Stop the Cap! has learned customer complaints about Suddenlink Communications’ data caps have made an impact, and the company is planning to rollout a new campaign starting April 1 allowing premium customers to get their unlimited data back, eventually at a price.
A source tells us residential customers will now qualify for unlimited if they subscribe to either of Suddenlink’s two fastest Internet plans in any respective market. In most areas, that means signing up for 100/10 or 200/20Mbps service. Where gigabit plans exist, customers will need to subscribe to either 200/20 or 1,000/50Mbps service.
Customers will need to call Suddenlink to sign up for the offer (we’ve reached out to the company to learn the details we will share if we receive them), which provides unlimited service free for the first year. In year two, unlimited will cost $5 extra a month and after the second year Suddenlink will charge customers $10 extra.
Suddenlink claims its Internet plans already come with “generous” allowances, but fails to disclose them upfront to customers. In fact, there is no apparent way for a prospective customer to learn what their usage cap is without calling in or waiting until after they sign up for service:
As with every other Internet Service Provider implementing data caps, Suddenlink claims practically nobody is affected by them.
“The residential data we offer should be more than sufficient for the vast majority of our customers,” the company says. “The relatively few customers who desire more may wish to consider upgrading to a faster speed with a larger data plan, where available, or purchasing one or more supplemental data packages.”
But in November 2015, the outgoing CEO of Suddenlink Jerry Kent told Wall Street an entirely different story.
“Overage charges have become a significant revenue stream for us,” Kent said, noting usage cap overlimit fees were a major factor for the company’s 3.6% year over year growth in revenue, which reached $605.1 million.
Customers were given this explanation for Suddenlink’s decision to implement data caps:
“Data plans are one step among several that help us continue delivering a quality Internet experience for our customers. Other steps include the sizable investments we’ve made and continue making to provide greater downstream and upstream system capacity and more bandwidth per home. Even with those investments, a relatively few customers use a disproportionate amount of data, which can negatively affect the Internet experience of those who use far less. That’s why, as a complement to our network investments, we’ve established data plans.”
But Kent explained things back in 2010 somewhat differently to Wall Street and his investors:
“I think one of the things people don’t realize [relates to] the question of capital intensity and having to keep spending to keep up with capacity,” Kent said. “Those days are basically over, and you are seeing significant free cash flow generated from the cable operators as our capital expenditures continue to come down.”