One of America’s largest midwestern cities is being victimized by not one, but two major Internet Service Providers with Internet Overcharging schemes that will limit broadband use by customers.

Charter Communications, which calls St. Louis home, delivers cable service to much of the city, and has lightly enforced arbitrary usage limits on its cable broadband customers since last November.  AT&T, the major telephone provider, plans to limit its DSL and U-verse customers starting in early May.

“Now we get to choose between Charter’s usage cap or AT&T’s,” says Reginald, a Stop the Cap! reader in St. Louis.  “As usual, AT&T is always the bigger ripoff — this company hasn’t done one consumer-friendly thing in at least a decade.”

Reginald is currently a U-verse customer who fled Charter around the time the cable company went bankrupt.

“Charter was, is, and will always be abysmal in providing good service and accurate bills, and I was not about to pay for their business mistakes,” Reginald writes.  “When U-verse became available I told AT&T I was signing up because they were offering unlimited use plans and Charter was playing games with their usage cap.”

When AT&T’s cap is in place, St. Louis residents will get to choose between the lesser of two evils:

Usage Limits

• AT&T DSL Customers:  150GB per month
• AT&T U-verse Customers:  250GB per month
• Charter Lite/Express: 100GB per month
• Charter Plus/Max: 250GB per month
• Charter Ultra 60: 500GB per month

AT&T will deliver three warnings and then a higher bill — $10 for each 50GB of “excess usage.”  Charter sends out occasional warnings, then reserves the right to terminate your service.

“It stinks, and if I had my way I would not do business with any provider who has a usage cap,” Reginald says.  “I would rather pay a few dollars more a month and not have to worry, and I can’t imagine I’ve ever used over 100GB in a month.”

Jess, another St. Louis resident, pulls the plug on AT&T U-verse May 2nd.

“I almost wanted them to charge me an early cancellation fee so I could pound them with their sudden change of terms,” Jess says.  “I am switching back to Charter on May 2nd, the day AT&T starts their crap.  AT&T acted all surprised about why I would possibly ever not do business with them over this issue.”

Jess says she would rather deal with warning letters from Charter than a higher AT&T bill.

“Every penny more AT&T gets from us goes right into their lobbying to screw consumers more, and here are the results for everyone to see,” Jess says.  “If Charter wants to pull their games with me and my family, the next step is to declare war on the politicians who let this stuff happen.”

Bill says AT&T offered him a discount to stay with the company — he is canceling his U-Verse service May 1st.  But he refused, telling AT&T he will not do business with a company that engages in Internet Overcharging.

“I’m not too worried about Charter,” Bill writes Stop the Cap! “If they try and threaten me, I’ll let them cut me off and then we’ll sign up under my wife’s name, and bounce from account to account.”

Your money = Their Money

For all three of our readers, none of whom claim they will exceed the allowance, it’s a matter of principle.

Reginald, Jess, and Bill all feel strongly usage caps and overlimit fees are unjustified, and are more about protecting video packages than “unclogging” providers’ networks.

Bob Zimmermann, an AT&T customer in Richmond Heights, tells the Post-Dispatch he doesn’t like the new limit either. He watches an occasional Internet movie, and sometimes downloads video to his iPad. He doubts he’ll exceed the cap, but he doesn’t want to worry about it.

He is shopping for alternatives.

“I’ll see if I can negotiate a better deal,” he told the newspaper.

Jess wishes him luck finding someone else in St. Louis.  She suggests customers like Zimmermann play AT&T and Charter off each other to get a lower bill, at least temporarily.

“What is most important right now is to tell AT&T you are leaving them because they are abusive, and then sign up with a new customer discount with Charter,” Jess suggests.  “Then if and when Charter cuts you off, go back to AT&T and see if you can get them to waive any fees after the third warning or else you are switching back to Charter.”

Another alternative is to sign up for Charter’s business service, which has no usage cap, but comes at a significantly higher price than residential service.  Their starter package includes unlimited Internet at 16/2Mbps speeds, a domain name, and a business phone line with unlimited long distance and calling features.  It runs a steep $120 a month.

“If Charter didn’t offer a 500GB allowance on their 60Mbps tier, I might consider a business package if I used my connection a lot,” admits Bill.  “Isn’t it ridiculous when someone wants to sell you a super fast package you cannot really use because of usage limits?”

