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Google Fiber Offering New $15 for 25Mbps Plan for Low Income Families in Kansas City

google fiber truckGoogle Fiber has quietly unveiled its own discount Internet plan for the income-challenged that vastly simplifies the hoops consumers have to successfully jump through to enroll.

Relying on Census block and FCC broadband availability data, Google proposes to sell residents of Kansas City living in areas identified as having a sustained digital divide a 25Mbps Internet plan for $15 a month. The new plan is accompanied by totally free connections and service for residents of select subsidized housing — mostly apartment buildings.

The new service offerings will replace Google’s 5Mbps free service option, which was dropped from Google Fiber’s menu this week. Google previously charged residents a $300 installation fee to qualify for free service which proved to be an insurmountable challenge for many paycheck-to-paycheck residents who did not realize Google would also accept $10 monthly installments for 30 months.

The choice of 25Mbps happens to coincide with the FCC’s official minimum speed designation to qualify as “broadband.” Google hopes the low-priced broadband option will inspire residents living in broadband-sparse neighborhoods to sign up for service. Currently, most low-income residents not subscribed to fixed broadband rely on their cell phones for Internet access. Google makes its money providing search results and accompanying contextual advertising, and home broadband service remains an important part of Google’s ad revenue stream.

Google’s plan avoids the intrusive qualification requirements most phone and cable companies insist on to receive discounted Internet service. Comcast, among others, demands evidence of school-age children enrolled in the federal school lunch program, and forbids participation to current customers who manage to already scrape together enough to pay for broadband service. Google’s plan relies on a potential customer’s location and avoids income tests and paperwork, opening its program to childless couples, young singles, and seniors.

Google’s $15 Broadband plan features:

  • $15 a month
  • 25Mbps upload and download speeds
  • No data caps
  • No application process or contracts
  • No equipment rental and no construction or installation fees

Residents of Kansas City can determine their eligibility on or after May 19, 2016 on this website.

Attacks on Tennessee’s EPB Municipal Broadband Fall Flat in Light of Facts

latinos for tnThe worst enemy of some advocacy groups writing guest editorial hit pieces against municipal broadband is: facts.

Raul Lopez is the founder and executive director for Latinos for Tennessee, a 501C advocacy group that reported $0 in assets, $0 in income, and is not required to file a Form 990 with the Internal Revenue Service as of 2014. Lopez claims the group is dedicated to providing “Latinos in Tennessee with information and resources grounded on faith, family and freedom.”

But his views on telecom issues are grounded in AT&T and Comcast’s tiresome and false talking points about publicly owned broadband. His “opinion piece” in the Knoxville News Sentinel was almost entirely fact-free:

It is not the role of the government to use taxpayer resources to compete with private industry. Government is highly inefficient — usually creating an inferior product at a higher price — and is always slower to respond to market changes. Do we really want government providing our Internet service? Government-run health care hasn’t worked so well, so why would we promote government-run Internet?

Phillip Dampier: Corporate talking point nonsense regurgitated by Mr. Lopez isn't for the good of anyone.

Phillip Dampier: Corporate talking point nonsense regurgitated by Mr. Lopez isn’t for the good of anyone.

Lopez’s claim that only private providers are good at identifying what customers want falls to pieces when we’re talking about AT&T and Comcast. Public utility EPB was the first to deliver gigabit fiber to the home service in Chattanooga, first to deliver honest everyday pricing, still offers unlimited service without data caps and usage billing that customers despise, and has a customer approval and reliability rating Comcast and AT&T can only dream about.

Do the people of Chattanooga want “the government” (EPB is actually a public utility) to provide Internet service? Apparently so. Last fall, EPB achieved the status of being the #1 telecom provider in Chattanooga, with nearly half of all households EPB serves signed up for at least one EPB service — TV, broadband, or phone service. Comcast used to be #1 until real competition arrived. That “paragon of virtue’s” biggest private sector innovation of late? Rolling out its 300GB usage cap (with overlimit fees) in Chattanooga. That’s the same cap that inspired more than 13,000 Americans to file written complaints with the FCC about Comcast’s broadband pricing practices. EPB advertises no such data caps and has delivered the service residents actually want. Lopez calls that “hurting competition in our state and putting vital services at risk.”

