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Big Telecom Company Scares Customers Away from Wi-Fi Networks, Including Their Own

Rogers, one of Canada’s largest telecom companies, will do anything to sell you their 3G wireless broadband Rocket Stick, even if it means scaring you away from using their own Wi-Fi hotspots.

Michael Geist, a popular columnist in Toronto, called Rogers about another matter, but the customer service agent soon began asking if Geist’s family used a laptop to access public Wi-Fi networks.

When I said that I did, he asked if I knew the dangers of using public Wi-Fi, which I was told included the possibility of hackers accessing my data or inserting viruses onto my computer.  Given the risks, the agent continued, might I be interested in the Rogers’ Rocket Stick?

Geist was completely unimpressed with Rogers’ attempts at upselling through scare tactics.

“Mobile internet services are good products that can and should be sold on the basis of the convenience they provide, not by scaring consumers into thinking that alternative access services are unsafe,” Geist wrote.

Rogers' Rocket Stick

More importantly, the irony of Rogers’ statements can’t be missed, as Geist notes:

  • Rogers operates hundreds of public wifi hotspots across the country. When promoting its hotspots, it describes them as providing “high-speed, secure access to the Internet.”
  • Rogers permits Internet tethering from many smartphones. Many users may find that tethering provides a more cost effective solution than purchasing yet another mobile Internet device.  The agent did not mention this alternative.
  • There are risks with public wifi, but those can be mitigated through a variety of steps on users’ computers. Advice on what do include Microsoft’s advice on public wifi networks, Lifehacker on how to stay safe on public wifi networks, and Ars Technica on staying safe at public hotspots.

Stories about the risks of Wi-Fi are not limited to Rogers.  Several media outlets have been running stories ranging from the plausible:
[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/CTV British Columbia – How to secure your Wi-Fi surfing 10-7-10.flv[/flv]

CTV in British Columbia warns of the risks of using spoofed or un-secured Wi-Fi networks.  (2 minutes)
To the implausible:
[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/CTV SW Ontario Long Term Exposure to Wi-Fi 11-17-10.flv[/flv]

CTV in Southwest Ontario reports some area residents believe Wi-Fi causes diabetes and other ailments and wants Wi-Fi pulled from schools.  (7 minutes)

Also not to be missed are Rogers’ impenetrable “Flex Rate Plans.”  Would it not be easier to just say customers will be charged the amount of the rate plan that corresponds with their actual usage?

Flex Rate Plans
Rogers unique Flex Rate service automatically adjusts the monthly fee based on your actual monthly usage. As you use more or less data, Rogers Flex Rate Data Plan will automatically roll up or down to the next best rate available. This guarantees you the best rate based on actual usage.
Tier Monthly Fee Data Included** How Rogers Flex Rate Works
1 $35 500MB You will start each month at Tier 1. If your monthly usage exceeds 500MB, then you move up automatically to Tier 2 and will be charged $40.
2 $40 1GB If your monthly usage exceeds 1GB, then you move up automatically to Tier 3 and will be charged $55.
3 $55 2GB If your monthly usage exceeds 2GB, then you move up automatically to Tier 4 and will be charged $70.
4 $70 5GB If your monthly usage exceeds 5GB, $0.05 per additional MB will be charged.
Monthly prices above do not include the Government Regulatory Recovery Fee*

Hy·poc·ri·sy: Frontier Attacks Fiber Project Claiming Municipalities Don’t Know How to Run Them

Sibley County's fiber future?

It takes a lot of chutzpah to vilify a community’s proposed fiber to the home network when you’ve managed to completely screw up the one you’ve acquired from another company, but Frontier Communications tries anyway.

Instead of relying on Frontier’s overpriced (and soon to be rationed) slow speed DSL from an earlier era, Sibley County, Minnesota is proposing a municipally owned fiber project that will bring much needed connectivity to area businesses, homes, and farms.  Community Broadband Networks found a certain phone company in strong opposition.  Frontier warned county officials not to make the mistake of delivering better service than they can provide themselves:

As a provider of telephone, internet, and video services to our customers in the Green Isle, Arlington, and Henderson areas, Frontier Communications is obviously interested in the “fiber to the home” proposal that has been presented. As a nationwide provider, Frontier is aware of other efforts by municipalities of various types to build and operate their own telecommunications network. While these proposals are always painted in rosy tones, it is important for officials to carefully review the underlying assumptions and projections that consultants make when presenting these projects. Unfortunately, history tells us that the actual performance of most of these projects is significantly less positive than the promises. Often times, these projects end up costing municipalities huge amounts of money, and negatively impact their financial status and credit ratings.

