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Ultimately Overpriced: Videotron’s 120Mbps Service Usage Limited With Overlimit Fees That Don’t Quit

Videotron last week unveiled 120/20Mbps broadband service loaded down with tricks and traps that will cost many Canadians far more than the $149.95CDN monthly asking price.

Québec’s largest cable operator introduced Ultimate Speed Internet 120 for “users who want to experience the fastest Internet access in Québec.”  But with a download limit of just 170GB per month combined with an upload limit of a paltry 30GB per month, what many Internet enthusiasts are also likely to experience is a huge bill.

Videotron is rolling out a high-speed Internet access service that will give residents of the Québec City area the fastest speeds in Canada. As of tomorrow, Ultimate Speed Internet 120 will support download speeds of 120 mbps and upload speeds of 20 mbps, a first for Québec City.

Ultimate Speed Internet 120 pushes back the frontier for intensive Internet users,” said Robert Dépatie, President & CEO of Videotron. “Today, we are launching the high-speed Internet service of the future. With the pace at which users’ needs are changing, we are not so far from the day when 120 mbps will be a must-have convenience.”

Astonishing capacity
As of tomorrow, Ultimate Speed Internet 120 will be available in nearly 80% of the greater Québec City area, or to nearly 310,000 households and businesses. The service will be accessible throughout the Québec City area by December 31, 2010 and will then be gradually rolled out to other parts of Videotron’s service area.

Astonishing Overcharging

Yanette is going to the bank to withdraw more funds to pay her exorbitant Videotron broadband bill.

Unlike many other Internet Overcharging plans from Canada’s usage cap-happy providers, Videotron’s highest-speed plans don’t limit the amount of overlimit fees customers will be exposed to once their allowance is exhausted.  In little more than three hours of usage at near-maximum speeds, overlimit fees of $1.50CDN per gigabyte kick in until your usage allows resets the following month.  That’s more than $50 an hour in overlimit fees if running the service near top speeds.

Videotron’s press release says those limits are “well in excess of the current needs of heavy bandwidth users.”

Even worse, Videotron targets its highest speed broadband plan for “traffic management,” which throttles upload speeds dramatically for customers who “have uploaded a statistically significant amount of data,” which is never defined:

Every 15 minutes, a system checks the usage rate for each upload channel (each upload channel typically serves a few dozen modems). If the usage rate has reached a threshold beyond which congestion is imminent, the system identifies the USI 120 modems on that channel that have uploaded a statistically significant amount of data. Uploading from these modems is then momentarily given lower priority. Depending on the severity and duration of the congestion, uploading speed may be slowed for these modems.  […]The above measures are applicable at all times.

That assures customers of a less-than-blazing-fast broadband experience they have paid top dollar to receive.  In effect, this means Videotron’s customers who pay three times the regular price for a concierge-like-broadband-experience are pushed to the back of the line if they actually use it.

A Videotron customer on Broadband Reports wrote, “It’s like driving a jet-car in an alley. You can probably start the engine, but don’t open the gas too much!”

Another customer from Montreal noted it takes no time at all for customers to blow through those kinds of limits:

This is merely a political play to be able to advertise as “the fastest ISP in Quebec/Canada”. Obviously such ridiculous caps are nowhere near the needs of someone who would pay $150 for that kind of speed, but they don’t mind saying things like “well in excess of the current needs of heavy bandwidth users” because 90% of the population, even the journalists themselves, have no idea what gigabytes are in the first place.

Considering most recent games released on Steam/D2D can be over 20GB, one HD episode is 1.3GB to stream each, 170GB is very little.

