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Altice Speeds Up Cablevision While Suddenlink Stays Capped

atice-cablevisionAltice USA today unveiled faster broadband service for Cablevision customers in the Tri-State Area of New York, New Jersey, and Connecticut. You can now subscribe to faster service plans topping out at 300Mbps for residential customers and 350Mbps for commercial accounts.

Altice was required to boost internet speeds in New York State as part of winning approval for the buyout of Cablevision from the state’s Department of Public Service (formerly the Public Service Commission). But customers in New Jersey and Connecticut will also benefit.

New Internet Services
(bundling TV and phone service can reduce these prices and customers may need to call 1-888-298-9771 to change service if grandfathered on older plans):

Optimum Online (25/5Mbps) $59.95
Additional Modem(s) $49.95 each
Optimum 60 add $4.95
Optimum 100 add $10.00
Optimum 200 add $20.00
Optimum 300 add $55.00

Prior to the upgrade, the fastest speed most customers could get from Cablevision was 101Mbps. Based on pricing, the best value for money is the 200Mbps plan if you are looking for faster service. A $55 charge monthly charge for 300Mbps is $35 more than the logical rate step between lower speed tiers. Standalone customers would effectively pay $114.95 a month for 300Mbps vs. $79.95 for 200Mbps.

Altice has achieved the internet speed requirement imposed by New York regulators more than a year ahead of schedule. The same cannot be said for Charter Communications, which has canceled Time Warner Cable Maxx upgrades that were already underway in former Time Warner service areas. Customers may have to wait until 2019 in New York (later elsewhere) for Charter to upgrade all of its service areas to support 300Mbps. Altice’s other owned-and-operated cable operator – Suddenlink Communications, is also still laboring to boost broadband speeds and has left usage caps and usage billing in place for its customers in mostly smaller cities across the United States.

Average Broadband Usage Reaches Cap-Bustin’ 190GB a Month

online-videoThe average American broadband-equipped household now uses 190GB a month, more than 95% of which is online video, according to a new report from iGR Research.

The detailed 125-page study of broadband speeds and usage, priced at $1,950, included some surprising changes in usage patterns.

In the past, as consumers upgraded their broadband plan to get faster speeds, their corresponding usage also increased. But iGR Research found that trend is no longer true as speed increases accelerate.

Iain Gillott, president of iGR Research, noted households with higher-speed connections don’t necessarily consume more data than those with lower-speed connections. Once broadband speeds achieve a rate fast enough to support high quality online video, further speed increases don’t always result in substantially higher consumption.

Gillott pointed out his own family recently upgraded to a 200Mbps connection and found little change in their monthly usage. That could be a problem for internet providers that cap customer usage while blaming increased demand.

“If we download a movie, it used to take 20 minutes to get HD. Now it takes three,” Gillott told Telecompetitor. “But it doesn’t mean we use any more data; it’s just that it took longer.”

Gillott noted customers upgrading from a slow speed DSL connection are another matter. Because DSL may only be able to support one or two concurrent video streams, many customers intentionally limited their simultaneous use of the internet to maintain usability. But once speeds increase to manage online video demands, usage often increases.

The report, U.S. Home Broadband and Wi-Fi Usage Forecast, 2015-2020, does forecast advancements in online video are likely to drive usage substantially higher than the current broadband allowances offered by many providers. The growth in 4K video alone could spike usage to as much as 500GB a month.

“What drives usage is more high-definition [content],” commented Gillott. “It doubles the amount of data used.”

Online video is driving almost all the usage growth in the United States. Gillott points to a cultural change in how television programming is being viewed in the United States. In short, fewer people are sharing time together watching the same show. Today, many people watch their own shows on their own devices.

“TV has become a personal activity,” said Gillott. “If you have four people in a household now, that means four times the data going in.”

Want 100Mbps from Charter? Fork Over $200 for Activation/Upgrade Fee

charter-spectrumStop the Cap! reader Gabe, a Time Warner Cable customer, recently decided to upgrade his service to Charter’s fastest internet plan in his area — Ultra/100Mbps. That upgrade stopped dead in its tracks when Charter Communications informed him there is a mandatory $200 “activation” fee for customers selecting 100Mbps service.

We learned this upgrade fee is not new for Charter Communications’ existing customers. First implemented in 2012, Charter Communications claims the activation fee is set at a level commensurate with the value of having premium speed service.

“Ultra is a premium service which results in higher incremental network investments, equipment costs, and other operating expenses,” Charter Communications wrote in 2012. “In an effort to maintain reasonable monthly recurring service fees, we have implemented a higher installation fee for Ultra customers.”