Frontier even “runs the numbers” on the county proposal.  But Sibley County should carefully consider the source.  This is the same company that couldn’t manage its fiber to home network it acquired with landline purchases from Verizon Communications.  Instead, this month it dumped $30 rate increases on its fiber customers in the Pacific Northwest and Indiana.

Frontier has a vested interest in maintaining the status quo, which means leaving many rural Minnesotans with one choice for broadband: Frontier.

Of course the company opposes the county’s fiber project — they would be crazy not to, considering it will cost them many of their customers.

Cherry-picking a small percentage of the municipally-owned networks facing difficulties is just a scare tactic, and doesn’t prove their case.  County officials should consider the growing number of projects that are a breath of fresh air for the communities they serve, all at no risk to taxpayers: projects like EPB in Chattanooga, Greenlight in Wilson, or Fibrant in Salisbury — both North Carolina.

Or DSL past?

Those projects all faced the same provider-financed campfire scary stories, too — just because incumbent cable and phone companies didn’t want the competition.

When wild claims about failing projects don’t work, Frontier officials hilariously offered up this absurdity in a story in the Arlington Enterprise that ran Dec. 16.

“What we can do is provide the same speed of service as fiber can provide,” said Todd Van Epps, Frontier’s regional manager.

Really, on Frontier’s pre-existing, decades-old copper wire network?  The same one that Frontier currently sells “blazing fast/up to” 3Mbps DSL service on for $50 a month?

In comparison, the fiber network proposed for Sibley County would deliver at least 20/20Mbps service for less than $50 a month.  That fiber network is infinitely upgradable as well, with service up to 1 gigabit per second if a customer needed that much.

Our advice when dealing with Frontier’s promises: get them in writing.

When a company tells customers to throw away their Frontier FiOS fiber and switch to a competitor’s satellite television service or else pay $30 more per month for basic cable, their helpful advice about how to manage the fiber business should be taken with a grain of salt.

Time Warner Cable Raises Rates in Albany, Offers a $99 Promotion Most Can’t Get

Phillip Dampier January 27, 2011 Competition, Consumer News, Verizon 2 Comments

Time Warner Cable customers in the Albany, N.Y. area are complaining about the cable company’s latest rate increase which will cost most bundled customers at least $7 a month more in 2011.

Time Warner blamed the rate increases on investment and upgrades to their facilities and increased programming costs.

The company’s heavily marketed $99 promotion is also coming under fire in the area, because many customers don’t qualify for it.

The Albany Times-Union reports many area residents were invited to call the company “to see how they could lower their bill.”  Time Warner has marketed a one year promotional offer providing the company’s triple-play bundle of phone, Internet and cable-TV service for around $33 for each service, or $99 a month.  But when customers called the company, they were told they don’t qualify for the promotion.

Michael Malachowski, a Delmar resident, learned the hard way that winning a promotional offer from the cable company wasn’t going to be as easy as he thought.

Malachowski currently has a bundle of services with the company and spends around $140 a month.  But he learned he can’t qualify for Time Warner’s $99 offer  — it is available only to new customers or those with a single service.

Other area customers shared similar stories with the newspaper.

One way around the roadblock is to threaten to cancel.

Albany customers are getting some additional powers to negotiate with the imminent arrival of Verizon FiOS TV, coming to Bethlehem, Scotia, and Colonie.  A similar bundle of services from Verizon is a lot cheaper than Time Warner’s $140 a month.  The fiber to the home network offers an online promotion for all three services for $84.99 a month for at least the first year.

Even if FiOS is not an option, Time Warner bends the rules when customers are on the verge of cutting their cord.

AT&T Allows Long-Standing Smartphone Customers to Switch Back to Unlimited Data Plans

Phillip Dampier January 26, 2011 AT&T, Competition, Consumer News, Data Caps, Wireless Broadband 2 Comments

The Associated Press reports, and Stop the Cap! can confirm AT&T is allowing some of their long-standing customers to switch back to unlimited data plans, even if they gave them up after the company introduced cheaper, limited data plan options.