The cable operator will also throw some small bones to their existing customers effective Oct. 13:

  • Customers with Videotron’s standard High Speed Internet service ($42.95CDN – 7.5Mbps/720kbps) will get a 10 gigabyte usage allowance increase — to 40GB of usage per month.  The overlimit fee remains a stunning $4.50 per gigabyte, up to a maximum of $50 per month;
  • Upstream speeds on Ultimate Speed Internet 50 service ($81.95CDN – 50/1Mbps) will be doubled from 1Mbps to 2Mbps with no price increase.  Considering that plan limits consumption to 125GB per month, the faster speeds mean unlimited overlimit fees of $1.50 per month will add up even faster.

Delivering high speed broadband at premium prices with usage limits and speed throttles is a business plan disaster.  Customers willing to pay the highest prices for fast broadband don’t seek those Cadillac plans to browse web pages.  They want to leverage the fastest possible speeds to make high bandwidth applications work better and faster.  In a business environment, those faster speeds save time, which saves money.  But broadband providers who engage in Internet Overcharging schemes that limit use and charge confiscatory overlimit fees destroy demand for their own products, because few customers are willing to pay the premium prices these plans charge -and- expose themselves to overlimit fees if they happen to exceed an arbitrary usage limit.

Further south in the United States, Americans are still rejecting overpriced DOCSIS 3-premium speed broadband plans, and they come with no usage caps.  Time Warner Cable’s DOCSIS 3 expansion delivers a premium price on the resulting faster speed tiers, and the company managed to sign up fewer than 2,000 customers as of January.

Now imagine a plan that commanded a premium price -and- slapped a limit on usage.

As they say in Québec: c’est ridicule!

Chattanooga Gets America’s Fastest Residential Broadband from Publicly Owned EPB: 1Gbps for $350

Although the price tag may be too rich for your blood, a municipally-owned utility today announced it was bringing America’s fastest broadband to residents and businesses in greater Chattanooga, Tenn., delivering 1 gigabit per second access for $350 a month.

That’s 200 times faster than what the average American broadband consumer receives, and just a fraction of what many Chattanooga area businesses pay other providers for that level of service

“One gigabit broadband service could be compared to the introduction of electric power in the 1930’s. At that time, most people saw electricity as an alternative to the oil lamp for producing light but the larger implications were soon realized,” said Harold DePriest, president and CEO of EPB. “We believe true high-speed Internet access, to both our urban and rural areas, will make Chattanooga the frontier of a new generation of opportunity and provide our community with a platform for engineering the 21st century.”

The mega-fast fiber-to-the-home broadband comes not from a multi-billion dollar private company like AT&T, Verizon, Comcast, or Time Warner Cable, but rather a small city-owned utility that has served Chattanooga’s electricity needs since 1939.

Just over one year old, EPB Fiber Optics is the latest service from the city’s municipal utility. EPB’s fiber broadband network was built after overcoming legal actions filed to stop it by Comcast and the state’s cable lobbyist group.

Since launching service in 2009, EPB’s fiber division has won over 169,000 residents in its 600 square mile service area in Tennessee and northwest Georgia.  This despite the presence of Comcast and AT&T’s U-verse operations, both competing with EPB for customers.  Neither the cable or phone company comes close to matching the speeds and demand EPB has managed to achieve.  In fact, AT&T’s U-verse launch week event in July was marred when an AT&T technician pepper-sprayed a local woman’s pets, and she wasn’t even a customer.

Google acknowledged the arrival of another provider extending 1Gbps broadband to Americans, noting it is still in the process of selecting locations for its own “Think Big With a Gig” 1Gbps fiber service.

“We’re excited to see enthusiasm for ultra high-speed broadband,” spokesman Dan Martin said in an e-mail statement. “It’s clear that people across the country are hungry for better and faster Internet access.”  Chattanooga now joins Hong Kong and just a handful of other cities delivering gigabit broadband.

Atkinson

A broadband industry trade group funded by large telecommunications companies was left making excuses for EPB’s thunder-stealing announcement.

“I can’t imagine a for-profit company doing what they are doing in Chattanooga, because it’s so far ahead of where the market is,” Robert D. Atkinson, president of the Information Technology and Innovation Foundation told the New York Times.

