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A new consumer investigation by NBC’s Today Show found that AT&T may be systematically overcharging customers for their broadband usage, fleecing customers for countless sums in overlimit fees.  With no government oversight to guarantee usage measurements are accurate and fairly measure usage, customers have to take AT&T’s “word” for the accuracy of their billing, and now that the company has extended Internet Overcharging to its DSL and U-verse customers, AT&T could earn millions in ill-gotten gains if the claims of overestimated usage are true.  AT&T responded, claiming consumers have a misunderstanding of how data is consumed and billed.  NBC quotes AT&T as saying most customers who exceed their limits do not incur fees, which will come as quite a surprise to customers who are routinely billed $15 or more for excessive use charges on wireless plans.  Thanks to Stop the Cap! reader Scott for sharing the news.  (4 minutes)

A Time Warner Cable customer in Whitefield, Maine has filed a complaint with the state’s Attorney General charging the cable company is selling customers a product it cannot deliver in parts of the state, and bills customers for it anyway.

The broadband add-on, Road Runner Turbo, is supposed to provide customers with a faster broadband experience, but in communities up and down Maine, it apparently does not, and has not for nearly three years.

The cable company hotly disputes the accusation, made by Michael Panosian, that the company has been overbilling him $10 a month for three years.

Andrew Russell, a Time Warner Cable spokesman, told the Kennebec Journal that the company does not charge for services it cannot provide.

But the cable company’s argument lost a considerable amount of credibility when evidence emerged Time Warner has admitted the problem, and quietly agreed to reimburse Panosian $328.35 for Road Runner Turbo service all the way back to June 2008.

The admission has also become a point of interest inside the Attorney General’s Consumer Protection Division, which is engaged in discussions with Panosian and the cable company.

Despite Russell’s denials, Time Warner officials admitted there was a problem and told state officials it would be corrected sometime this month.

Panosian thinks the cable company is ripping off Maine residents pitching faster Internet it does not deliver.

Panosian said a Time Warner Cable technician told him Turbo is not available in his area and possibly others in Maine.

“From what the tech told me, it isn’t just Whitefield,” Panosian said. “I went down (to Time Warner’s Augusta office) and talked to them about it, and they’re aware of it.  I said, ‘If you’re aware, why are you taking everybody’s money?’  If they don’t charge for services they don’t provide, why are they reimbursing me?”

Stop the Cap! reader Frederick, who lives in nearby Windsor and shared the story with us, says it is a classic case of Time Warner Cable overselling its service.

“The truth here is actually in the middle; Time Warner actually does deliver a Turbo service in Maine, it’s just that their network is so overcongested, nobody benefits from it during peak usage times,” Frederick reports.  “They have too many customers trying to share the Internet, and Turbo cannot help resolve this problem, only upgrades can.”

Frederick reports he identified the source of the problem running a series of speed tests on his Time Warner Cable connection.  He subscribes to Road Runner Turbo himself.

“The truth is revealed when you examine the upload speed of your connection,” he says. “Even when the network is busy, I can still get nearly 1Mbps upload speeds, a sure sign Turbo is on my account.”

The download speeds are another matter.

“In Windsor during peak usage times, you will easily see even a Turbo connection drop to 5Mbps in download speeds, only returning to normal after people go to bed,” he says.  “That means Time Warner has oversold their network, putting too many people on the same ‘node,’ one inadequate in capacity.”

Frederick suspects the “fix” Time Warner refers to is an upgrade to DOCSIS 3 technology.

“Maine is treated like a backwater by Time Warner Cable,” Frederick charges.  “What other cities got a year ago we just start to receive, so instead of performing periodic upgrades, they are just waiting for DOCSIS 3 to solve all of their problems.”

Frederick thinks customers should be compensated for the poor service, and is considering demanding a refund himself.

“I pay more than $50 a month for my broadband service with Turbo and they deliver what their ads claim only when I’m asleep or at work.”

Verizon customers in Virginia are saying goodbye to automatic delivery of the printed edition of the White Pages after the State Corporation Commission gave the okay to end decades of directory deliveries on doorsteps across the state.

The gradual end of automatic telephone directory delivery has been ongoing throughout the United States as customers increasingly look online for telephone listings.  The directory also isn’t what it used to be as Americans increasingly turn off landlines and turn on cell phones, which go unlisted by default.

Verizon says the printed phone book wastes energy, trees, and money when customers immediately discard them in the nearest recycling bin.  But the company does plan to continue offering free printed copies on request.

While residential directories gradually disappear, the Yellow Pages, filled with business listings, will continue to grace doorsteps for years to come.  They represent an enormous moneymaker for phone companies and directory publishers, so opting out of the bulkier business pages is going to require more effort.

Unfortunately for consumers, while telephone companies realize significant savings not having to print and distribute the phone books, they have no plans to pass those savings on to you in the form of reduced rates.

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WTVR-TV has some fun with the imminent demise of Verizon’s Richmond White Pages.  (2 minutes)

Storm Damage (WBRC)

A firestorm of criticism over reports of Alabama cable companies trying to charge customers for equipment lost or destroyed during April’s devastating tornadoes has forced some companies to rethink their policies, at least for this storm.

As Stop the Cap! reported earlier this week, some Alabama customers of Charter Cable and Bright House Networks were asked to pay the full value of cable boxes lost, damaged, or destroyed by the massive storms that struck last month.  Some customers complained about fees in excess of $200 for the set top boxes.  Fees for lost, stolen or damaged equipment are common at cable companies and customers are routinely asked to file insurance claims to cover the loss or damage.