Bill partly blames the state legislature for letting AT&T get abusive with customers.

“AT&T shows up with a lot of cash to dole out in the Missouri legislature and in return they get to abuse customers,” Bill notes.  “You notice Verizon cannot get away with this in the more consumer-protection-friendly northeast.”

Jess says the whole thing is a mess.

“It really shows how the midwest is getting screwed once again — this time for Internet access,” she notes. “There is no Verizon fiber here, and even Google showing up in Kansas City won’t be enough to shame the likes of AT&T.”

Qatar

The kingdom of Qatar announced broadband is of urgent importance, and has unveiled plans to deliver fiber-to-the-home broadband, phone and television service to 95 percent of the country by the end of 2015.

Under the auspices of a newly formed public-private venture, the Qatar National Broadband Network Company will construct the near-universal fiber network, extending it to every business and home it can reach.  On that network, private providers, including Qtel and Vodafone, will market their products and services to government, business, and consumers.

“The Qatar National Broadband Network represents a bold step forward in Qatar’s drive to be a leading knowledge economy. Ubiquitous access to a high-speed network is essential to business development, economic growth, innovation and enhanced government services for our citizens. This network will do more than connect Qatar to the world; it will truly help enrich the lives of those who live here,” said Dr. Hessa Al-Jaber, who leads broadband development matters inside the kingdom.

The project is specifically designed to address Qatar’s current broadband marketplace — slow and expensive.  Qtel markets its landline customers up to 8Mbps DSL at prices that can exceed $100 a month, but few customers actually achieve 8Mbps results.  The project would largely replace the kingdom’s copper-based phone network.

“A lot of Qatari citizens don’t use fixed line DSL and prefer the country’s mobile broadband networks which can be cheaper and even faster than DSL,” Abdul Al-Attiyah, who lives in Doha, tells Stop the Cap! “This fiber network will bring 100Mbps service to just about everyone at prices a fraction of what we pay for DSL today.”

Al-Attiyah recently had the opportunity to communicate with the kingdom’s telecommunications ministry on the issue of bandwidth caps.

“I asked them if there were any plans to allow providers to limit how much broadband service Qataris could use, because we have caps on mobile broadband today, and I was assured there was never any point to limit use on a limitless capacity fiber network,” Al-Attiyah says.

“Fiber is also a far better solution than wireless broadband because of congestion issues,” he adds.

Qatar is a small country — about the size of the state of Connecticut, and is located on a peninsula adjacent to the Kingdom of Saudi Arabia.  Thanks to significant oil and gas revenues, the kingdom enjoys the highest G.D.P. in the world, and will soon be one of the leaders in broadband as well.

Joe Brown was obviously not the right person for G4TV’s Attack of the Show to talk to about the issue of Internet Overcharging.

As AT&T begins notifying their DSL and U-verse customers they are about to face usage limits on their broadband service, G4TV sought out reaction from the features editor of Gizmodo.com, who was wholly unprepared to inform viewers about the facts behind AT&T’s usage caps and their implications for customers.

While Brown and G4TV were joking about users having to curtail game downloads, for millions of AT&T customers, it’s no laughing matter.

AT&T’s announced 150-250GB limits will eventually cost customers $10 or more for each extra 50GB allotment, on top of their already-expensive broadband service package.

“It really had to happen eventually I think,” Brown told viewers.  “People are using a lot of bandwidth.”

Gizmodo's Joe Brown talks with G4TV's Attack of the Show

But Brown’s observation conflicts with AT&T’s own claim “only a tiny minority of customers” will use more than the company wants to allow, with the average AT&T customer consuming 18GB per month.  AT&T isn’t telling the full story about that either.

For those “heavy users” AT&T wants to restrict first, the implications go well beyond curtailing Netflix and playing online games.

“As a software developer who works under a Linux environment and is forced to telecommute from home one week per month, these caps would absolutely kill me,” writes Joe Stein from Sparks, Nev.  “If you are a retired person using your computer to check e-mail and browse the headlines, you will obviously never exceed AT&T’s caps, but for technology innovators and those like me in the software development field, 150GB is nothing.”

Stein downloads regular updates for Linux, exchanges software back and forth with the office several times a day, and uses video conferencing regularly when he works from home.

