EPB Faces Blizzard of Bull from Comcast, Tennessee “Watchdog” Group

Comcast is running “welcome back” ads in Chattanooga that still claim they run America’s fastest ISP, when they don’t.

EPB, Chattanooga’s publicly-owned utility that operates the nation’s fastest gigabit broadband network, has already won the speed war, delivering consistently faster broadband service than any of its Tennessee competitors. So when facts are not on their side, competitors like Comcast and a conservative “watchdog” group simply make them up as they go along.

Comcast is running tear-jerker ads in Chattanooga featuring professional actors pretending to be ex-customers looking to own up to their “mistake” of turning their back on Comcast’s 250GB usage cap (now temporarily paroled), high prices, and questionable service.

“It turns out that the speeds I was looking for, Xfinity Internet had all along,” says the actor, before hugging an “Xfinity service technician” in the pouring rain. “But you knew that, didn’t you?”

The ad closes repeating the demonstrably false claim Comcast operates “the nation’s fastest Internet Service Provider.”

“I see those commercials on television and I’m thinking, I wonder how much did they pay you to say that,” says an actual EPB customer in a response ad from the public utility.

It turns out quite a lot. The high-priced campaign is just the latest work from professional advertising agency Goodby Silverstein & Partners of San Francisco, which is quite a distance from Tennessee. Goodby has produced Comcast ads for years. The ad campaign also targets the cable company’s other rival that consistently beats its broadband speeds — Verizon FiOS.

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

Comcast tried to ram their “welcome back” message home further in a newspaper interview with the Times Free Press, claiming “a lot of customers are coming back to Xfinity” because Comcast has a larger OnDemand library, “integrated applications and greater array of choices.”

Comcast does not provide any statistics or evidence to back up its claims, but EPB president and CEO Harold DePriest has already seen enough deception from the cable company to call the latest claims “totally false.”

In fact, DePriest notes, customers come and go from EPB just as they do with Comcast. The real story, in his view, is how many more customers arrive at EPB’s door than leave, and DePriest says they are keeping more customers than they lose.

EPB fully launched in Chattanooga in 2010, and despite Comcast and AT&T’s best customer retention efforts, EPB has signed up 37,000 customers so far, with about 20 new ones arriving every day. (Comcast still has more than 100,000 customers in the area.)

Many come for the EPB’s far superior broadband speeds, made possible on the utility’s fiber to the home network. EPB also does not use Internet Overcharging schemes like usage caps, which Charter, AT&T, and Comcast have all adopted to varying degrees. Although the utility avoids cut-rate promotional offers that its competitors hand out to new customers (EPB needs to responsibly pay off its fiber network’s construction costs), its pricing is lower than what the cable and phone companies offer at their usual prices.

Comcast claims customers really don’t need super high speed Internet service, underlined by the fact they don’t offer it. But some businesses (including home-based entrepreneurs) do care about the fact they can grow their broadband speeds as needed with EPB’s fiber network. Large business clients receiving quotes from EPB are often shocked by how much lower the utility charges for service that AT&T and Comcast price much higher. It costs EPB next to nothing to offer higher speeds on its fiber network, designed to accommodate the speed needs of customers today and tomorrow.

The competition is less able. AT&T cannot compete on its U-verse platform, which tops out shy of 30Mbps. Comcast has to move most of its analog TV channels to digital, inconveniencing customers with extra-cost set top boxes to boost speeds further.

The fact EPB built Chattanooga’s best network, designed for the present and future, seems to bother some conservative “watchdog” groups. The Beacon Center of Tennesee, a group partially funded by conservative activists like Richard Mellon Scaife through a network of umbrella organizations, considers the entire fiber project a giant waste of money. They agree with Comcast, suggesting nobody needs fast broadband speeds:

EPB also offers something called ultra high-speed Internet. Consumers have to pay more than seven times what they would pay for the traditional service — $350 a month. Right now, only residents of a select few cities worldwide (such as Hong Kong) even use this technology, and that is because most consumers will likely not demand it for another 10 years.

Actually, residents in Hong Kong, Japan, and Korea do expect the faster broadband speeds they receive from their broadband providers. Americans have settled for what they can get (and afford). DePriest openly admits he does not expect a lot of his customers to pay $350 a month for any kind of broadband, but the gigabit-capable network proves a point — the faster speeds are available today on EPB at a fraction of price other providers would charge, if they could supply the service at all. Most EPB customers choose lower speed packages that still deliver better performance at a lower price than either Comcast or AT&T offer.