We’ve taken a look to see if this fee can be waived and we found no instance where customers can avoid it. However, customers signing up for business service, which costs about the same as residential service, can subscribe to 100Mbps and face a $99 installation fee instead of $200 in most areas.

AT&T to Urban Poor: No Discounted Internet Access if We Already Deliver Lousy Service

access att logoAT&T is adding insult to injury by telling tens of thousands of eligible urban households they do not qualify for the company’s new low-cost internet access program because the company cannot deliver at least 3Mbps DSL in their service-neglected neighborhood.

In one of the worst cases of redlining we have ever seen, AT&T is doubling down on making sure urban neighborhoods cannot get online with affordable internet access, first by refusing to upgrade large sections of income-challenged neighborhoods and then by refusing requests from those seeking the low-cost internet service the government required AT&T to provide as a condition of its merger with DirecTV.

The National Digital Inclusion Alliance reports their affiliates have run into serious problems helping AT&T customers sign up for Access from AT&T, the company’s new discounted internet access program open to users of the Federal Supplemental Nutrition Assistance Program (SNAP) — the modern-day equivalent of food stamps. Participants are supposed to receive 3Mbps DSL for $5 a month or 5-10Mbps for $10 a month (speed dependent on line quality).

“As some NDIA affiliates in AT&T’s service area geared up to help SNAP participants apply for Access in May and June, they found that a significant number were being told the program was unavailable at their addresses,” NDIA reported. “Some of those households had recent histories of AT&T internet service or had next door neighbors with current accounts. So, why were they being told AT&T did not serve their addresses?”

It turns out AT&T established an arbitrary threshold that requires participating households to receive a minimum of 3Mbps at their current address. But AT&T’s urban neighborhood infrastructure is so poor, a significant percentage of customers cannot receive DSL service faster than 1.5Mbps from AT&T. In fact, data from the FCC showed about 21% of Census blocks in the cities of Detroit and Cleveland — mostly in inner-city, income-challenged neighborhoods — still cannot manage better than 1.5Mbps DSL.

Remarkably, although these residents cannot qualify for discounted internet service, AT&T will still sell them 1.5Mbps DSL service… for full price. AT&T even admits this on their website:

access att

“If none of the above speeds are technically available at your address, unfortunately you won’t be able to participate in the Access program from AT&T at this time. However, other AT&T internet services may be available at your address.”

“About two months ago, NDIA contacted senior management at AT&T and proposed a change in the program to allow SNAP participants living at addresses with 1.5 Mbps to qualify for Access service at $5/mo,” NDIA wrote. “Yes, we know we were asking for the minimum speed to be lower than it should be, but paying $5/mo is better than paying full price and in many neighborhoods, both urban and rural, Access is the only low-cost broadband service option. I’m sorry to report that, after considering NDIA’s proposal for over a month, AT&T said no.”

“AT&T is not prepared to expand the low-income offer to additional speed tiers beyond those established as a condition of the merger approval,” is the official response of AT&T, leaving tens of thousands of AT&T customers unlucky enough to be victims of AT&T’s network neglect and underinvestment out in the cold.

Slowsville: These Cleveland neighborhoods marked in red cannot get anything faster than 1.5MBps DSL from AT&T.

Slowsville: These Cleveland neighborhoods marked in red cannot get anything faster than 1.5MBps DSL from AT&T.

Internet access is not just a problem in rural America. Urban neighborhoods are frequently bypassed for network upgrades because there is a sense residents cannot afford to pay for the deluxe services those upgraded networks might offer. Similar issues affected city residents that waited years for cable television to finally arrive in their neighborhoods. Some providers evidently felt they would not get a good return on their investment. Yet data consistently shows cash-strapped urban residents are among the most loyal subscribers to cable television, because it is less costly than many other forms of entertainment. This year, urban content viewers were among the most loyal cable TV subscribers, even millennials notorious for cord-cutting.

Regulators should review AT&T’s compliance with its DirecTV merger conditions. Access from AT&T should be available to every qualified home, particularly those AT&T will happily furnish with appallingly slow 1.5Mbps DSL, if customers agree to AT&T’s regular prices.

Federal Court Dismisses AT&T Throttling Lawsuit; AT&T Skates on a Loophole

Signage for an AT&T store is seen in New York October 29, 2014. AT&T Inc has made a bid for Yahoo Inc's internet business, Bloomberg reported on Wednesday, citing people familiar with the matter. REUTERS/Shannon Stapleton/File Photo

Signage for an AT&T store is seen in New York October 29, 2014. REUTERS/Shannon Stapleton/File Photo

WASHINGTON (Reuters) – A federal appeals court in California on Monday dismissed a U.S. government lawsuit that accused AT&T Inc  of deception for reducing internet speeds for customers with unlimited mobile data plans once their use exceeded certain levels.