Atkinson is closely involved with several industry backed front groups, including the Alliance for Public Technology (AT&T & Verizon) and the Internet Education Foundation (Comcast & Verizon).

The irony of a telecom industry group that supposedly celebrates broadband innovation downplaying today’s achievement by EPB was not lost on DePriest.

When the Times asked DePriest why EPB would offer such a high speed service, DePriest said, “The simple answer is because we can.”

EPB’s latest announcement throws down the gauntlet against the idea that broadband innovation comes only from large commercial telecom companies.  Phone and cable operators claim their record of innovation will be harmed if municipal providers like EPB are able to offer service, claiming “private investment will dry up.”

It’s the same argument they use for deregulation and minimal oversight.  Yet it was a municipally-owned provider that established a network far superior to what Comcast and AT&T have in Chattanooga, launched America’s first residential 150Mbps service, and today launched America’s first residential 1Gbps broadband service.  EPB charges lower everyday prices for its bundle of TV, phone, and broadband services, too.

The cost to taxpayers?  Nothing.

Local residents can’t wait to get the service.

Keith in Soddy Daisy, Tenn., commented about EPB service: “I’m still waiting on it to become available where I live. It’s getting close because I see them stringing fiber all over the place. The crazy thing is that there are people in their service footprint that only have dial-up. Can you imagine going from having dial-up to having 1 Gbps symmetrical fiber as an option?”

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/WTVC Chattanooga EPB 1GBPS 09-13-10.flv[/flv]

WTVC-TV in Chattanooga investigates EPB’s newest 1Gbps broadband service.  (1 minute)

Analyst Tells Phone Companies To Forget About Fiber – Copper Delivered DSL Good Enough for You

A British financial analyst has issued a new report telling phone companies they should forget about fiber optic upgrades — copper-based DSL service is adequate for consumers and doesn’t bring shareholders fits over capital expenditures.

Analysys Mason’s Rupert Wood believes companies are at risk of overspending on fiber networks that deliver speeds he claims few consumers want.

“The vague promise of future services may appeal to some early FTTH adopters, but will become increasingly ineffective as a selling point unless the rate of innovation in devices and services that are uniquely suitable for FTTH gets some new impetus from vendors and service providers,” writes Wood. “The future cannot be simply plotted against increasing fixed-line bandwidth.”

Wood believes wireless 3G and 4G broadband is where innovation and demand is greatest.  It also just happens to be where the biggest money can be made.  Providers can charge premium prices for wireless services while limiting access.

Wood

For at-home Internet, Wood believes copper-based DSL is fine for most consumers.  Wood points to American providers offering super-high-speed broadband tiers that attracts few buyers as proof there is little interest in ultra-fast connections.  DSL is cheap to provide, he argues.  Fiber is just ‘too risky’ and Wood suggests it’s not as “future-proof” as wireless.

So what should providers do with their fiber networks?  Short of abandoning them altogether, Wood recommends operators pull back on fiber roll-outs and deploy them only for experimental purposes.

“Conditions vary between markets, but in general the business case to move much beyond trials just isn’t there and we are already beginning to see some scale-back,” explains Wood.

“Bandwidth demand for fixed broadband is converging with the bandwidth required to stream TV, and its rate of growth will slow down,” he adds. “DSL [technology] might not be able to meet these demands at some point in the future, but we believe that this point is still a long way off.”

If you want to read more, it will cost you €5500 to purchase a copy of “FTTx roll-out and capex in developed economies: forecasts 2010–2015.”

Our analysis comes for free.

Wood ignores the most important reason why Americans are not signing up for ultra-fast premium speed tiers in droves — the current “early adopter” price tag.  Few consumers are going to justify spending $99 a month or more for the highest speed connections.  When price cuts deliver faster service at incrementally higher pricing, perhaps $10-20 for each step up, there will be greater demand.  If America was not interested in higher speed networks, Google’s proposal to build a 1Gbps fiber to the home system would have passed by without notice.  Instead, more than 1,100 communities applied to be chosen for the project, including just about every American city.

