Home » GCI (Alaska) » Recent Articles:

Alaska’s GCI Boosts Speeds But Leaves Its Caps and Overlimit Fees Intact

redAlaska-based GCI has rolled out a free upgrade for customers in Anchorage, Fairbanks, Juneau, Ketchikan, Mat-Su Valley, and Sitka that delivers broadband speeds up to 250/10Mbps.

GCI’s re:D broadband used to max out at 200Mbps, but thanks to channel bonding on the cable system, download speeds will be upgraded to 250Mbps in re:D service areas by the end of this year.

But getting 250Mbps broadband is not cheap in Alaska. The service is priced at $174.99 a month when part of a service bundle. Broadband-only customers also pay a $11.99 monthly access fee. Both come with 24-month contracts at that price. Customers who don’t want to be tied down can choose month-to-month service for $5 more per month.

At those prices, one might hope GCI would drop its usage cap, but customers can forget it. A 500GB monthly usage cap applies, with overlimit fees up to $30/GB on some plans.

GCI also announced it would deliver 1Gbps next year over a fiber to the home network under construction in Anchorage, promising “no limits with what you can do with broadband” without mentioning whether it planned usage limits for its fiber service as well.

GCI is asking customers to vote support for their neighborhoods getting fiber upgrades. The more red this map of Anchorage shows, the more customers who have shown support for fiber broadband.

GCI is asking customers to vote support for their neighborhoods getting fiber upgrades. The more red sections of this map of Anchorage shows, the more customers who have shown support for fiber broadband.

For most GCI customers, however, broadband will continue to arrive over the company’s HFC coaxial cable network. To better manage speeds, the company’s DOCSIS 3 platform is bonding eight cable channels, but in re:D areas the company bonds up to 24 cable channels, with plans to increase to 32 channels.

acs logoThe speed increases come after its competitor Alaska Communications announced speed increases of its own. ACS sells unlimited access broadband service at speeds up to 50Mbps. ACS has beefed up its copper infrastructure to support faster Internet speeds, starting with 15Mbps introduced across the state in May. Now customers in Anchorage can subscribe to faster tiers including 30 and 50Mbps.

“Alaskans asked for faster Home Internet, and we’ve responded with these increased speeds, delivered with great customer service and without overage charges,” said ACS president and CEO Anand Vadapalli. “In addition to faster download speeds, customers choosing our product get the highest upload speeds that are so important for sharing videos and gaming.”

ACS has found its unlimited broadband offering attractive to customers who don’t want to worry about GCI’s overlimit fees. ACS also claims its customers get broadband over a dedicated line, not shared infrastructure like GCI, resulting in no speed slowdowns at peak usage times.

GCI – Alaska’s Outrageous Internet Overcharger; Customers Paying Up to $1,200 in Overlimit Fees

GCI_logoNearly 10 percent of GCI’s revenue is now earned from overlimit fees collected from Alaskan broadband customers who exceed their cable or wireless usage limits.

GCI is Alaska’s largest cable operator and for many it is the only provider able to deliver stable speeds of 10Mbps+, especially to those who live too far away for comparable DSL speeds from ACS, one of GCI’s largest competitors.

The result has given GCI a de facto monopoly on High Speed Internet (10+ Mbps) access, a position that has allowed the company to dramatically raise prices and slap usage limits on broadband users and charge onerous overlimit fees on those who exceed their allowance.

GCI already charges some of the highest broadband service prices in the country and has insisted on imposing usage caps and overlimit fees on even its most expensive plans, creating high profits for them and enormous bills for customers who have no reliable way to consistently track their usage. GCI’s suspect usage meter is often offline and often delivers usage estimates that customers insist are far from accurate. GCI says it has the last word on the accuracy of that meter and has not submitted its meter to independent testing and verification by a local or state regulatory body specializing in measurement accuracy.

GCI also makes it extremely difficult for customers to understand what happens after customers exceed their usage limits. The website only vaguely offers that overlimit fees vary from “$.001 (half penny) to $.03 (three cents) per MB,” which is factually inaccurate: $.001 does not equal a half-penny. It can equal bill shock if a customer happens to be watching a Netflix movie when their allowance runs out.

KC D’Onfro of Bethel subscribes to GCI’s Alaska Extreme Internet plan, which in February cost $100 a month for 4/1Mbps service with a 25GB usage cap. While that allowance is plenty for the countless e-mails GCI promises you can send, any sort of streaming video can chew through that allowance quickly.

Business Insider explains what happened:

One fateful night, she and her roommate decided to watch a movie on Netflix. Both of them fell asleep halfway through, but the movie played ’til the end, eating up two GBs of data too many and consequently doubling their bill for that month. (One hour of HD video on Netflix can use up to 2.3 GB of data.)

“Now, I don’t even consider Netflix until near the very end of the month, and I have to be sure that I’m no more than three-fourths of the way into my total data, at the absolute most,” KC says. (Her provider, a company called GCI, allows subscribers to view their daily usage and sends them a notice when they’ve hit 80%.) “It’s a very serious business – I have to poll people to figure out what that one very special movie should be.”