The company, however, could still face a fine from the Federal Communications Commission regarding the slowdowns, also called “data throttling.”

The U.S. Court of Appeals for the Ninth Circuit said it ordered a lower court to dismiss the data-throttling lawsuit, which was filed in 2014 by the Federal Trade Commission.

The FTC sued AT&T on the grounds that the No. 2 U.S. wireless carrier failed to inform consumers it would slow the speeds of heavy data users on unlimited plans. In some cases, data speeds were slowed by nearly 90 percent, the lawsuit said.

The FTC said the practice was deceptive and, as a result, barred under the Federal Trade Commission Act. AT&T argued that there was an exception for common carriers, and the appeals court agreed:

The panel reversed the district court’s denial of AT&T Mobility LLC’s motion to dismiss, and remanded for an entry of an order of dismissal in an action brought by the Federal Trade Commission under section 5 of the FTC Act that took issue with the adequacy of AT&T’s disclosures regarding its data throttling plan, under which AT&T intentionally reduced the data speed of its customers with unlimited mobile data plans.

Section 5 of the FTC Act contains an exemption for “common carriers subject to the Acts to regulate commerce.” 15 U.S.C. § 45(a)(2). The panel held that AT&T was excluded from the coverage of section 5 of the FTC Act, and FTC’s claims could not be maintained. Specifically, the panel held that, based on the language and structure of the FTC Act, the common carrier exception was a status-based exemption and that AT&T, as a common carrier, was not covered by section 5.

Asked about the appeals court ruling, a spokesman for AT&T said: “We’re pleased with the decision.”

An FTC spokesman said the agency has not yet decided whether to appeal. “We are disappointed with the ruling and are considering our options for moving forward,” FTC spokesman Jay Mayfield wrote in an emailed comment.

The company, however, could face action from the FCC. In June 2015, the agency proposed a fine of $100 million for AT&T’s alleged failure to inform customers with unlimited data plans about the speed reductions. AT&T has contested that proposed fine.

(By Diane Bartz; Editing by Paul Simao and Matthew Lewis; Additional reporting by Stop the Cap!)

Verizon Wireless Switches On LTE-Advanced to Improve 4G Performance

verizon wirelessVerizon Wireless today launched LTE Advanced technology to bring up to 50% faster peak wireless data speeds to almost its entire national 4G LTE service area.

LTE-A allows Verizon to better balance its data traffic by combining disparate mobile data channels on different frequency bands to increase bandwidth and speed for mobile data traffic. The technology, known as carrier aggregation, helps mobile providers more efficiently deliver data over multiple frequency bands at the same time. Verizon controls space in the 700 MHz, AWS and PCS spectrum bands giving the company the possibility of combining two or three bandwidth channels together into a single channel, boosting speeds.

There is a catch. Only customers with the latest devices supporting LTE-A will experience dramatic speed boosts. Verizon currently supports 39 LTE Advanced-capable phones and tablets on its network, including the latest Samsung Galaxy and Apple iPhone models. If you own one of these devices, the speed improvements are automatic and no plan change is required.


Verizon’s original LTE network was shown to deliver more than 100Mbps in peak speeds when it was in the lab or during early beta tests. But once actual customers got on the network, speeds began to slow. Most customers today get LTE speeds of 5-12Mbps from Verizon Wireless. Verizon’s press release touts “peak download speeds of up to 225Mbps” using two channel aggregation and over 300Mbps when testing three channel aggregation. But customers may find speeds considerably slower than that as the number of LTE-A capable devices grows in the months and years ahead.

Verizon Wireless is not shy about its boasts for better wireless speed.

“Our customers just received a major network enhancement for no additional cost,” said Tami Erwin, head of operations for Verizon’s wireless unit. “Verizon LTE Advanced works like a turbocharger on an engine. Speed boosts kick in when you need it most, with big data use. That’s when you get the big peak boost of Verizon LTE Advanced.”

“Verizon LTE Advanced means your data session moves more quickly over the best network,” said Nicki Palmer, Verizon’s chief wireless network engineer. “Imagine a road with multiple lanes in which, once you pick a lane, that’s the lane you drive in. That describes our award-winning 4G LTE network. Continuing the metaphor, Verizon LTE Advanced allows cars to change lanes efficiently and flawlessly, balancing the flow of traffic and getting drivers to their destinations more efficiently. That means blindingly fast data transmissions when you need it most.”

