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Comcast Launches Online Video Service It Exempts from Its Own Data Caps

xfinitylogoComcast is inviting controversy launching a new live streaming TV service targeting cord-cutters while exempting it from its own data caps.

Comcast’s Stream TV is comparable to Comcast’s Limited Basic lineup, only instead of using a set-top box, Stream TV delivers online video over the Internet to Comcast’s broadband customers in Massachusetts, New Hampshire, Maine and the Greater Chicago area. For $15 a month, Stream TV offers a large package of local over the air stations, broadcast networks, and HBO, along with thousands of on-demand titles and cloud DVR storage. In Boston, the lineup includes:

WGBH (PBS), HSN. WBZ (CBS), NECN, WHDH (NBC), Community Programming, BNN-Public Access, WWDP-Evine Live, WLVI (CW), WSBK (MyTV), WGBX (PBS), WBIN (Ind.), WBPX (Ion), WMFP (Ind.), The Municipal Channel, Government Access, WFXT (FOX), WCEA (MasTV), WUNI (Univision), EWTN, C-SPAN, CatholicTV, POP, QVC, WYDN (Daystar), WUTF (UniMas), WNEU (Telemundo), Jewelry TV, XFINITY Latino, WGBH World, WGBH Kids, Trinity Broadcasting Network, WGBH Create, Leased Access, WBIN-Antenna TV, WBIN-GRIT TV, WNEU-Exitos, WLVI-BUZZR, WCVB (Me-TV), WFXT-MOVIES!, WHDH-This TV, WFXZ-CA, WUNI-LATV, WFXZ (Mundo Fox), WBZ-Decades, and WFXT-Laff TV + HBO. The package also qualifies the customer as an authenticated cable TV subscriber, making them eligible to view TV Everywhere services from many cable networks.

stream tv

Comcast is offering the first month of Stream TV for free with no commitment to its broadband customers subscribed to at least XFINITY Performance Internet (or above). Up to two simultaneous streams are allowed per account and some channels may not be available for viewing outside of the home. Comcast claims it will expand Stream TV to Comcast customers nationwide in 2016. Comcast will not be selling the service to customers of other cable or phone companies, limiting its potential competitive impact.

Competitors like Sling TV offer their own alternatives to bloated cable TV subscriptions at a similar lower price, and they will sell to anyone with a broadband connection. Sling alone is partly responsible for Comcast’s loss of hundreds of thousands of cable TV customers who don’t want to pay for hundreds of channels many never watch. That Comcast might want to launch its own alternative online video package to retain customers is not a surprise. But Comcast’s decision to exempt Stream TV from the company’s data caps while leaving them in place for competitors is sure to spark a firestorm of controversy.

comcast_remoteComcast claims it is reasonable to exempt Stream TV from its 300GB data cap being tested in a growing number of markets.

“Stream TV is a cable streaming service delivered over Comcast’s cable system, not over the Internet,” wrote Comcast in its FAQ. “Therefore, Stream TV data usage will not be counted towards your Xfinity Internet monthly data usage.”

More precisely, Comcast claims it relies on its own internal IP network to distribute Stream TV, not the external Internet competitors use to reach ex-Comcast cable TV subscribers. Comcast’s premise is it is less costly to deliver content over its own network while Internet traffic comes at a premium. Critics will argue Comcast has found an end run around Net Neutrality by relying on usage caps to influence customer behavior.

For the moment, Netflix is reserving comment after being contacted by Ars Technica. But Sling TV and other services that depend on Comcast’s broadband to reach customers will likely not remain silent for long.

Comcast could effectively deter consumers from using competing online video services with the threat of overlimit fees if customers exceed their usage allowance. The cable company could even use the fact its services don’t count against that allowance as a marketing strategy.

Stop the Cap! has warned our members about that prospect for years. Preferential treatment of certain content over others by playing games with usage caps and overlimit fees could have a major impact on emerging online video competition. Since Comcast owns both the broadband lines and the online video service, it can engage in anti-competitive price discrimination. Competitors will also argue that Comcast’s internal IP network is off-limits to them, making it impossible to deliver content on equal terms over a level playing field.

stream simple

The next move will likely come from the FCC in response to complaints from Comcast’s competitors. As Ars Technica notes, the Federal Communications Commission’s Net Neutrality rules allow for complaints against so-called zero-rating schemes, with the commission judging on a case-by-case basis whether a practice “unreasonably interferes” with the ability of consumers to reach content or the ability of content providers to reach consumers.