That left the D’Onfro family with a $200 broadband bill – $100 for the service and an extra $100 overlimit fee for that single Netflix movie. Today, GCI demands $114.99 a month for that same plan (with the same usage allowance) and those not subscribing to their TV service also face a monthly $11.99 “access fee” surcharge for Internet-only service.

expensive

“Many Alaska consumers have brought their GCI broadband bills to ACS for a comparative quote, providing dozens of examples of GCI overage charges,” said Caitlin McDiffett, product manager of Alaska Communications Systems (ACS), the state’s largest landline phone company. “Many of these examples include overage charges of $200 to $600 in a single month. In one instance, a customer was charged $1 ,200 in overage fees.”

GCI also keeps most customers in place with a 24-month contract, making it difficult and costly to switch providers.

McDiffett told the FCC the average Alaskan with a Netflix subscription must pay for at least a 12Mbps connection to get the 60GB usage allowance they will need to watch more than two Netflix movies a week in addition to other typical online activities. GCI makes sure that costs average Alaskans real money.

“A customer purchasing 12Mbps for standalone (non-bundled) Home Internet from GCI pays $59.99 per month plus an $11.99 monthly “access” fee for a total of $71.98 per month with a 60GB usage limit ($0.004/MB overage charge),” reports McDiffett. “Thus, the monthly bill for this service is more typically $76.98, including a $5.00 overage charge. To purchase a service with a usage limit of at least 100GB per month, a GCI customer would have to pay $81.98 per month (the $69.99 standalone rate plus $11.99 monthly access fee), subject to an overage charge of $0.003/MB.”

Rural Alaskans pay even more on GCS' expensive wireless ISP.

Rural Alaskans pay even more when using GCI’s expensive wireless ISP.

Regular Alaskan Stop the Cap! reader Scott reports that no matter what plan you choose from GCI, they are waiting and ready to slap overlimit fees on you as soon as they decide you are over your limit.

Their super-deluxe re:D service — up to 200Mbps, now available in Anchorage, MatSu, Fairbanks, Juneau, Kenai, Ketchikan, Sitka, and Soldotna areas, is not cheap.

“It’s a whopping $209.99 + taxes, and if you don’t have cable TV service bundled, the $11.99 monthly access fee also applies,” Scott says.

For that kind of money, one might expect a respite from the usage meter,  but not with GCI.

“As a top tier service, you’d think they could just offer it as ’unlimited’ at that rate,” Scott says. “Actually, it has a 500GB usage cap and $.50/GB overage fee. Again, we have a metering provider who claims the overages were to penalize bandwidth hogs, yet then offer [faster] service, increasing overall load on their network, instead of just offering a fair amount of bandwidth per customer and eliminating overages by offering unlimited usage.”

One of ACS' strong selling points is no data caps, but DSL isn't available to everyone.

One of ACS’ strong selling points is no data caps, but DSL isn’t available to everyone.

In a filing with the FCC, ACS’ McDiffett suspects usage caps are all about the money.

“GCI reported 2012 Home Internet revenue of $86 million of which $7.9 million (nearly ten percent) was derived from overage charges,” said McDiffett. “On average, about $5 per customer per month can be attributed to GCI overage charges. GCI imposes usage limits or data caps at every level of Home Internet service, from its 10 Mbps service (10GB limit, $0.005/MB overage charge) to its 100 Mbps service (500GB limit, $0.0005/MB overage charge).”

badbillOver time, and after several cases of bill shock, Alaskan Internet customers have become more careful about watching everything they do online, fearing GCI’s penalties. That threatens GCI’s overlimit revenue, and now Stop the Cap! readers report sudden, long-lasting problems with GCI’s usage checker, often followed by substantial bills with steep overlimit penalties they claim just are not accurate.

“I currently pay $184.99 a month for GCI‘s highest offered broadband service. 200/5Mbps, with a 500GB monthly data cap,” shares Stop the Cap! reader Luke Benson. “According to GCI, over the past couple months our usage has increased resulting in overage charges at $1.00 a GB.”

In May, Benson was billed $130 in overlimit fees, but after complaining, the company finally agreed to credit back $100. A month later, they recaptured $60 of that credit from new overlimit fees. This month, Benson would have to unplug his modem halfway through his billing cycle or face another $50 in penalties.

GCI’s bandwidth monitor has proved less than helpful, either because it is offline or reports no usage according to several readers reaching out to us. GCI’s own technical support team notes the meter will not report usage until at least 72 hours after it occurs. GCI itself does not rely on its online usage monitor for customer billing. Customer Internet charges are measured, calculated, and applied by an internal billing system off-limits for public inspection.

“I have reached out to GCI multiple times asking for help, suggestions, resolution,” complains Benson. “All I get told is to turn down the viewing quality of Netflix, don’t allow devices to auto update, etc. They pretty much blamed every service but their own.”