Windstream Brings Kinetic TV to Communities Around Charlotte, North Carolina

Kinetic WindstreamWindstream will bring its fiber to the neighborhood service Kinetic TV to around 50,000 homes in 13 suburban and exurban communities surrounding Charlotte, N.C., to stay competitive with Time Warner Cable/Charter and a publicly owned cable system serving Mooresville.

The independent phone company submitted a formal application for a cable television franchise with North Carolina’s Department of the Secretary of State to begin offering television service in Albemarle, Badin, China Grove, Concord, Harrisburg, Hemby Bridge, Indian Trail, Kannapolis, Matthews, Mooresville, Mt. Pleasant, New London and Oakboro.

Windstream claims Kinetic TV leverages “a 100 percent fiber-backed network,” which leaves customers with the impression they are getting fiber optic delivery of television, broadband, and phone service. In fact, for many communities Windstream is constructing a network similar to AT&T U-verse. The phone company brings fiber optic cables into each neighborhood, but relies on existing copper wire infrastructure connecting individual homes to a nearby fiber optic-connected neighborhood hub. The upgrade allows Windstream to expand broadband capacity to support concurrent use of television, phone and internet access. For many Windstream customers complaining about the poor performance of Windstream’s DSL service, that offers a significant improvement. But Windstream does provide even better upgrades in some communities. In April 2016, Windstream launched gigabit speed internet service for seven North Carolina towns: China Grove, Concord, Davidson, Harrisburg, Kannapolis, Lewisville and Matthews. By applying for a statewide video franchise agreement in North Carolina, Windstream will be able to sell cable television service along with gigabit broadband speed.

Kinetic TV is now an exceptionally good deal for new customers.

Kinetic TV is currently available in Lincoln, Neb., Lexington, Ky., and Sugar Land, Tex.

Kinetic TV is already available in Lincoln, Neb., Lexington, Ky., and Sugar Land, Tex.

Windstream aggressively prices its most deluxe double play package of 50Mbps broadband and 270+ channels and Whole House DVR service at a one-year introductory price of $89.99 a month with a one-year service commitment. Customers can upgrade to a triple play package with the same 12 month commitment that includes a phone line with unlimited long distance calling for just $2 more — $91.99 a month. New double/triple-play customers also receive a one-time bill credit of $250, which will generally cover the first two months of service. This promotion is by far the best value for money. Unfortunately, after the promotion expires your price increases by $72.99 to $162.98 a month.

Kinetic TV operates with wireless set-top boxes that can be moved to different televisions as needed. The DVR can handle recording four channels at the same time and Windstream promises no lag while channel changing. The usual $80 installation fee is waived when new customers sign up under a promotional offer. Anyone can register to be notified about Windstream’s promotional offers on the company’s website and will likely receive an invitation as Kinetic TV becomes available in your area.

Earlier this year, Windstream debuted Kinetic TV in Sugar Land, Tex., joining the communities of Lexington, Ky. and Lincoln, Neb. The 13 small cities and communities in North Carolina will be Windstream’s fourth service area for Kinetic TV.

Kinetic TV's Whole House DVR

Kinetic TV’s Whole House DVR

The service has received generally positive reviews from those not expecting to place a lot of demand on the service. The fastest internet package tops out for most at 50Mbps and some customers report their actual speeds are sometimes slightly lower. Windstream currently offers Kinetic customers unlimited, uncapped data plans. If you cancel service before the end of your contract, the penalty as stated in Windstream’s terms and conditions is among the steepest we have ever seen: 100% of the charges you would have paid had you kept the service through the rest of your contract.

There is other fine print:

  • Kinetic TV cannot support more than four Standard Definition video streams (television sets in use concurrently). HD channels for recording or viewing are limited to between one and four, depending on the capacity of your connection. If you exceed it, the remaining video streams or recordings will be in Standard Definition.
  • Kinetic TV will not allow pay per view or video on demand charges to exceed $200 in a calendar month.
  • Prices above include one Kinetic TV receiver. Each additional box is billed at $7 a month, and may be limited in quantity. A Windstream gateway, also required for service, is assessed a separate monthly charge.
  • Your internet speeds may be affected by how many televisions are concurrently in use in your home.
  • Windstream collects information about programming watched, recorded, or accessed. Currently, they use this information to make general programming recommendations to all customers and/or specific recommendations to you based on your personal viewing habits.