Remarkably, other so-called “small government” advocates (usually well-funded by the telecom industry) immediately began beating a drum for Big Government protectionism to stop EPB by pushing for a state law to ban or restrict publicly owned networks.

Lopez appears to be on board:

Our Legislature considered a bill this session that would repeal a state municipal broadband law that prohibits government-owned networks from expanding across their municipal borders. Thankfully, it failed in the House Business and Utilities Subcommittee, but it will undoubtedly be back again in future legislative sessions. The legislation is troubling because it will harm taxpayers and stifle private-sector competition and innovation.

Or more accurately, it will make sure Comcast and AT&T can ram usage caps and higher prices for worse service down the throats of Tennessee customers.

epb broadband prices

EPB’s broadband pricing. Higher discounts possible with bundling.

Lopez also plays fast and loose with the truth suggesting the Obama Administration handed EPB a $111.7 million federal grant to compete with Comcast and AT&T. In reality, that grant was for EPB to build a smart grid for its electricity network. That fiber-based grid is estimated to have avoided 124.7 million customer minutes of interruptions by better detection of power faults and better methods of rerouting power to restore service more quickly than in the past.

EPB provides municipal power, broadband, television, and telephone service for residents in Chattanooga, Tennessee

EPB provides municipal power, broadband, television, and telephone service for residents in Chattanooga, Tennessee

Public utilities can run smart grids and not sell television, broadband, and phone service, leaving that fiber network underutilized. EPB decided it could put that network to good use, and a recent study by University of Tennessee economist Bento Lobo found EPB’s fiber services helped generate between 2,800 and 5,200 new jobs and added $865.3 million to $1.3 billion to the local economy. That translates into $2,832-$3,762 per Hamilton County resident. That’s quite a return on a $111.7 million investment that was originally intended just to help keep the lights on.

So EPB’s presence in Chattanooga has not harmed taxpayers and has not driven either of its two largest competitors out of the city.

Lopez then wanders into an equally ridiculous premise – that minority communities want mobile Internet access, not the fiber to the home service EPB offers:

Not all consumers access the Internet the same way. According to the Pew Research Center, Hispanics and African-Americans are more likely to rely on mobile broadband than traditional wire-line service. Indeed, minority communities are even more likely than the population as a whole to use their smartphones to apply for jobs online.

[…] Additionally, just like people are getting rid of basic at-home telephone service, Americans, especially minorities, are getting rid of at-home broadband. In 2013, 70 percent of Americans had broadband at home. Just two years later, only 67 percent did. The decline was true across almost the entire demographic board, regardless of race, income category, education level or location. Indeed, in 2013, 16 percent of Hispanics said they relied only on their smartphones for Internet access, and by 2015 that figure was up to 23 percent.

That drop in at-home broadband isn’t because fewer Americans have access to wireless broadband, it’s because more are moving to a wireless-only model. The bureaucracy of government has trouble adapting to changes like these, which is why government-owned broadband systems are often technologically out of date before they’re finished.

But Lopez ignores a key finding of Pew’s research:

In some form, cost is the chief reason that non-adopters cite when permitted to identify more than one reason they do not have a home high-speed subscription. Overall, 66% of non-adopters point toward either the monthly service fee or the cost of the computer as a barrier to adoption.

What community broadband provides communities the big phone and cable companies don't.

So it isn’t that customers want to exclusively access Internet services over a smartphone, they don’t have much of a choice at the prices providers like Comcast and AT&T charge. Wireless-only broadband is also typically usage capped and so expensive that average families with both wired broadband and a smartphone still do most of their data-intensive usage from home or over Wi-Fi to protect their usage allowance.

EPB runs a true fiber to the home network, Comcast runs a hybrid fiber-coax network, and AT&T mostly relies on a hybrid fiber-copper phone wire network. Comcast and AT&T are technically out of date, not EPB.

Not one of Lopez’s arguments has withstood the scrutiny of checking his claims against the facts, and here is another fact-finding failure on his part:

Top EPB officials argue that residents in Bradley County are clambering for EPB-offered Internet service, but the truth is Bradley County is already served by multiple private Internet service providers. Indeed, statewide only 215,000 Tennesseans, or approximately 4 percent, don’t have broadband access. We must find ways to address the needs of those residents, but that’s not what this bill would do. This bill would promote government providers over private providers, harming taxpayers and consumers along the way.