With Comcast’s usage caps and overlimit fees, the only reaching will be for your wallet. Consumers need not wait for Sling TV and others to complain to the FCC. You can also share your own views about Comcast’s usage caps by filing a complaint with the FCC here.

Verizon Wireless Giving Away Free GBs of Data to Those Who Ask

freegbSince Verizon Wireless stopped selling unlimited data plans and turned data into a precious commodity usually worth about $10 per gigabyte, the company can afford to give some of it away to their loyal customers.

This holiday season, Verizon Wireless is handing out up to 3GB of wireless data a month, but only to those who ask. As part of Verizon’s Thanksgiving promotion targeting holiday travelers, customers can get a free gigabyte for use immediately and another gigabyte to use next month just by clicking on a link. The offer can only be redeemed once per account on qualifying plans and is shared by all lines on an account.

Users who want even more free data can snag an extra 2GB a month for three months by downloading Verizon’s Go90 online video app (for iOS and Android) and registering for an account. Your confirmed registration will trigger an immediate gift of 2GB of wireless data for your current month’s data plan and an extra 2GB for the next three billing cycles as well. If Go90 proves uninteresting, you can uninstall it and still get free data during the length of the promotion.

This promotion is only good if you have a More Everything or Verizon Plan. It is not available if you use prepaid service, a different grandfathered plan, or do not keep your account in good standing. National and government accounts also do not qualify. Go90 videos are disabled for jailbroken or rooted devices, although you may still register and participate in the promotion if you use such a device.

Among Verizon’s other Thanksgiving promotions customers can grab on Wednesday, Nov. 25:

  • A free $5 iTunes Gift card while supplies last;
  • An unspecified number of free eBooks, music, movies, TV an app downloads from Amazon.com;
  • A free 30-day trial of Pandora One;
  • Up to $20 off a Lyft ride, where available;
  • Free airport Wi-Fi from Boingo;
  • Free 30-minute Gogo Wi-Fi session on select airlines.

Verizon’s website offers an option to send yourself a reminder to participate when the promotions become active next week.

Rogers Enables VoLTE Voice/Video Calling It Exempts from Its Own Usage Allowance

netneutralityIf you make a voice or video call over Rogers’ wireless network using Skype, you will chew into your monthly data plan. If you make the same phone call over Rogers’ Voice over LTE network, your data allowance is safe.

Rogers this week expanded VoLTE in Canada to iPhone 6 series phones, joining select Android devices that have had VoLTE service available as an option under phone settings for some time.

VoLTE relies on the same wireless LTE 4G network data sessions do, but Rogers has “zero-rated” voice and video calls made over its own phones so they do not count against a customer’s data plan allowance. Customers using a competing app like FaceTime or Skype are not so lucky — using either counts against your data plan.

rogers logoThat could suggest a potential Net Neutrality violation for one of Canada’s largest cellular providers because Section 27 (2) of the Telecommunications Act makes it clear unjust discrimination is illegal:

(2) No Canadian carrier shall, in relation to the provision of a telecommunications service or the charging of a rate for it, unjustly discriminate or give an undue or unreasonable preference toward any person, including itself, or subject any person to an undue or unreasonable disadvantage.

“It is the main ‘backbone’ behind implementation of Net Neutrality in Canada, along with the ITMP rules (2009-657),” said , who closely observes the Canadian Radio-Television and Telecommunications Commission, responsible for upholding Net Neutrality in the country. Mezei tweeted the CRTC this afternoon, asking who they thought would be the first to file a Net Neutrality complaint against Rogers for the practice.

Blue Ridge Communications Rations Internet Usage With Hard Usage Caps

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

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

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

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

Blue Ridge Communications is headquartered in Palmerton, Pa.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

heavy user

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

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

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

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

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

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

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

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



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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.

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


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.

Usage Caps & Market Power: AT&T Applies Overlimit Penalties to DSL, Not U-verse Customers


“Note: Enforcement of the 250GB data consumption threshold is currently suspended.” (Image: Houston Chronicle)

AT&T’s enforces usage caps with overlimit penalties on its slow speed DSL service while waiving overlimit fees for its higher speed U-verse Internet service.