Wood’s report primarily speaks to a European market, where the majority of broadband connections come through telephone company DSL or wireless.  In the United States, the cable industry heavily competes with phone companies for broadband customers.  That is much rarer in Europe.  Wood’s claim that consumers care little about speed is belied by marketing campaigns that put cable broadband’s speed advantage front and center, and they have the market share to justify it.

In North America, although Wood’s report may be music to phone companies’ ears, refusing to upgrade copper phone networks comes at their peril.  Americans and Canadians are disconnecting their landlines at an increasing rate, abandoning those that abandoned innovation long ago. Cable operators report many of their new broadband customers come from those disconnecting slower speed DSL service from copper-loving phone companies.

The future is clear — sticking with standard DSL over copper phone lines in competitive markets is a losing proposition unless phone companies begin slashing prices to become a value leader for those who want more savings than speed.

Verizon determined the best way to “future proof” its network was to deploy fiber straight to the home in many areas.  Verizon’s vision carries a price tag analysts like Wood and those on Wall Street don’t like because it challenges short term profits.  But with Americans increasingly saying goodbye to their landline providers, not upgrading networks to give customers a reason to stay is penny wise and pound foolish.

BC Supreme Court Tosses Out Novus Entertainment’s Lawsuit Against Shaw Cable

Phillip Dampier August 18, 2010 Canada, Competition, Novus, Shaw, Video Comments Off on BC Supreme Court Tosses Out Novus Entertainment’s Lawsuit Against Shaw Cable

Shaw's flyer distributed to Novus customers

The Supreme Court of British Columbia has thrown out Novus Entertainment’s 2009 lawsuit against Shaw Cable accusing western Canada’s largest cable operator of predatory pricing and other anti-competitive acts.

Last summer, Stop the Cap! gave considerable attention to the price war that broke out between Novus Entertainment, a fiber provider serving many Vancouver apartment buildings and condos vs. incumbent cable provider Shaw Cable.

Novus, which entered the BC market well after Shaw, faced what it alleged were incidents of fixing prices below cost and false advertising in an effort to drive competition out of the market.

At one point, last summer’s battle dropped prices as low as $30 a month for a package of HD cable, unlimited phone, and 16Mbps broadband service from Shaw.  Novus accused Shaw of recouping their losses in Vancouver from other Shaw cable subscribers across Canada who made up the difference with higher cable rates.

Novus sought relief before The Honourable Mr. Justice Greyell, in the Supreme Court of British Columbia.  Novus argued that under the recently expanded Competition Act, the court could order Shaw to cease unfair competition and face punitive fines for the cable company’s bad behavior.

Novus recited details of the price war:

Commencing February 2009, Shaw began a series of marketing campaigns specifically targeted at Novus’ existing customers in high-rise, multiple-dwelling units (“MDUs”) developments in Vancouver and Burnaby, British Columbia.

In February 2009, Shaw offered very low pricing on its Cable Television Services, Internet, and digital telephone services to certain Novus customers.  Customers were free to take one, two or all three of the services offered.  There were no contracts or commitments required:

  • Cable Television Services:  Shaw’s “High-Definition TV” package including over 100 digital and HD channels, plus 1 year free rental of a high-definition personal video recorder (“HDPVR”), free for the first two months, and $9.95 for the next ten months (twelve months in total).
  • Digital Telephone:  Shaw’s “Digital Phone Basic” package, which includes local calling and call display, free for the first two months, and $14.95 for the next ten months (twelve months in total).
  • High-speed Internet:  Shaw’s “Xtreme-I Internet” package, free for the first two months, and $19.95 for the next ten months (twelve months in total).

In March 2009, Shaw began offering a free HPDVR to keep, plus the first month of service for free, to customers that switch back to Shaw. Customers were only required to commit to six months of pre-authorized payments.

In July 2009, Shaw offered even lower pricing than it marketed in February:

  • Cable Television Services:  More than 200 digital channels, including all analogue and digital television channels, 25 high-definition television (“HDTV”) channels, a movie channel package, plus two rental HDTV set-top boxes with personal video recorder (“HPDVR”), free for the first two months, and $9.95 for the next ten months (twelve months in total).
  • Digital Telephone:  Shaw’s “Digital Phone” package, including local telephone service, over a dozen calling features including voicemail, call display and call waiting, unlimited calling within Canada and the US, 1,000 International minutes to selected countries per month,”) free for the first two months, and $9.95 for the next ten months (twelve months in total).
  • Shaw’s “Xtreme-I” high-speed Internet: with advertised download speeds of up to 16 Mbps, “Powerboost”, 10 personal email addresses and 100 GB monthly data transfer”), free for the first two months, and $9.95 for the next ten months (twelve months in total).

To add insult to injury, according to Novus, Shaw began advertising Internet “now 50 percent faster.”  In Novus’ opinion, the advertising implied Shaw’s Internet service was now 50 percent faster than broadband offered by Novus.

The text from Shaw’s ad read:

Feel the need for extra speed?  Shaw high-speed Internet is now 50% faster that’s fast.  Downloading your favourite music, videogames, and movies will take no time at all.  Plus Shaw high-speed Internet comes loaded with no cost extras like Powerboost, Shaw Secure and much more.  Get Shaw high-speed Internet for the amazing new price of only $19.95 per month for the first three months including modem and installation.  There’s never been a better time to order.  Call 310-Shaw today.

Signs sponsored by Shaw Cable were placed in front of buildings wired by Novus

The decision by Mr. Justice Greyell was carefully watched across Canada as it represented the first test of expanded authority granted by Parliament for courts to impose significant monetary fines against bad actors.  Commentators noted the new authority theoretically granted courts the power to determine anti-competitive activity itself — a power formerly held by Canada’s Competition Tribunal.

Those commentators need not have worried if the BC Supreme Court decision stands intact.

Mr. Justice Greyell dismissed Novus’ claims and ruled that in the absence of a determination of anti-competitive behavior by the Competition Tribunal, the court had no right to declare Shaw guilty of such behavior in the case.

“I conclude that in the absence of an order from the [Competition] Tribunal under s. 79 of the [Competition] Act, those portions of the statement of claim alleging a breach of s. 79 of the Act be struck out,” the chief justice ruled, effectively dismissing Novus’ anti-competitive claims against Shaw.

Mr. Justice Greyell also was unconvinced consumers would be confused by Shaw’s “50 percent faster” advertisement, believing the cable company now delivered faster service than Novus.

“In applying these tests to the ‘Now 50% Faster’ advertisement I am unable to conclude a reasonable person would view the words used as referring to the plaintiff’s business.  I am of the view the interpretation any reasonable person would place on the words is that Shaw is directing the advertisement to its own customers, and anyone else who might be interested, that its services are 50% faster than they used to be.  This fact is made clear by Shaw’s use of the word ‘Now’ – which implies that in the past Shaw’s services were slower and that Shaw has ‘Now’ improved the speed of its services   The advertisement makes no reference to Novus or to any Shaw competitor,” the chief justice ruled.

Novus effectively walks away from the BC Supreme Court empty-handed, and a little lighter in the wallet.  The chief justice also ruled Novus is responsible for Shaw’s legal bills associated with defending itself against Novus’ lawsuit.

[flv width=”630″ height=”375″]http://www.phillipdampier.com/video/Novus – 10 Bucks Too.flv[/flv]

Novus released this video as part of an outreach campaign arguing cable customers across western Canada should qualify for the same incredibly low promotional pricing Vancouver residents pay for Shaw Cable. (2 minutes)

Satellite Fraudband Providers Claim “Fiber-Like” Speeds in the Future; “When Pigs Fly,” Says One Customer

Dream On: WildBlue's home page shows a user thrilled about an Internet experience she'll never truly enjoy with a monthly usage limit at low as 2.3GB. Exceed it and face the consequences: WildBlue's Time Out Corner: a speed throttle delivering 128kbps downstream and just 28kbps upstream.

When is broadband not broadband?  When it is delivered by hopelessly overloaded and underpowered satellite providers that annoy their subscribers with high prices and low usage allowances.

For many customers of WildBlue and HughesNet, getting high speed Internet access remains a far off dream. No broadband Internet service is more rationed and speed throttled than satellite “fraudband.”

Most satellite broadband customers live in America’s most rural areas, literally miles away from the nearest telephone exchange and often hundreds of miles away from a town with cable broadband.  Even wireless Internet providers can’t find enough customers to justify the costs of delivering service.

For America’s most rural, there are three choices:

  1. Go without.
  2. Use dial-up service.
  3. Choose the least annoying satellite provider you can afford.

Just over one million Americans have stuck it out with choice number three, paying twice as much wired Americans pay for broadband and getting just a fraction of the speed and use.

But both providers claim that is all about to change.

WildBlue and HughesNet are in a hurry to launch brand new satellites with dramatically improved capacity that will deliver, they claim, “speeds as fast as fiber.”

For Stop the Cap! reader Adele in a rural part of Arizona, she’ll believe it when she sees it.

“As Stop the Cap! has said all along, anyone who thinks satellite ‘broadband’ is a useful alternative to DSL or cable Internet should be condemned to use it,” she writes.  “Everyday brings a new frustration, especially with so-called ‘Fair Access Policies’ that effectively restrict your use to web page browsing and e-mail.”

HughesNet explains how their satellite service uses your satellite dish to send and receive Internet data. (click to enlarge)

For many people running Microsoft Windows, the company’s monthly gift of bug fixes, service packs, and updates is just a minor nuisance. For satellite Internet customers, it can sometimes mean the “day of no Internet.”

Adele explains:

If you have multiple computers and Microsoft determines it has a lot of screw-ups to fix, the monthly updates can easily run into the hundreds of megabytes when every computer receives their individual updates.  HughesNet’s “budget” Home and Pro Plans cost up to $70 a month and only include a daily allowance of up to 300 megabytes.  It’s no trouble at all to exceed that usage on increasingly large web pages loaded down with video advertising, pop-ups, and other content.  Now deal with Microsoft Update Day and in our house, that means you get a good book and stay offline.

If she doesn’t, HughesNet inflicts a stinging punishment — 24 hours in the time out corner with barely dial-up speed penalties for exceeding the limit.

But both satellite providers promise better days ahead when their newest satellites are launched into space.

The New York Times notes WildBlue’s next generation of satellites will bring 10 times the capacity of its three current satellites combined.  That opens the door for faster satellite broadband, according to both companies, without price increases.

HughesNet believes satellite broadband’s best days lie ahead, especially as a contender in the rural broadband market.

“One advantage satellite has is ubiquity,” Arunas G. Slekys, vice president for Hughes Network Systems, said. “The cost of reaching you with a satellite dish is independent of where you are. Fiber or cable is labor-intensive and dependent on distance.”

As to satellite’s potential in rural regions, “clearly, there’s an unserved market,” Mr. Slekys said. “And it’s not as though they have terrestrial or satellite. They only have satellite as a choice.”

Can a new generation of satellites save satellite broadband?

One question the Times didn’t ask is whether increased capacity will mean the end of so-called “Fair Access Policies” that strictly ration the amount of browsing customers can manage before the speed throttle punishment begins.  Neither company is saying.

“When pigs fly,” Adele thinks.  “Sometimes these satellite companies think rural people are just plain stupid.  When you live this far out in the country, you learn to recognize snake oil salesmen when you see them.  Why give us more access when nobody else will provide the service?”

The sudden interest in satellite broadband in the nation’s paper of record is no coincidence.  Both HughesNet and WildBlue are upset they are not getting a bigger piece of the broadband stimulus pie.  The Times notes just $100 million out of $2.5 billion in U.S. Department of Agriculture grants for rural broadband will go to satellite companies.  Raising the question in a newspaper widely read in Washington can’t hurt your cause.

Thomas E. Moore, chief of WildBlue, said satellite technology would be able to serve thousands more rural residents than terrestrial services at a fraction of the cost. He cited a $28 million grant to a nonprofit group in North Carolina to extend fiber to 420 schools and libraries. That same grant could have instead directly served 70,000 residents in North Carolina through satellite service, Mr. Moore said.

“For every one of those people, there are literally hundreds more who won’t have access to stimulus funds,” he said.

But Joseph Freddoso, president of MCNC, the nonprofit group that manages North Carolina’s public education technology network, said satellites were not an ideal primary service for his users, who require a more reliable network for their research and data-heavy applications.

“To compare what we do with what satellite does as a service is an apples-to-oranges comparison,” Mr. Freddoso said, adding that the grant will serve one million students in 37 counties.

Adele is concerned that means even more people will fight for the limited resources satellite has until the next generation of satellites get launched, especially for rural customers trying to share a spot beam in North Carolina.

“These companies have really stopped heavily promoting themselves in parts of rural America because both are already at or over capacity in many places,” she says. “The advertised speeds for some parts of the country are straight out of Alice in Wonderland — total fiction, and with the lag time that comes naturally from sending and receiving data over a distance of 22,000 miles, it’s not getting any better.”

Adele is referring to the satellite providers’ regionally-directed signals.  Much like how satellite TV companies can deliver local stations within limited regions of the country, satellite Internet service can be divided up and delivered to certain parts of the United States.  One beam might serve rural Louisiana, another could be directed to northern California, and so on.  Once a region’s capacity nears saturation, speed and performance suffers.  In areas where capacity remains underused, the service performs better.

Regardless of the promises for enhanced satellite broadband, most cable and fiber broadband providers spend no time pondering the competitive impact, because there is none.  They plan to continue ignoring the likes of WildBlue and HughesNet for years to come.

Kevin Laverty from Verizon told the Times their FiOS fiber network is expensive to deploy but is light years ahead of satellite when it comes to speed and easy upgrades.

“Fiber optic is virtually an unlimited technology,” he said. “All you have to do is change the electronics on either end.”

A spokesman for Time Warner Cable said cable broadband speeds already easily exceed the satellite providers’ proposed new speeds, so they have nothing to worry about.

For most satellite customers, WildBlue and HughesNet are not choices, they are realities if rural Americans want to participate in the broadband revolution.

“Nobody chooses these satellite providers over DSL, cable, fiber, or even most wireless ISPs,” Adele says. “They choose satellite because of the absence of these other providers.”

Should Adele’s local phone company offer her DSL or a wireless broadband provider arrive to deliver service, would she switch away from HughesNet?

“In a shot,” she says. “I dream about throwing their dish into the biggest bonfire I can build and then my neighbors and I visit their headquarters to horse-whip them for years of horrible service and throttled speeds.”

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/Satellite Fraudband.flv[/flv]

We’ve assembled some examples of advertising for both HughesNet and WildBlue, typically seen on networks catering to rural Americans, a brief interview with a representative from WildBlue, and some actual customer… uh… “testimonials” about the quality of service actually received.  Finally, we’ve included the most painful speed test ever encountered.  The original video was silent and some might think it’s actually stuck.  It’s not.  We’ve added some music to spice things up or to increase your pain and suffering.  You might want to get a piece of cake for this. Oh, and one last thing:  If you are using a satellite provider to access Stop the Cap!, forget about the video.  Watching it will eat almost a quarter of your daily usage allowance.  (6 minutes)

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