Outlined section shows Bradley County, Tenn., east of Chattanooga.

Outlined section shows Bradley County, Tenn., east of Chattanooga.

The Chattanoogan reported it far differently, talking with residents and local elected officials on the ground in the broadband-challenged county:

The legislation would remove territorial restrictions and provide the clearest path possible for EPB to serve customers and for customers to receive high-speed internet.

State Rep. Dan Howell, the former executive assistant to the county mayor of Bradley County, was in attendance and called broadband a “necessity” as he offered his full support to helping EPB, as did Tennessee State Senator Todd Gardenhire.

“We can finally get something done,” Senator Gardenhire said. “The major carriers, Charter, Comcast and AT&T, have an exclusive right to the area and they haven’t done anything about it.”

So while EPB’s proposed expansion threatened Comcast and AT&T sufficiently to bring out their lobbyists demanding a ban on such expansions in the state legislature, neither company has specific plans to offer service to unserved locations in the area. Only EPB has shown interest in expansion, and without taxpayer funds.

The facts just don’t tell the same story Lopez, AT&T, and Comcast tell and would like you to believe. EPB has demonstrated it is the best provider in Chattanooga, provides service customers want at a fair price, and represents the interests of the community, not Wall Street and investors Comcast and AT&T listen to almost exclusively. Lopez would do a better job for his group’s membership by telling the truth and not redistributing stale, disproven Big Telecom talking points.

Usage Caps/Metered Billing Has a New Name: the Usage Economy

Phillip Dampier March 9, 2016 Editorial & Site News, Internet Overcharging 1 Comment

LogiSenseWhen reviewing your latest Comcast cable bill with overlimit fees on it (or a $30-35 upcharge to buy their insurance plan to keep extra fees off your bill), did you realize you are part of the Usage Economy?

With some Internet Service Providers and most wireless companies rushing to monetize your Internet usage (while also jacking up the price of service), a cottage industry of software and engineering “solutions”-developers have emerged to grab a piece of Monetize Pie.

This week LogiSense Corporation celebrated itself for another deployment of its EngageIP usage and rating platform. Granted, many of its customers are using it for business class services, but we enjoyed the word salad LogiSense created about the future of usage monetizing schemes that too often effectively gouge customers:

LogiSense enables enterprises to power the Usage Economy: The dynamic convergence of subscription- and usage-based billing models, allowing service providers to monetize in real-time any triggered event in the connected world to gain significant competitive advantages. Today’s usage economy is a highly complex environment with a matrixed ecosystem of consumers and providers generating transactions that require metering, measurement and monetization. EngageIP’s real-time rating, charging, billing and customer care capabilities enable providers to monetize any subscription, over any medium and from any provider. The system transforms clients’ business practices by empowering rapid turn up of new services, enabling innovation and new revenue streams thus ensuring longevity and relevance in a rapidly evolving market.

FCC Chairman Proposes Expanding Lifeline to Include Broadband

Phillip Dampier March 8, 2016 Consumer News, Public Policy & Gov't 2 Comments
universal service

The Universal Service Fund is funded by telephone ratepayers. (Image: Free Press)

A $9.25 a month subsidy to allow low income Americans to get basic telephone service would be expanded to include broadband service if a majority of FCC commissioners adopt changes proposed today to the Lifeline program.

A draft plan to expand the 30-year old Lifeline federal subsidy intended originally for landlines to include Internet access was released this morning by FCC chairman Thomas Wheeler and Commissioner Mignon Clyburn. Under the proposal, those eligible for federal aid programs like Medicaid will qualify for a discount, which can be applied to a landline, mobile phone, or broadband service.

“Internet access has become a prerequisite for full participation in our economy and our society, but nearly one in five Americans is still not benefiting from the opportunities made possible by the most powerful and pervasive platform in history,” Wheeler and Clyburn wrote in a joint blog post. “Internet access has become a pre-requisite for full participation in our economy and our society, but nearly one in five Americans is still not benefiting from the opportunities made possible by the most powerful and pervasive platform in history. […]By modernizing the FCC’s Lifeline program, we will do better.”