(Windstream pricing information gathered by entering a residential street address in Sugar Land, Tex., Zip Code 77478.)

Updated: Charter’s Plans for Time Warner Cable, Bright House Customers Apparently Leaked

charter twc bhUpdated 9/7/2016: Please check our latest coverage on promotional packages for Bright House and Time Warner Cable customers that are being introduced in September 2016 by new parent company Charter Communications. Some of the prices reflected below are now out of date! 

Charter’s plans for Time Warner Cable and Bright House Networks customers are now potentially clearer thanks to the apparent leak of several informational slides from a presentation given to employees to familiarize them with Charter’s forthcoming service plans.

A reader of DSL Reports in California shared what purports to be informational slides from a company training course. Los Angeles is among the first markets to be offered the new Charter/Spectrum service plans, likely to arrive as early as mid-September.

We’ve condensed the information down into a more readable format to give you an idea (subject to change, of course) about Charter’s pricing and plans. Existing customers may not need to give up their current plans right away, and some customers may not want to. Charter has recognized Time Warner Cable Maxx’s network upgrades in its plans and pricing, which means customers already upgraded for Maxx service will get better value from Charter’s plans than those customers who never made the upgrade list before Time Warner Cable was sold.

Keep in mind Charter will start by offering all “New Charter” customers a “new customer” promotion, priced low the first year and then increasing incrementally in price during the second and third years. Year three pricing will be equivalent to Charter’s regular price, which will be substantially higher than customers on Time Warner Cable customer retention plans have paid. Charter’s service plans offer improved broadband speeds, but at a significantly higher price. Standalone broadband customers in particular will feel an immediate sting. Charter’s entry-level price for most customers is $59.99 for 60Mbps, about $25 more than Time Warner Cable’s promotional rate for Standard 15/1Mbps service, which has been selling for about $35/mo for the first year. Charter will point out that it includes a cable modem for free while Time Warner Cable charged $10 a month, but that offers no solace to customers who have purchased their own equipment.

Please note these plans and prices have not been officially confirmed by Charter. In fact, we would not be surprised to see some pricing changes before the plans are officially available.


spectrum selectThere are big changes in store from Charter. First, the company will end distribution and support for Digital Transport Adapters (DTAs) — the small boxes designed for older analog-only TV sets. Charter expects you to have a traditional set-top box on every cable-equipped TV in the house. Second, it seems Whole House DVR service is being discontinued. Charter prefers the alternative of placing DVR boxes on each set where you want to record and watch TV shows. There is a significant cost for Time Warner Cable to install Whole House DVR service and it involves a technician coming to your home. Charter seems to want to cut truck roll expenses, and traditional DVR boxes are easy for customers to install themselves.

DVR pricing is still confusing for customers. A single DVR box is priced at $4.99 for the equipment + an $11.99 DVR service fee. DVR’s 2-4 cost $4.99 per box + a $19.99 DVR service fee. We are not sure if the $19.99 inclusively covers all DVR boxes in the home or if that is charged for each additional DVR. (Update: STC reader Ricardo reports the $19.99 fee is inclusive, so it is only charged once regardless of how many extra DVRs you have.)

For the first year, traditional set-top boxes for New Charter customers are a bargain at $4.99/mo. Legacy Charter customers pay $2 more, and we predict you will pay more as well after the first year, but the equipment fees are less than what Time Warner Cable charged.

Customers will choose from three plans: Select, Silver, or Gold:

  • Select: 125+ channels (HD included), Spectrum App (comparable to TWC TV app), 10,000+ On Demand Library ($64.99)
  • Silver: 175+ channels (HD included), Spectrum App, On Demand, HBO, Cinemax, Showtime, NFL Network ($84.99)
  • Gold: 200+ channels (HD included), Spectrum App, On Demand, premiums shown above + TMC, Starz, Encore, Epix, NFL Redzone ($104.99)

Charter’s pricing is built to encourage customers to bundle multiple services together, because substantial discounts are provided, especially when combining TV and internet service.


(Image courtesy of Tech_Guy 88/DSL Reports)

(All presentation slide images courtesy of Tech_Guy 88/DSL Reports)

Charter moves to just two tiers of service available to the public (except in New York where TWC’s $14.99 Everyday Low Price Internet continues to be an option for the next two years — although it has been removed from TWC’s website) and standalone broadband pricing is considerably more expensive with Charter than with Time Warner Cable.

