I know everyone will have questions about HR 2902, the bill introduced this morning by Rep. Eric Massa.  We’ve been working with Free Press and Eric’s staff for the past several weeks behind the scenes on this legislation, and there are some things that I am certain our readers will be asking about, so before things get scattered across multiple articles, I am creating this one to take questions in the comment section and also to update people on answers on an ongoing basis.

I also want readers to understand there are reasons why I may not be able to answer certain questions completely.  In some cases, it’s because I don’t know the answer, but I will try and find one.  For some others, please trust my judgment and that of the congressman.  There are reasons for doing certain things in certain ways.  I’ve been just as outspoken with the congressman’s office as I’ve been here.  They know the mission statement for our site, and our issues.

Q. Why does HR 2902 not simply ban tiered pricing outright and who decides what “unreasonable” pricing means?

A. Legislation must not only become law but also withstand legal scrutiny.  The bill is designed to accomplish what needs to be done – preventing providers from launching Internet Overcharging schemes that, upon review by the appropriate agencies, are simply economically unjustified.  These decisions are not arbitrary — there are mechanisms and measurements that take into account provider costs and what they then try to turn around and charge us.

Q. Why does the legislation not speak directly about usage caps?

A. It covers them in a roundabout way, and there are some additional reasons for structuring the language this way.  Believe me when I say this was not an issue we’d forget about, considering this site was founded on that issue, even before nonsensical tiered overcharging schemes showed up.  Stop the Cap! opposes usage caps, period.

Q. Why does the bill exempt small providers with less than 2,000,000 customers?

A. Until the broadband stimulus package begins to help guarantee reasonable access and prices for all Americans, small providers, often in rural communities, have to find wholesale broadband access at significantly higher expense than major providers do.  A number of those providers, including those run by municipalities, are with us on most of our issues, but they confront additional challenges that simply make it easier to exclude them from the language at this time.  When access finally becomes inexpensive and plentiful from coast to coast, providers will find few justifications to need an exemption in the first place.  Stop the Cap! fully supports major expansions in rural broadband to provide people living in small communities with the same kinds of access those of us in more urban areas enjoy, at comparable prices and speeds.

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The audio from this morning’s conference call to introduce the legislation follows at the bottom of the page. Participants were: Rep. Eric Massa (D-NY), Ben Scott, policy director of Free Press, and Phillip Dampier, founder of StoptheCap!

WASHINGTON, D.C. – Today Congressman Eric Massa formally introduced the Broadband Internet Fairness Act, H.R. 2902. The drafting of the bill was prompted by thousands of constituents and industry experts who voiced their concerns in regard to the outrageous increase in fees proposed by broadband providers.

In April, when Time Warner Cable in Rochester announced that they would begin overcharging customers based on their bandwidth usage, a group of doctors approached Congressman Massa and informed him that if the proposal was enacted, they would be forced to raise rates on their patients. Time Warner’s new program would have raised the cost of their current unlimited internet plan from $50 per month to $150 per month, tripling customers’ monthly bill. The proposed increase in rates gouges customers and limits competition between internet video sites and cable networks that offer identical content. The intended result of this increase would be to reduce the public’s internet usage and send customers back to cable television.

The Broadband Internet Fairness Act will prevent the monopolistic rate increases of broadband companies by promoting the interests of broadband customers. Specifically the bill:

·    Requires internet service providers (ISPs) to submit plans to the Federal Trade Commission (FTC), in consultation with the FCC if they plan to move to a usage-based plan;

·    Prohibits volume usage plans if the FTC determines that these plans are imposing rates, terms, and conditions that are unreasonable or discriminatory;

·    Sets up public hearings for plans submitted to the FTC for public review and input;

·    Only affects internet providers with 2 million or more subscribers;

·    Imposes penalties for broadband ISPs that ignore these rules;

“Access to the internet has become a critical part of our economy and we can’t let corporate giants limit the public’s access to this important tool,” said Congressman Eric Massa. “The Broadband Internet Fairness Act is all about protecting consumers from outrageous internet overcharges and giving the public a voice in this process. I have taken lots of time to work on this bill and have consulted with my constituents and industry experts. Now the hard work of passing this bill begins.”

“Cable providers want to stifle the internet so they can rake in advertiser dollars by keeping consumers from watching video on the Internet.  But so long as Americans can’t choose which cable channels they want to pay for, I don’t think cable operators should be able to determine consumers’ monthly internet usage. Additionally, charging based on a bandwidth usage is a flawed model when the cost of usage is totally out of line with the price. Consumers are much better served by plans based on the speed of the connection rather than amount of bandwidth used. Competition is crucial to our economy and I refuse to let monopolistic corporations dominate the market and gouge my constituents.”

Conference Call to Introduce HR 2902 – the Broadband Internet Fairness Act – Washington, DC & Rochester, NY – June 17, 2009 (26 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

Rep. Eric Massa (D-NY) introduces pro-consumer legislation designed to stop Internet Overcharging schemes.

Congressman Eric Massa (D-New York) will formally introduce the Broadband Internet Fairness Act (H.R. 2902) this morning on a nationwide conference call with rep0rters.

Rep. Massa is joined by two organizations that helped to bring about the bill’s creation – Stop the Cap!, an all-consumer advocacy group opposed to Internet Overcharging schemes and service limits, and Free Press, a national, nonpartisan organization working to reform the media and promote universal access to communications.

Rep. Massa introduced the bill after hearing an outpouring of complaints from constituents in his home district in western New York.  Time Warner Cable’s Rochester division announced plans to implement an Internet Overcharging scheme on residential customers on April 1st which would dramatically raise rates on broadband service from $50 per month to $150 per month for continued access to unlimited service.  Other subscribers faced the prospect of a severely curtailed broadband service with limited usage allowances and overlimit fees for exceeding them.