Other customers have unwittingly fallen into GCI’s overlimit fee trap while running popular Internet applications that wouldn’t exist if GCI’s caps and overlimit fees were common across the country. Lifelong Bethel resident and tech consultant John Wallace knows the local horror stories:

  • tollsTwo girls had unwittingly allowed Dropbox to continuously sync to their computers, racking up a $3,500 overcharge in two weeks;
  • One user’s virus protection updater got stuck on and it cost him $600;
  • Wallace has heard people say, “I was gaming and I got a little out of hand and I had to pay $2,800;”
  • Two six-year-old girls ran up $2,000 playing an online preschool game. Mom was totally unaware of what was going on, until she got the bill.

GCI’s own Facebook page was the home of a number of customer complaints until the complaint messages mysteriously disappeared. Stop the Cap! itself discovered it was not allowed to even ask questions on the company’s social media pages, apparently already on their banned list.

While GCI does well for itself and its shareholders, Wallace worries about the impact GCI’s control of the Alaskan Internet High Speed Internet market will have on the economy and Alaskan society.

“It’s about equal access and opportunity,” Wallace told Business Insider. “The Internet was meant to improve the lives of people in rural Alaska, but – because of the data caps and the sky-high overage fees – it ends up costing them huge amounts of money. We have one of the highest unemployment rates in the nation, and some of the highest rates of suicide, sexual assault, and drug abuse. The people who can’t afford it are the ones that are getting victimized.  It was supposed to bring access – true availability of goods and services – but it really just brought a huge bill that many can’t afford.”

Deregulation Allows Lifeline/USF Fraud to Run Rampant; Tens of Millions Fund Lavish Lifestyles

Pinellas County Sheriff’s Office released this mug shot of Leonard I. Solt, 49, of Land O’Lakes, one of three people accused of defrauding the federal Lifeline program out of more than $32 million.

The Pinellas County Sheriff’s Office released this mug shot of Leonard I. Solt, 49, of Land O’Lakes, one of three people accused of defrauding the federal Lifeline program out of more than $32 million.

A lack of robust state oversight of independent contractors and resellers may have cost the Universal Service Fund and nationwide Lifeline program up to $1 billion in waste, fraud, and abuse.

This month, three men were accused of stealing more than $32 million in Universal Service Fund (USF) money that supported lavish lifestyles including the purchase of multiple luxury automobiles. The federal government wants the money back.

Leonard I. Solt, 49, of Land O’Lakes, Fla.,Thomas Biddix, 44, of Melbourne, Fla. and Kevin Brian Cox, 38, of Arlington, Tenn., all face federal criminal charges for allegedly padding the number of customers signed up for Lifeline phone service through five companies all connected to the men: American Dial Tone, Bellerud Communications, BLC Management, LifeConnex Telecom and Triarch Marketing.

In some cases, Lifeline cell phone service was completely subsidized by USF funding, allowing customers to sign up for free cell phone service. Average Americans cover the costs of the program through a surcharge on monthly phone bills.

The indictment charges the defendants with one count of conspiracy to commit wire fraud and 15 substantive counts of wire fraud, false claims and money laundering.

In an 18-month period from 2009 to 2011, the phone companies obtained more than $46 million through the Lifeline program.

Regulators have been suspicious of the companies and the men who ran them since at least 2010 when the Florida Public Service Commission noticed a dramatic spike in Lifeline reimbursement requests from Associated Telecommunications Management Services, LLC., the parent company of the five entities. The Florida PSC accused AMTS of misrepresenting customer enrollment when claiming reimbursement. It was not until June 2011 that the Florida PSC approved a settlement of $4 million from AMTS and an agreement to stop doing business in the state.

bellerudThe case illustrated several ostensibly-independent companies were created to market service across Alabama, Arkansas, Florida, Georgia, Indiana, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Missouri, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, and Wisconsin. Many had ties back to AMTS management. Despite the Florida settlement, the firms continued to do business in multiple states. Many of the states involved have deregulated the telephone business and have cut staff at state agencies tasked with oversight issues.

By the time the federal government moved in to prosecute, the three men had used USF funds to buy a private jet, a 28-foot boat and six luxury cars, including an orange Lamborghini, a red-bronze Chevrolet Corvette, a black Cadillac Escalade, a Chevrolet Suburban limo, a black Mercedes Benz S63 and a blue Audi R8.

free planLast week, government agents seized the vehicles from Biddix’s Melbourne-based pawn shop, Outdoor Gun and Pawn.

The Wall Street Journal reported in 2013 that the FCC’s own data showed that more than 40% of the six million subscribers at five of the program’s top carriers were either ineligible or failed to show that they qualified for subsidized service. As more independent companies win authorization to start pitching Lifeline landline and mobile phone service to the poor, the cost of the program has skyrocketed to $2.2 billion last year, up from $819 million four years earlier.

The companies are reimbursed for providing service, providing an incentive to sign up as many as possible.

In Alaska, a GCI subsidiary, Alaska DigiTel hired a marketing company to help it sell Lifeline cell phone service. The company quickly began signing up patients in hospitals, using hospital addresses as their residence. It also encouraged applicants to list phony addresses. For four years, GCI profited from questionable  reimbursements filed with the FCC. GCI finally agreed to pay a $1.5 million settlement that includes no admission of liability.

Other providers simply used telephone directories to collect names and mailing addresses of “customers” and sent them unsolicited cell phones for which they requested reimbursement.

