AT&T offers up the common practice of boasting about how much you can do with a usage-limited account, based on the thousands of e-mails you'll never send, the 500 pictures you'll never take, or the one minute YouTube clips you'll never watch. Notice they never seem to include figures for streaming multimedia applications like music, movies, and TV shows or playing more bandwidth-intensive games. To do so would only upset customers further.

AT&T claims that 98 percent of its customers will save money under its new lower-priced usage-limited data plans, but an analyst predicts those savings will vanish for half of AT&T’s customers by 2013, exposing them to steep overlimit penalties.

Independent analyst Chetan Sharma crunched the numbers:

The average customer will consume more than 2 gigabytes of data a month within three years, up from 150 megabytes in 2009. Though AT&T could change its rates in the future, the cost of such data use at current rates is $35 a month. That would make it more costly than the $30 AT&T previously charged for unlimited data use.

“The devices are getting much, much better so the opportunities to multitask are more attractive,” said Sharma, who has written five books on mobile technologies and consulted for companies such as Motorola Inc. and Qualcomm Inc.

It’s not only heavy data users who may be affected, Sharma said. By year’s end, the average AT&T customer will have doubled their data consumption from 2009 to 320 megabytes, according to his estimates. Only 35 percent of AT&T’s smartphone customers use 200 megabytes of data or more, the company said.

Sharma’s forecast that half of AT&T’s smartphone customers will use more than 2 gigabytes of data is “not unreasonable,” said Christopher King, a Stifel Nicolaus & Co. analyst in Baltimore, though he said it’s difficult to predict such trends because they depend on the introduction of new phones, applications and wireless technologies.

AT&T’s new Internet Overcharging scheme has built-in profits as customers increasingly bump into the subjective limits the company imposes on its wireless customers.  Many customers have complained the 200 megabyte plan is too small to accommodate anyone but the most casual data user, while others find 2 GB too small to make video viewing more than an occasional treat.  Customers who exceed either limit face higher bills:

• Customers exceeding 200 MB in a monthly billing cycle face a $15 overlimit penalty, which nets them another 200 megabytes of service;
• Users who exceed the 2-gigabyte level will be forced to pay an additional $10 per month for an additional 1 gigabyte of service.

Even King believes AT&T’s limits are too low.

“There’s no way that AT&T is going to maintain their tiered pricing as they do today,” he said. “They’ll have to raise the caps on data usage.”

AT&T: 'If you don't do what we say, we're taking U-verse away!'

AT&T is threatening to pick up its toys and go home if the Federal Communications Commission tries to bring back its oversight powers over broadband.

CEO Randall Stephenson threw a major hissyfit in the pages of the Wall Street Journal, annoyed the company doesn’t have free rein to do whatever it wants.

“I’m a 3-2 vote away from the next guy coming in and [trying to regulate us], [and] I take it away,” Stephenson said, referring to it’s U-verse IPTV service.

AT&T has threatened to cut spending on U-verse deployment if AT&T faces regulations like Net Neutrality in its broadband business.

“If this Title 2 regulation looks imminent, we have to re-evaluate whether we put shovels in the ground,” Stephenson said, claiming the company planned to spend a “couple billion” dollars a year on the service… until now.

But AT&T has already cut spending on U-verse, slashing $2 billion in U-verse investments in 2009 alone — news trumpeted to shareholders.  Additionally, AT&T has laid off thousands of employees.  In short, the threats the company made this week have already come to pass… more than a year ago.

Many analysts claim AT&T is bluffing.  Like most landline providers, AT&T is losing traditional phone customers who are disconnecting their wired phone lines.  Its wireless division has been pummeled for inadequate 3G coverage, poor customer service, and lousy reception in many areas.  AT&T can’t afford -not- to upgrade their services if they wish to retain customers.

The cable television industry certainly hopes AT&T isn’t bluffing.  They are enjoying AT&T’s disconnect business as customers dump inadequate DSL service and overpriced phone lines for cable-provided alternatives.

A Huntsville AT&T sub-contractor trying to install new telephone cable is safe after a resident started shooting in his direction, forcing Marcus Kyle to make a mad dash down a nearby highway to safety.

Questioned by police, the homeowner claimed he thought he was firing his shotgun at a possum.  WHNT-TV spoke with police officials and witnesses who are not convinced by the man’s story, suggesting the homeowner may have felt the AT&T worker was trespassing on his property.  Several witnesses claim the man took direct aim at the AT&T lineman before beginning to fire.

As shots rang out, the worker hightailed it out of range, thankfully unharmed. Those who want to learn more about gun laws in New York may consider consulting a firearms attorney.

The Lauderdale County Sheriff’s Office offered to charge the homeowner with misdemeanor reckless endangerment, but Kyle refused to press charges.

Kyle and his fellow workers added they were working within a recognized utility easement and did not stray onto anyone’s property, and weren’t sure why the resident started shooting.

Utility company employees usually have the right of reasonable access to their respective easements to perform work on the company’s infrastructure.  Many workers may inform residents of their presence as a courtesy, but it is not required.  It is never responsible to confront such workers with weapons.  If a homeowner has concerns about the legitimacy of the work being done, they should contact local police and let them handle it.