The Beacon Center doesn’t have a lot of facts to help them make their case. But that does not stop them:

  • They claim EPB’s network is paid for at taxpayer expense. It is not.
  • They quote an “academic study” that claims 75 percent of “government-run” broadband networks lose money, without disclosing the fact the study was bought and paid for by the same industry that wants to keep communities from running broadband networks. Its author, Ron Rizzuto, was inducted into the Cable TV Pioneers in 2004 for service to the cable industry. The study threw in failed Wi-Fi networks built years ago with modern fiber broadband networks to help sour readers on the concept of community broadband.
  • Beacon bizarrely claims the fiber network cannot operate without a $300 million Smart Grid. (Did someone inform Verizon of this before they wasted all that money on FiOS? Who knew fiber broadband providers were also in the electricity business?)

The “watchdog” group even claims big, bad EPB is going to drive AT&T, Comcast, and Charter Cable out of business in Chattanooga (apparently they missed those Comcast/Xfinity ads with customers returning to Kabletown in droves):

Fewer and fewer private companies wish to compete against EPB, which will soon have a monopoly in the Chattanooga market, according to private Internet Service Provider David Snyder. “They have built a solution looking for a problem. It makes for great marketing, but there is no demand for this service. By the time service is needed, the private sector will have established this for pennies on the dollar.”

Ironically, Snyder’s claim there is no demand for EPB’s service fall flat when one considers his company, VolState, has been trying to do business with EPB for two years. He needs EPB because he is having trouble affording the “pennies on the dollar” his suppliers are (not) charging.

Snyder tells “Nooganomics” his company wants an interconnection agreement with EPB, because the private companies he is forced to buy service from — including presumably AT&T, want to charge him a wholesale rate twice as much as EPB currently bills consumers. Snyder calls EPB’s competition “disruptive.”

Nooganomics calls EPB’s low priced service a “charity” in comparison to what AT&T and Comcast charge local residents, and the free market can do no wrong-website seems upset consumers are enjoying the benefits of lower priced service, now that the local phone company and cable operator can’t get away with charging their usual high prices any longer.

Deborah Dwyer, an EPB spokeswoman, told the website the company got into the business with state and city approval, followed the rules for obtaining capital and pays the taxes or payments-in-lieu of taxes as the same rate as corporate players. “We believe that public utilities like EPB exist to help improve the quality of life in our community, and the fiber optic network was built to do just that. One of government’s key responsibilities is to provide communities with infrastructure, and fiber to the home is a key infrastructure much like roads, sewer systems and the electric system.”

Snyder can’t dispute EPB delivers great service. He also walks away from the competition-is-good-for-the-free-market rhetoric that should allow the best company with the lowest rates to win, instead declaring customers should only do business with his company to support free market economics (?):

“If you are a free market capitalist and you believe in free markets, you need to do business with VolState,” Mr. Snyder says. “And if you’re highly principled, every time you buy from a government competitor, what you’re voting for with your dollars is, you’re saying, ‘It’s OK for the government come in to private enterprise and start to take over a vast part of what we used to operate in as a free market.’”

Perhaps Snyder and his friends at the Beacon Center have a future in the vinegar business. They certainly have experience with sour grapes.

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/Comcast Ad Welcome Back.flv[/flv]

Comcast’s emotionally charged ad, using paid actors, was produced by advertising firm Goodby Silverstein & Partners. The commercial running in Chattanooga is a slight variation on this one, which targets Verizon FiOS. (1 minute)

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/EPB Ad.flv[/flv]

EPB uses actual customers, not paid actors, in its own advertising that calls out Comcast’s false advertising.  (1 minute)

ALEC Lobbyists Sneaking Around Albany and NY State Democrats Want It Stopped

Squadron

The American Legislative Exchange Council (ALEC), a conservative business-funded lobbying group, has been sneaking around New York’s state capital pretending to be a charity when it is in reality responsible for authoring at least 39 bills during the current session of the legislature.

Sen. Dan Squadron, the ranking Democrat on the state Senate Investigations and Government Operations Committee told the Wall Street Journal the corporate-backed group should be registered a lobbying group and not a charity.

“You know they say if it looks like a duck quacks like a duck, it must be a lobbyist,” said Sen. Bill Perkins, a Manhattan Democrat. “As such it is required to be registered, and its activities are required to be transparent, and apparently that is not what’s happening right now.”

