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Comcast Explores 250Mbps Service, Perhaps in 2011 — Will It Matter With a 250 GB Allowance?

Phillip Dampier February 22, 2010 Broadband Speed, Comcast/Xfinity, Data Caps 3 Comments

Broadband Reports this morning heard from a trusted source who says America’s largest cable operator is considering offering 250Mbps service to customers, perhaps as early as 2011.

While some cable operators (Time Warner Cable) have dragged their feet on DOCSIS 3 upgrades, Comcast has not — it is expected to have 100 percent of its cable systems upgraded this year.

DOCSIS 3 provides vastly increased speeds across a more robust network.  Older standards provided neighborhoods with a single 6 Mhz channel, with a 36Mbps downstream pipeline.  While that may be fine for a neighborhood browsing web pages and checking e-mail, it doesn’t take much too much high bandwidth activity to start slowing speeds down.  DOCSIS 3 “bonds” multiple channels together to create one fat pipeline.  Newer chipsets support eight combined 6Mhz channels, capable of providing that same neighborhood with 320Mbps of capacity.  Using schemes like PowerBoost, or with few others online, Comcast can deliver occasional bursts of speed at 250Mbps to customers without further upgrades, notes Dave Burstein of DSL Prime.

The bigger question is will customers pay the premium price for 250Mbps if Comcast maintains its 250GB usage limit on it?  Super speed tiers like this are useful to customers using high bandwidth applications.  It doesn’t make sense to upgrade to premium speeds if they’re accompanied by a usage governor.

Sunflower Broadband Boosts Usage Allowances As AT&T U-verse Wins Customers

Phillip Dampier February 22, 2010 Broadband Speed, Competition, Data Caps, WOW! 3 Comments

When AT&T’s U-verse system arrived in Lawrence, Kansas residents rejoiced at the prospect of finally getting broadband service that didn’t come with Internet Overcharging schemes attached.  Sunflower Broadband, the local independent cable system, tied its fortunes to broadband usage allowances as low as three gigabytes per month.  Exceeding the allowance kicked in an overlimit fee for every extra gigabyte used.

As AT&T continues to make inroads in Lawrence with U-verse, which doesn’t have usage limits, customers noticed and began dropping Sunflower.  The cable system also noticed, and has increased plan allowances.

On the low end, the Bronze plan still charges $17.95 per month for 3Mbps/256kbps service with a three gigabyte allowance .  The Silver plan — $29.95 per month — received a speed and allowance upgrade.  Up from 7Mbps to 10Mbps, the monthly limit has now doubled to 50 GB per month.  Upload speeds remain an anemic 256kbps, however.  The biggest change comes for Gold plan users.  For $59.95 per month, the company offers 50/1Mbps service with a considerably more generous allowance — 250GB per month, up from 120GB.

Sunflower Broadband's Old Pricing/Service Plan (from January 2010)

Sunflower also sells a flat rate, unlimited plan called Palladium that doesn’t offer customers a set speed.  The company cut the price from $49.95 to $44.95 a month, perhaps in response to an underwhelmed customer base.  As we reported in January, Palladium speeds do not impress many Sunflower customers.  But some local residents report speeds are improving for those moved to Sunflower’s new DOCSIS 3 platform, an upgrade from Sunflower’s older system, where most of the speed complaints were noted.

The Lawrence Broadband Observer says AT&T and Sunflower are becoming close competitors in most respects, except upload speeds:

The one area where Sunflower still lags is upload speed, which even on the high-end plan is still limited to 1 megabit. This seems puzzling, and the 50 down to 1 up ratio of is greater then any other DOCSIS 3 cable company I was able to find, and makes it difficult to use services like photo and movie uploading, file sharing and online backup services. If Sunflower ever raises their upload speeds, they might just be able to lure this former customer back into the fold!

They could lure many more back if they dropped the hated usage limits and overlimit fees.  DOCSIS 3 provides substantially improved bandwidth, making such limits unnecessary.

Sunflower's New Broadband Plans & Pricing (February 2010)

Data Cap Daftness: Usage Allowances Increase Data Consumption As New Zealand Customers Get Their Money’s Worth

Phillip Dampier February 21, 2010 Data Caps, TelstraClear (New Zealand), Video 1 Comment

TelstraClear serves New Zealand

Some broadband customers in New Zealand are treating their monthly usage allowances as usage targets, dedicated to ringing every last penny of value out of the Internet Overcharging schemes.  That means bandwidth usage increases just because customers don’t want to leave their remaining allowance on the table at the start of a new month.

PC World New Zealand notes “caps are essentially stupid” because your allowance resets at the end of every billing cycle:

If I’m away for a month and use zero bytes, it costs just the same as if I’d used my full 20GB. This wouldn’t be so galling if some allowance were made for under-utilising my capacity. It doesn’t have to be a 1:1 thing or roll over from month to month, but some concession would be nice. Perhaps a 1:2 ratio that must be used within the next billing period; in this case an allowance to go up to 30GB in the next month seems reasonable.

That would also get around the other irritating thing about data caps, the punitive charges if you go a single byte over your limit. In the case of TelstraClear it’s $2.95 per GB or part thereof.

TelstraClear - The Internet. Overcharged.

Readers shared their two cents:

I have a 40GB cap which I regularly go over. Telscum charge $20/Gb so it hurts like hell. I tried [switching] to TelstraClear but after three months all I had from them was a bill for services I didn’t receive.

We have 20Gb shared between the three of us and it is rare to go over but we do try like you to use it all up simply because we have paid for it. There is a company in NZ that allows you to roll it over it is Trust power Kinect. A friend uses them and roughly every three months he reckons he can save a month. You do need to have your power and phone with them though and for us it would actually work out more expensive but for others it might not. I do think caps suck though and wish they could be scrapped as I think we would actually use less bandwidth.

I think this part of the world and UK is an exception when it comes to data caps. In Europe data caps are very rare (except in UK which is not typical for Europe in any aspects). Being from Sweden I was a bit surprised moving to NZ and discovered data caps as well as very slow and expensive Internet. Sweden is similar to NZ (e.g. size, population) so it’s a fair comparison. You are being ripped off!

I almost always go over my 80GB. I pay for going over at the $2.95 per GB. Most months I do about 100GB. So last year when I did 262GB in the month it cost quite a lot, total bill was over $500.  As a big data user I have no issues with paying more than little data users but bigger plans are needed. Looking at rates in other parts of the world I should be able to get a 250GB package for about $150 or $180, and that still leaves a good profit for the telco.  Don’t get me started on 3G data costs….

[flv]http://www.phillipdampier.com/video/TelstraClear.flv[/flv]

An assortment of advertising from TelstraClear New Zealand. (3 minutes)

Tennessee’s ‘Girls Gone Wild’ Bill Would Punish Cable Companies Running Racy Ads

Phillip Dampier February 18, 2010 Public Policy & Gov't, Video 5 Comments

Jackson

A Tennessee state senator has introduced a bill that would fine the state’s cable companies for running racy television advertising on its cable channels.

Dubbed the “Girls Gone Wild Bill,” the legislation would hopefully curb cable operators’ willingness to run suggestive advertising, according to the bill’s author Sen. Doug Jackson (D-Dickson).

This isn’t the first go around for Jackson’s bill, having failed to pass during the last two legislative sessions.  But Jackson believes the third time is a charm, passing a vote in the Senate Commerce Committee 8-0, with one member abstaining.

The Tennessean talked with Jackson to learn why the bill was necessary:

Jackson has said he got the idea for the proposal after seeing partially censored commercials for “Girls Gone Wild” videos that show young women disrobing and acting out other sexual situations.

“They’re provocative and shocking to a lot of families trying to raise children,” Jackson said.

The bill would make any television advertisements considered “obscene” to be illegal. Obscenity, Jackson said, is not protected by the First Amendment. Under common law, it is established by community standards, and in Tennessee, each judicial district can establish for themselves what is considered obscene.

“A jury in Dickson County could determine the videos being sold are obscene, which makes it an illegal product,” he said.

The legislation has gotten Jackson plenty of attention across the state, as Tennessee media covered the unusual legislation.  But some fear Tennessee could become a laughing stock over bills like these.

Columnist Gail Kerr, also writing for the Tennessean, called the mad rush of oddball legislation a bunch of  “crazy crap”:

You can sure tell the Tennessee General Assembly doesn’t have any money to spend this year.

After a slam dunk, fast special session on education, our esteemed lawmakers have returned to their usual bad habits.

They have filed legislation that would kill Nashville’s honky tonks, debated whether to outlaw putting electronic chips in people and whether to amend the state constitution to assure you the right to catch a catfish.

Sen. Doug Jackson wants a constitutional amendment to assure every Tennessean has the right to hunt and fish. No one is trying to stop you from hunting and fishing. Jackson also is bringing back his “Girls Gone Wild” legislation, aimed at stopping the late night television commercials promoting the raunchy videos. He was inspired by watching the commercials.

One thing’s for sure, state law prevents these folks from taking campaign donations while in session. With two of them running for governor, one running for Congress and a slew up for re-election, they’ll start getting eager to adjourn pretty quick. It cannot happen too soon.

[flv]http://www.phillipdampier.com/video/WKRN Nashville Girls Gone Wild Bill 02-09-2010.flv[/flv]

WKRN-TV in Nashville reports Sen. Doug Jackson’s bill would allow communities to define certain ads on cable television obscene and have them pulled off the air.  (1 minute)

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/WSMV Nashville Senator-Companies Liable For Obscene Ads 2-9-2010.flv[/flv]

Some members of the Tennessee Legislature believe the state’s cable companies should not be taking money from companies peddling smut, as WSMV-TV Nashville reports. (2 minutes)

Protesting adult programming on cable and satellite television is a long-standing tradition in Tennessee.  Some elected officials even dislike the prospect of MTV running on state cable systems.  But most agree lawmakers have the biggest problem with cable’s dirty little secret — extremely explicit adult programming aired on pay per view channels.  Most cable systems don’t go out of their way to promote this type of programming, but viewers learn it is there when skimming electronic program guides.  Most adult movies have titles that leave little doubt what they offer viewers willing to purchase it, and plenty do — it’s very profitable for most cable operators.

[flv width=”480″ height=”292″]http://www.phillipdampier.com/video/WDEF Chattanooga Fowler Objects To EPB Content 11-02-09.flv[/flv]

David Fowler, a former state senator from Signal Mountain, last November denounced EPB, Chattanooga’s city-owned fiber television and broadband provider, for allowing adult programming on the lineup in the first place. (WDEF-TV Chattanooga) (11/2/2009 – 1 minute)

Time Warner Cable Investigates 14,000 El Paso Residents for Cable Theft, Local TV News Reports

Phillip Dampier February 18, 2010 Grande, Video 5 Comments

El Paso, Texas

More than 14,000 residents of El Paso are under investigation for potential cable theft.  That remarkable number comes from El Paso, Texas TV station KFOX-TV.  Reporter Martina Valverde notes that Time Warner Cable is now engaged in a city-wide system audit to identify and disconnect illegitimate cable connections.

“Our paying customers who rely on us for phone service, video service, and Internet service,” Gary Underwood, vice president of communications for Time Warner’s Texas operation told KFOX viewers. “They might not be able to access those services when they most need them because the damage that was caused further down the line.”

The company told KFOX when it discovers an illegal connection, it makes two attempts to convert the customer to legitimate service.  On the third attempt, local law enforcement becomes involved.  Those found guilty face fines of $500.

“We have what’s called a tab audit team. They go out and they look at different areas to see. We have a system of tagging and flagging on these lines to so our folks can identify an authorized versus unauthorized connection,” Underwood said.

Cable theft is not just a problem in El Paso.  Some brazen entrepreneurs go further, pretending to represent providers willing to hook customers up for a one time, flat fee they pocket.

Grande Communications faced one such individual, who last summer slapped a magnetic sign with Grande’s logo on his truck and pitched cable service to apartment complexes and homes around San Marcos, Texas.

Unwitting customers who signed up for the deal were offered special discounts by Grande when their illegal cable connection was discovered.

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/KFOX El Paso Time Warner Cable Cracks Down On Illegal Taps 2-17-2010.flv[/flv]

KFOX-TV in El Paso, Texas ran this report last night claiming more than 14,000 residents were under investigation for cable theft in the community. (1 minute)

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/KXAN Austin Fake Cable Guy Selling Cable 7-24-09.flv[/flv]

Last summer, Grande Communications had to contend with someone illegally hooking up customers around San Marcos, Texas. KXAN-TV in Austin ran this report July 24th. (2 minutes)

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