But when tornadoes devastated several Alabama communities, several upset customers began taking their stories to the media, and now those policies are changing, at least for this storm.

Customers of Charter Cable have shared their stories with reporters at local newspapers and television stations, and a few are sharing them with Stop the Cap! Kelly, who requested we not publish her last name for privacy reasons, lost her home last month and is now living in Georgia.  When she called to suspend service shortly after the storm, she was told she would either have to pay for her cable box or make an insurance claim on behalf of Charter Cable.

But Charter Cable tells Stop the Cap! that policy has now been changed.

“Charter will not charge customers for missing, destroyed, or damaged equipment as a result of the recent tornadoes,” said Dylan Hall, one of Charter’s communications specialists. “We adjusted our policy shortly after the tornado in response to the large-scale and catastrophic nature of this storm. This was the right thing to do for our customers. We understand that this is a difficult time for many in Alabama.”

After Kelly reached out to Charter once again earlier today, the company not only waived the box fee, it also credited her account for an entire month of service, resulting in a substantial refund she says will be a big help for her family.

“I greatly appreciate your website bringing this more attention,” Kelly says.  “Earlier today, one of your readers who claims to work for Charter said I was making the story up, and it felt like being abused all over again.”

But after Kelly called Charter directly, things had changed.

“It was like a whole different company, and the representative I spoke with apologized at least six times and felt very bad about everything,” Kelly reports.  “I want to go back to Alabama in the summer, and the fewer bad memories I have of the last several weeks, the better.  This helps.”

Hall believes customers like Kelly likely encountered the lost or damaged cable box fee because they called right after the storm, before the company adjusted its policy.

“Unfortunately, some time elapsed before our Care agents got word to adapt our equipment policy, as we have in the past during other disastrous storms,” Hall says. “So customers who called immediately following the storm were misinformed. The policy changed to reflect the need and Care agents conveyed that to customers. Our employees continued to delivered water, tarps and other supplies to storm victims and help the Red Cross out with financial aid. The policy was changed because it was the right thing to do.”

Bright House Networks has also changed their policies in light of the horrific storm damage.

Karen Broach, regional vice president of operations for Bright House, reports the cable company has sent crews to assess damage and has automatically suspended billing for all customers it can identify were blown out of their homes by the storm:

• Bright House Networks has proactively credited accounts of customers who experienced a loss of service(s) due to the storms.
• Bright House Networks took the initiative and completed a detailed walk out of the area to identify all known destroyed homes and we suspended their billing.
• This is important for two reasons, one is financial and the second is customer convenience.  For example, if a customer subscribes to Bright House Networks Home Phone or High Speed Internet Service, this will preserve the customer’s phone number and email address so they can transfer it to their new residence.
• Suspended customer bills include suspension of equipment charges so customers can make contact with us at a time convenient to them to address their individual needs.
• Bright House Networks will not charge customers for equipment damaged or lost as a result of the storm.
• Bright House Networks never charges a disconnect fee – no matter what the reason.

Bright House customers with questions or problems can call 1-866-876-1872.

Comcast, which delivers cable service in certain parts of Tuscaloosa and Huntsville, normally requires a police report or copy of an insurance claim for lost, stolen, or damaged cable boxes.  But they too have changed their minds after noting the extent of storm damage.

Comcast has notified customers in the Tuscaloosa and Huntsville areas of the following policies:

• For consumers displaced from their homes due to the storms, their service may be placed on a temporary six-month “hold” status at no cost, which enables those with voice and data services to save their telephone numbers and email addresses.
• Equipment (such as converter boxes and cable modems) that was damaged by the storm may be exchanged at the local Comcast offices at no charge. Consumers should notify Comcast if equipment was lost in the storm and cannot be recovered.  Although routine policy requires that a police report or insurance claim be filed on lost equipment, that requirement is waived for six months due to the extreme nature of the extensive storm damage. Customers will not be charged for the exchange or replacement of equipment under these circumstances.
• Customers who lost service will be automatically credited for that period of time.  It is not necessary to notify Comcast for this credit, which will appear automatically on customers’ next bills.  Customers who still do not have service after their power was restored should contact Comcast.

Stop the Cap! notes these are ongoing issues with some cable companies, and we’ve covered similar stories in other states where customers faced demands for payment of cable equipment lost in fires.  We continue to urge cable companies to abandon lost/damaged box fees for incidents involving natural disasters or fires that are not the fault of customers.  It’s good public relations and it is the right thing to do.

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WBRC-TV in Birmingham shares the story of Cleon Spain, a Charter customer who was requested to pay more than $200 for his lost cable box before Charter changed its policies.  (2 minutes)

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The morning news team at Fox affiliate KSAZ-TV in Phoenix were slightly in over-their-heads trying to cover the results of a satisfaction survey about cell phone companies.  Poor Kristin Anderson was coping with a personal AT&T crisis all her own — she lost her cell phone.  Her luck didn’t get much better when she tried to explore the survey’s results from the University of Michigan.  Instead of a slide ranking the winners and losers, viewers got a pop quiz question asking which country in the news is run by President Bashar al-Assad.  While you might have wanted to answer the Republic of AT&T, the correct answer is Syria.  AT&T scored rock-bottom in the survey with T-Mobile not far behind.  Among the major carriers, Verizon and Sprint tied for first place.  When asked which carrier scored the highest overall, the morning anchor team guessed Cricket.  Yes, Cricket.  (The correct answer turned out to be Tracphone, which is a prepaid reseller using other carriers’ networks.)  (4 minutes)