“Access to the internet has become a critical part of our economy and we can’t let corporate giants limit the public’s access to this important tool,” said Congressman Eric Massa. “The Broadband Internet Fairness Act is all about protecting consumers from outrageous internet overcharges and giving the public a voice in this process. I have taken lots of time to work on this bill and have consulted with my constituents and industry experts. Now the hard work of passing this bill begins.”

The Broadband Internet Fairness Act will prevent the monopolistic rate increases of broadband companies by promoting the interests of broadband customers.  Specifically the bill:

• Requires internet service providers (ISPs) to submit plans to the Federal Trade Commission (FTC), in consultation with the FCC if they plan to move to a usage-based plan;
• Prohibits volume usage plans if the FTC determines that these plans are imposing rates, terms, and conditions that are unreasonable or discriminatory;
• Sets up public hearings for plans submitted to the FTC for public review and input;
• Only affects internet providers with 2 million or more subscribers;
• Imposes penalties for broadband ISPs that ignore these rules.

Phillip Dampier, a consumer writer from Rochester, New York created a website in 2008 to combat Internet Overcharging schemes.  Stop the Cap! is an all-consumer, all-volunteer website combating Internet Service Providers attempting to impose arbitrary usage limits, unwarranted and overpriced “consumption billing,” and extra fees and penalties on broadband subscribers.  The site has been visited by more than 100,000 people in the past year, particularly during Time Warner Cable’s proposed Internet Overcharging trial.

“When word of Time Warner Cable’s plan reached us in western New York on April Fool’s Day, we had to verify this wasn’t simply a bad joke,” Dampier said.

Phillip Dampier

“The Internet Overcharging scheme Time Warner Cable was proposing would have tripled our broadband bill for the exact same level of service we enjoyed as loyal Road Runner customers since 1998, when the service first became available in Rochester,” Dampier said.

“At a time when the economy is hurting, and our family already spends more than $175 a month on Time Warner Cable services, asking us to pay at least $275 a month was way out of line,” he added.

Dampier’s website quickly mobilized Time Warner Cable customers in all of the cities chosen for the proposed trial.

“People from New York, North Carolina, and Texas may not always agree on everything, but we found common ground with our friends in Austin, San Antonio, Beaumont, and the Triad region of North Carolina in absolute opposition to these pricing schemes,” Dampier said.

Media attention on the story, particularly in Rochester, was relentless.  One news anchor said few issues had provoked as much outrage from viewers than Time Warner Cable’s proposed pricing changes for Internet service.

In mid-April, Time Warner Cable CEO Glenn Britt announced that the company was “shelving” its pricing experiment until customers could be “educated” about the benefits.  Since that time, Time Warner Cable officials have continued to make public statements praising what they call “consumption-based billing.”

Dampier believes that means Time Warner Cable will be back for more.

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Rep. Eric Massa (D-NY), Phillip Dampier, founder of Stop the Cap!, and Ben Scott, Policy Director of Free Press, will participate on a national conference call Wednesday morning to discuss the “Broadband Internet Fairness Act,” legislation that would protect consumers from excessive Internet overcharges.

The “Broadband Internet Fairness Act” would give the government explicit authority to prevent broadband providers from overcharging for Internet access.

DATE: Wednesday, June 17
TIME: 11:30 a.m ET/8:30 a.m.PT
SPEAKERS:
Rep. Eric Massa (D-N.Y.)
Ben Scott, policy director, Free Press
Phillip Dampier, founder, StoptheCap.com

To join the conference call, dial (888) 792-8352, Access Code 15549429

A recording of the conference call will be available after the event is concluded.

Additional information will be forthcoming shortly.

North Coventry Township Station 64 Fire Engine - Ready to Respond to Comcast Mishaps Anytime

“I called Comcast because I wanted the kitchen TV hooked up to cable,” she said, describing how the digital TV converter box hadn’t worked as planned. “They said no problem, we can do it, no extra charge.” Tyson was already a Comcast subscriber before the incident Monday.

“They drilled right into the electrical box,” Tyson said in disbelief, looking over at the side of her home where a long black burn mark extended up to the roof from a burnt electrical box and meter.

Verizon must be enjoying the irony.  Just a few days ago, we shared with you the ad that Comcast was running in Pennsylvania showing reckless Verizon FiOS installers tearing up yards and engaging in what can only be described as ‘dangerous antics’ by the telephone company’s installers.  Verizon wants those ads pulled for being out of bounds.

After The Mercury published an article detailing one 83 year old North Coventry woman’s plight (her house is now uninhabitable), Comcast may have to yank the ad just to save face.

Tyson, who was in her house while the cable man worked outside, said she heard “two loud blasts — ‘Boom, Boom’ — then I came out of the house to see what was going on.”

“It was burning like mad,” she said, when the serviceman ran up to her and asked if she had a fire extinguisher, which lay spent on Tyson’s front lawn as fire crews worked.

Tyson may have been lucky as fire officials found the arcing had sparked a fire in wood behind the electrical box in the basement which spread to the floor joists. But the majority of damage was to the electrical system.

“The house is not liveable until the electric is redone,” Schaeffer said. There also was no water for the home since the well pump won’t work without electricity, according to officials.

Jean Tyson’s home sustained approximately $20,000 in damage.  She, and her dog, are now staying at a neighbor’s home until repairs can be completed.

If North Coventry was wired for Verizon FiOS, they should be swooping in to offer her a free Verizon FiOS account, thus proving yet again that payback is a ….

To punish Comcast for being naughty, we bring you one additional FiOS ad, pointed out by our reader Smith6612, featuring Michael Bay.  It’s definitely worth the entertainment value:

Thanks to Broadband Reports for calling our attention to this story.