Republicans immediately pounced on the proposed program, claiming past experiences with waste, fraud, and abuse in FCC programs for the poor have already cost ratepayers a great deal of money subsidizing unqualified consumers with multiple landlines and cell phones. They propose not expanding the program further until more safeguards were put in place to prevent more fraud.

Wheeler

Wheeler

Wheeler and Clyburn appeared ready for that objection, noting the plan would set up an independent clearinghouse to manage customers’ eligibility and approval, removing that responsibility from providers that critics charge have a vested interest in approving as many new customers as possible.

But some still object to the plan, noting Lifeline’s original purpose has been dramatically altered since it was first conceived in 1985 as a program to guarantee low-cost landline service for poor Americans, and efforts to justify its relevance by expanding it to include cell phones allowed fraudsters to game the system.

After the Bush Administration approved a plan to expand Lifeline to include wireless phone subsidies, providers sprung up almost immediately offering free or low-cost cell service using a business plan based entirely around the federal subsidy. Many providers signed up customers later found to be ineligible for service because they already received subsidized landline or mobile service from another provider. Getting rid of duplicate or ineligible accounts took almost four years in some cases.

Today, about 12 million American households receive the $9.25 subsidy. Federal officials estimate up to five million more households will eventually apply for the broadband subsidy, which would boost the Lifeline budget from $1.5 billion to $2.25 billion. The program is funded by telephone ratepayers, as part of the Universal Service Fund surcharge on consumers’ phone bills. For Mr. Wheeler and Ms. Clyburn, the cost is well worth it.

“We can recite statistics all we want, but we must never lose sight of the fact that what we’re really talking about is people – unemployed workers who miss out on jobs that are only listed online, students who go to fast-food restaurants to use the Wi-Fi hotspots to do homework, veterans who are unable to apply for their hard-earned benefits, seniors who can’t look up health information when they get sick,” the two FCC officials wrote.

As a practical matter, the $9.25 subsidy would likely most benefit customers enrolled in voluntary Internet discount programs offered by some cable and telephone companies, often at prices ranging from $9.95-$15 a month. Some skeptics believe the program will prove of limited benefit where Internet service costs $40+ a month. The cost of service is the biggest barrier for low-income Americans. The FCC estimates fewer than half of households with incomes less than $25,000 annually have Internet access at home. Reducing the bill to $30 a month may not be enough.

The proposal is expected to win approval on a future party line vote at the FCC — three Democrats in favor, two Republicans opposed.

Why Satellite Fraudband Still Sucks: Low Caps, Throttled Speeds, Almost-Useless Service

exedeDespite claims satellite broadband has improved, our readers respectfully disagree:

“Most people don’t know what data caps really are until they’ve had satellite based Internet service where the bandwidth is shared,” Scott S. reminds Stop the Cap! He’s a subscriber of Exede, a satellite broadband provider powered by the ViaSat satellite platform serving about 687,000 residential customers nationwide.

Online life can be a lot worse when you are stuck with satellite-based Internet access:

  • “I am only allowed to have 10GB per month total for everything and have a 12/3Mbps service. Anything over that and they either cap your flow or give you substantially lower bandwidth speed.
  • “You can’t go online with more than three devices (including your phones).
  • “You can forget Netflix or watching any shows online.
  • “You can forget playing ANY video games online.
  • “You can forget taking any college courses online without service interruptions (which I am).”

“And they still charge you as much as other ISPs do (at least $60/month) that provide no data caps and a MUCH faster speed,” Scott writes.

Exede offers most customers plans with 10, 18, or 30GB of usage per month. About one-third of the country, typically the most rural regions in the western U.S., can now choose faster plans at speeds nearing 25Mbps because those spot beams are underutilized. But most subscribers get considerably poorer service because about two-thirds of ViaSat’s residential satellite access beams are full. Despite that, Viasat still managed to find capacity to power in-flight Wi-Fi on JetBlue, Virgin America and some United Airlines aircraft.

Customers who have never had DSL or cable broadband tolerate the slow speeds and low caps better than those that move from an area served by a wired provider. Many of those customers call satellite broadband speed marketing claims “fraudulent” and complain low usage caps make it difficult to impossible to use the Internet to use multimedia content.