Perhaps special promotional offers will bring standalone internet prices closer to the $34.95-39.95 most new customers have gotten for Time Warner’s Standard Service (15/1Mbps) for years. We expect most customers will be more sensitive to price vs. speed and standalone internet at these prices will be a shock. We are not certain if Earthlink will continue to be an alternative option.

Upload speeds in non-Maxx areas are conservative, if these slides are accurate, topping out at just 5Mbps. This still leaves Charter as one of the slower U.S. providers.

In TWC Non-Maxx Areas (maximum TWC speed now 50/5Mbps):

  • Spectrum Internet 60/5Mbps: Standalone $59.99/mo or $29.99 as part of a triple play package (first year promo price), $59.99 standalone or $53.99 as part of a bundle (regular price);
  • Spectrum Ultra 100/5Mbps: Standalone $119.99/mo or $99.99 as part of bundled package (first year promo price), $119.99 standalone or $113.99 as part of a bundle (regular price).

In TWC Maxx Territories (maximum speed now 300Mbps):

  • Spectrum Internet 100/10Mbps: Standalone $59.99/mo or $29.99 as part of a triple play package (first year promo price), $59.99 standalone or $53.99 as part of a bundle (regular price);
  • Spectrum Ultra 300/20Mbps: Standalone $119.99/mo or $99.99 as part of bundled package (first year promo price), $119.99 standalone or $113.99 as part of a bundle (regular price)

Spectrum Wi-Fi, for those without their own routers, can be added to any internet plan for a $9.99 setup charge and $5 a month.

spectrum assistCharter’s discount plan for the income-challenged carries the usual restrictions. The most unconscionable effectively forces current Charter customers to go without internet access for 60 days before they can enroll in Spectrum Internet Assist. They also must not owe any past due balance to Charter.

Assuming you qualify (eligible for the National School Lunch Program and senior citizens 65 years and older eligible for the federal Supplemental Security Income program), $14.99 will get you up to 30/4Mbps, plus an extra $5 a month if you want Charter to supply a Wi-Fi enabled router. The usual $9.99 activation fee is waived. Self-installation is free. If they have to send a truck to your home, the prevailing standard installation rate will apply. This is the only level of service Charter sells that will not require a credit check.


Time Warner’s phone service had been promoted for years at $10 a month as part of a double-play or triple-play bundle. Charter’s triple play bundle pricing seems to show the price for phone service will now be effectively $20 a month.

Charter’s digital phone service has never seemed to be a marketing priority for Charter in its legacy service areas, and will likely be treated as an afterthought going forward. No further information about any service or calling area changes from what Time Warner Cable offered is available yet.

Unlimited Data is Back (With Fine Print): T-Mobile/Sprint Push Unlimited Data Plans for All

Tmo1LogoSeveral years after wireless unlimited data plans became grandfathered or riddled by speed throttling, America’s third and fourth largest carriers have decided the marketplace wants “unlimited everything” after all and is prepared to give customers what they want, at least until they read the fine print.

T-Mobile Announces “The Era of the Data Plan is Over”: T-Mobile ONE

T-Mobile CEO John Legere used a video blog to announce a major shakeup of T-Mobile’s wireless plans this morning, centered on the concept of “unlimited everything.”

“The era of the data plan is over,” said Legere. T-Mobile’s new plan — T-Mobile ONE — does away with usage caps and usage-based billing and offers unlimited calls, texting, and data on the company’s 4G LTE network. The plan becomes available Sept. 6 at T-Mobile stores nationwide and t-mobile.com for postpaid customers. Prepaid plans will be available later.


“Only T-Mobile’s network can handle something as huge as destroying data limits,” said Legere. “Dumb and Dumber can’t do this. They’ve been running away from unlimited data for years now, because they built their networks for phone calls, not for how people use smartphones today. I hope AT&T and Verizon try to follow us. In fact, I challenge them to try.”



T-Mobile claims the savings with its unlimited plan are enormous compared to its bigger competitors AT&T and Verizon Wireless.

Verizon’s largest LTE usage-capped data plan would cost a family of four $530/month. That’s $4,440 more than T-Mobile ONE will charge.

T-Mobile ONE costs $70 a month for the first line, $50 a month for the second, and additional lines are $20 a month, up to 8 lines with auto pay (add $5 per line if you don’t want autopay). Customers can add tablets for an extra $20 a month.