In 2011, AT&T introduced a 150GB monthly data cap on its DSL customers and a 250GB cap on U-verse Internet access, promising an overlimit fee of $10 for each 50GB customers stray over their allowance. Since that time, although AT&T continues to claim all customers have a usage allowance, it only penalizes DSL customers with overlimit fees.

What makes one customer subject to a higher bill while another can use as much data as they like without penalty? Competition.

Stop the Cap! has found AT&T’s DSL customers are among those least favored by the phone company. Subjected to a data cap with penalty fees for exceeding the allowance is just one of the issues bothering customers like Sheila Rivers, who lives on Houston’s west side. Her Internet bill has gone up year after year no matter how much data she uses. Her phone line with DSL used to cost her around $45 a month. Last year, it increased to $65 and AT&T has now informed her they want another $10 a month, bringing her phone bill to almost $75 a month. As long as it hasn’t rained recently, she gets just under 6Mbps speeds from AT&T. This past spring her connection barely exceeded 2Mbps.

When Rivers complains about her bill, she is quickly offered U-verse at about half the price for faster speeds. She’d take advantage of the offer, except she can’t. AT&T’s engineers tell her there are “no more ports” open in her neighborhood at the moment.

That’s also true for Jim in downtown Chicago. He’s an AT&T DSL customer and not by choice. AT&T was supposed to upgrade his building to U-verse more than a year ago, but it still has not happened. Comcast has a record of delivering appallingly bad service in his building, judging from his neighbors who cannot stay connected to Comcast’s Internet service. That leaves him with AT&T DSL with that 150GB usage cap. He regularly pays $30 in overlimit fees every month for exceeding it.

“AT&T won’t budge on waiving the extra fees on DSL, unless I agree to sign up for U-verse and then they will issue me a courtesy credit,” Jim tells Stop the Cap! “I keep telling them ‘yes, please’ and around a day later I receive another call canceling my order because U-verse is not available in the building. It’s clear the DSL usage cap is supposed to convince people to switch to U-verse for a bigger allowance.”

uverse caps

(Image: Houston Chronicle)

Except AT&T has not enforced its 250GB usage allowance with overlimit fees anywhere we could find. In fact, customers tell us they are specifically exempted from any U-verse caps based on a message they see on AT&T’s usage measurement tool:

Note: Enforcement of the 250GB data consumption threshold is currently suspended.

This week, the Houston Chronicle’s TechBlog reports usage caps for U-verse have been suspended across the city of Houston. AT&T’s current reasoning for harshly enforcing caps on its DSL service while not enforcing them at all for U-verse customers was murky:

“We’re educating our customers on Internet usage, and we inform them if their usage might affect their monthly bill.”

So what is different about AT&T’s lower speed DSL service that presumably generates less traffic than its higher speed U-verse counterpart?

The answer seems to be competition.

AT&T has aggressively upgraded many of their urban and suburban service areas to U-verse. That upgrade alone does not mean the end of DSL for customers in an upgraded area, but AT&T has clearly embarked on an effort to convince customers to abandon older DSL service in favor of U-verse. In most cases this is accomplished with promotional pricing, dramatically reducing the cost of U-verse and convincing customers sticking with DSL is an expensive mistake.

AT&T also faces cable competition in nearly 100% of their U-verse service areas — competition that has raised broadband speeds and cut prices for new customers. If the competition offers faster Internet speeds with no usage cap, toughing it out with AT&T U-verse may seem unwise. Enforcing that 250GB cap would likely drive a number of customers to the competition.

In contrast, more rural and outer suburban communities are less likely to have a cable competitor and much more likely to qualify only for DSL because AT&T has not upgraded those areas to U-verse. That leaves AT&T with a monopoly, where customers have no other choices for service. It is very easy to enforce usage caps in these areas.

“It doesn’t make any sense that AT&T would cap me to 150GB on my DSL line and charge me overlimit fees for using too much when my next door neighbor with U-verse can use the Internet 24/7 and never be asked to pay anything extra for doing it,” Rivers said. “It rubbed me wrong enough to call Comcast, where I was offered more than 10 times faster service with cable TV thrown in for $15 less than what AT&T has been charging me and no usage caps for now at least. I can’t stand Comcast but AT&T is worse.”

Rivers thinks AT&T is making a big mistake having usage caps at all.

“That one issue just cost them my business after eight years with them.”

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