 

Seven States Face End to Their Internet-Related Taxes by 2020

Phillip Dampier February 2, 2016 Consumer News, Public Policy & Gov't 1 Comment

itfaSeven states that adopted Internet access taxes prior to 1998 and have continued them grandfathered under the Internet Tax Freedom Act (ITFA) may be required to phase them out by June 2020, leaving no states allowed to tax online access.

Congress is considering an extension of the ITFA this week because if they don’t, it is scheduled to expire on Friday. The law prohibits state and local jurisdictions from imposing telecommunications taxes on Internet services, which come predominately from charging state/local sales tax on Internet access.

Internet-related taxes are still collected by many jurisdictions in Hawaii, New Mexico, North Dakota, Ohio, South Dakota, Texas and Wisconsin because those states successfully won exemptions from the law. All were collecting sales and other taxes before the bill’s passage in 1998.

“This week, long-time proponents of making ITFA permanent attached a permanent extension to an unrelated measure covering federal customs and border protection,” wrote Michael Mazerov, a senior fellow at the Center on Budget and Policy Priorities. “The legislation also would repeal the grandfather clause [allowing those seven states to continue taxes] in 2020. Repeal would deprive these seven states of several hundred million dollars in annual revenue. ”

Most consumers in these states find the tax on their phone, cable, and wireless bills either from sales tax or a telecommunications tax on their Internet access or data plan.

Congress can either extend the provisions of the ITFA or let it expire without action later this week.

California Public Hearing on Charter-Time Warner Cable Merger is Tonight; Stop the Cap! Will Be There

cpucCalifornians will have their chance to speak out about the proposed merger of Charter Communications and Time Warner Cable at a public hearing in Los Angeles tonight before an administrative law judge working for the California Public Utilities Commission (CPUC).

California will be the last major state capable of killing the transaction should the CPUC reject the merger on the grounds of it not being in the public interest. New York regulators approved the merger, but only with a lengthy list of conditions designed to improve service for New York residents.

Stop the Cap! will be represented at the hearing tonight by Matt Friedman, who will help us improve our vigilance of cable and phone companies serving the west coast. Friedman has done an incredible job exposing the sham of usage caps and compulsory usage-based pricing in his written testimony, which will be published here after being filed with the CPUC. As with most CPUC public hearings, we expect speakers will only be given a few minutes at most to state their views on the merger. As we did in New York, Stop the Cap! will oppose it on the grounds it is not in the public interest.

charter twcWe remain suspicious about Charter’s commitment to not impose usage caps or usage pricing for only three years. Most consumers will not see much of a change in the broadband marketplace over the next few years. Charter can afford to wait 36 short months before potentially slapping on usage caps/billing — after winning additional regulatory approval to buy out even more companies. While the CEO of Time Warner Cable will walk away with over $100 million in golden parachute benefits if he successfully sells Time Warner Cable, we anticipate most customers will win a higher bill.

Friedman will share our ongoing concerns that Charter’s offer is less impressive than Time Warner Cable’s own Maxx upgrade initiative, which will deliver 300Mbps service for the price Time Warner Cable customers currently pay for 50Mbps. Time Warner Cable’s $14.99 budget Internet service is also on Charter’s chopping block, to be replaced with an entry-level tier offering 60Mbps for about $60 a month — four times more expensive. In short, the only honest reason to allow this deal to succeed is if we want to further enrich Time Warner Cable executives and shareholders while customers take all the risks of higher bills, worse service, and usage caps starting in 2019, with few if any other options.

Also planning to attend are Common Cause, Free Press, and the National Hispanic Media Coalition, which all argue allowing this deal to succeed sets up America for a national virtual duopoly between Comcast and Charter, with just two companies controlling the majority of broadband connections in the United States.

The CPUC could reject the merger outright or approve it, usually with conditions. While we remain opposed to the merger, should the CPUC ultimately make a different decision, we are advocating:

  • A ban on compulsory usage caps or usage pricing. An affordable, unlimited option broadband tier should always be available, at prices comparable to what consumers pay today for Internet service.
  • Charter should be forced to commit to upgrading its entire service area in California to an equal level of service offered by Time Warner Cable Maxx.
  • Charter should be required to keep Time Warner Cable’s affordable, no-contract/no-requirement $14.99 Everyday Low Price Internet plan and boost its speed.
  • Most-favored state status for California, automatically giving California consumers the benefits won from conditions imposed by regulators in other states.
  • …and other consumer-targeted service improvements.

If you are in Los Angeles and want to attend or possibly share your own views with the CPUC, the hearing is open to the public:

Location: Junipero Serra State Office Building – Auditorium (Carmel Room)  — 320 West 4th Street, Los Angeles
Time: The meeting starts at 6:00pm

Frontier Communications: New Logo, Same Old Service

Phillip Dampier January 11, 2016 Broadband Speed, Consumer News, Frontier 1 Comment

frontier

Frontier Communications is making a splash in 2016 with a new logo and a press release explaining it:

Frontier Communications Corporation today announced a new logo. The evolved look reflects a transformed typeface, a brighter color palette, and a reimagining of the arc to represent the transfer of data and the importance of connectivity. The logo also uses the name Frontier Communications, instead of just Frontier, to avoid confusion in the marketplace. Today’s launch comes as the 81-year-old company prepares to close a $10.54 billion acquisition of Verizon’s wireline, broadband and FiOS assets in California, Florida and Texas at the end of March.

“2016 is the year of transformation for Frontier,” said Cecilia McKenney, Executive Vice President and Chief Customer Officer, who oversees marketing for the company. “Our company is growing and expanding into new markets: the perfect time to showcase a new logo. We are also in the process of refining a brand promise to be unveiled upon the closing of the $10.54 billion acquisition from Verizon at the end of this quarter.”

Unfortunately, nothing was mentioned about using the new logo as an opportunity to commit to significantly better and faster DSL service for large parts of Frontier’s legacy service areas, still serviced by copper wire networks that are often incapable of delivering anything faster than 3Mbps service.

“A logo change will not bring me usable Internet service at night,” said Ralph Tennant whose wife has struggled with Frontier DSL in her office for years in West Virginia.

“We can either get usage-capped Internet from Suddenlink or unlimited and unusable Internet from Frontier,” said Tennant. “Two bad choices not made better by a pretty new logo.”

Time Warner Cable Quotes Rural Ky. Resident $410/Mo + 5 Yr. Contract for Broadband

green acresIf residents in rural Kentucky want Time Warner Cable to offer broadband service, they better be prepared to pay for it.

As Time Warner customers consider the company’s latest rate increases, which now include a $10 modem rental fee and an increasingly common $4.99 “Wi-Fi Fee” if you don’t use your own wireless router, there are other customers signing contracts for residential Internet service from Time Warner at prices as high as $410 a month.

Jack Prindle lives in the Big Bone community near Union, Ky., — close enough to Cincinnati to be a suburb, but rural enough to be bypassed for broadband. Two dozen of his neighbors live along a nine-tenths of a mile stretch of Big Bone Church Road, which isn’t exactly a priority for Time Warner Cable. The families have spent a decade trying to entice anyone to offer broadband Internet access. Insight Communications (Time Warner’s predecessor) and Cincinnati Bell have never shown much interest. Time Warner Cable, however, has been engaged in a type of cat and mouse game, offering service at ever-escalating prices only to change its mind at the last minute.

“Within the last year, I have signed contracts with Time Warner for Internet service starting at $300 a month, with a three-year contract, only to have them come back and raise it to $350 for five years, and then $410 a month with a commitment of five years,” Prindle wrote in the Community Recorder. “Then only to be told a month later they were not going to provide Internet. Others of the 24 have similar bizarre stories concerning Time Warner and Cincinnati Bell.”

“Prindle’s story is an example of what is wrong with rural broadband in the United States,” writes Cynthia Rawley, who shared the story with Stop the Cap! “Unchecked cable and phone companies get federal dollars and the benefit of a fake broadband map that has no relationship to reality, leaving many to believe there is no rural broadband problem to solve. But there is.”

Union, Ky.

Union, Ky.

Rawley points out the FCC’s official National Broadband Map shows the two dozen homes around Prindle are all provided 5-50Mbps broadband service by both Time Warner Cable and Cincinnati Bell, despite the fact neither offers any broadband service to anyone in the vicinity.

“Boone County Judge-executive Gary Moore wrote to inform the FCC of this error and failed to get a response,” Prindle noted. What bothers him even more is his tax dollars have paid to subsidize rural Internet service he cannot get at any price.