T-Mobile does offer some caveats in the fine print which are relevant to customers:

  • All video streaming on this plan is throttled to support a maximum of 480p picture quality. Higher video quality is available with an HD add-on plan for $25/mo per line;
  • Tethering is included with T-Mobile ONE, but it is painfully speed-limited to 2G speeds — around 70kbps, just a tad faster than dial-up. At that speed, a web page that will take less than five seconds to load on a 4G network will take 17-25 seconds. A 60 second YouTube video will take nearly five minutes to watch, and downloading apps or sharing images is often impossible because of timeouts. If you want 4G tethering, that will be $15 a month for 5GB, please;
  • Customers identified as among the top 3% of data users, typically those who use more than 26GB of 4G LTE data a month will find themselves in the same data doghouse T-Mobile’s Simple Choice customers are in. That means during peak usage periods on busy cell towers, heavier users are deprioritized on T-Mobile’s network, but we’re not sure if that results in slight speed reductions or the kind of drastic 2G-like experience these kinds of “fair usage” policies often deliver.

Our analysis:

bingeonWhile we’re happy to see unlimited data plans return to prominence, T-Mobile is continuing to punish high bandwidth applications, tethering, and usage outliers with frustrating speed throttles.

T-Mobile’s biggest source of increasing traffic is coming from online video. About a year ago, Legere introduced T-Mobile’s Binge On program, which offers streaming video from T-Mobile’s partners without it counting against your usage allowance. This program had the potential of causing problems with the Federal Communications Commission’s Net Neutrality rules.

Legere seemed to avoid trouble by revealing enough information about Binge On to make it clear why the program exists — to reduce video traffic’s impact on T-Mobile’s network. That might seem counterintuitive until one looks at what it takes to be a Binge On partner — allowing T-Mobile’s Binge On-related traffic to be “optimized” to Standard Definition video (around 480p). No money changes hands between T-Mobile and its Binge On partners.

T-Mobile makes it easy to be a BingeOn participant.

T-Mobile makes it easy to be a Binge On participant.

Binge On was an important factor in freeing up bandwidth on T-Mobile’s network. Some analysts suggest two-thirds of T-Mobile’s video traffic load disappeared after Binge On was introduced. Video is likely the single biggest bandwidth consuming application on wireless networks today. If a customer is watching on a smartphone or even a small tablet, 480p video is generally adequate and has a lower chance of stopping to buffer.

slowAnother clue about the impact of online video on T-Mobile’s network is the same video throttling strategy is built into T-Mobile ONE and applies to all online video, whether the provider partners with T-Mobile or not. Also consider the extraordinary cost of the optional HD Video add-on, which defeats video throttling: a whopping $25 per month per device. That kind of pricing clearly suggests 1080p or even 4K video is a major resource hog for T-Mobile, and customers looking for this level of video quality are going to pay substantially to get it.

T-Mobile is also clearly concerned about tethering, relegating hotspot and tethered device traffic to 2G speeds, which will quickly deter anyone from depending on it except in emergencies. Again, traffic is the issue. Some semi-rural customers unserved by cable but able to get a 4G signal from a T-Mobile tower may think of using T-Mobile as their exclusive source of internet access. At speeds just above dial-up, they won’t consider this an option.

We’re also disappointed to see 26GB of usage a month as the threshold for potential speed throttling. T-Mobile ONE is not cheap, and without more detailed information about how often those exceeding 26GB face speed slowdowns, how much of a slowdown, and how quickly those speed reductions disappear when the tower gets less congested would be very useful. Until then, customers are likely to interpret 26GB as a type of soft usage allowance they will not want to exceed.

T-Mobile ONE also delivers a powerful signal to Wall Street because it raises the lowest price a T-Mobile postpaid customer can pay to become a customer from $50 to $70 a month for a single line. That’s quite a burden for some customers who will have to look to prepaid plans or resellers to get cheaper service. Other carriers rushed to meet T-Mobile’s $50 2GB plan when it was introduced, which has served as an entry-level price range for occasional data dabblers. If those carriers don’t immediately raise prices as well, they will undercut T-Mobile. That could provoke an increase in cancellations among customers buying on price, not plan features. T-Mobile is banking consumers will appreciate unlimited data enough to pay extra for peace of mind.

Jackdaw Research found customers enrolled in 2GB and 6GB T-Mobile plans, T-Mobile ONE represents a price increase. Those signed up for 10GB or unlimited service will pay the same or slightly less with T-Mobile ONE.

Jackdaw Research found customers enrolled in 2GB and 6GB T-Mobile plans will see a price increase with T-Mobile ONE. Those signed up for 10GB or unlimited service will pay the same or slightly less.

sprintlogoSprint: Unlimited Freedom: Two Lines of Unlimited Talk, Text, and Data for $100/month

Not to be outdone by T-Mobile, Sprint CEO Marcelo Claure today announced his own company’s overhaul of wireless plans, featuring the all-new Sprint Unlimited Freedom plan, which offers two lines of unlimited talk, text and data for $100 a month, with no access charges or hidden fees.

Starting Friday, Aug. 19, Sprint customers can sign up for the new plan, which costs $60 for the first line, $100 for two lines, and $30 for each additional line, up to 10. Sprint pounced on the fact its Unlimited Freedom plan for two is $20 less than T-Mobile charges.

Otherwise the two plans are remarkably similar — too similar for the CEOs of both companies that spent part of today engaged in a Twitter war.

T-Mobile CEO John Legere and Sprint CEO Marcelo Claure traded tweet barbs this morning.

T-Mobile CEO John Legere and Sprint CEO Marcelo Claure traded tweet barbs this morning.

“Sprint’s new Unlimited Freedom beats T-Mobile and AT&T’s unlimited offer – only available to its DirecTV subscribers – while Verizon doesn’t even offer its customers an unlimited plan,” read Sprint’s press release.

unlimited freedom“Wireless customers want simple, worry-free and affordable wireless plans on a reliable network,” said Marcelo Claure, Sprint president and CEO. “There can be a lot of frustration and confusion around wireless offers, with too much focus on gigabytes and extra charges. Our answer is the simplicity of Unlimited Freedom. Now customers can watch their favorite movies and videos and stream an unlimited playlist at an amazing price.”

Sprint has also essentially joined the T-Mobile optimization bandwagon, limiting streaming video to 480p, but it goes further with optimization of games — limited to 2Mbps, and music — limited to 500kbps. There does not seem to be any option to pay more to avoid the “optimization” and Sprint is not offering a tethering option with this plan.

“While we initially questioned using mobile optimization for video, gaming and music, the decision was simpler when consumers said it ‘practically indistinguishable’ in our tests with actual consumers,” said Claure. “In fact, most individuals we showed could not see any difference between optimized and premium-resolution streaming videos when viewing on mobile phone screens. Both provide the mobile customer clear, vibrant videos and high-quality audio. Mobile optimization allows us to provide a great customer experience in a highly affordable unlimited package while increasing network efficiency.”


boostAlso, beginning Friday, Aug. 19, Sprint’s leading prepaid brand, Boost Mobile introduces its own unlimited offer, Unlimited Unhook’d:

  • Unlimited talk, text and optimized streaming videos, gaming and music
  • Unlimited nationwide 4G LTE data for most everything else
  • $50 a month for one line
  • $30 a month for a second line up to five total lines

In addition to the Unlimited Unhook’d plan, Boost Mobile will also unveil the $30 Unlimited Starter plan, which includes unlimited talk, text and slower network data (2G or 3G) with 1GB of 4G LTE data. Customers looking for more high-speed data can add 1 GB of 4G LTE data for $5 per month or 2 GB of 4G LTE data for $10 per month. Multi-line plans are also available for families looking to save some money for an additional $30 a month per line.

“There’s a lot of confusion and clutter in prepaid, but is doesn’t have to be that way. Boost Mobile is offering the simplest solution with plans that are easy to understand,” said Claure. “Boost has something for everyone, whether you need a truly unlimited plan with 4G LTE data or want to save extra money with a low-cost plan.”

WOW! Bringing Gigabit Speeds to Alabama, Indiana, Tennessee and Michigan

Phillip Dampier August 10, 2016 Broadband Speed, Competition, Consumer News, WOW! No Comments

wowWOW! Internet, Cable & Phone will unveil gigabit speed broadband across five U.S. cities by the end of this year.

In Evansville, Ind., and Auburn, Ala., WOW! will be the first provider in town delivering gigabit internet speeds to residents and businesses, with only a modem upgrade required to get faster service. In the wealthy community of Gross Pointe Shores, Mich., WOW! is bringing gigabit broadband over an expanding fiber to the home network. Customers in Knoxville, Tenn., and Huntsville, Ala. will also see faster speeds towards the end of this year.

WOW! provides competing cable service in 20 markets, primarily in the midwest and southeast, including IllinoisMichigan, Indiana, Ohio, Kansas, Maryland, Alabama, Tennessee, South Carolina, Florida and Georgia.

“In many of our markets, we are already offering the highest speeds available with our 600Mbps internet service,” said WOW! CEO Steven Cochran. “By enabling 1 Gig Internet over our existing coax plant and through our targeted fiber to the home investment, WOW! is demonstrating its commitment to continually innovate and deliver products that help our residential and business customers to connect.”

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