Sprint has launched a new ad series and accompanying web site to warn consumers that choosing Verizon’s new Share Everything data plans can give you a big headache and a higher monthly bill.

“The concept of sharing a monthly data allowance across a family or group of users increases the likelihood for a surprise monthly bill due to data overage charges,” said Caralene Robinson, vice president of brand strategy and marketing communications for Sprint. “Data usage continues to increase and consumers value Truly Unlimited data because it’s simple and straightforward.”

Sprint argues that customers have enough trouble differentiating the usage of the applications they run themselves. When sharing a data plan with other members of a family, it can quickly become impossible to know exactly who is consuming what. That makes it easy to exceed a monthly usage allowance, which results in costly overlimit fees. Tracking usage and the inevitable arguments that will result at the dinner table make Verizon’s new share plans a real headache in Sprint’s view.

Sprint proposes that customers switch to their Truly Unlimited data plan, which has no limits and also costs less than Verizon’s shared data plan. Sprint also continues to sell budget plans that offer a calling allowance in return for a reduced price. Verizon now only sells unlimited voice minutes bundled into their Share Everything plans.

Unlike most carriers who boast customers can send millions of e-mails or visit hundreds of thousands of web pages with a low allowance data plan, Sprint explains what a 1GB limit really means when customers use increasingly popular streaming services and apps. It turns out Verizon’s 1GB allowance plan does not deliver that much.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Sprint Say No to Sharing – Family Meeting.flv[/flv]

Sprint launches its “Say No To Sharing” and “Say Yes To Sprint” campaign with this “Family Meeting” ad, which shows a family debating how to divide up their shared data plan and avoid overlimit fees.  (1 minute)

Phillip “The Company Paid by Suddenlink to Issue a Third Party Guarantee Makes All the Difference” Dampier

When Stop the Cap! and Broadband Reports reader Simon contacted us about Suddenlink’s fact-free usage measurement tool that managed to rack up nearly 23GB of usage for one West Virginia customer on the same day his service was out for most of the evening, he probably did not think one customer catching the cable company’s fingers in the usage cookie jar would make much difference.

But it did.

Suddenlink spokesman Pete Abel, initially responding to complaints about the usage tool’s accuracy, told Light Reading last week its meter was “consistently accurate, as was demonstrated in the tests we ran before we launched this program.”

Four days later, the company effectively disavowed that, put the meter’s built-in overlimit fee scheme on hold and plans to hire a third party company to “validate the accuracy of its system,” after finding it was faulty after all.

Suddenlink won’t say what is causing the inaccuracies, but blamed “unusual” circumstances for the problem. The company is now refunding customers billed overlimit fees of $10 per 50GB and waiving future charges until its system is reviewed and validated by “a trusted third party.”

Stop the Cap! believes that does not come close to satisfying the company’s responsibility to its customers for accurate billing.

Suddenlink has never demonstrated it actually needs an Internet Overcharging scheme with usage limits and overlimit fees. The company proves that when it claims only a “relatively small number of customers” were ever billed overlimit fees. With no demonstrable usage problem, the company’s need to implement its Project Imagine “Allowance Plan” is sorely lacking.

Easy as counting anyway we like.

Additionally, the accuracy of providers’ usage measurement tools has proven highly suspect, and not just with Suddenlink. All of the companies caught with inaccurate meters always strongly defend them, until overwhelming evidence suggests they should not. Even super-sized companies like Bell Canada (BCE) and AT&T have enforced usage limits with meters the companies later had to disavow. Suddenlink is only the latest.

The scale in your grocery store is checked and certified. So is the corner gas pump, your electric meter, water meter, and gas meter. Why should broadband usage be any different?

Consumers are right to suspect Suddenlink’s usage meter. No official regulatory body verifies the accuracy of usage measurement tools and whatever company Suddenlink chooses to “verify” its meter has a built in conflict of interest — it works for a company that depends on a certain result in its favor. Suddenlink clearly has no business in the usage measurement business when it insists on the accuracy of a meter it disavows just a few days later.

With only murky details available to consumers about what caused the problem and why Suddenlink did not see it until a customer managed to catch them in the act, there is little confidence the company will actually solve a problem it never realized it had. There is also nothing to assure us — “third party guarantee” or not — it cannot happen all over again.

Suddenlink customers need to reach out and tell Suddenlink its “Allowance Plan” is completely unacceptable. Tell the cable company you don’t want to worry about their unverifiable and proven-inaccurate metering program. Ask them why you should remain a customer when they spend time and money on a scheme that the company itself admits is not really needed — targeting just a small number of “heavy users.”