An Oklahoma provider that regulators suspect got exceptionally greedy allegedly signed up so many Oklahoma residents to Lifeline service, the state is likely to exhaust the supply of phone numbers remaining in the 405 area code sooner than expected.

Providers sometimes targeted customers disconnected for non-payment.

True Wireless received nearly $46 million under the program in 2012, bringing questions from Oklahoma’s Corporation Commission as to whether enrolling that many residents was mathematically possible. A cursory review found some customers had signed up multiple times in violation of federal rules.

In Wisconsin, the state Public Service Commission eventually revoked Midwestern Telecommunications Inc.’s ability to receive Lifeline funding after its overworked staff discovered MTI was mailing phones to customer that never requested them, billing the USF Fund for reimbursement. Some turned out to be children.

The scheme eventually began to unravel when a former Public Service Commission staffer received an unsolicited Lifeline phone. The alleged fraud was so great, MTI went from receiving 1% of Lifeline reimbursements in Wisconsin during the second quarter of 2010 to 33% of disbursements in the same quarter the following year.

The fraud also extends to Lifeline recipients, some who have bilked the program for free phones. A review of the Lifeline customer database revealed many customers had multiple Lifeline accounts, including some sent more than 10 free phones that were later reportedly resold on street corners.

Nationally, the $1.8 billion Lifeline Program subsidized phone service last year for 14.5 million low-income customers.

Customers are usually eligible if they are already enrolled in income-based programs such as Medicaid, food assistance or public housing, or if household income falls below 150 percent of federal poverty guidelines.

http://www.phillipdampier.com/video/WSJ Lifeline Fraud 2-18-13.flv

WSJ’s Spencer Ante has details of a $2.2 billion government program to give cell phones to poor people that resulted in phones winding up in the hands of people ineligible for the program. (1:13)

Viacom Demands 100% Rate Increases for Hundreds of Small Cable Systems, Military Bases

viacom networksSmall cable systems across the country and on overseas military bases are being granted hourly reprieves that are keeping up to 24 Viacom-owned cable channels on the air after negotiations to extend an agreement with their program buyer stalled.

Cable operators belonging to the National Cable TV Cooperative, which represents independent cable systems on cable programming matters, report Viacom is demanding an unprecedented 100 percent rate increase for its networks and a guaranteed rate hike of 10% annually on each of its channels.

Viacom’s demands would cost each subscriber at least $4 a month, noted Jack Capparell, general manager of Service Electric’s cable system in the Lehigh Valley of Pennsylvania. Service Electric is a private, family owned cable business with 250,000 subscribers in central and northeastern Pennsylvania and northwestern New Jersey.

The impasse also affects cable systems serving American military bases. Americable has notified subscribers in Yokosuka, Atsugi, Iwakuni, and Sasebo, Japan Viacom was likely to cut off 10 of its cable channels to military families sometime today. Allied Telesis, which offers service to Air Force bases in Japan is also expected to lose programming.

cableoneNCTC members complain Viacom requires cable systems to carry nearly all of its lineup, including lesser-known channels few customers have even heard of, much less want. Even if a cable system chooses not to air a Viacom channel, Viacom’s contracts require cable providers to pay for them if they want to carry Viacom’s most popular networks.

Some cable systems are breaking away from NCTC’s negotiations and opening one on one talks with Viacom. Metrocast secured an agreement for its customers earlier today by negotiating directly with Viacom.

viacomFor most affected cable operators, there is a ‘wait and see what happens’ approach. Others, including Cable ONE, have already moved to replace the Viacom networks with other channels.

“Viacom asked for a rate increase greater than 100%, despite the fact that viewing is down on 12 of their 15 networks – some by more than 30% since 2010,” said Cable ONE. “We asked Viacom to either reduce their rates or allow us to drop some of their less popular networks to reduce the total cost. They refused these reasonable requests.”

Logo_Service-ElectricEarlier today, Cable ONE didn’t wait for Viacom to pull the plug. They pulled it themselves.

“Cable ONE has let these networks go and expects to add many top-rated networks you’ve requested and expand several other highly requested networks to our most popular level of service. Some of the new networks include BBC America, Sprout, Investigation Discovery, the Blaze, Hallmark Channel, National Geographic, TV One, Sundance, and more,” said the company, which expects to publish a full list of the new networks on Wednesday.

Viacom responded with a news release tailored for each affected provider:

GCI_Color_LogoWe are offering Service Electric a double-digit discount off of our standard rate card. It is a better deal than HUNDREDS of other TV providers in the country have agreed to. We have been actively trying to get a deal done with Service Electric for months and they have refused to negotiate in any meaningful way. And now, on top of this, Service Electric is throwing out numbers which simply aren’t true. Our expiring deal with Service Electric is nearly five years old. In that time, we have been great partners and given Service Electric more channels, more on demand content and access to our content beyond the TV – at no additional cost. We don’t understand why Service Electric has chosen to negotiate in this manner. And now, as a result of their lack of interest in coming to a mutually beneficial agreement, you are at risk of losing 19 Viacom networks. We are serious about getting a deal done.

Virtually the entire state of Alaska is also affected.