ALEC provides legislators with corporate-written sample legislation that elected officials can use as templates to produce their own bills that favor corporate interests. The group claims a 20 percent success rate getting bills passed through the New York State Legislature, which is not bad in a legislative body legendary for its dysfunction.

Maziarz

Common Cause New York says it will file a formal complaint next week with state ethics officials about ALEC’s failure to properly register itself as a lobbying group.

That brought a strong response from ALEC, which accused Common Cause of being part of a grand liberal conspiracy with George Soros to harass and silence the group.

Two state senators with reportedly close ties to ALEC are Sen. George Maziarz, a Republican from Niagara County, and ALEC state chairman Sen. Owen Johnson, a Long Island Republican.

Maziarz, who accepts campaign contributions from Verizon Communications, was in the middle of a 2010 dispute over a proposed Verizon data center to be built in Somerset, N.Y. Maziarz sided with Verizon and verbally attacked one of his constituents who opposed the pace of the project, and its lack of a complete environmental impact review.

Verizon ultimately changed its mind about the project after purchasing Terremark, which operates data centers.

T-Mobile USA Head Out “To Spend More Time With His Family”

Phillip Dampier June 27, 2012 Consumer News, T-Mobile, Wireless Broadband Comments Off on T-Mobile USA Head Out “To Spend More Time With His Family”

Humm

T-Mobile USA’s chief executive Philipp Humm is stepping down from his position to accept a job offer from a European wireless carrier.

In a letter to T-Mobile USA staff released Wednesday, company executives disclosed Humm was hoping to leave T-Mobile by the end of September to be with his family in Europe. But now Humm has accepted a position with an unnamed European competitor to T-Mobile and plans to leave immediately.

Chief operating officer Jim Alling assumes the CEO position temporarily at a time when T-Mobile is struggling to regain its identity after a failed merger attempt with AT&T. The company is spending aggressively to upgrade its network to stem subscriber losses numbering 1.65 million contract customers last year.

Humm earlier indicated he wanted to see T-Mobile shed its image of being the place for cheap phones and not-well-respected service. The company has plans to launch its own LTE 4G network and is competing to bring the latest handsets to customers. T-Mobile is positioned between Sprint’s unlimited data and AT&T/Verizon Wireless’ data allowances with steep overlimit fees. T-Mobile limits data use, but does not charge overlimit fees, preferring to throttle data speeds until the next billing date.

Working Around Verizon’s New Gouging Wireless Plans If You Still Have ‘Unlimited Data’

Phillip Dampier June 27, 2012 Consumer News, Data Caps, Editorial & Site News, Verizon, Wireless Broadband Comments Off on Working Around Verizon’s New Gouging Wireless Plans If You Still Have ‘Unlimited Data’

Last minute upgraders are hurrying to pre-order the Samsung Galaxy S3 to buy an additional two years for their unlimited data plans and get one last subsidized phone.

If you are a Verizon Wireless customer, today is the last day to exercise options under Verizon’s existing plans before the company’s new “Share Everything” plan regime takes effect. While some customers will save money on the new plans, at least at first, many others will not. Verizon is not forcing existing customers to change plans tomorrow, but you may find it worthwhile to lock in any unlimited data plan for the next two years, even if your contract is not scheduled to end until later this year. Remember, Verizon may be saving you a few dollars today, but its bean counters know that data is a growth industry, so the more devices you add to your plan, the quicker you will be paying more and more to upgrade your allowance.

Droid Life helps cover some of the basics before we discuss your options:

What are Share Everything plans?

Think of them like the family minute and text plans that you have been a part of for years now, but for data. With a Share Everything plan, you purchase a bucket of data at a flat rate for your whole family to use, just like you did with minutes and texts. You no longer have to buy individual smartphone or feature phone data plans on Share Everything. Deciding which plan will best suit your family is the key here, which requires some analyzing of the amounts of data you are currently using.

How are they priced?

The tiers are as follows:  1GB for $50, 2GB for $60, 4GB for $70, 6GB for $80, 8GB for $90, and 10GB for $100. Along with a data tier, you also have to factor in your “per device” cost which is $40 per smartphone, $30 per feature phone, $20 per Jetpack, and $10 per tablet. Mobile hotspot is included with Share Everything at no extra cost as it pulls from your data bucket. If you would like more than 10GB, you can purchase extra 2GB add-ons for $10 a piece. If you go over your data bucket limit, you are charged $15 per 1GB overage.

Minutes and texting are unlimited on Share Everything plans, so your only worry is data usage.

You can read more about pricing at our step-by-step guide to selecting a plan.

Can I keep unlimited data? Do I have to switch to Share Everything?

Yes, you can keep unlimited data. No, you do not have to switch to Share Everything. We wrote up an entire detailed post on this scenario of keeping unlimited data that I recommend you read.

Should I upgrade now?

Maybe. If you want to enjoy one last discounted (subsidized) price on a phone and keep unlimited data, you have to upgrade before June 28. If you upgrade after at a discounted price, you will have to change your plan to either a single person tier (2GB for $30) or join a Share Everything plan. Further details on upgrading now, including Galaxy S3 pre-orders, can be found at this post.

What if someone on my family plan upgrades after Share Everything is live?

While I have yet to get a definitive answer from any higher-ups at Verizon, it is my general understanding that you can always choose something other than Share Everything as long as you are a current customer before June 28. If you are in a family plan now and one of your lines upgrades after June 28 and chooses Share Everything, it will not affect your line. From what I have gathered over the last few weeks, you would not have to choose to join their shared plan. Also, if you want to upgrade after June 28, you can choose between a Share Everything plan and an individual tiered plan starting at 2GB for $30.

Now it’s time to consider some options:

1. Do nothing. If you want to keep what you have until your current contract expires, do nothing. Absolutely nothing will change on your account until a contract expires and you seek to upgrade your phone (or you can depart for Sprint, T-Mobile, or some carrier not using this new pricing). If you stay with Verizon, you can continue with a month-to-month plan until you seek to upgrade your phone. At that point, you will either have to pay full price for an unsubsidized phone (can be up to $600 or more) or get a subsidy with a new tw0-year contract on one of Verizon’s new plans. You will lose unlimited data at this point unless you bring an unsubsidized phone to the party. But financially that may not make sense. Verizon charges the same monthly rates, designed to recoup phone subsidies, whether you have a subsidized or unsubsidized phone, so you are paying the phone company back for a discounted phone you never got.

2. If you are eligible for an upgrade, you may want to use it today! Log into your Verizon Wireless account and check your phone lines for any eligible for immediate upgrades. If one or more are, today is the last day to consider using that upgrade -and- keep your unlimited data plan. Keep in mind you can activate a new phone on any number on your plan (preferably one with unlimited data, of course) and move them around if one of the people on your account can make better use of a new phone than the person eligible for the upgrade. You will commit to a new two-year contract for each line you upgrade and you will pay Verizon’s phone upgrade fee ($30) per phone.

You can buy yourself eligibility for subsidized smartphones by activating a “dummy” extra line with Verizon Wireless for $9.99/month or use it with an older basic Verizon phone without incurring data charges.

3. If you are not eligible for an upgrade, you can still buy at least two more years of grandfathered unlimited data without buying an unsubsidized phone, but you will pay a penalty. Verizon will allow customers not eligible for an upgrade to add additional lines to their account specifically to qualify for new subsidized phones they can use on any number on their account. Let’s say you have two lines active with Verizon not eligible for an upgrade until later this year, but you don’t want to lose your unlimited data -and- you want one last subsidized phone. Simply call Verizon Wireless and ask them to establish two new lines of service on your existing account with a “dummy ESN” registered in their system. You will pay $9.99 per month (plus taxes and fees) on each line with new two-year contracts for each line, but this will qualify you for an immediate subsidized upgrade to any in-stock smartphone. You can also pre-order Samsung’s wildly popular Galaxy S3 ($199 subsidized, $599 unsubsidized).

You will then have two more years of unlimited data on your new phone. If you have older non-smartphones laying around, you can activate them instead of using the “dummy ESN” method and allow someone like a parent or child to share your existing calling plan without running up data charges or text messages (although you can add those options as well if needed).

You should coordinate this over the phone with a Verizon Wireless customer service representative (1-800-922-0204) explaining you don’t currently qualify for an upgrade but want to establish “dummy service” on a new line(s) to win a subsidized phone. Most representatives are familiar with this. But when the new phones arrive, you will want to have Verizon Wireless handle activation themselves because they are equipped to transfer those new phones to replace the existing ones on your account and not lose your unlimited data plan in the process. If you activate them yourself, they will be up and running on different phone numbers and you will have to visit a Verizon store to obtain new 4G SIM cards to switch phones to the correct lines. Let Verizon handle it, and any messes that might occur along the way.

You will not pay any early termination fee for not using your old phones anymore, but you will probably want to call Verizon about dropping contract-expiring lines on your account when their respective contracts expire so you minimize the number of months you are paying an additional $9.99 a month for extra phone lines you probably will not be using. You will neither pay an activation fee or upgrade fee using this method.

Is it an expensive price to pay for an early upgrade? Perhaps, but maybe not if it means buying another two years of unlimited data service.

It is important, however, that you complete any arrangements to order your phone(s) prior to the end of day today. We strongly recommend you work through Verizon Wireless’ own sales department (they shut down for the night at 11pm EDT) to arrange for new phones or pre-orders (which are acceptable to activate later and still keep unlimited data). If you deal with a third party like a non-Verizon store or website, the order may not process in time to qualify within the remaining hours Verizon’s old plans are still active.

By July 2014, we will be back here again trying to maneuver the renewal of unlimited data plans Verizon now hates. But spending time to preserve these plans may be important to your wallet when you consider just a year ago, Verizon charged $30 for unlimited wireless data. Effective tomorrow, they charge $50 for 1GB of data. Where will we be two years from today? The sky is the limit.

Time Warner Cable Moving to Usage Based Billing “Gradually and Slowly”

Phillip Dampier June 27, 2012 Broadband "Shortage", Comcast/Xfinity, Competition, Data Caps, Editorial & Site News, Online Video, Public Policy & Gov't Comments Off on Time Warner Cable Moving to Usage Based Billing “Gradually and Slowly”

Phillip “We’re Still Here to Fight” Dampier

“We’re moving away from one-size-fits-all,” admits Jon Gary Herrera, a Texas spokesman for Time Warner Cable, which has introduced a usage-limited plan called “Internet Essentials” that limits customers to a paltry 5GB of usage per month in return for a $5 discount.

Time Warner Cable has learned from its mistakes in 2009, when the company attempted to force usage limits on broadband customers that would have left those seeking an unlimited experience with a broadband bill of $150 a month. After a consumer backlash organized by Stop the Cap!, the company quickly pulled back and put the plans on hold.

After three years, the playbook is off the shelf once again and being dusted off, although the nation’s second largest cable company is taking things a lot more slowly the second time around.

Lesson one: Broadband pricing and usage plan changes must happen gradually and carefully.

The New York Times reports that cable executives privately admit they are working to charge consumer expectations, starting with the notion that “all you can eat” broadband is what customers want or need.

Time Warner telemarketers have begun re-educating consumers when calling to sign up for broadband, now asking them what they do with their Internet connection and suggesting different plans based on their anticipated usage, not their speed expectations.

So far, sources working for Time Warner Cable in South Texas tell Stop the Cap! the plan is not working too well and few customers are interested in the usage-capped “Internet Essentials” plan that has been marketed in several markets in the state.

“Overage charges will be capped at $75 per month. That means that for $150 per month customers could have virtually unlimited usage at Turbo speeds.” — (April 9, 2009) Landel Hobbs, then chief operating officer of Time Warner Cable

“Customers really are not interested in understanding what their usage level is and don’t see much benefit from the small discount our company is offering those who sign up,” one Time Warner customer service agent privately tells us. “A lot of them have learned lessons from what AT&T and Verizon Wireless are doing with wireless data plans, and they don’t want their home broadband accounts measured.”

Another source tells us those consumers most likely to consider the “Internet Essentials” plan are casual Internet users, particularly older customers on fixed incomes. But they are also the least likely to understand how to measure their usage.

“If you tell people what a gigabyte is, it goes in one ear and out the other and they really have no comprehension about it, and when their family members find out what they signed up for, we inevitably get a call back asking to switch to something else,” another agent tells Stop the Cap! “There is a real hostility about usage limits on home broadband out there, at least among those that understand what they are.”

Lesson Two: Forgive overlimit fees or overages liberally, because consumers will adjust their behavior to use less Internet just by threatening to charge them more.

Time Warner has been very liberal about forgiving customers who exceed their 5GB limit. AT&T has yet to enforce its limits in many markets, in part because of a defective usage meter. Other ISPs with usage limits are also wary about imposing overage fees on customers because of the potential political backlash. In short, the industry hopes the threat of overlimit fees will be sufficient to get customers thinking about their usage and self-limit what they do online, an important tool to wield against customers considering cord-cutting traditional cable TV to watch everything online. Efforts to earn additional revenue from more expensive usage-based broadband plans will come later.