Suddenlink’s customer service team does not think much of customers who use their broadband service a lot, as this recent “Who’s On First” exchange illustrates:

Lisa (Suddenlink): “Well, you show heavy OVERUSAGE of the Internet, you drew 14GB of data yesterday.”

Customer: “Okay, let’s back up, explain to me how I drew 12GB of data when my power was off and I wasn’t home on June 30.”

Lisa: “I didn’t say anything about June 30.”

Customer:  “If you have sooo much faith in your meter, explain to me how I drew 12GBs of data on June 30, while I didn’t have power, and wasn’t home.”

Lisa:  “I didn’t say anything about June 30.”

Customer:  “I’m asking, how did I draw 12GB of data without power to my house?”

If Suddenlink has a problem with a handful of users creating problems for other subscribers on its broadband network, it has always reserved the right to contact those customers directly and work out the problem one on one. That is a far better solution than inconveniencing all of their customers with endless rounds of “usage roulette,” where the big winner could find themselves with Bill Shock from overlimit fees, whether they actually deserve them or not.

[flv]http://www.phillipdampier.com/video/CNBC Internet v. Cable 8-20-10.flv[/flv]

CNBC interviewed Suddenlink CEO Jerry Kent in August 2010 on how his company intends to deal with “invasive online video,” threatening to erode cable-TV profits. Kent proved Suddenlink doesn’t really need any extra money from overlimit fees — the days of big spending on capacity are over, but the money is nice to have anyway.  (8 minutes)

Phillip “At Least They Are Transparent About Robbing You” Dampier

The unassailable truth is that if there is a right way for a company to treat its customers and a wrong way, AT&T will always choose the wrong way. It’s the primary reason I refuse to do business with them.

The company’s recent decision to block Apple FaceTime for customers who refuse to be herded to one of AT&T’s new Mobile Share plans is another shot across the bow of Net Neutrality, which declares customers should be able to use the applications and services of their choosing — particularly on networks where they pay for those choices.

Principal #1 of Net Neutrality: Companies should not be playing favorites with applications or services by blocking or restricting those a provider does not favor.

AT&T’s response: ‘Whatever.’

The predictable outrage of customers should have come as no surprise to AT&T, but somehow it did.

The company picked testy senior vice president for regulatory affairs Bob Quinn to mount a rapid defense against the pitchfork-and-torch-yielding throngs on AT&T’s Public Policy Blog. That was their second mistake.

Quinn, who spent last December valiantly defending AT&T against its too-precious CupcakeGate mini-scandal, conjured up this pretzel-twisted logic tap dance to explain away its latest boorish behavior:

Providers of mobile broadband Internet access service are subject to two net neutrality requirements: (1) a transparency requirement pursuant to which they must disclose accurate information regarding the network management practices, performance, and commercial terms of their broadband Internet access services; and (2) a no-blocking requirement under which they are prohibited, subject to reasonable network management, from blocking applications that compete with the provider’s voice or video telephony services.

AT&T’s plans for FaceTime will not violate either requirement.  Our policies regarding FaceTime will be fully transparent to all consumers, and no one has argued to the contrary.  There is no transparency issue here.

Nor is there a blocking issue.  The FCC’s net neutrality rules do not regulate the availability to customers of applications that are preloaded on phones.  Indeed, the rules do not require that providers make available any preloaded apps.  Rather, they address whether customers are able to download apps that compete with our voice or video telephony services.   AT&T does not restrict customers from downloading any such lawful applications, and there are several video chat apps available in the various app stores serving particular operating systems. (I won’t name any of them for fear that I will be accused by these same groups of discriminating in favor of those apps.  But just go to your app store on your device and type “video chat.”)  Therefore, there is no net neutrality violation.

A company lecturing its customers for daring to question its decisions is always a good way to enhance those warm and fuzzy feelings people have about America’s least-liked wireless phone company. Quinn first scolds customers and consumer groups about their “knee jerk reaction,” for being upset about the issue. Then he declares they have “rushed to judgment,” using a turn of phrase not heard since O.J. Simpson’s defense team pounded it to death, and look where that ultimately got us.

The crux of AT&T’s argument is they get a free pass to “block and herd” because Apple FaceTime was pre-installed on customer phones. Therefore, since AT&T didn’t block you from downloading an app you already had, it cannot possibly be a Net Neutrality violation. Because as we all know, Net Neutrality is only about download blocking.

At least AT&T is keeping their promise to be transparent. They have, indeed, fully informed you they are mugging you while in the process of mugging you. Full disclosure… matters.