After our regular reader “PreventCAPS” sent word AT&T was relenting on some requests for unlimited data plans, we spent some time late this afternoon with Jim Scott, an AT&T customer from New Rochelle, N.Y. as he navigated his way through AT&T customer service trying to get back to an unlimited data plan.

“When AT&T offered customers new, cheaper data plans, I never knew those replaced the unlimited option and I thought I could save some money downgrading to a cheaper data option,” Scott told us.

But Scott discovered the plan allowances he got didn’t save him money at all, because he exceeded them.

“I am a contractor and I spend all day on my phone moving large image files and even video of work being done on the properties I manage,” Scott says.  “Two gigabytes didn’t cut it.”

Scott tried to switch back to his unlimited plan this summer, but was told he could not, as it was no longer offered.

Enter Verizon Wireless, which is keeping its unlimited service plan at least temporarily as it introduces the Verizon iPhone.  Verizon’s imminent iPhone has become leverage for customers who want to turn the tables on AT&T.

“Thanks to AT&T’s greed, I had already made the decision to dump them for Verizon when my contract ends in February,” Scott says. “AT&T works fine in this part of New York, and the only reason I am leaving is because they don’t have a wireless data plan that met my needs.”

We worked with Scott and suggested he threaten to cancel his AT&T service and walk his future business to Verizon Wireless.  We asked him to make sure to tell AT&T the reason he was planning to cancel his service was because of the end of unlimited data option.

On a three-way call with AT&T customer service, AT&T promptly offered to restore Scott’s access to its discontinued unlimited data plan.

“All I had to say was ‘Verizon’ and ‘iPhone’ and the customer service representative immediately starting clacking away on her keyboard, and I had my unlimited data plan restored in less than five minutes,” Scott said.

The AP reports the key to success is having been a previous subscriber to AT&T’s unlimited data option.  New customers who signed up after June 2010 never had that option, and AT&T has refused to offer unlimited data to these customers.

Because newer customers are under relatively new contracts, actually following through on a threat to drop AT&T is an expensive proposition with early termination fees still well into the hundreds of dollars.  For those closer to a penalty-free exit, AT&T recognizes many of these customers already have one foot out the door.

Jose Argumedo, of Brentwood, N.Y., told the AP he and a friend were switched to an unlimited plan recently after they called AT&T’s customer service. Both have iPhone 4s, and previously had earlier iPhone models.

AT&T spokesman Mark Siegel wouldn’t confirm the option to return to an unlimited plan.

“We handle customers and their situations individually, and we’re not going to discuss specifics,” he said.

Scott says he is comfortable with his iPhone, but getting back an unlimited data plan was more important than the handset.

“If I can use the iPhone as leverage against these guys, why not?” Scott says.  “They’ve had me under their thumb for more than six months now with overlimit fees — now the table is turned.”

Stop the Cap! advises customers who want to follow in Scott’s footsteps get organized before calling:

  1. Be sure to note the number of years you have been an AT&T customer;
  2. Explain you used to have unlimited data and now want that plan back;
  3. Tell them you are prepared to drop AT&T, even at the risk of a cancellation fee, if they don’t restore your access to the unlimited data plan.

If a representative is unable to make the switch, or doesn’t have information about how to switch you back, ask for a supervisor or hang up and call back.

Verizon Wireless Hotspot Pricing Will Burn a Hole in Your Wallet With $20/GB Overlimit Fee

Phillip Dampier January 26, 2011 Data Caps, Verizon, Wireless Broadband 1 Comment

If you use Verizon’s forthcoming iPhone as a Wi-Fi hotspot, be prepared to pay $20 a month for a maximum of 2GB of usage per month.

Many smartphones have built-in capabilities to serve as temporary hotspots to let you use your Wi-Fi capable equipment on Verizon’s wireless 3G network.  But that doesn’t mean Verizon will let you use it for free.

The so-called “personal hotspot” enables up to five Wi-Fi equipped devices to share your connection, but not too much.  If you exceed your 2GB plan allowance, the overlimit fee is a striking $20 per gigabyte.  Those fees come in addition to your usual Verizon voice and data plan charges.

Verizon is not singling out the iPhone for the expensive data plan.  The pricing is equivalent to what Verizon charges for a similar service on its other smartphones, according to Brenda Raney, Verizon Wireless’ executive director of corporate communications.

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