Stop the Cap! has suddenly started receiving a larger number of complaints about AT&T’s Internet Overcharging scheme in the past two weeks, indicating to us the company has started cracking down more forcefully on usage cap “violators.”

Those who purchased AT&T U-verse in an effort to avoid usage caps from their local cable company are particularly upset, because the phone company still markets its U-verse service as being ‘bandwidth-limit-free.’

AT&T advertises its U-verse service to this day as bandwidth limit free.

“We don’t limit your bandwidth to a particular amount,” promises AT&T in prominent language on its website. The fine print says something very different — AT&T limits the amount of usage customers get before being exposed to overlimit fees — 150GB for DSL, 250GB for U-verse. It is part of what the company calls wired “data plans.”

AT&T U-verse has a 250GB usage cap hidden in the fine print.

“It’s false advertising,” counters AT&T customer Don Brown. “Anyone who reads their promise of ‘no bandwidth limitations’ is going to assume that means no limits, but when I questioned company representatives about the promise, they pull out every trick in the book.”

Brown says one customer service representative told him ‘bandwidth limits’ refer to broadband speed — AT&T does not throttle its customers. Another said the ad claim meant that customers could keep paying AT&T additional money for as much usage as they want or need. But Brown believes AT&T knows better than that.

“When I signed up for service, I asked the salesperson who took my order if there were limits and they said there were none, period,” Brown says. “Not a word was spoken about 250GB limits or overlimit fees. I’m not buying their excuses — what wired ISP throttles customer speeds?”

In fact, AT&T itself defines “bandwidth” much the same way Brown does (underlining ours):

The term bandwidth can take on many meanings. In the case of AT&T U-verse products and services, the term bandwidth is commonly used when referring to computer networking and measuring Internet usage.

The amount of Internet usage is displayed in upload and download amounts. This would commonly be known as the amount of bandwidth the User used during a particular time.

Brown also has no access to any usage monitor or measurement tool, and AT&T told him he “can relax” because the company would send warnings when it noticed his usage was coming perilously close to the limit. But that makes planning around monthly usage limits difficult, because he has no idea what his usage is from day to day.

A week ago, he received his first warning in an e-mail message from AT&T, which was the first indication he was living under a usage cap.

“They are in a real hurry to collect more money from me but they don’t have their ducks in a row on an accurate meter I can depend on,” Brown says. “Would the local power, water, or gas company get away with that? I don’t think so.”

Brown decided AT&T’s “dishonesty,” as he puts it, made him cancel his service. He does not trust the phone company to accurately measure anything.

“At least I know the cable company is a pocket-picking crook so I can be on guard for their next move,” Brown says. “AT&T is more like the thief in the night that robs you blind while you are upstairs, asleep in bed.”

Chris Savage discovered AT&T’s “stealthy” 150GB usage cap on his DSL account when he received an e-mail warning of his own. He gets one more, after which AT&T will “bill shock” him with overlimit fees.

You have exceeded 150GB this billing period.

[…] The next time you exceed 150GB you’ll be notified, but not billed. However if you go over your data plan in any subsequent billing period, we’ll provide you with an additional 50GB of data for $10. You’ll be charged $10 for every incremental 50GB of usage beyond your plan.

AT&T DSL service has a sneaky 150GB usage cap in the fine print.

AT&T really isn’t interested in hearing questions or concerns about their “data plan,” telling customers at the bottom of the message:

Please do not reply to this email. This address is automated, unattended and cannot help with questions or requests.

Savage never knew AT&T implemented an Internet Overcharging scheme:

“This e-mail seemed to say to me, ‘We changed the rules on you without telling you and now you’ve broken them, so we’ll let you off this time, but consider yourself warned!'”

Savage has already cut cable’s cord and watches his television shows online, exactly what big phone and cable companies do not want their customers doing.

The bottom line is that 150GB is not enough for people like me who work at home, rely on Netflix for any kind of TV/Movies (since I don’t have cable or any other TV), have gamers in the house and run a website. What this means for me is that, once again I will have to cancel Netflix because watching just one movie or show per day would mean I would reach my cap about 2/3 of the way into the month. And that is if nobody else in the house watches anything on it, plays any online games or downloads anything.

In the end, it appears AT&T won and Netflix lost. Savage reports after going over AT&T’s limit two months in a row, he canceled his Netflix account — the only television service he had. AT&T DSL cannot even support one movie a night and one or two streamed cooking shows here and there without pushing the family over the limit AT&T imposes.

Earlier this week, Time Warner Cable unveiled its new 5GB limited-use broadband plans in Austin, Tex. The company told customers it would be “listening” to their concerns on the cable operator’s “TWC Conversations” website, and many Stop the Cap! readers shared with us copies of their own two cents, submitted as comments on that website.