“We’ve unified to fight for Alaskans and to work toward a fair, long-term agreement that keeps prices stable for our customers,” said Paul Landes, GCI senior vice president. “Viacom wants a rate increase that is 40 times that of the rate of inflation. Alaska pay TV providers, along with 700 small to mid-sized operators nationally, are saying ‘no’ to Viacom’s take all 26 channels or nothing demands.”

GCI is joined by Alaskan providers MTA and KPU in the dispute.

http://www.phillipdampier.com/video/Cable ONE Viacom Channels Removed New Channels Added 4-1-14.mp4

Cable ONE released this video earlier today informing customers they were dropping Viacom networks. (1:00)

Three Wireless Competitors in Alaska is ‘Too Many'; Who Will Buyout ACS?

With Verizon Wireless poised to launch 4G LTE service in Alaska for the first time, Alaska Communications (ACS) and AT&T are hurrying wireless broadband expansions to protect their market turf. But Wall Street investors are unhappy, especially with ACS’ investments in its landline network and the recently announced suspension of its dividend payout. Some are now asking whether ACS’ lucrative wireless business should be up for sale, primed for a buyout by AT&T or Verizon Wireless.

Alaska Communications has soft launched its LTE 4G service in 10 cities: Anchorage, Fairbanks, Homer, Juneau, Kenai, Palmer, Seward, Soldotna, Wasilla and Whittier.

AT&T operates a mix of LTE and slower HSPA+ networks in Alaska and is expanding 4G service to Prudhoe Bay and Deadhorse for the benefit of short-term oil company employees working on the North Slope. But the company is also still expanding its existing 3G network along more remote Alaskan highways.

They are coming.

The investment frenzy is seen by many as a defensive maneuver to keep existing customers happy before Verizon Wireless arrives in Alaska sometime next year.

ACS and GCI, Alaska’s homegrown phone and cable companies now jointly operate their wireless operation together. AT&T is their principle competitor. But Verizon Wireless’ impending arrival in Alaska has shown it is no shrinking violet. There are persistent rumors Verizon is trying to acquire ACS’ wireless operations. Verizon has also announced partnerships with Copper Valley Telecom and Matanuska Telephone Association to potentially expand LTE service in those communities as well.

Investors hope ACS considers any Verizon offer carefully. Wireless is a revenue center for the landline phone company, which continues to see declines in home phone and business customers.

Since June, ACS lost just shy of 2,000 residential landlines and 753 business lines. The company still has 57,000 residential customers and 81,000 business customers.

ACS faces the same problems other phone companies do: network upgrades require significant investments, and investors question whether it will ultimately pay off. Many are also unhappy ACS suspended its dividend payout, refocusing $8 million on debt payments.

Alaska Communications Pounds GCI Cable Over Usage Caps, Overlimit Fees

Alaska Communications has found a marketing angle to combat Alaska’s dominant cable operator — GCI, which has slapped arbitrary usage caps and overlimit fees (up to $30/GB) on its customers. ACS has made cap-free Internet browsing a hallmark of their marketing campaign:

Alaska Communications vs. the Cable Company

Why Alaska Communications Home Internet is the best choice.

No Nasty Surprises on Your Bill

Tired of nasty surprises on your cable company’s Internet bill from the cable company? With Home Internet Service from Alaska Communications, there are no overage charges. Surf, stream, download, watch, and play – all without worry of “extra fees” for going over your bill. With Alaska Communications Home Internet Service, you won’t go over – it’s unlimited!

No Data Limits

Say you hopped online just a bit more this month – surfing, watching your favorite streaming movies, or maybe the kids were trying to win the online tournament of their favorite game while you were posting to your favorite social media site. We don’t think your Internet should be capped or “throttled.” That means, if you get close to your data limit, the cable company will slow down your Internet to limit your connection. With our Home Internet Service, you’ll get to use the Internet the way you want to – at the speeds you deserve!

ACS recognizes the truth for most broadband customers: They loathe usage caps and throttled broadband speeds, overlimit fees and bill shock. Nobody should have to learn what a gigabyte is and be forced to watch a usage gauge before deciding whether or not to use the Internet as they wish. We congratulate ACS for delivering consumers a better choice in broadband and a worry-free Internet experience. We hope this will send a message to GCI  that Internet Overcharging is unacceptable.

Stop the Cap! recommends our Alaskan readers patronize the state’s largest cap-free ISP: ACS.

Time Warner Cable & Comcast Sued for Violating Ex-Customers’ Privacy

Time Warner Cable and Comcast are facing class action lawsuits filed in California federal court alleging both cable operators retain Social Security numbers, credit card information and contact information after customers stop doing business with the companies.

The two lawsuits claim Comcast and Time Warner Cable are in violation of the 1984 Cable Communications Policy Act which, among other things, requires cable operators to “destroy personal information when it is no longer needed for the purposes for which it was collected (and there are no pending requests for access).”

According to the plaintiffs, both companies are retaining personal information about their ex-customers indefinitely, and are not sending required annual privacy notices to former customers disclosing this fact.

The CCPA allows individuals to collect $100 for each day the cable company is in violation of the law.