Cable to Netflix: You better think about going back to the U.S. Post Office and mailing DVDs. Our customers can’t afford to throw away their usage allowance on your streamed movies.

The Justice Department’s antitrust lawyers are conducting an investigation into the cable industry’s treatment of online video companies, especially with the increasing number of usage caps coming into the market. With most consumers confronted with a broadband monopoly or duopoly, it is easy for providers to slap limits on usage if the competition follows suit. The new found love of usage caps and usage billing is proving curious to those abroad, because the rest of the world is moving away from consumption limits and towards flat rate broadband.

One Wall Street analyst wants the industry to adopt the meme that if the Justice Department gets away with banning usage limits, the industry should retaliate with usage-based billing, which is just another version of Internet Overcharging.

As with the wireless industry, Wall Street is the primary driving force pushing broadband providers to adopt usage billing and other price increases on broadband to boost earnings. Verizon Wireless and AT&T, responding to investor concerns about slowing growth, see endless profits in their future monetizing broadband usage. With broadband usage rising, charging customers more for using more can bring in endless profits, even as the costs to provide the service continue to decline. Without competition and with no organized opposition by consumers, regulators, or legislators, there is nothing to stop prices from skyrocketing.

Lesson Three: Try to convince customers upgrades are expensive and difficult.

A major enemy of the forces working to adopt income-increasing usage billing are broadband advocates who regularly analyze quarterly earnings of major providers, the costs of upgrades, the price of backbone connections, and the ever-increasing prices for Internet service.

In every case, cable and phone broadband providers adopting the latest broadband technologies are seeing major increases in revenue and profits even as their costs to upgrade and manage their networks decline overall. With providers like Comcast and Time Warner Cable now regularly increasing broadband prices, earnings are higher than ever for flat rate broadband sold in speed-based tiers, and consumers are gravitating towards higher speed service, which brings even more profit.

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.

Unfortunately, when cable and phone companies control the pipes that deliver broadband service and monetize their use, the threat to high bandwidth innovation has never been greater.

Netflix tells the New York Times there may be little they can do to stem to tide of usage limits.  Sony, a potential online video competitor, has already pulled the plug on its plan to sell cable channels over the Internet because usage limits will destroy the market for online video.

Netflix has been desperate enough to explore a concessionary move — partnering with the very providers that seem ready to limit customers’ access to their service. Netflix hopes it can find a way to be exempt from the industry’s usage limits, much the same way Comcast has given a free pass to Microsoft Xbox streamed video.

Lesson Four: Control the voices that claim to speak for consumers.

Consumers still overwhelmingly despise usage limits, but without unified action against Internet Overcharging schemes like usage limits and usage billing, the drumbeat of industry voices and the dollar-a-holler groups that parrot their beliefs in Washington will have the upper hand.

Consider the FCC’s “voice of the people” Consumer Advisory Council, infested with corporate interests and groups that would not exist without Big Telecom money paying to keep the lights on.

While the CAC has several authentic voices for consumers, they are practically outnumbered by industry sock puppets like the “American Consumer Institute” run by Stephen Pociask, who happens to be a telecom industry consultant and former chief economist for what is now Verizon. ACI represents the interests of AT&T and Verizon, not consumers. Call For Action is aptly named. It cashed checks written by AT&T.  “Consumer Action” relies on AT&T “grants.”  Many of the other “consumer voices” on the CAC are nothing of the sort. The CTIA Wireless Association is the giant lobbying group for the wireless industry. Not to be outdone, the National Cable & Telecommunications Association (NCTA) is there too, representing the cable industry. Time Warner Cable, T-Mobile, and Verizon are there in person as well, along with the billion dollar broadcast industry in the form of the National Association of Broadcasters. So much for the “Consumer” Advisory Council.

Is it any surprise that with “consumers” like this providing advice, FCC Chairman Julius Genachowski opined he thought such billing schemes were useful.

It is more urgent than ever for customers to prepare for another round of battle against major broadband providers. Time Warner Cable itself fears a repeat of the 2009 public relations disaster, and promises it will always have an unlimited tier available for customers, even if it remains quiet on how much the company would charge for the service. If the cable operator still believes in its former chief operating officer Landel Hobbs, we can give you a clue. In April 2009, Hobbs thought he was delivering a major concession to protesters by offering to bring back unlimited broadband… for $150 a month.

An all-out consumer backlash can bring additional consumer victories, but only if customers are willing to get involved in the fight.

Stay tuned.

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