But so far, the conversation seems very one-sided. To date, here is Time Warner’s presentation of the opposing point of view:

This reminds us how Time Warner Cable treated customers sending in their views of the 2009 (failed) experiment, when earnest writers like “De” eventually received this in response:

Reinventing the two way conversation.

Well I eventually submitted an email to TWC about the caps on April 14th. To prove they pay attention to their customers, they sent me this reply today (Over a month later) LMAO:

To: RealIdeas
Subject: Greedy Bandwidth Caps. The truth!?
Sent: Tue, 14 Apr 2009 04:22:52 -0400<  >

was deleted without being read on Sun, 31 May 2009 01:49:12 -0400

Just goes to prove they don’t care if the consumer wants the per byte billing or not – it’s coming anyway.

Our opinions and views are nothing to TWC — all that matters is the $$$$. The whole PR about them listening is just to ease media and political pressure. They have made their mind up already.

Lowering the bar on customers by increasing the maximum overlimit fee. It’s another example of Rogers’ Broadband Limbo Dance.

Rogers Communications is quietly notifying its broadband customers it is doubling the overlimit fee for excessive use of its broadband service from $50 to $100, effective Aug. 16, 2012.

The company characterizes the new maximum fee as “protecting you from unexpected high charges,” but of course does nothing of the sort. Rogers’ charges eastern Canada some of the continent’s most expensive prices around for usage-limited broadband. Its Internet Overcharging scheme has relied on all of the classic tricks of the trade to get consumers to pay higher and higher prices for broadband service, while assuring investors the company can rake in additional profits at will just by adjusting your allowance and overlimit fee.

Companies that introduce usage caps and consumption billing are monetizing broadband usage. By adjusting prices upwards and reducing usage allowances, customers can find themselves paying confiscatory overlimit fees. But until recently companies in Canada capped the maximum overlimit penalties. Over the last three years, those maximum fees have increased dramatically, and some companies like Cogeco have removed the maximum limit altogether.

While Rogers’ cost to deliver service continues to decline, these kinds of policy changes can cause broadband bills to soar, especially when customers are in overlimit territory.

Rogers (with thanks to Broadband Reports readers who shared the text):

“To protect you from unexpected high charges, we currently cap the maximum monthly amount you can be charged for additional internet usage at $50 in addition to your Hi-Speed Internet plan’s monthly service fee, modem rental fee (if applicable) and taxes. Effective August 16, 2012 this monthly limit will be increased to $100 in addition to your plan’s monthly service fee, modem rental fee (if applicable) and taxes. If you exceed the monthly usage allowance included in your Hi-Speed Internet plan you will begin to see charges up to the new limit beginning on your first invoice on or after September 16, 2012. All other aspects of your Rogers service(s) will remain the same. Remember, you can track your internet usage online by signing into My Rogers at rogers.com/myinternetusage. For more information or questions please contact us in any of the ways listed on page 2 of this invoice. Thank you.”

Customers can use the occasion of Rogers’ contract changes to potentially switch providers without paying early cancellation fees. This process is more straightforward in Quebec, according to the company’s terms and conditions.

Quebec Residents Only

Unless otherwise specified in the Service Agreement, we may change, at any time, but upon no less than 30 days’ prior written notice to you:

• a) with respect to a  plan or Service not subscribed to for a Commitment Period (as defined below), any charges, features, content, functionality, structure or any other aspects of the plan or Service, as well as any term or provision of the Service Agreement, and
• b) with respect to a plan or Service subscribed to for a Commitment Period, any aspect of the plan or Service, as well as any term or provision of the Service Agreement, other than essential elements of the plan, Service or Service Agreement.

If the change entails an increase in your obligations or a decrease in our obligations and if you do not accept such a change, you may terminate your Services without an ECF (as defined below) by sending us a notice to that effect no later than 30 days after the amendment takes effect.

Rogers’ Customers Elsewhere in Canada

Unless otherwise specified in the Service Agreement, we may change, at any time, any charges, features, content, functionality, structure or any other aspects of the Services, as well as any term or provision of the Service Agreement, upon notice to you. If you do not accept a change to the affected Services, your sole remedy is to terminate the affected Services provided under the Service Agreement, within 30 days of your receipt of our notice of change to the Services (unless we specify a different notice period), by providing us with advance notice of termination pursuant to Section 34. If you do not accept a change to these Terms, your sole remedy is to retain these Terms unchanged for the duration of the Commitment Period (as defined below), upon notice to us within 30 days of your receipt of our notice of change to these Terms.

While Quebec residents have a clear path to avoid Rogers’ ECF, customers elsewhere may be subject to an early cancellation fee because of Section 9 of Rogers’ agreement:

Unless otherwise set out in the Materials, if you agree to subscribe to one of our plans or Services for a committed period of time (the “Commitment Period”), you may be subject to an early cancellation fee (“ECF”) for each Service. Any decrease in your Commitment Period may be subject to a fee. If your Service is terminated prior to the end of the Commitment Period, you will pay us an ECF as specified in the Service Agreement, plus taxes.