The lawsuit argues that this non-essential information exposes former customers to possible identity theft or illicit action by company employees that could potentially lead to unauthorized charges or account withdrawals.

That fear is not far-fetched. Just two weeks ago, GCI — a cable company in Alaska, found itself contacting at least 400 customers who had their personal financial information stolen by an employee.  Some customers were also contacted by their credit card issuers over incidents of unauthorized credit card charges.

http://www.phillipdampier.com/video/KTUU Anchorage GCI Warns Customers of Fraud 5-24-12.mp4

KTUU in Anchorage reports a GCI employee accessed cable customer account information to commit identity theft and credit card fraud.  (3 minutes)

Alaskan Wireless Competitors Join Forces to Fend Off Verizon Wireless and AT&T

Ordinarily, General Communication Inc., or GCI, and Alaska Communications Systems Group Inc. (ACS) compete with one-another for a share of Alaska’s television, broadband, phone, and wireless marketplace. But when Verizon Wireless unveiled plans to build and operate its own network in the state, GCI and ACS set aside some of that rivalry to pool resources for construction of what they claim will be Alaska’s fastest wireless network.

The two companies have agreed to form The Alaska Wireless Network LLC, a jointly-funded statewide wireless network to be used by customers of both companies. GCI will own two-thirds of the network and manage its daily operations, while ACS maintains a one-third interest.  The companies claim they needed to join forces because of the enormous construction costs required to build next generation wireless technology across Alaska.

Both companies will continue to market their own cell phone plans, but since both companies will share the same cell towers, coverage will be identical while accessing the new wireless network.

“By combining our respective wireless assets, GCI and Alaska Communications can provide a state-of-the-art Alaska wireless network owned and operated by Alaskans for Alaskans,” said Alaska Communications president and CEO Anand Vadapalli and GCI president and CEO Ron Duncan.  “We believe that The Alaska Wireless Network will provide the fastest, most geographically extensive, and most reasonably priced wireless services for Alaska subscribers, allowing us each to compete more effectively in the retail market.”

Verizon Wireless believes otherwise. Demian Voiles, vice president for Verizon Wireless Alaska, took a minor shot at the combined network stating Verizon planned to construct an Alaskan network that would rival the kind of coverage Verizon Wireless is recognized for in the lower 48 states.  Voiles said Verizon’s arrival in 2013 will provide Alaskans “the choice they need” in wireless phone companies.

The deal between GCS and ACS requires federal regulatory approval before it can proceed.

http://www.phillipdampier.com/video/KTUU Anchorage Alaska Wireless Network 6-5-12.mp4

KTUU in Anchorage investigates how GCI is teaming up with its biggest rival — Alaska Communications — to jointly construct a new statewide wireless network to compete with Verizon and AT&T.  (2 minutes)

Verizon Wireless Heads to Alaska, Providers on the Ground Expect AT&T to Suffer the Most

Verizon Wireless is expected to enter the Alaskan mobile market sometime in 2013-2014, according to incumbent competitors, who expect Verizon’s largest impact will be to bleed AT&T of customers.

Alaska’s two primary local providers — Alaska Communications, Inc. (ACS) and General Communications, Inc. (GCI), are telling shareholders to relax because they don’t expect to see Big Red in the Alaskan market for at least 2-3 years.  Both companies reported net losses for the quarter, and GCI lost 2,400 subscribers recently when more than 4,000 soldiers at Fort Wainwright in Fairbanks were deployed to Afghanistan.

Both ACS and GCI have been using the current poor economic climate and their respective stockpiles of cash-on-hand to retire debt or reissue long-term-debt at more favorable low interest rates.  Both companies are also hurrying to outdo each other’s 4G wireless network deployments before Verizon Wireless shows up, making use of spectrum it acquired last August to enter the Alaskan market.  Government rules require Verizon to sign-on its new network by June 13, 2013.  But Verizon admits it will take up to five years after that to completely build a new network from scratch.

Right now, Verizon Wireless customers taking their phones to Alaska roam on ACS’ network, for which the company is compensated with an increasing amount of extra revenue.  ACS boosted earnings in part on that roaming revenue, even as it lost more of its own customers.  When Verizon switches on its own network, that roaming revenue will rapidly decline, but ACS executives reassured shareholders their knowledge and experience of construction seasons in Alaska guarantee Verizon won’t be able to get its network together until 2013 at the earliest.

But when Verizon opens their doors, Ron Duncan, CEO of GCI expects a hard fight on his hands.

“We recognize ultimately they’ll be a significant competitor, although I see AT&T share more at risk because Verizon’s main claim to fame when they get to Alaska is going to be devices. We’ll still outpace them on coverage. We’ll continue to be the only ones with statewide coverage,” Duncan said. “People who want to buy the coverage buy from us today; people who want devices buy from AT&T because AT&T gets much better devices than we do.”

Just months after Verizon announced they were headed north, both ACS and GCI accelerated plans to roll out respective “4G” networks for wireless customers, although each company is deploying different standards.

