Parmigiano-Reggiano cheese in the same sentence as “that vulgar website.”

The European Union and Italian authorities both protect the image of the consortium’s dairy products, so there could be trouble. The cheese group wants Pornhub to immediately stop capitalizing on the fame of Parmigiano-Reggiano to pitch “vile” porn videos.

The dispute threatens to become far worse than the Spaghetti Scandal of 1957, when Italian authorities were on fire after the BBC aired a hoax story suggesting spaghetti was harvested from trees. Adding to the outrage – many in northern Europe believed the report was true.

Then there are the other objections, of course.

“Pornhub Premium is unlimited filth and degradation, a new low,” came an anonymous comment from a Florida resident who claimed he was a pastor.

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