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AT&T’s Usage Cap Trials in Beaumont, Reno Ending in April? Trial Outrages Customers – “Bait and Switch” Broadband

That's not all that expanded in Reno... customer's broadband bills faced $1/GB overlimit penalties as part of an Internet Overcharging experiment

AT&T’s experiment with usage caps appears to have lost them loyal customers, and generated numerous complaints against AT&T with the Better Business Bureau regional offices in Nevada and Texas for false advertising.  Now there are indications AT&T will wrap up the entire experiment by this April and “study the results.”  Stop the Cap! reader John wrote to say the nightmare may be ending… for now.  At least one of our readers arguing with intransigent AT&T executives heard likewise.

AT&T last year subjected Beaumont, Texas and Reno, Nevada to a trial forcing a usage allowance between 20-150 gigabytes per month on customers, depending on the type of broadband plan selected.  The proposed overlimit fee?  $1.00 per gigabyte, although problems with their usage meter often kept overlimit fees off customer bills.

We’ve documented the howls of complaints from customers who were falsely sold an “unlimited” plan from AT&T and were never notified, or notified after signing up, of the existence of the Internet Overcharging scheme.  Some customers received express mail letters officially notifying them of the scheme, others received robocalls.  Complaints to the Better Business Bureau usually got any excess charges refunded, and some managed to secure a complete exemption from the usage cap trial, under threat of canceling their accounts.

Stop the Cap! reader Robin is a typical example of a customer who was sold a bill of goods by AT&T’s marketing, only to be punished with the fine print after signing on the dotted line.

“I just got my Express letter in the mail today. My internet was hooked up yesterday – no one ever said anything about any cap! I was in shock when I received the letter in the mail, I have never heard of anything like this. I live about 30 minutes out of Reno. Needless to say I am very very upset and trying to figure out what I am going to do now as I know I will go over the cap every month, I can’t afford that and I can’t afford cable internet at this time either. AT&T sucks and so does their customer service.”

Robin joins many other customers in both communities stuck in a trial that even some AT&T customer service representatives don’t understand.  Robin’s calls to customer service met with claims the account could not be found, and transfers to four different AT&T departments before being able to address the usage cap surprise.

Albert, another reader, was similarly surprised.

“They are fraudulent in every respect. The state attorney should look into this. They say “unlimited” and when you sign up, they send you a little email saying you are screwed [with the trial],” he writes.

AT&T’s response to Albert was essentially “tough cookies” and if he didn’t like it, he could cancel.

Our readers in Beaumont went through the same AT&T Confusion Circus, transferred between departments until someone recognized the caller was a lucky winner of an Internet Overcharging experiment.

In both cities, delivering an effective message of customer contempt with AT&T’s usage cap scheme means filing a complaint with the Better Business Bureau.  As an accredited member, AT&T values its rating very highly, and targeting complaints to the Bureau forces them to spend time and money to respond.  Better yet, AT&T executives don’t like it one bit, as Albert writes:

“Go to the Southern Nevada Better Business Bureau and file a complaint. I just had the VP of Regional West of AT&T call.  She was pissed that I filed a complaint, and now she has to personally reply. She hung up on me.”

Being an active consumer willing to make your voice heard is an effective way to deliver the message pricing and usage tricks and traps are unacceptable.  Better yet, it annoys providers with dollar signs in their eyes, especially when canceling your service.

Albert was told the nightmare ends April 1st, when the trial wraps up, but now is the time to deliver the final protest AT&T cannot ignore.

April 1st is an ironic date — the first anniversary of  Time Warner Cable sharing word of its own Internet Overcharging experiment in Austin, San Antonio, Greensboro, NC and Rochester, NY. After two weeks of protest, Time Warner Cable shelved their experiment.

If you’re a resident of Reno or Beaumont, it’s critically important to deliver AT&T a message they can understand:

  1. Contact the local media and request they publicize the ongoing controversy over Internet Overcharging schemes;
  2. Contact your local and federal elected officials and let them know AT&T’s schemes are unacceptable.  See our “Take Action” section regarding support for legislation that would outlaw such schemes;
  3. File a detailed complaint with the Better Business Bureau, particularly emphasizing any lack of disclosure about the experiment, bait and switch advertising, ripoff pricing, etc.  Demand an immediate and full refund for any overage charges and a free pass to cancel AT&T services without any early termination fees.
  4. Reno residents — contact Barbara DiCianno at 775-334-3112. She is the mayor’s assistant. Call her and ask to have an investigation launched regarding AT&T’s discrimination against Reno with overcharging schemes that put the city at a distinct broadband disadvantage.  Local elected officials can deliver a strong political message to AT&T that such overcharging schemes will lead to robust support for re-regulation of AT&T’s broadband business to protect consumers.
  5. Tell AT&T you will never remain a customer of a provider that has Internet Overcharging pricing schemes.  Tell them in no uncertain terms usage limits and usage based billing are unacceptable, and you will cancel service the moment they attempt to implement either.

A year ago, it was the residents of Beaumont and the other cities impacted by Time Warner Cable’s overcharging scheme that fought on the front line to protect every Time Warner Cable customer from facing a tripling of their price for broadband service.  Today it’s Reno and Beaumont fighting for AT&T customers, both inside their own communities and those nationwide.  As Albert reminds us:

“We will be the ones that determine if this continues or stops here and now.”

Beaumont-Area AT&T Customer Gets Himself Exempted from Internet Overcharging: Can You?

Beaumont, Texas

Beaumont, Texas

Stop the Cap! reader Mark who went to war with Time Warner Cable in the Beaumont area when they tried to impose Internet Overcharges on his account (and got his money back), found himself back with AT&T after dropping Time Warner Cable.  Mark is among many who made it clear that imposing these kinds of billing schemes is not up for discussion — he will cancel service immediately.

Before Mark returned to AT&T, he called the company’s customer service sales center and asked about usage limits and other pricing tricks and traps, and they responded, “there are no cap limits.”  That’s because for most of AT&T’s coverage area, that’s true… for now.  The company has been testing Internet Overcharging with usage allowances and overlimit fees in two cities – Beaumont, Texas and Reno, Nevada.  Unfortunately, not every AT&T sales representative seems aware of this fact, even when you provide them with an address and telephone number within the test area.

“We received the modem and before I had opened the package a certified letter arrived from AT&T,” Mark says.

“It was a letter stating that AT&T had introduced usage limits, and I called them immediately to  cancel,” he said.

When you live in a city with two broadband providers, both engaged in Internet Overcharging, you discover you run out of options very quickly.  Or do you?

“I called AT&T and talked to an upper level retention agent named Jennifer, and told her if I could not get a flat rate Internet plan from AT&T, I wanted to also cancel my two phone lines and my business Yellow Pages ads,” Mark said.

Even when providers claim to “listen to their customers” on issues like this, the one word they always truly understand is: CANCEL.

“Jennifer immediately agreed to note my account that there would be no usage overlimit charges, which effectively gave me flat rate service,” Mark said.

The AT&T representative also sent him a $75 gift card and promised to investigate getting him faster DSL service on the Elite tier he tried before, and failed to receive.  To date, Mark hasn’t been billed one cent more than his standard monthly rate, despite AT&T’s ongoing “tests” in Beaumont.  As long as that remains true, and AT&T works on getting him more reasonable speeds, Time Warner Cable has lost a customer, potentially for good.

Mark feels he’s living on the front line of a battle between consumers and providers over what is rapidly becoming a utility as important as telephone service.

“I feel the Internet is going to pass Americans by if something is not done,” Mark adds.  “I personally will not pay the kind of fees the ISP’s want to charge.”

Mark is also curious why these “tests” are being imposed on residential customers, and not business customers who are charged prices providers claim are justified considering their “higher usage.”

“Starbucks and Books a Million all have Internet service from these companies and provide it to their customers,” Mark notes.  “Were they exempt?”

Time Warner Cable’s testing, now suspended, never involved commercial accounts.  AT&T doesn’t appear to have included their business accounts in any tests either.

If you are an AT&T customer in Beaumont or Reno, you may have a shot at exiting a test you never wanted to be a part of in the first place.  Simply insist on either being exempted from Internet Overcharging schemes, or take your business elsewhere (Time Warner Cable in Beaumont, for now, may be your best option.)  Retention specialists may be the only representatives empowered to exempt you, so you may have to indicate your intent to cancel service before reaching one.

If you are under a contract with an early termination fee, ask the competitor if they’d be willing to cover your exit fee.  Time Warner Cable is doing that in some markets.  If not in full, negotiate and see how far they’ll go.

Report any results of your efforts to us.  We’ll pass the word on to others.

Texas Customer Goes to War With Time Warner Cable & AT&T Over Internet Overcharging After Getting Huge Bill

Beaumont & Golden Triangle residents were the first to participate in a Time Warner Cable Internet Overcharging trial

Beaumont & Golden Triangle, Texas residents were the first to face Time Warner Cable Internet Overcharging experiments.

For awhile there, it seemed like nobody in the Golden Triangle on the Gulf Coast of Texas was paying attention to the fact their region was the nation’s guinea pig for Internet Overcharging schemes.  How wrong we were.

Stop the Cap! reader Mark, who lives just north of Beaumont in the city of Silsbee, had been fighting a one man battle against not one, but two providers serving his community of 7,400 — Time Warner Cable and AT&T.  Mark may exemplify the average consumer in the Golden Triangle, unaware that their broadband service had been subjected to Internet Overcharging experiments until the bill arrived in the mail.  Both providers have a track record of not always disclosing such schemes to their customers when trying to sign them up for service in southeastern Texas.

Both providers have used the area for pricing experiments, providing paltry usage allowances and charging steep overlimit fees for exceeding them.

Mark’s problems began when he unknowingly set himself up to be overcharged later.  Originally a Time Warner Cable customer, Mark decided to give AT&T’s Elite DSL package a try, primarily because it was less expensive than Road Runner service and supposedly faster as well.  AT&T claims their Elite DSL service in Silsbee provides up to 6Mbps down/768kbps up speed for $35 a month, compared with Time Warner Cable’s Golden Triangle Road Runner, providing (at the time) 5Mbps down/384kbps up speed for $44.95 a month.

“After DSL was installed, we discovered we were too far from the [phone company facilities] to get Elite speed, and instead of informing us about the problem, they switched us to Basic service speed, which is up to 768kbps down/384kbps up, and never bothered to tell us,” Mark writes.

The bill Stop the Cap! reader Mark received showing $73 in Internet Overcharging penalties

The bill Stop the Cap! reader Mark received showing $73 in Internet Overcharging penalties (click to enlarge)

After Mark’s family felt AT&T was too slow to meet their needs, they ventured back to Time Warner Cable for Road Runner service.  The salesperson offered a “welcome back” discount, and mentioned nothing about the fact Time Warner Cable had implemented an Internet Overcharging scheme on the residents of the Golden Triangle region.  Instead of his old service priced at $44.95 a month for unlimited use, his new standard service was priced at $54.95 a month, and was limited to 20GB of usage per month before a $1/GB overlimit penalty kicked in.

When the first bill arrived showing his family exceeded that amount, it was quite a shock.  In addition to the $54.95 charge for “Roadrunner Residential”, there was a $73.00 fee entitled, “Road Runner Select Plan Additional Usage.”  (They also nickle and dimed him $0.99 for a “Paper Invoice Fee.”)

This was the first time Mark had encountered an “additional usage” overlimit fee, so he called Time Warner Cable to investigate.  Despite what the salesperson had sold him on, and online promotions were still selling to attract new customers, Mark learned for the first time Time Warner Cable changed pricing.  The Golden Triangle Division of Time Warner Cable implemented an Internet Overcharging scheme in June 2008, but only applied it to new customers.  Had Mark never left Time Warner Cable for AT&T, he would have never been an unwilling participant in the experiment to extract an extra $73 from his wallet.

Because he returned to Time Warner Cable after the “experiment” commenced, he was stuck.

Mark was angry.  He contacted the Better Business Bureau (BBB), the Federal Trade Commission, and the Federal Communications Commission to complain about unfair business practices, improper disclosure of the Internet Overcharging scheme, and abusive pricing.

Time Warner Cable's 4/7/09 letter in response to a Better Business Bureau complaint regarding Internet Overcharging schemes implemented in the Golden Triangle, Texas (click to enlarge)

Time Warner Cable's 4/7/09 letter in response to a Better Business Bureau complaint regarding Internet Overcharging schemes implemented in the Golden Triangle, Texas (click to enlarge)

The most productive response came from Time Warner Cable, responding to the BBB complaint Mark had filed.  In addition to giving the standard talking points about Internet Overcharging schemes, Alberto Morales, Southwest Division Customer Advocate for Time Warner Cable, suggested the company would do a better job of training salespeople to disclose “the disclaimer regarding the consumption based billing when processing a new Roadrunner order.”  Morales also issued a one time credit for the $73 in overlimit fees charged to Mark’s account.

Mark recognized the language of the letter for what it was — propaganda from a cable broadband provider looking to cash in at the expense of their customers.  Among the dubious reasons given in the letter:

It’s also recognized that the Internet was not designed to handle the mass amounts of video that are now being consumed, therefore there is a risk that service speeds could slow down dramatically.  Video over the internet is an interesting and growing phenomenon.

So are Internet Overcharging schemes, but few would call them “interesting.”  Using the company’s own logic, Time Warner Cable should not be placing video on their own customer website, much less embark on a grand experiment called TV Everywhere to stream enormous amounts of video at broadband speeds to their customers.  Now that is interesting.  The “Internet brownout” theory of slowdowns and outages can occur when a provider chooses to pocket profits instead of keeping up with required investments to maintain their broadband network.  Time Warner Cable CEO Glenn Britt disputes there is a problem with Time Warner Cable’s network as-is, telling a conference sponsored by Sanford Bernstein in May that, “I’m very comfortable with our plant… I don’t see a need for a massive upgrade.”

By implementing the Roadrunner Select Plan (where a customer can choose the level of speed they desire for their internet use), each level has its own cap of bandwidth consumption allowance per month.

Of course, customers cannot choose the one plan that has been an outstanding success for Time Warner Cable since its inception – the one they have right now (or had in the Golden Triangle prior to the “experiment”), unless they were willing to pony up 300% more for the same level of service, based on the last proposal Time Warner Cable introduced before temporarily “shelving the plan” due to customer outrage.

In the Golden Triangle, the maximum amount of usage was 40GB per month, followed by “the sky is the limit” $1/GB overlimit penalties.

Morales claimed that only “5% of users actually exceed their limit.”  But 100% of the Golden Triangle’s customers were left waiting for the arrival of a “gas gauge” measuring their usage, something they would now be required to check daily if they wanted to be sure not to exceed the paltry level of “bandwidth allowance” they were granted.

Time Warner Cable's follow-up letter of 4/29/09, in response to Mark's complaints that he was never told about the Internet Overcharging plan which subjected him to a 20GB monthly limit and $73 in overlimit penalties. (We assume the June 6, 2009 reference is a typo and should have read 2008) (click to enlarge)

Time Warner Cable's follow-up letter of 4/29/09, in response to Mark's complaints that he was never told about the Internet Overcharging plan which subjected him to a 20GB monthly limit and $73 in overlimit penalties. (We assume the June 6, 2009 reference is a typo and should have read 2008) (click to enlarge)

Mark wasn’t sold by any of the arguments Morales was making.  That’s because he read Time Warner Cable’s own shareholder documents, as he had been accustomed to doing since he bought shares himself.  They told a very different story — one he shared in a letter to Morales:

“In 2007, Time Warner made $3,730 million dollars on high speed data alone, and then had to turn around and spend $164 million to support the cost of the network,” Mark writes. “In 2007, total profit on high speed data was $3.566 BILLION dollars.”

He adds, “in 2008, Time Warner made $4,159 million dollars on high speed data alone, and then spent just $146 million to support the cost of the network, a decline from the year past.  Total profit in 2008 on high speed data: $4.013 BILLION dollars.”

Mark realized “it cost Time Warner 11% less money to keep their network running in 2008 than in 2007.”

He also knew Time Warner Cable’s experiment in his city was done where the only alternative was his AT&T DSL service, which hardly offered comparable competition.

In a follow-up letter responding to Mark in late April (after the four city experiment was shelved), Time Warner Cable made it very clear their position was firmly planted in the ground:

“There are no plans to deviate from the consumption based billing plan.”

The company also elected to blame the customer for not understanding that an Internet Overcharging scheme had been introduced in the first place.

“When a customer goes online at www.roadrunneroffers.com, a disclaimer appears on the page with the first sentence including the following, “Subject to change without notice.  Some restrictions may apply.  Installation fees may apply.” This information is in view for anyone to read before proceeding with an order entry.

The fact this kind of disclaimer is, in the company’s view, sufficient notice for implementing Internet Overcharging schemes, is hardly adequate.

“We eventually dropped them again,” Mark writes. “We thought a usable slower Internet was better than a faster one we were not going to use.”

Mark realized Time Warner Cable’s business practices and models aren’t a good fit for the way he feels companies should treat their customers, and he dumped his Time Warner Cable stock and did what so many customers have also chosen to do: use the one word Time Warner Cable did seem to understand during their Internet Overcharging experiment:  C A N C E L.

As long as broadband providers continue to believe that Internet Overcharging schemes are the best way to protect their business models and leverage even more profits from their broadband division, action on every front, from legislative to direct consumer protest and refusal to do business with such companies remain the best course of action.

Stop the Cap! will continue to help deliver that action, along with a consumer education campaign that doesn’t require focus group testing to sell, because it’s based on common sense and not dollars.

Still to Come: Mark takes his battle to AT&T and gets an upper level AT&T retention agent to mark his account “exempt” from Internet Overcharging fees and penalties.  Perhaps you can, too!

AT&T Brags They Have “No Caps,” Sends Newly Signed Beaumont Customer Express Letter Saying They Do

Phillip Dampier June 9, 2009 AT&T, Beaumont, TX, Internet Overcharging 8 Comments

Stop the Cap! reader John, who lives in Beaumont, Texas, went shopping for Internet access recently and was sold on broadband from AT&T:

I looked for and did not find any reference to caps, and called the sales department. I was told there were no caps. I signed up and when tech support helped me with the registration, the tech bragged how AT&T had no caps when cable companies (Time Warner) did. The day after I installed, I received the express letter stating there was a cap trial in the Beaumont area. The cap is 80GB for my “Elite” service plan. The overage charge is $1.00 per Gig.

Of course what John, and many other residents in Beaumont may not have realized is that AT&T is continuing to test their Internet Overcharging schemes in Beaumont, Texas and Reno, Nevada.  AT&T’s website and marketing materials are generally targeted to a nationwide customer base, and it’s easy to receive marketing materials that don’t disclose you reside in the two unluckiest cities in America to be an AT&T broadband customer.

If John is subject to any long term service commitments, he should have the right to exit his contract and terminate service without any further obligation.

Time after time, customers learning of Internet Overcharging with unwarranted limits and penalties are left angry and upset.

Time Warner Cable Ends Cap ‘n Tier “Trial” in Beaumont

Phillip Dampier May 13, 2009 Beaumont, TX, Time Warner 10 Comments
Road Runner Service Post-Cap 'n Tier in the Golden Triangle, Texas

Road Runner Service Post-Cap 'n Tier in the Golden Triangle, Texas

Time Warner Cable has quietly ended its “experiment” of their “consumption based billing” scheme in the first city to test it, and the last to be rid of it — Beaumont, Texas.

Time Warner Cable’s website for the Golden Triangle division, serving Beaumont, dispensed with the tier selection menu which limited customers to 40GB of usage per month, and has returned to an unlimited service plan offering 5Mbps/384Kbps service for $44.99 per month.

Customers calling Time Warner’s office in Beaumont were told the consumption based billing experiment had ended.  However, as with other Time Warner Cable divisions, the “FAQ” on the topic has now also appeared on the help pages for this division as well.  It explains Time Warner Cable still believes their Cap ‘n Tier formula is the “fairest” and will reimpose limits “once customers gauge how much bandwidth they actually consume.”  Time Warner Cable has gotten bolder in sending the message the very unpopular billing system they attempted to test in several cities around the country will be back, whether customers like it or not.