GCI

GCI’s cell phone network is a combination of some of its own infrastructure, the acquisition of Alaska Digitel, and a resale agreement to use parts of AT&T Wireless’ coverage it acquired from Dobson Communications Systems.  In and around Fairbanks, Anchorage, Glennallen, Valdez, Prudhoe Bay, Wasilla, and Kenai, GCI offers CDMA service.  In those communities and many other rural regions in western Alaska, GCI relies on AT&T Alascom GSM networks.  GCI pitches its CDMA network’s 3G wireless data capabilities, which offer faster wireless data speeds, if you can get coverage.  For wider coverage in Alaska’s smaller communities, GCI markets GSM phones, which currently only offer 2G EDGE/GPRS data speeds.  If you use a cell phone mostly for voice calls, the wider coverage afforded by GCI’s GSM network is a popular choice.  But if you want faster data, CDMA 3G data speeds are required.

Eventually, GCI’s 4G network may help deliver coverage and faster speeds in both urban and rural areas, particularly as GCI plans to invest up to $100 million to construct more of its own network, instead of relying on resale agreements and acquisitions.

GCI has chosen HSPA+ for 4G service on the GSM network, and will introduce the service in Anchorage later this month.  That’s the same standard used by AT&T and T-Mobile in some areas.  It’s not as fast as LTE service from Verizon Wireless, but is much cheaper to deploy because cell sites need not be linked with fiber optic cables — an expensive proposition.

ACS

Alaska Communications has a large 3G CDMA network in Alaska all its own.  Its coverage is primarily in eastern Alaska adjacent to major cities like Anchorage, Juneau, and Fairbanks, and where it does provide 3G data coverage, the company claims it extends further out than GCI.  ACS doesn’t offer much coverage in small villages and communities in western Alaska, however.

ACS expects to skip incremental upgrades and launch its own 4G LTE service in the future.  It may help the company regain its second place standing, lost to GCI last year, and protect it from Verizon Wireless poaching its customers.

GCI Spokesman Openly Lies to Media About Internet Overcharges – We Have the Bills

GCI delivers unlimited downloads of customers' money.

GCI spokesman David Morris either does not know what his own company does to abuse its customers or he openly lied about it in statements to the media:

GCI said it hasn’t yet charged anyone fees for exceeding the data limits (some customers dispute this), but the company began contacting its heaviest data users this summer to move them to new, limited plans. The company is also upgrading Internet speed for its customers this year at no extra cost.

GCI said it hasn’t decided when to enforce the data limits on everyone else. The crackdown might not happen until next year, according to Morris.

Apparently Morris is living in a time warp, because “next year” is this year.

After our article earlier this morning, Stop the Cap! started receiving e-mail from angry GCI customers with bills showing outrageous overlimit fees running into the hundreds of dollars GCI claims they are not charging.

Our reader Steve in Alaska sums it up:

“GCI is a bad actor that abuses its customers with bait and switch broadband, baiting customers with expensive unlimited bundled plans and then switching them to limited plans with unjustified fees,” he writes. “A legal investigation exploring whether this company is violating consumer protection laws is required, especially after misrepresenting the nature of these overcharges in the Alaskan media through its spokesman.”

GCI is apparently iterating the credit card industry’s tricks and traps.

Our reader Scott’s latest broadband bill shows just how abusive GCI pricing can get:

GCI: the Grinch That Stole the Internet (click to enlarge)

Scott was floored by GCI’s Festival of Overcharging, which turned a $55 a month bill for broadband into nearly $200.  It exemplifies everything we’ve warned about over the past two years with these pricing schemes:

Well it finally happened, I got hit with GCI internet bill shock, $196.58 total for my 8Mbps plan with 25GB usage.

My usage prior to this has always been around 15-20GB/mo according to them — just the usual web surfing/e-mail with a little online gaming over the weekends (Eve Online) but not much.

Something ratcheted up my usage to nearly twice that (I did buy one game off Steam for digital delivery), which still would have been perfectly reasonable given the $75.00/mo plan I chose — that’s double what most people pay for unlimited in the lower 48 states. I only moved to this plan because their $135/mo bundle plan wasn’t affordable due to the required overpriced digital phone + taxes.

I tried calling their customer service and just got the company line about how expensive it was to provide their service, and I must have an open Wi-Fi router or “downloaded” too many YouTube videos, iTunes, or other content. He also stressed five or six times lots of customers go over their limits thanks to Netflix streaming and you really can’t use it with GCI Internet service.

To date I’ve never gotten a straight story from them on how this is managed, or from their marketing material which never mentioned overage until recently, or their reps that used to say you’d get a phone call to warn you if you went over their limits. The rep I spoke to most recently claims you’re supposed to call them daily or every other day – or login to a special portal online to monitor usage.

Either way this company has no sense of customer service, nor does it operate in the interest of Alaskan consumers that are cut off from the lower 48 and need reliable and affordable Internet services.

Stop the Cap! recommends making a copy of David Morris’ comments and notifying GCI you are not paying their overage fees because they are “obviously in error,” at least according to the company’s own spokesman.  Then get on the line with the State of Alaska’s Consumer Protection Unit and the Better Business Bureau and demand your overlimit fees be credited or refunded.  We’ve even got the complaint form started for you.  GCI values its A+ Better Business Bureau rating, so chances are very good they’ll take care of you to satisfactorily close the complaint.