Customers outside of Quebec may want to check with Rogers directly to determine if an early cancellation fee will apply when canceling service because of the change in maximum overlimit fees.

Customers leaving Rogers can find better deals for broadband services from independent ISPs like TekSavvy or Start.

Shaw Communications executives last week announced, to the relief of Wall Street, the cable company is pulling back on great deals for cable TV, Internet and phone service this summer.

In an effort to appease Wall Street analysts like Phillip Huang, a researcher for UBS Investment Bank — who fear lower prices could “spiral into a price war, which obviously would be a lose, lose situation,” Shaw has made it clear it intends to stop some of its most aggressive promotions this summer.

“When you talk about promotions in the market, we’ve been very disciplined in that regard,” Shaw executives told analysts on last week’s quarterly results conference call. “It’s a highly competitive environment and will continue to be that way and we’re going to operate in a certain fashion.”

That “certain fashion” has cost them at least 21,500 subscribers who have already left Shaw this past quarter, most headed to Shaw’s biggest competitor Telus.

But some Wall Street analysts remain unsatisfied, noting there are major differences in telecommunications pricing in Canada. Western Canadians pay substantially less for phone, cable, and broadband service than their counterparts in Ontario and Quebec. Shaw and Telus customers also have much larger usage allowances for broadband service, and Telus so far has not enforced what limits they have.

Analysts peppered Shaw executives about why they are not raising prices to match what Bell, Rogers, and Vidéotron customers further east are paying.

Jay Mehr, Shaw’s senior vice president of operations told investors to hang in there.

“We still believe that we have some good pricing power when discipline really comes back into this market,” Mehr said on the call with investors. That signals Shaw is prepared to raise prices when aggressive deals end.

Wall Street also questioned why the company does not use long-term contracts to lock customers in place:

Mehr

Glen Campbell – BofA Merrill Lynch, Research Division: […] On service contracts: You’ve been pretty firm in not using them. Your competitor clearly does. […] Can you talk about the reasons for not going down the service contract road and whether you might reconsider that position?

Bradley S. Shaw – Shaw Communications: Well, there’s arguments for contracts as you — I guess, it’s really what these contracts do. As you said, we have equipment. Our [indiscernible] space — our Easy Own plan certainly is a very consumer-friendly plan as customers are getting something, and they’re agreeing to pay for it over time. And that creates kind of a natural kind of a relationship. What we don’t want to have happen is having customers, who are feeling confined by a contract, who otherwise would like to do something else. We don’t think that’s consumer-friendly. And so we’re looking at ways that we’d have more consumer-friendly kind of relationships but that still create some kind of a longer-term relationship that you can count on. But we don’t want to have the ball and chain kind of contracts that others have adopted.

[…] From a customer point of view. But also, the nature of contracts is there needs to be an enticement to get the customer sign a contract, and that enticement tends to be what we’re seeing in the market, which is fairly significant giveaways of hardware and other devices to be able to incent that. And so it will have has an impact on your cost of acquisition, and we’re trying to manage that. As Peter said, our Easy Own program is a very customer-friendly way for people to come on and make a commitment to us. And at the end of the period, they own their equipment. They haven’t had to pay upfront, and so it’s a nice way to manage that without being heavy-handed.

Shaw’s Exo Wi-Fi service is coming soon across western Canada.

Some other developments at Shaw, reported during the conference call:

• Spending on upgrades will continue to be on the aggressive side as the company builds out its new Exo Wi-Fi network and converts cable systems to digital service, creating additional space for broadband speed increases and other services;
• Broadband delivers the highest profit margins of all of Shaw’s services, so it remains a very important part of Shaw’s package;
• Customers are gravitating towards higher speed broadband packages, delivering extra revenue;
• The company has re-priced some of its plans and offers to be more friendly to broadband-only customers;
• Shaw is working to gain approval from communities across western Canada to deploy its Wi-Fi network, with plans to begin limited promotion of the new service by late fall or early 2013. Shaw expects its Wi-Fi network to have substantial coverage across the region within three years;
• Shaw plans to work with U.S. cable operators to participate in a Wi-Fi roaming network that will allow its customers access to the Wi-Fi networks being built in the United States;
• Shaw’s “TV Everywhere” project is being designed to protect existing video revenue. Rights are being acquired across the board for broadband, tablets and other mobile devices for a robust on-demand service. But live streaming is secondary.

NOAA caught this ominous derecho cloud front in La Porte, Ind on June 29. The same storm would later cut power for millions all the way to the eastern seaboard.

A series of severe thunderstorms accompanied by near-hurricane-force winds caused millions of customers in several Mid-Atlantic states to lose power and telecommunications services late Friday, and some are expected to remain without service until at least this coming weekend.

The storm, known as a “derecho,” uprooted trees, which in turn knocked down power lines and caused wind-related damage to buildings from Ohio to West Virginia, Virginia to Maryland, and even into North Carolina.

But the storm also is raising questions about the massive failures in commercial telecommunications systems that left entire 911 emergency response systems offline for days, wireless networks non-operational, cell phone systems overwhelmed, and broadband service, deemed a lower priority by emergency officials, down and offline.

Some of the biggest problems remain in and around the nation’s capital and in the states of West Virginia and Virginia, where inadequate infrastructure proved especially susceptible to the storm’s damaging winds.

D.C., Maryland, and northern Virginia

In northern Virginia, calls to 911 were met by silence over the weekend, thanks to a catastrophic failure of Verizon’s landline network. With primary lines down, Verizon’s backup 911 systems also failed, leaving millions with no access to emergency responders.

Fairfax County officials finally put the word out the best way to summon emergency help was to drive (through streets littered with debris and downed power lines) to the nearest fire or police station for assistance.

“It’s just not OK for the entire 911 system in the region to go down for the period of time that we were out, especially after an enormous emergency where people needed to make those calls the most,” Sharon Bulova, chairman of the Fairfax County Board of Supervisors, told the Associated Press.

Verizon spokesman Harry Mitchell was left flat-footed, promising an investigation into Verizon’s latest 911 failure, and called the storm as damaging as a hurricane. He urged local officials to “move forward” beyond the immediate criticism and help make progress to get service restored.

Many emergency response networks also depend on telecommunications services, including fiber cables, to reach transmission towers for radio dispatch and mobile data terminals. In northern Virginia, the city of Alexandria has been managing to handle emergency dispatch services for several counties.

With power lines down, cable and phone lines often went as well. In those cases, electric utilities have first priority to restore service, and then cable and phone companies can begin repairs of their own.

Since cable operators rely on power companies to supply electricity to their amplifiers and other equipment, Comcast and Cox, which dominate the region, are blaming most of their outages on power disruptions, and promise service will be restored when the power returns.

Verizon’s DSL and FiOS broadband networks were both disrupted by the storm, primarily because of downed lines and power losses.Even wireless networks, which some might suspect would be immune to downed lines, were also seriously affected by the storm. Cell towers connect to the provider’s network through fiber optic and T1 lines, and although backup power generators can maintain a cell tower for days in some cases, backhaul line cuts can leave cell towers useless.

In metro D.C., call completion problems were a problem during the storm and sometime after as local residents turned to cell phones to communicate. Over the weekend, customers in and around Richmond, Va., found Verizon Wireless useless for text messages because of a service disruption. As backup generators ran dry of fuel, some cell towers that survived the initial storm have been shutting down until maintenance crews arrive and refuel.

The harshest criticism has so far escaped phone and cable companies. Instead, local officials and residents remain focused on Pepco, the power utility serving the Washington area. Pepco has learned from previous storms to become a master of lowered expectations, and is promising to do its best to restore power a week or more after the storm was a memory.

West Virginia and western Virginia

The state of West Virginia, and western rural Virginia state, have illustrated what happens when deteriorating infrastructure is asked to withstand winds of up to 100mph. Frontier’s operations in West Virginia were hit especially hard. Landline networks in that state had been allowed to deteriorate for years by former owner Verizon Communications. Frontier had its hands full trying to keep up with repairs, calling in additional staff and trying to maintain landline service in some areas with the help of generators.

That job was made much harder by a rash of generator thefts that impacted the phone company, and local authorities are still looking for those responsible. At least one-third of all central switching offices operated by Frontier in West Virginia remain on generator power as of yesterday. As of July 3, the company reported it has 12,000 repair requests still waiting for action.

It was a similar story in the western half of Virginia where independent phone companies and Verizon were faced with an enormous number of downed trees and power lines, many in rural areas. More than 108,000 Virginia residents are still without power as of this afternoon, and many will not see it restored until the weekend.

Because the derecho swept across a large area encompassing the entire state, it has been difficult for utility crews to respond from unaffected areas to assist in repairs because the damage was so widespread. Logistically, just coordinating repair operations has proved difficult because cell service has been spotty (or networks have been jammed with calls) in some of the worst-affected areas.

“Derechos are nothing to fool with, but still this was not the most serious storm Virginia has ever dealt with, and the impacts on our telecommunications networks seem to indicate they’ve been allowed to fall apart over the last several years,” shares Stop the Cap! reader Edward Klein, who lives near Roanoke. “I think an investigation is needed to make sure utilities are spending enough money to keep these networks in good shape so this kind of thing doesn’t happen everytime a storm sweeps through.”