Somehow, I missed the “preinstalled does not count” section in the Federal Communications Commission’s December 2010 order to providers telling them to preserve the free and open Internet. So I spent last night with this legalese page-turner (194 pages to be exact) to refresh my memory.

Nope, it isn’t in there. You can read it for yourself from the link above.

So it isn’t me. It is them, making up the rules as they go, again.

Quinn graciously offers customers one concession: AT&T will allow you to use Apple FaceTime over your own home Wi-Fi network. Gosh thanks!

For customers addicted to FaceTime, AT&T’s solution is an expensive plan change. An average customer currently paying $70 for 450-barely used voice minutes and 3GB of data will find FaceTime off-limits on AT&T’s network unless they “upgrade” to AT&T’s $95 Mobile Share plan, which gets you only 1GB of data, but endless voice minutes you don’t want and unlimited texting you don’t need.

Result: Pay $25 more a month and get your data allowance slashed by 2/3rds. That’s a deal — AT&T-style.

But it is one some customers are through taking. Nalin Kuachusri:

The new FaceTime restrictions will usher in the end of my 12+ year relationship with AT&T. I’m tired of the consistent manipulation of plans and features to extract more and more money for services I don’t need. For example: there used to be several text-message options (200, 1000, 1500, unlimited) so I could choose and pay for the one that fit my usage best. Then there was the option to move from unlimited data to 2GB/month to save $5. That was great for me and fit my usage. Then I was forced to move back to $30/month if I wanted to add tethering where I’ll get an extra GB that I’ll never use. Finally, after 12 years as a customer with an account in good standing, I was not allowed to unlock my phone for my 10-day trip to Europe so I could get a local SIM. I couldn’t be happier to give you one final $200 payment as an early-termination fee so I can move to Verizon.

Unfortunately for Kuachusri, the bosses at Verizon Wireless are likely slapping themselves silly because they did not come up with the idea first.

T-Mobile is proving once again that as an independent cell phone provider, it is prepared to be a scrappy competitor for your wireless dollar. America’s fourth largest cell phone company today announced it was getting into an emerging “unlimited data” war with its larger competitor Sprint and smaller contender MetroPCS, announcing it will bring back a truly unlimited data plan for its customers.

“We want to double-down on worry-free (marketing),” said Harry Thomas, T-Mobile’s director of marketing. “We want to eliminate the situation of ‘Do I want to stream Netflix for kids or worry about data overage?’ ”

Starting Sept. 5, T-Mobile’s Unlimited Nationwide 4G Data plan will be available for $20 per month when added to a Value voice and text plan or $30 per month when added to a Classic voice and text plan. For example, a single line Value plan with unlimited talk and text combined with unlimited nationwide 4G data will cost $69.99 or a single line Classic plan with unlimited talk, unlimited text and unlimited nationwide 4G data will cost $89.99.  The plan cannot be combined with Smartphone Mobile Hotspot/tethering. Customers who want to share their phone’s data service with other devices will have to choose between a 5GB or 10GB add-on option instead.

TmoNews obtained this screen shot courtesy of an anonymous employee at T-Mobile USA.

T-Mobile says their new unlimited 4G data plan comes without tricks or traps, promising no data caps, speed limits/throttles or bill shock from overlimit fees. But like every provider, T-Mobile will have a provision in its terms of use that allows it to cut the data usage party short in cases of exceptionally extraordinary usage, but the company says it will enforce that only in the most extreme cases.

“We’re big believers in customer-driven innovation, and our Unlimited Nationwide 4G Data plan is the answer to customers who are frustrated by the cost, complexity and congested networks of our competitors,” said Kevin McLaughlin, vice president, marketing, T-Mobile USA.  “Consumers want the freedom of unlimited 4G data. Our bold move to be the only wireless carrier to offer an Unlimited Nationwide 4G Data plan reinforces our value leadership and capitalizes on the strength of our nationwide 4G network.”

T-Mobile doesn’t consider Sprint’s “truly unlimited” plan in the same class, because it currently operates on a much slower “4G” standard called WiMAX, which Sprint is moving rapidly away from. Many T-Mobile customers use the company’s 4G-like HSPA+ network for data, which offers respectable speeds if your phone supports the standard (the Apple iPhone, for example, does not.) T-Mobile is moving forward on its own upgrade to 4G LTE starting in 2013.

T-Mobile’s announcement comes one day after MetroPCS, a regional carrier, announced its own limited-time promotion offering unlimited talk, text, and data for $55 a month (up to three additional lines can be added for $50 a month each). Once a customer signs up for the unlimited service promotion, they can keep it as long as they remain a customer.