[flv width=”512″ height=”308″]http://www.phillipdampier.com/video/WHNT Huntsville Man Shot at While Installing Phone Lines 6-16-10.flv[/flv]

WHNT-TV in Huntsville ran this story about a local homeowner who let his shotgun do the talking, firing at a telephone company subcontractor he claims he mistook for a possum.  (2 minutes)

Belinda Horton, Clarksville, Tenn. speaks with AT&T customer service

Back in April, Stop the Cap! covered the story of Clarksville, Tenn., resident Belinda Horton, who found herself besieged by endless billing errors from AT&T.

She was not alone.  More than 15,000 customers in Tennessee alone have been suffering with an AT&T “unlimited” long distance calling plan that has billed every long distance call at non-plan rates.  At one point, Horton found herself staring at a bill for $1,350.

As of late April, more than three thousand dollars in erroneous charges had appeared on her phone bill over several months, when she was only supposed to have paid a flat rate amount of $25 a month for unlimited long distance.

Horton did secure credits from AT&T, but only after repeatedly calling their customer service department after every inaccurate bill arrived.

For her and other Tennessee customers in the same boat, appeals to the Tennessee Regulatory Authority were supposed to fix the problem.  AT&T’s legal counsel, Guy Hicks, apologized on behalf of the company and promised to make things right.

That lip service was apparently good enough for the TRA, which as we wrote at the time was just a bit premature:

It was disappointing to see the TRA praising AT&T at the end of Monday’s meeting.  This is an ongoing nightmare for some customers, and TRA officials seemed all too ready to applaud the company for its promises to fix the problem while Tennessee residents continue to be overbilled.  The time for praise comes after the company resolves the issue and every customer has been credited for every error.  AT&T has promised it would resolve these billing problems for nearly a month, with complaints still arriving even as the Authority met.

Long time readers can guess what happened next.

Belinda dropped a note to Stop the Cap! informing us she had enough with AT&T and decided to switch to Charter Communications.  But in one last indignity, her final bill from AT&T was loaded with inaccurate charges running over $100.

Now that Horton is a former AT&T customer, the company has been even less responsive than ever.  The TRA is reportedly involving itself in the matter once again, although it’s clear AT&T doesn’t exactly feel threatened by the Authority.

Had AT&T done the right thing, they would have not only credited back the inaccurately billed long distance calls, they also would credit back the $25 a month Belinda paid for a long distance plan she had to fight every step of the way to actually receive.  It’s the least the company could do for a customer who was forced to flee AT&T because they couldn’t resolve their own billing problems.

Belinda writes she has better things to do than spend endless hours fighting with the phone company.  She has been devoting as much free time as possible caring for an ailing friend.  Many people would have simply paid AT&T’s final bill just to be rid of them, but it was Belinda’s friend who encouraged her to stay in the fight and not pay AT&T one penny more than they deserve.

Stop the Cap! is attempting to get Horton in touch with the executive office customer service department at AT&T to get this resolved once and for all.

AT&T 3G MicroCell

If you are an AT&T customer with a 3G MicroCell, AT&T’s home-based “cell tower”, take note: your 3G data usage, even while at home, counts against your monthly usage cap.

AT&T’s MicroCell ($150) does not use AT&T’s mobile network — it instead relies on your home broadband connection — but AT&T charges customers as if they were.

For customers who assume MicroCell traffic should be exempt because they provide and pay for the connectivity, AT&T’s overlimit fees await.

The company’s pricing and policies make owning a MicroCell increasingly pointless, particularly for data applications.  That’s because AT&T does not meter Wi-Fi usage, even when using AT&T’s own Wi-Fi network.

The disparity between femtocell traffic (the industry name for devices like the MicroCell) and Wi-Fi doesn’t make much sense to Dean Bubley, writing for his Disruptive Wireless-Disruptive Analysis blog:

Given that the RAN generally costs much more than the core network for most operators, there should clearly be differential (or zero-rated) pricing for traffic using femtocell offload. Either that, or there should be a mechanism for customers to charge AT&T for using THE USER’S broadband pipes for backhaul.

It is critical that any policy management and charging infrastruture is capable of discerning bearer type (which could also be UMA WiFi tunneled via the core on some other networks). Otherwise it makes a total mockery of the concept that policy is intended to align pricing with the underlying costs of service delivery.

It also makes a mockery of the femtocell concept as a mass proposition, if the end-user has to pay more than using their own WiFi. If I was a femto vendor today, I’d be spitting feathers about this, as it completely undermines the positioning vs. WiFi as an offload tool.

AT&T doesn’t care.

“The 3G MicroCell complements Wi-Fi by providing enhanced in-home voice coverage and reliable data when Wi-Fi may not be available — but it is primarily intended for voice calls,” an AT&T spokeswoman wrote in an email to Light Reading Mobile.

As the website notes, for consumers, the femto price model means that they will pay AT&T for the Microcell to get better indoor 3G coverage, pay for the backhaul connection to AT&T’s core network, and pay AT&T to use that indoor 3G base station.  What a great deal — for AT&T.