Talking Points
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Metered broadband advocates suggest that light users will be able to pay far less for their Internet access - only paying for what they use. But no bandwidth usage cap plan currently proposed charges anything less than current subscription rates, meaning you will pay exactly as much as you do today. There will be no discount for light users, only a limit on what you can access at today’s prices.
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A 5GB broadband cap means you can get more data over the course of one month from a dial-up ISP that doesn’t impose usage caps than you can from your broadband connection that does, without getting your service shut off or paying a substantial penalty rate.
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Some proposed metered bandwidth plans propose to charge you up to $15 in penalties for exceeding their cap by even one byte. Others suggest rates from $1-3 per gigabyte, far more than what they pay themselves for bandwidth.
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A 5GB monthly usage cap means you can watch approximately two standard definition movies online per month, and possibly one high definition movie (if it’s short).
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A 5GB monthly usage cap lets you get 1,000 slightly below average bitrate songs from iTunes… but absolutely nothing else until next month.
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A 5GB cap lets you and your entire family watch about 500 minutes of YouTube videos (standard quality setting), but then you won’t have anything left to read your e-mail.
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Since 2001, web data traffic has grown 25-40% per user, not because they are stealing music or movies, but because new applications have come online to take advantage of the growing prevalence of broadband Internet speeds.
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Cable modem product lines are unregulated and among the most profitable products offered by the cable company. Most cable systems have not increased the price of broadband service because the built-in profit is so significant, while the costs of data delivery have declined.
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Most cable systems plan to exempt customers from accessing content they own or control through their online portals. This represents an end run around Net Neutrality - a plan to allow big corporations to control the infrastructure and discriminating against the traffic they don’t own or control. Independent producers and businesses not affiliating with a cable company will have a hard time selling a business plan in a world where bandwidth caps make accessing those independent products and services prohibitively expensive.
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Allowing yourself to play on the industry’s turf and argue about what kind of cap -is- acceptable means you’ve already lost the war. Demand independently verified proof of the claims the industry makes about a “bandwidth shortage” or “crisis” to justify usage caps before debating over how much usage is “too much.”
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The industry lobbyists psychologically co-opt at least some people into fighting against their own best interests. By suggesting someone is getting something that you are paying for, and creating stereotypes of “bandwidth hogs” and people getting something you don’t is part of their propaganda agenda. After all, nobody is suggesting that bandwidth caps will lower YOUR prices. In fact, everyone will pay more and get less.
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Demand that the broadband industry invest in the resources required to continue the quality of service that its profitability should justify. During an economic downturn, everyone’s profits and stock price may be dropping. But punishing customers with draconian caps to try and forestall necessary investment only makes them take their business elsewhere, or demand government intervention.
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If your provider argues that their cable lines are at capacity and a usage cap is needed because of that, ask them exactly how they deliver video on demand and voice over IP telephone service to their customers. Data is data. There doesn’t seem to be an impending demand that we turn off our televisions after three hours, stop ordering video on demand, or hang up our “digital phone” line because of a capacity problem.
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August 4, 2008 at 7:55 pm
Pingback from Will Frontier Enforce New 5GB Cap? - Opposition grows to telco’s definition of ‘unreasonable’ | remove the labels | Gadgets and Life
August 1, 2008 at 10:07 pm
Robb Topolski
56k modems can transfer 32GB a Month!
See http://www.dslreports.com/forum/r20871979-56k-modems-can-transfer-32GB-a-Month for a graphic/chart. It’s my graphic, you may use it on your site or copy the data.
August 1, 2008 at 10:51 pm
phil
Thanks Robb. I will add this to our list!
August 4, 2008 at 5:04 pm
Matthew Levine
One thing the ISP’s like Time Warner or Frontier do not mention is that a subscriber cannot predict how many bytes of data will be downloaded when visiting a website. Many websites send advertising slide shows, streaming audio and/or streaming video while a person visits a web page. Furthermore there is the usage created by many software programs automatically log into the software creators server for updates. For example: Windows Activation, Anti Virus programs and other software products. Broadband Subscribers will be faced with the problem if companies like Time Warner and Frontier set usage limits. I have a better solution, and that is to require websites sending streaming data streams to pay the ISP’s for carrying their traffic. If the ISP’s want to limit P2P traffic they can take a lesson from Japan where the ISP’s are limiting upstream traffic to 30GB per day. You might want to inquire of the Broadband ISP’s how they intend to resolve these issues.