The two attention to unlimited data plans from the three carriers are in marked contrast to AT&T and Verizon Wireless, which have both moved to curb unlimited use plans — switching customers to usage allowances and overlimit fees. Both companies, considerably larger than any of their competitors, claim unlimited data is impossible to offer because of wireless spectrum shortages and the expense of continually upgrading networks to meet demand.

But this does not seem to pose any problem for Sprint, T-Mobile, or MetroPCS.

Wall Street believes the new interest in unlimited data is a marketing move to differentiate the smaller companies from the two dominant providers.

Wells Fargo analyst Jennifer Fritzsche wrote in a research note to her investor clients that T-Mobile is strategically re-positioning itself in the market to attract new customers.

“We believe T-Mobile felt the need to make some change in order to attract attention,” wrote Fritzsche.

Other analysts believe T-Mobile needed a “game-changing” marketing move to help it recover from its ongoing losses of contract customers. The company has been losing just over 500,000 “branded” contract customers every quarter for the last year.

The pricing and service changes may require Sprint to revisit its current rates.

Sprint’s $109.99 Simply Everything plan offers unlimited data, text, and voice — and runs $20 higher per month than T-Mobile’s forthcoming offer, $55 more than MetroPCS.

AT&T and Verizon: The Doublemint Twins of Wireless

In an unsurprising move, AT&T has followed Verizon Wireless and announced it has discontinued subsidies for wireless tablet devices.

Engadget received word from an AT&T insider the company has withdrawn subsidies often amounting to $150 off the devices in return for a two-year contract. The subsidies helped defray the more costly ($400+) 3G/4G-capable units most consumers bypass in favor of less expensive Wi-Fi-only tablets. Verizon Wireless stopped subsidizing tablets in June.

Consumers can still buy the devices at full price from AT&T, and in another move, AT&T slightly reduced its DataConnect pricing by $5:

• 250MB for $14.99
• 3GB for $30
• 5GB for $50
• Tethering to an existing shared data plan is available for an extra $10

AT&T also announced it was planning to limit the use of Apple’s FaceTime exclusively to those who agree to switch to the company’s new “Mobile Share” plans. AT&T will not allow customers with older individual or family use plans to use the popular video conferencing service over its mobile broadband network at any price.

The official statement, first reported by 9 to 5 Mac:

AT&T will offer FaceTime over Cellular as an added benefit of our new Mobile Share data plans, which were created to meet customers’ growing data needs at a great value. With Mobile Share, the more data you use, the more you save. FaceTime will continue to be available over Wi-Fi for all our customers.

AT&T is able to introduce these types of restrictions because of the failure of the Federal Communications Commission to enforce Net Neutrality protection on wireless networks. Net Neutrality would require carriers to treat online content, applications, and services equally, allowing customers to use and pay for the services of their choice.

Wireless carriers fought Net Neutrality claiming it would harm efforts to technically manage their networks and would ultimately discourage investment. But AT&T’s arbitrary, non-technical restriction of FaceTime suggests the company is actually pushing customers to the more-profitable service plans AT&T favors.

Wood

Consumer group Free Press policy director Matt Wood:

“These tactics are designed with one goal in mind: separating customers from more of their money each month by handicapping alternatives to AT&T’s own products.  If customers want to use FaceTime on AT&T’s mobile network, then they have buy a more expensive monthly data plan with extra voice minutes and texts they’ll never use thrown in. Blocking mobile FaceTime access for much of its user base may be a win for AT&T but it’s a losing proposition for the rest of us.

“It’s not supposed to be this way. The Net Neutrality protections in place today for wireless are too weak, but at least prevent carriers from blocking these types of apps. The FCC’s rules prohibit such blatantly anti-competitive conduct by wireless companies. Such behavior would be a problem no matter what Internet platform you choose. It would be unimaginable on your home broadband connection. Apple’s FaceTime comes pre-installed on a Macbook Pro, too, but no home broadband provider would dream of blocking the app there unless you’d signed up for a more expensive data plan.

“The FCC’s Open Internet order aside, AT&T’s latest scheme to make you pay more for less would never fly if we had real competition in the wireless marketplace. Instead, we have Ma Bell’s twin offspring running amok and forcing consumers onto ridiculous plans that make them pay for the same data twice. It’s only going to get worse until lawmakers recognize the problem and act to solve this competition crisis.”

While AT&T will block many customers from using FaceTime, a competing service from Skype remains unaffected.