But for now, the grand experiment has finally ended nationwide.

KBTV Beaumont: Thousands of Customers Protested Against Time Warner Caps

Phillip Dampier April 28, 2009 Beaumont, TX, Time Warner, Video 6 Comments

The take-away message from this 30 second report is the confirmation that “thousands” of customers protested the cap experiment program.  We had not heard any actual numbers about how many people were in contact with Time Warner about this ordeal, but now we do. It goes into our library.

Unrated.  It’s a very brief report.

KBMT Beaumont – Customers in Beaumont Realize They’re Still Stuck With Caps

Phillip Dampier April 28, 2009 Beaumont, TX, Time Warner, Video 6 Comments

Finally.  We were beginning to wonder if anyone was conscious to what Time Warner was doing to customers down in Beaumont.  No wonder Time Warner found “success” with the program.  Of all of the cities Time Warner proposed testing this rationing plan, Beaumont has always been the quietest and least likely to make noise about it.  But residents have started to change their tune once they realized other Time Warner “experiment” cities managed to successfully get the cap plan dropped, at least for now.  So why are they still stuck with it?

Check out Rep. Eric Massa (D-NY) being interviewed and using the slam-it-home point that Time Warner is already making a ton of money on broadband priced just the way it is right now.

thumbs-up12A pretty powerful piece.  Time Warner comes across as exceptionally arrogant in Beaumont.  They would not provide anyone to talk on-air, and their written statement, while acknowledging the program was driven back in other cities, is working just fine for them in Beaumont, whether customers like it or not.  Pretty chilling and smacks of arrogance.  Of course, in Beaumont, AT&T is experimenting with caps of their own, so the point that customers have no uncapped alternative is particularly powerful in this part of Texas.

KBTV Beaumont – How Beaumont TV Broke the Bad News: You’re Still Capped

Phillip Dampier April 26, 2009 Beaumont, TX, Time Warner, Video No Comments

KBTV Beaumont broke the bad news to its viewers that despite the temporary reprieve in other Time Warner cities across the country, Beaumont was still saddled with the same usage caps and tiered pricing they’ve been dealing with since last summer. Time Warner elected to continue the “experiment” in rationing Internet service despite Sen. Charles Schumer’s announcement that the “experiment” was over.

thumbs-up9KBTV produced this segment as part of an afternoon news roundup for April 16, 2009.  The Time Warner segment appears last.

Where It All Began – Beaumont, Texas

Phillip Dampier April 18, 2009 Beaumont, TX, Time Warner, Video 11 Comments

Beautiful Beaumont, part of the Golden Triangle with Port Arthur and Orange, Texas.  Home to Lamar Univerity, the Texas Wildcatters, and the South Texas State Fair, the city is also known to online enthusiasts as the unlucky epicenter of broadband usage capping.

Time Warner’s Golden Triangle Division rolled out the first broadband caps on Beaumont residents last summer, implementing service plans ranging from 4-50GB of usage for new customers, or those intending to change their Road Runner service plan.  Company officials rolled out the usual dog and pony show about how the change wouldn’t really affect most people at all.

1GB gets you about 70,000 e-mails, 34 hours of gaming or 1,344 hours of Web browsing; or, it’s the approximate equivalent of downloading 569 photos, 277 music files, 7 hours of low-resolution video (YouTube), 3 hours of standard definition streaming video or 45 minutes of high-definition streaming video.

thumbs-down
Largely a re-purposed Time Warner press release in the making.  When a news report says “Time Warner says” more than three times, you know you aren’t getting the whole story.  This report relied almost entirely on Time Warner’s calculations, Time Warner’s claims, and Time Warner’s predicted impact on customers.  A local “computer expert” defines a person who checks e-mail and looks at a few web pages as the “average” customer, an assertion without foundation.  Then he claims only “power users that are possibly going to hit those caps.”  Possibly?  As we’ve since learned, some 14% of Time Warner customers ended up with overlimit fees on their bills, averaging $19 extra dollars a month.

 

As StoptheCap! reported last summer, the “experiment” was met with mixed reaction.  Many customers felt the tiers had paltry limits, many didn’t like the fact an unlimited tier was no longer available, and the whole thing was too expensive.  Notably, nobody asked for this kind of rationing, and nobody seemed to advocate for it outside of the company itself.

Alex Dudley, corporate spokesman for Time Warner, used most of the same rhetoric about the Beaumont “test” he used about those to be conducted in Rochester, the Triad of North Carolina, San Antonio, and Austin, Texas.

Dudley argues that the usage cap issue is not a foregone conclusion at Time Warner.   Dudley told GigaOm that TWC’s experiment in Texas was just that “a test.”

A test that has now become indefinite, and today Beaumont is the only city in Time Warner’s national service area still under the thumb of usage caps.  Dudley, bless his heart, added this familiar proviso:

“If consumers don’t want it, the company is going to back away from it.  I think this is a trial and we are going to learn from this trial,” he said.

Consumers in Beaumont don’t want the cap.  Consumers in Rochester don’t want the cap.  Consumers in the Triad don’t want the cap.  Consumers in San Antonio don’t want the cap.  Consumers in Austin don’t want the cap.

Executives at Time Warner want the cap.

Beaumont is stuck with the cap.

It took thousands of protesters from all of these cities, a United States congressman, a United States senator, and pressure from investors, the media, and who knows who else to get them to “temporarily suspend” the cap nightmare, but with the allusion it will be back later.

The only thing they have learned from the trial is customers don’t like it.  But they’re going to get it anyway.  Just like in Beaumont.

Messing With Your “Price Lock Guarantee?” TW Early Draft Statements Exposed

"This is not a rate increase."

"This is not a rate increase."

When you say something on those series of tubes we call the Internet, sometimes it’s awfully hard to get those statements back, thanks to the magic of Google caching.  Carrie, one of our great readers from Texas, clued us in on a tweet from Omar Gallaga at the Austin American Statesman, who noted a copy of a Google cached Time Warner corporate website page that said more than was perhaps intended.

It appears one section was cut out in the final release, but with the miracle of Google caching, it all comes back to life.  More and more, this reminds me of the bizarro world thinking Frontier was doing last summer, until they got smart.  Maybe it’s something going around.

Answers to Your Questions

Will my bill go up?

This is not a rate increase. Rather, it gives each level of Road Runner service a generous amount to use each month but, if of someone goes over the monthly usage allocation, they have to pay a slight fee. That’s the only way your bill would change.

How will this impact my Price Lock Guarantee?

The plan will not impact your Price Lock Guarantee price, but it could mean a small incremental fee that will vary by month depending on how much you exceed the megabit usage that goes with your level of Road Runner service.

How can I know if the plan is fair?

Time Warner Cable simply wants to make sure only those who use large amounts of data either upgrade to a level better for them or pay for incremental amounts they choose to have each month. This ensures others don’t have to pay for or subsidize those heavier users.

Why do I have to pay more for Road Runner?

You won’t be paying more if you are like the average user. These new fees will only be charged to the small group of heavy users that the rest of RR customers are effectively subsidizing.

Well, well, well.  I can see why the language was pulled here.  It’s utter fiction. “A slight fee” amounts up to $75 in overages each month, the bandwidth they are providing is generous if you were accessing the Internet from Zimbabwe, and from Time Warner’s own statements to the SEC, nobody is subsidizing anything – profits are up in the broadband division, as bandwidth costs decline.

But the most important part of this is the bit about throwing Price Lock Guarantee customers under the bus. Price lock contracts are available in some markets, mostly in Texas.  They are not part of service in Rochester. A “small incremental fee?”  Like the “slight fee” of up to $75 a month in overages?  Because these statements are no longer part of the “official release,” we’re not about to say this is what is coming, but it does shine light on the kind of thinking that seems to be at work here.  Doesn’t a Price Lock Guarantee mean… you know, a guaranteed price lock — your rate stays the same.   Why anyone would even draft something saying otherwise is beyond me.

The smartest thing Time Warner could do is pull this entire disaster altogether, and get back in the business of providing affordable Internet access to customers without gotchas, caps, and overage fees.

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