August 4, 2008 at 5:09 pm
qazwsx2
Wow…thats a retarded cable company.
August 5, 2008 at 4:03 pm
Philip Jackson
As almost all broadband providers in this country are also video/television providers, the cap concept is clearly a way to get paid for each movie seen wither via broadband Internet or your friendly cable box. A duopoly as we have here in San Antonio consists Time Warner Cable and AT&T, both of which are discussing caps. There is no other provider to turn to. Not only that, but the largest cable operator, Comcast, has a stake in ClearWire, the only potential nation wide provider of broadband wireless Internet (Wi-Max) probably ensuring a cap on them as well. This is an issue the FCC should take a long hard look at as it is clearly using monopoly, price-fixing to ensure a lack of competition
It is going back to the old bill-by-the-minute that the telco’s used for many years.
August 23, 2008 at 2:45 pm
AnonName
It’s about paying for advertising. Web pages contain 5-95% paid advertisements. You only have control over previously-visited pages (where you know what to expect). With CAPS, for every page you visit, you’re PAYING to see something that was already PAID for, since the ads paid for the web site’s existence SO you could see it. The guys in the middle are trying to collect from both ends for one service. Call it double-dipping, double jeopardy, or just plain greed, it’s illegal. Internet service was established and is maintained as an Access Speed Rated Service, plain and simple.
It’s like suddenly being charge hourly fees to watch broadcast TV that was already PAID for by the advertising. That’s why they introduced capitalism to the internet, to introduce advertising budgets so someone could turn a buck and we could put a taxable dollar value on a concept. Just like broadcast TV…
OR, looking at things from a different way: It’s like the cable TV company suddenly watching us watch and saying, “Gee Bob, your TV is on 20 hours a day. Jim next door only has his on for 2 hours a day. Guess we’re going to have to start charging you more. Sorry ’bout your luck, TV Hog.” Call it an invasion of privacy, if you will.
I’m NOT against internet ads. It’s how I can watch CBS TV shows (after original broadcast) online. Without the ads, they couldn’t/wouldn’t provide the service. If the major ISPs [who ultimately control all the bandwidth] figure out a way for me to selectively choose the research websites I need without seeing them first and without having to download (at my expense) a bunch of already paid-for bandwidth-hog ads, maybe they could ‘invent’ some sort of ‘legal precedent’. But until then… it’s illegal no matter how you want to look at it.
I really hope someone VERY high up sees my arguments, realizes the illegality of what they’re trying to do with CAPS, and introduces these arguments to where they need to be argued (in court, probably).
September 5, 2008 at 4:07 am
Robert Pierce
I attempted to invoke my right to cancel my contract with Frontier (that I didn’t know I had) with the change of their Acceptable Use Policy and they flat refused without me paying a $450 ETF! Even their competitor (Surewest) advised they violated CPUC regulations by doing so. When I asked the moron at Frontier “is it company policy to deceive and lie to customers?” he replied “I don’t have to answer that question”. Frontier management are extremely arrogant and unhelpful.
September 8, 2008 at 12:12 am
David Winkler
Frontier Communications Inc. makes the common mistake of treating their customers as “profit centers,” which may be efficient for their business model, but does nothing for customer relations/loyalty. Since Frontier is the sole provider in many of its service areas, it is free to do what it pleases.
Frontier customers are not well served in any sales related encounter. Beware of what the Rep is saying and not saying. Get everything in writing and demand clarification before saying “yes” to anything on the phone.
Frontier NEVER acknowledges wrongdoing or consents to refund customer payments, no matter how outrageous the company’s actions have been. Customers may be billed for services never delivered, without penalty, since the FCC complaint and Consumer complaint procedures are ineffective and time consuming. The FCC fails to act on 83% of complaints filed, but file a complaint anyway!
The 5GB cap is yet another attempt to maximize Frontier’s profit center yield and delay/avoid future network upgrades by “encouraging” more efficient network utilization. Shareholders are impressed, while customers are angry. For most of us in limited service areas there is no alternative.
November 5, 2008 at 5:09 pm
JJ Smote
Better bend over and get comfortable in that position. I don’t see anyway caps (and later service tiers) can be avoided when the industry has such muscle and the government no backbone at all (forgive the pun).
It’s obvious that we are following in the footsteps of the Australian model and there is absolutely nothing to do about it.