“Some basic research reveals that Time Warner has received millions of taxpayer dollars to provide broadband Internet in rural areas,” Prindle notes. “The commonwealth of Kentucky has given over $100 million to Internet providers alone to provide broadband Internet in rural areas alone. Opensecrets.org reports that Time Warner spent $4,950,000 in lobbying efforts of federal, state, and local governments in 2015. With this amount of money changing hands, the conspiracy theorists among us see a 20/20 episode coming.”

Prindle better have his rabbit ears ready to watch, because at the rate providers are not expanding rural broadband, he will have a long wait before being able to watch that 20/20 episode online.

The Peaceful War Against Comcast’s Data Caps: Don’t Like ‘Em? Get Off Your Butt

Licensed to print money

Licensed to print money

In 2008, Stop the Cap! was launched because the telephone company that serves our hometown of Rochester, N.Y., decided on a whim that it was appropriate to introduce a usage allowance of 5GB per month for their DSL customers. Frontier Communications CEO-at-the-time Maggie Wilderotter defended the idea with the usual claim that the included allowance was more than enough for the majority of Frontier customers. DSL customers already have to endure a lot of issues with Internet service and data caps should certainly not be one of them.

Stop the Cap! drew media attention and focus on the issue of data capping, organized customers for a coordinated pushback, and sufficiently hassled Frontier enough to get them to make the right decision for their customers by quietly rescinding the “allowances.”

As it would turn out, Frontier’s correct decision to suspend usage caps would prove an asset to them less than one year later when Time Warner Cable made it known it would trial its own usage caps in Austin and San Antonio, Tex., Greensboro, N.C., and yes… Rochester, N.Y. starting in the summer of 2009.

Time Warner Cable was slightly more generous with its arbitrary allowance — 40GB of usage for $55 a month. Customers already paying a lot for Internet access would now also have an arbitrary usage allowance and overlimit penalty fees with no service improvements in sight. Frontier’s decision the year before to rescind data caps played to their advantage and the company quickly launched advertising in Rochester attacking Time Warner Cable for its data caps, inviting customers to switch to cap-free Internet with Frontier.

Data caps are here!

Data caps are here!

Time Warner Cable’s experiment lasted less than two weeks and was permanently shelved, never to return. Four years later, Comcast began its own usage cap trial that not only continues to this day, but has expanded to cover more than 1,000 zip codes. Capped service areas typically live with a 300GB usage allowance with an overlimit fee of $10 per 50GB.

Yesterday at the investor-oriented UBS Global Media and Communications Brokers Conference, Comcast chief financial officer Mike Cavanagh assured Wall Street and shareholders Comcast’s desire to boost revenue from monetizing broadband usage remained an “important contributor” to the company’ goal of “demonstrat[ing] value and derive value from that pricing.”

Cavanagh said the company is using the line ‘heavy users should pay more’ to justify its caps.

“It’s been an experiment that we are using that the key data point behind it is kind of intuitive – ‘10% of our client base uses 50% of capacity.'”

While not ready to announce Comcast’s cap plan would be introduced nationwide, Cavanagh assured investors the experiments will continue as Comcast makes sure that over time it is “compensated for the investments that today’s marketplace requires us to make.”

The difference that makes it possible for Comcast to carry its usage cap experiments forward while Time Warner Cable had to quickly end theirs comes down to one thing: organized customer pushback. Time Warner Cable got heat from relentless, organized opposition in the four cities where caps mattered the most to consumers. Comcast, for the most part, is getting about as much heat as it usually does from customers. It’s time to turn the heat up.

protest

In fighting this battle for the last seven years, I can share with readers what works to force change and what doesn’t:

In 2009, Time Warner Cable faced protesters opposed to usage limits at this rally in front of the company's headquarters in Rochester, N.Y.

In 2009, Time Warner Cable faced protesters opposed to usage limits at this rally in front of the company’s headquarters in Rochester, N.Y.

Generally Useless

  • Complaining about usage caps in the comment sections of websites;
  • Signing online petitions;

Impotent But Potentially Useful in Large Numbers

  • Calling the provider to complain about usage caps;
  • Complaining about usage caps to a provider’s social media team (Facebook, Twitter, etc.);
  • Writing complaints on a company’s open support forum;

Useful, But Unlikely to Bring Immediate Results

  • Writing a letter or making a call complaining to elected officials about usage caps;
  • Advocating for more competition, especially from public/municipal broadband;
  • Filing formal complaints with the FCC and Better Business Bureau;
  • Complaining to state telecom regulators and your state Attorney General (they have no direct authority but can attract political attention);
  • Canceling or downgrading service, blaming usage caps for your decision.

Gasoline on a Lit Fire

  • Organizing a protest in front of the local cable office, with local media given at least a day’s notice and invited to attend;
  • Contacting local newsrooms and asking them to write or air stories about usage caps, offering yourself as an interview subject;
  • Sending local press clippings or links to media coverage to your member of Congress and two senators. Suggest another media-friendly event and invite the elected official to attend and speak, which in turn generates even more media interest.
In 2009, Time Warner Cable planned to implement mandatory usage pricing starting in Rochester, N.Y., Greensboro, N.C., and San Antonio and Austin, Tex.

In 2009, Time Warner Cable planned to implement mandatory usage pricing starting in Rochester, N.Y., Greensboro, N.C., and San Antonio and Austin, Tex.

In the battle with Time Warner Cable, we did all the above, but especially the latter, which quickly spun the story out of control of company officials sent to distribute propaganda about usage cap “fairness” and “generous” allowances. We were so relentless, we managed to get under the skin of at least one company spokesperson caught on camera being testy in an on-air interview, which backfired on the company and angered customers even more.

In the case of Comcast, very few of these techniques have been used in the fight against their endless data cap experiment. Customers seem satisfied writing angry comments and signing online petitions. Some have filed complaints with the FCC which are useful measures of hot button issues on which the FCC may act in the last year of the Obama Administration. But there is no detectable organized opposition on the ground to Comcast’s data caps. That may explain why Comcast’s CEO has repeatedly told investors your reactions to Comcast’s caps have been “neutral to slightly positive.” Many Wall Street analysts obviously believe that, because some are advocating the time is right to raise broadband prices even higher. After all, if your reaction to data caps was muted, raising the price another $5 a month probably won’t cost you as a customer either.

It would be very different if these analysts saw regular news reports of small groups of angry customers protesting in front of Comcast offices in different areas of the country. That would likely trigger questions about whether broadband pricing has gotten out of hand. Coverage like that often attracts politicians, who cannot lose opposing a cable company. Once Congress gets interested, the fear regulation might be coming next is usually enough to get companies to pull back and reconsider.

comcast sucksIf you are living with a Comcast data cap and want to see it gone, you can do something about it. Consider organizing your own local movement by tapping fellow angry customers and recruiting local activist groups to the cause. In Rochester, there was no shortage of angry college students and groups ready to protest. Google local progressive political groups, technology clubs, and technology-dependent organizations in your immediate area. Some are likely to be a good resource for building effective public protests, sign-making, and other TV-friendly protest techniques. Contact town governments, the mayor’s office of your city, technology-oriented newspaper columnists, radio talk show/computer support show hosts, etc., to build a mailing list for coordinated announcements about your efforts. Many local officials also oppose data caps.

If a local news reporter has covered tech or consumer issues in the past, many station websites now offer direct e-mail options to reach that reporter. If you give them a good TV-friendly story to cover, they will be back for more coverage as your local protest grows. We helped coordinate and share news about efforts against Time Warner in the cities that were subject to experiments, which also gave us advance notice of their talking points and an ability to offer a consistent response. Several stations carried multiple stories about the cap issue, supported by calls to TV newsrooms to thank them for their coverage and to encourage more.

We realize Comcast’s responsiveness to customers is so atrocious it approaches criminal, but Comcast does respond to Wall Street and shareholders who do not want the company under threat of fact-finding hearings, FCC regulatory action, or Congressional attention. They also don’t want any talk of municipal broadband alternatives. Sidewalk protests in front of the local cable office on the 6 o’clock news is a nightmare.

In the end, Time Warner Cable didn’t want the hassle and got the message — customers despise data caps and want nothing to do with them. Time Warner hasn’t tried compulsory usage caps again. If you want Comcast to get the same message, those living inside Comcast service areas (especially customers) need to lead the charge in their respective communities. We remain willing to help.

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