“Not all online video is about adult entertainment or downloading movies,” Stein says.  “Usage caps hurt anyone who has to work with large files or business-related video, and after the events this week, AT&T can afford to leave off the caps.”

Brown claims AT&T conducted “a study” in two cities which found that 98 percent of their customers used far less than the usage caps would allow.  What Brown does not know is that those two cities are Beaumont, Texas and Reno, Nevada — hardly superstars in the tech revolution.

“Nobody moves to greater Reno to be a software superstar, which is why I am in San Jose, Calif., all the time,” Stein says.  “But there is more to this area than casinos.”

Stop the Cap! has been helping consumers in both cities avoid AT&T because the company’s “study” came at the same time it was experimenting with an Internet Overcharging scheme that limited customers to as little as 20GB of usage per month — a strong incentive for customers to avoid high bandwidth services,  or better yet AT&T.  So it’s no surprise broadband users who know better chose an alternative provider, including Stein.

“I first became aware of the usage cap debacle a few years ago when AT&T tested usage caps in the Reno area, which covers Sparks,” Stein says.  “I saw the impact first hand when customers started getting notified they would have to pay substantially more for basic Internet service.”

AT&T first limited their broadband customers to as little as 20GB of usage per month, then claimed the average customer only uses 18GB, making their 150GB DSL cap "generous."

Stein left for the cable company — Charter Communications, and they have usage caps too, but they are rarely enforced and much higher than what AT&T offers DSL customers, Stein says.

Brown claims AT&T is trying to “get out ahead of people using too much,” a point in conflict with the fact AT&T is willing to sell consumers additional bandwidth on its “overcongested” network.

Brown’s suggestion that “bandwidth costs money” is partially true, but not in the context of AT&T’s usage limits.  The company that can afford fiber optic upgrades to deliver limitless television and telephone service apparently cannot afford the pennies in bandwidth costs customers consume as part of their broadband service, which can run $50 a month or more.

Pondering broadband usage “fairness” is a losing proposition for consumers… and reporters, too.

Once someone blindly accepts the premise AT&T needs data caps, with no evidence usage presents a technical or financial challenge for the company, the debate is quickly reduced into a numbers game about “how much usage is fair.”

Clearly for Brown and his friends, who admit they are dangerously close to reaching or exceeding AT&T’s limits, the answer to Brown wondering aloud if the caps would “do it for him” should be no.

Stop the Cap! believes no cap is worth living with, especially on AT&T’s enormous-sized broadband network, now increasingly designed to handle the multimedia rich Internet and their U-verse platform.

It is doubtful many will be assuaged by Brown’s comments that “AT&T sounded pretty cool” about how they will deal with those who exceed their arbitrary usage limits.  Why?  Because after the “fair warnings” AT&T will provide customers on its artificially limited network, they will drop the sledgehammer of higher bills on top of customers’ heads.

Brown should know better, especially after finding AT&T unwilling to discuss how often it intends to revisit its usage cap levels.  AT&T’s counterparts in Canada have already foreshadowed the answer.  Once the cap regime is in place, several companies lowered them, sometimes repeatedly, to further monetize broadband usage.  They also raised the prices of overlimit fees, often substantially.

AT&T depends on uninformed consumers and reporters not understanding the true facts about Internet Overcharging schemes.  It’s not too late for reporters like Joe Brown to undo the damage, however.

Stop the Cap! strongly encourages everyone to examine the evidence we have compiled here over the past two and a half years.  It’s not hard to discover AT&T’s usage caps have nothing to do with fairness, are arbitrary and unnecessary, and come as a result of providers seeking higher profits in an undercompetitive marketplace.

If we do not uniformly and loudly oppose usage limits, America’s broadband rankings, digital economy innovation, and high technology jobs are all at risk, just to satisfy AT&T’s insatiable appetite for higher profits.

(P.S. – Joe: How did you miss Comcast has been capping their customers at 250GB for two years now.  Say it ain’t so, Joe!)

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/G4TV Attack of the Show ATT Caps Their Data Usage 3-15-11.flv[/flv]

G4TV’s ‘Attack of the Show’ misses the boat on AT&T’s Internet Overcharging scheme.  They did better covering Time Warner Cable’s attempt at Internet Overcharging in 2009.  It’s time to revisit this issue and get involved in the fight that could hurt the very audience watching this show.  (6 minutes)

CanadianDownload fills the marketplace niche of delivering websites that are now too big to download under Canada’s Internet Overcharging schemes.

America, the home of the free and the brave… and the unlimited use Internet service plan, is coming to Canada’s rescue.

Want to watch the latest CRTC hearing about broadband or download a Linux distribution, but don’t want to blow through your puny usage allowance?  Let a new website do the downloading for you.

American-based CanadianDownload.com is part mission of mercy, part online embarrassment for Canadian officials who have allowed the country’s broadband to lapse into a highly expensive, slow, and irritating mess.

Justin Bowman and his business partner Matthew Neder Laden are behind the website, which fielded 130,000 visits on its first day of operation.  The two run a security camera outfit that has nothing to do with Canadian broadband, but considering their headquarters are in the mountains of North Carolina, one of the hotbed states for Internet Overcharging experiments south of the Canadian border, they strongly sympathize with the plight of ordinary citizens paying too much, for too little service.  And because many of their customers want to remotely access the cameras they sell, their business could ultimately be impacted by paltry usage limits, too.

“The initial idea was just a protest of the ludicrous bandwidth caps that [Canadian ISPs] have placed on their customers,” Bowman told the Financial Post. “But the other part of it was just to provide a service.”

“We had no idea it would actually catch on and that people would actually give a rat’s ass about [the site], but they did,” he said.

Considering most Canadian cable and phone company Internet service plans are limited to 60 or fewer “rat asses” per month (and dropping), their surprise might be unwarranted.

Visitors are invited to enter the URL of the website they want shipped north, and the service will mail the discs at no charge using the cheapest possible shipping method, which you learn more from ArdentX.

Bowman and Laden

The two have spent countless hours burning DVD’s for consumers across Canada since the site launched earlier this month.  But there are limits.  Nearly 90 percent of the requests are “not serious,” according to Bowman.  Requests for “Google” as well as racy online content can’t be fulfilled, and the service is careful to avoid running afoul of copyright law.

“I don’t want to mess with that, having the FBI on my ass because I’m shipping bootleg items across international lines, I’m just not going to do that,” Bowman said. “Basically we’re keeping it to open source software, a lot of those data files are pretty massive.”

All in all, CanadianDownload.com exists to make a point — that broadband service in Canada can never be a success story with Internet Overcharging schemes hanging over its head.  Just as a carrier pigeon in South Africa proved it could deliver faster service than the overpriced broadband incumbent, an American website has called out the current Canadian broadband nightmare of high prices and usage caps.  The scariest part of the story is that mailing DVD’s with web content could eventually become financially viable.

At least the United States Postal Service and Canada Post, who will reap the revenue delivering all those discs, hope so.

“We’ll [continue] for as long as we can,” Bowman told the Post. “So long as we can still make rent and feed ourselves… yeah we’ll keep on mailing you guys stuff.”

From CanadianDownload’s blog:

The metered bandwidth decision was and always has been about Netflix, iTunes, torrents, and other threats to dying media business models. From CRTC to Comcast, here in the states, the international business community must fight back against the monopolies who (for the most part) ran their cables on the back of public subsidies and now want to dictate how these pipes are used. We broke up big-Bell, it’s time to do the same here.

Here at SCW, we have been very concerned with bandwidth caps. We’ve been called [innovative] for our work with CanadianDownload.com, but we aren’t; we just hearkened back to old school business models. Bandwidth caps reduce innovation; they don’t increase it. Also for all the talk of “smarter way to ship data,” we have to state that we want this business model to fail. Although there is a need for this type of service in places like South Africa, Australia, and many other parts of the world, more innovation will be possible with an open and accessible Internet than with the “innovation” associated with bottling it up and shipping it.

The actions by ISP monopolies puts all online business at risk – and not just services like Netflix, imgur, and iTunes. In a world of metered bandwidth, low bandwidth versions of sites will have to be created — which squashes rather than creates innovation. Furthermore, this puts any site that serves online advertising at risk. If you bandwith is metered, who could blame someone for using tools such as ad-block-plus to take more control of your bandwidth allowance. This translates to a direct reduction in revenue for sites that support themselves via advertisement. The saddest part of this is that even the portal sites for ISPs, (where you can see your bandwidth usage), show ads.