GCI’s claims that with Internet usage limits, the company can deliver its customers faster speeds.  But Stop the Cap! argues those speeds are ultimately useless when GCI allows you to use as little as 3 percent of your service before those overlimit fees kick in.

A Broadband Reports reader ran the numbers before speed upgrades made them even worse:

Yes, GCI is overcharging customers and they have been on their unbundled tiers for a very long time. Now GCI wants to overcharge the rest by setting limits on ultimate package tiers that previously were labeled as “unlimited downloads”. I thought I’d post the more revealing information about how GCI is ripping off residential customers.As an academic argument let’s compare what data transfer is possible vs. what GCI now expects customers to use on its [formerly] “unlimited downloads” tiers.

1 Mbit = 1,000,000 bits

1,000,000 bps * 60 = 60,000,000 bpm
60,000,000 bpm * 60 = 3,600,000,000 bph
3,600,000,000 bph * 24 = 86,400,000,000 bpd

Now that we have a baseline measure of the total data transfer possible from a 1Mbps line PER DAY, let’s convert bits to bytes and gigabytes.

8 bits = 1 byte
86,400,000,000 bits / 8 bits = 10,800,000,000 bytes

Now let’s convert this to gigabytes

1,000,000,000 bytes = 1GB
10,800,000,000 bytes / 1,000,000,000 bytes = 10.8 GB

This means that 10.8GB of data transfer is possible with a 1Mbps connection operating 24/7 PER DAY.
NOTE: This figure doesn’t take into account network overhead or other loss.

Ultimate package speed tiers.

(Total Throughput possible PER DAY)
4Mbps = 10.8 * 4 = 43.2 GB
8Mbps = 10.8 * 8 = 86.4 GB
10Mbps = 10.8 * 10 = 108.0 GB
12Mbps = 10.8 * 12 = 129.6 GB

(Total Throughput possible PER MONTH)
Assume 30 days = 1 month

4Mbps = 43.2 * 30 = 1296 GB = 1.296 TB
8Mbps = 86.4 * 30 = 2592 GB = 2.592 TB
10Mbps = 108.0 * 30 = 3240 GB = 3.240 TB
12Mbps = 129.6 * 30 = 3888 GB = 3.888 TB

Now this is what GCI expects its customers to use.
4Mbps = 40 GB
8Mbps = 60 GB
10Mbps = 80 GB
12Mbps = 100 GB

GCI expected utilization factor (actual/possible usage)
40 / 1296 = 0.0308 = 3.08 %
60 / 2592 = 0.0231 = 2.31 %
80 / 3240 = 0.0246 = 2.46 %
100 / 3888 = 0.0257 = 2.57 %

It should be no surprise that as technology continues to develop, the true costs of broadband have continued to fall.

Given the true cost of bandwidth today, GCI’s forced bundling, and the price it’s asking this is pathetic.

Some might choose to ignore it or want to be a water carrier for GCI and similar ISPs, but advertising a service and expecting less than 3% usage is overbilling. It’s overcharging and also manipulative because the general population doesn’t understand it and can be easily duped into believing whatever they’re told to believe by an ISP.

Search This Site:

Contributions:

Recent Comments:

  • MJ Lee: This is strange. I did get a letter from Time Warner saying my apartment was qualified for Time Warner Cable Maxx, but when I applied for it, I got an...
  • Tim: You know this is overstating the case ... unlimited data adsl2 plans are available from $60 in Australia. Average price is about $90...
  • Phillip Dampier: I think 10/Gbps is available in the USA as well, on an obscenely expensive metro Ethernet or commercial fiber link provisioned by a telecom company. ...
  • Phillip Dampier: Singapore is doing a much better job than Malaysia with fiber speeds and pricing, and competition is what is driving speeds up and prices down. If you...
  • Phillip Dampier: We've covered South African broadband here before. At least South Africa now has uncapped broadband, so count that as a victory. International capacit...
  • SumTinWong: So korea, how much bandwidth do you have to other countries. It's all nice and good if you got supergigabit but only get 1mbit to facebook/netflix. In...
  • Richard: In New Zealand using Vodafone Supernet (Coaxial Cable. Plan Speeds are 50mb/s / 2mb/s) Test just ran from Christchurch to other side of Australia, Pe...
  • G Hamar: Why am I not surprised at this - S.Korea is the de facto standard by which all others must now try to reach. You hear Comcast & Time Warner Cable...
  • Gaurav K. Guha: I live in Mumbai, India. I currently have a 50 mbps connection for which i pay 1200 rupees a month. Thats approximately 20 usd. So.... Haha!...
  • friesian: German here. For my VDSL2 broadband access with 50Mbps down and 10Mbps upstream I have to pay 30€ monthly... Just wondering about the Romanian pr...
  • Tom: No surprise.. 2 years ago, in the election race of the Governor of Gyeonggi Province it was the official pledges from one of top 2 candidates that he ...
  • roy: Nope. the latest M.2/PCIe spec is already at 20gbps...

Your Account: