House Energy & Commerce Committee

Democrats serving on the House Energy & Commerce Committee today blasted the nation’s largest internet service providers for price increases and data caps placed on consumer broadband services at the height of a global pandemic, questioning the industry’s commitment to keeping Americans connected.

“Over the last ten months, internet service became even more essential as many Americans were forced to transition to remote work and online school. Broadband networks seem to have largely withstood these massive shifts in usage,” wrote Democratic Reps. Frank Pallone, Jr (N.J.), Mike Doyle (Penn.) and Jerry McNerney (Calif.). “Unfortunately, what cannot be overlooked or underestimated is the extent to which families without home internet service — particularly those with school-aged children at home — have been left out and left behind.”

Pallone

The congressmen questioned nine providers after reading media coverage of rate hikes and the implementation of data caps by Comcast and the potential for Charter Spectrum to impose data caps as early as May 2021.

“This is an egregious action at a time when households and small businesses across the country need high-speed, reliable broadband more than ever but are struggling to make ends meet,” the three Democrats wrote.

In March 2020, many cable and phone companies relaxed a number of restrictions on customers in response to the emerging COVID-19 pandemic. Many volunteered to suspend data cap overlimit fees, provide affordable broadband options to the economically disadvantaged, offer free months of service, open restricted Wi-Fi hotspots, and discontinue collection efforts or service disconnects on customers falling behind on bills.

Despite the pledge, consumers filed a significant number of complaints with the Federal Communications Commission alleging the companies broke their promises, by far most often for not following through on free service offers or continuing aggressive collections of past due bills and shutting off service.

Consumer complaints filed with the FCC regarding the “Keep America Connected” pledge, received from March-November 2020. (Source: FCC)

The Energy and Commerce Committee has now sent letters to the CEOs of many providers, seeking answers to these questions as part of ongoing oversight of the industry:

• Did the company participate in the FCC’s “Keep Americans Connected” pledge?
• Has the company increased prices for fixed or mobile consumer internet and fixed or phone service since the start of the pandemic, or do they plan to raise prices on such plans within the next six months?
• Prior to March 2020, did any of the company’s service plans impose a maximum data consumption threshold on its subscribers?
• Since March 2020, has the company modified or imposed any new maximum data consumption thresholds on service plans, or do they plan to do so within the next six months?
• Did the company stop disconnecting customers’ internet or telephone service due to their inability to pay during the pandemic?
• Does the company offer a plan designed for low-income households, or a plan established in March or later to help students and families with connectivity during the pandemic?
• Beyond service offerings for low-income customers, what steps is the company currently taking to assist individuals and families facing financial hardship due to circumstances related to COVID-19?

The full letters are available below:

Altice USA

AT&T

CenturyLink/Lumen

Charter Communications

Comcast Cable Communications

Cox Communications

Frontier Communications

T-Mobile US

Verizon Communications

Comcast has quietly updated its online customer support website to reflect the forthcoming introduction of data caps to the last remaining major regions of the country where it has avoided imposing them for years.

The nation’s largest cable company will debut its 1.2 TB data cap usage plan on January 1, 2021 in Connecticut, Delaware, the District of Columbia, Massachusetts, Maryland, Maine, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Virginia, Vermont, and West Virginia.

“Customers in select markets can take the months of January and February to understand how the new 1.2 TB Internet Data Plan affects them without additional charges,” Comcast wrote on its new customer FAQ page. “We’ll credit your bill for any additional data usage charges over 1.2 TB during those months if you’re not on an unlimited data plan. It does not apply to Xfinity Internet customers on our Gigabit Pro tier of service, Business Internet customers, customers with Prepaid Internet, or customers on Bulk Internet agreements.”

But effective March 1st, residential customers will begin facing overlimit fees for exceeding their data allowance at a rate of $10 for each 50 GB of excess usage, up to a maximum of $100 a month. Customers will not be credited for unused data, cannot rollover unused data, or be charged less than $10 in overlimit fees, regardless if one used 1 MB or 49 GB over the 1.2 TB allowance.

Customers approaching their usage limit will receive email, text messages, and Xfinity X1 on-screen notifications upon reaching 75% (email only), 90%, and 100% of 1.2 TB of data usage. Overlimit fees that subsequently start accumulating will be noted in email and X1 on-screen notifications for each additional 50 GB of usage over 1.2 TB, up to the maximum overage charge of $100.

Customers can return to the unlimited data plan they had before January 1st by paying an additional $30 a month for an unlimited add-on plan.

Comcast imposed data caps on residential customers in other parts of the country for years, but had avoided doing so until now in the northeast and mid-Atlantic states where Verizon FiOS is a frequent competitor. Verizon does not impose formal data caps on its residential customers. The introduction of data caps by Comcast is likely to result in a shift of some customers towards Verizon, if FiOS is available.

Comcast is certain to be criticized for expanding data caps in the middle of the COVID-19 pandemic, especially as the number of cases explodes in the United States, pushing more people than ever to work from home. The resulting increased usage will expose a growing number of Comcast customers to overlimit fees, starting at $10 additional a month. Usage caps are also not expected to slow the company’s ongoing rate increases. One of Comcast’s most successful businesses is selling residential broadband, often with no significant competition, and with customers unlikely to drop service there is plenty of room to raise prices further.

Protesters in front of the Time Warner Cable in Rochester, N.Y., protesting the introduction of data caps in 2009.

Fighting Back

The most effective ways to combat data caps are:

1. Switch providers and tell Comcast you are leaving because of the imposition of data caps. Reject any arguments that suggest usage allowances will impact only a handful of customers. Ongoing studies show a growing number of consumers are exceeding these arbitrary “allowances”, forcing them to pay unjustified overlimit fees or subscribe to a costly unlimited plan for as much as $30 more a month. Usage caps are unnecessary in 2020. Comcast itself claims it has plenty of capacity across its network, including areas where no caps are currently imposed. But they now think it is appropriate to introduce caps in the middle of the COVID-19 pandemic.
2. Organize a noisy but legal protest in front of a local cable store or Comcast’s headquarters and contact newspapers, radio and TV stations in advance to invite them to cover the event. Be sure to carry signs and designate one or more members to be interviewed by the media about the unacceptability of data caps. We can supply talking points on request.
3. Contact your local, state, and federal representatives and complain about Comcast imposing data caps. This is especially effective when tied-in with local protests, which may attract elected officials to the cause. There is precedent for companies backing down if consumers coordinate with elected officials and loudly protest. Tell officials your community’s digital future should not be dictated by Comcast and its unwanted data caps. More competition is needed, and until it substantially exists, ask them to ban “data plans” for home broadband service. Ask them to support municipal solutions, such as public/municipal internet service.
4. Remind everyone that internet availability is not the only issue. Affordability is also a growing problem that puts much needed internet service out of reach of low-income citizens. Imposing data caps is just another way of raising prices and deterring innovation.

Shaw is western Canada’s dominant cable operator.

While American cable companies have cut back investing in their high-speed broadband services as competition languishes, a price and service war has erupted between western Canada’s biggest cable and phone companies, with consumers winning the benefits of increased investment and fierce competition.

Shaw Communications, the largest cable company west of Ontario, has just upped the ante with the introduction of 1,500/100 Mbps unlimited internet service for $127 (all prices in $US) a month. The new speed tier, known as Fibre+ Gig 1.5,  is delivered over Shaw’s existing DOCSIS 3.1 cable broadband network, and is already available in Winnipeg, Calgary, Edmonton, Vancouver, and Victoria, and is gradually expanding outwards to smaller cities, including Banff in Alberta, and Burnaby and Dawson’s Creek in British Columbia. Shaw also offers a traditional gigabit unlimited plan in most of its service area, offering 940/25 Mbps for $88/month. Both high-speed plans include a two-year contract.

“The hard work and investments we’ve made in building, upgrading and expanding our Fibre+ and Fast LTE networks and services — nearly $22.8 billion over the past seven years — allow us to deliver these ultrafast speeds to western Canadians over our existing infrastructure,” said Zoran Stakic, chief operating officer and chief technology officer. “These ongoing investments are the foundation to providing our customers service beyond one gigabit today and ultrafast speeds to more places in the future.”

“We know that there’s a growing segment of people — including heavy gamers, content creators and super streamers — who need access to ultrafast internet services, and that need has only increased during the pandemic as many of our customers manage the reality of having multiple people working from home and sharing bandwidth,” said Paul Deverell, president of Consumer, Shaw Communications. “With the launch of our Fibre+ Gig 1.5 product, we are delivering the speeds and capacity needed by today’s super users and data-heavy customers, while confirming Shaw’s position as the western Canadian leader in gigabit speed deployment.”

Telus is western Canada’s largest phone company.

Shaw’s increased investment is designed to fend off its chief competitor, Telus. In 2020, Shaw discovered a growing number of its broadband customers defecting in favor of Telus, the region’s telephone company. Telus is expanding its own high-speed offering, which relies on fiber to the home service. In some areas, Telus offers 940/940 Mbps service on a two-year contract for $76 a month and a 1,500/940 Mbps plan for $127 a month — which matches Shaw’s price but vastly exceeds Shaw in upload speed. To further sweeten the deal, Shaw gives its premium-speed internet customers discounts on Shaw Mobile services — including the exclusive rate of $25 per month on Unlimited Data wireless plans for Shaw Fibre+ Gig 1.5 and Fibre+ Gig internet subscribers.

Shaw claims its infrastructure has made it possible to offer gigabit service to at least one million more western Canadians than Telus. Telus has been gradually scrapping its legacy copper wire network in favor of fiber optics, but will likely take over a decade to complete the transition in significantly populated communities.

While Canadian cable companies are pushing DOCSIS 3.1 to the limit, American cable companies have taken it easy this year, reducing estimated budgets for network investment, returning to data caps, and putting further upgrades to next generation DOCSIS 4.0 on hold for at least a year or two. With AT&T and Verizon distracted and focused on spending billions to build 5G wireless networks, both companies have stopped significant expansion of fiber-to-the-home service for residential customers, reducing competitive pressure on cable operators. This reduced competition allows cable companies an opportunity to raise rates on broadband customers, and Charter Spectrum has done exactly that, announcing a general $5/month increase on residential internet service to take effect by the start of 2021.

WASHINGTON (Reuters) – The U.S. Federal Communications Commission voted 3-2 on Tuesday to maintain its 2017 repeal of Obama-era net neutrality rules, even after a federal court directed a review of some provisions of the repeal.

The 2015 net neutrality rules barred internet service providers (ISPs) from blocking or slowing internet content or offering paid “fast lanes.” Under President Donald Trump, the 2017 FCC order granted ISPs sweeping powers to recast how Americans use the internet, as long as they disclose changes.

A federal appeals court in October 2019 largely upheld the FCC’s repeal of the rules, but ordered the agency to reconsider the repeal’s impact on public safety; regulations on attachments to utility poles; and the FCC’s ability to provide subsidies for broadband service. The FCC majority opted to leave the order unchanged.

The net neutrality repeal was effective in June 2018. ISPs have not changed how users access the internet, but consumer groups fear that they could move to raise prices or slow speeds selectively for some customers.

“It is patently obvious to all but the most devoted members of the net neutrality cult that the case against the (net neutrality repeal) was a sham,” FCC Chairman Ajit Pai said Tuesday.

ISPs and other advocates of the net neutrality repeal say the new rules have boosted investment. Consumer groups and other critics of the dispute the assertion that loosening net neutrality rules led to new investment.

FCC Commissioner Jessica Rosenworcel, a Democrat, said, “this agency is not interested in getting it right. Instead, it doubles down, rather than recognizing the realities of the world around us.”

Democrats have made net neutrality repeal a campaign issue. Presidential candidate Joe Biden, who was Obama’s vice president, is expected if he wins to designate an FCC chair who would move to would reinstate net neutrality.

Senator Ed Markey, a Democrat, said “without net neutrality protections, it’s just a matter of time before big broadband providers start raising prices, slowing down internet speeds, and making it harder for families, small business, and students to access the opportunities to recover and rebuild from this pandemic.”

Reporting by David Shepardson; Editing by David Gregorio

Verizon is introducing a new wireless home broadband service that will target customers that can get good cell phone reception from home but are stuck with slow speed DSL from the phone company, or no internet access at all.

Verizon’s new LTE Home Internet will offer customers speeds of 25-50 Mbps without data caps on Verizon’s already built 4G network. The service launched this week in Savannah, Ga., Springfield, Mo., and Tri-Cities, Tenn./Va./Ky. Starting today, Verizon says it will expand home internet access to customers outside of its existing Fios and millimeter-wave 5G Home footprints, primarily to reach rural customers.

“With LTE Home Internet, our most awarded 4G LTE network will provide internet connectivity for customers in more rural parts of America who may not have access to broadband internet service – a critical need, especially now, when so many are counting on reliable connectivity for remote work and educational needs,” said Frank Boulben, senior vice president of Consumer Marketing and Products at Verizon.

The service and equipment are sold at different prices depending on how much business you already do with Verizon:

LTE Home Internet Service Pricing

• If you do NOT have an active Verizon mobile plan and DO NOT WISH to enroll in paper-free billing and auto-pay, the service costs $70/month.
• If you do NOT have an active Verizon mobile plan or one that costs less than $30/month and ARE WILLING to enroll in paper-free billing and auto-pay, the service costs $60/month.
• If you DO have an active Verizon mobile plan that costs $30/month or more and DO NOT WISH to enroll in paper-free billing and auto-pay, the service costs $50/month.
• If you DO have an active Verizon mobile plan that costs $30/month or more and ARE WILLING to enroll in paper-free billing and auto-pay, the service costs $40/month.
• The required LTE router costs $240 or $10/month for 24 months (0% interest) on Verizon’s Device Payment Plan. If you order the router using “device payments,” you will receive a $10/month promotional credit for the next 24 months, making the router free of charge if you stay with the service for two years. If you cancel service early, the remaining payments will become due immediately.

Although the service cannot match the speeds offered by modern cable and fiber broadband networks, Verizon’s wireless speeds do appear to qualify as “broadband service” and for the first time on a 4G LTE network, do not include any data caps or sneaky speed throttling, making it a potentially respectable option for those in rural areas looking for something better than phone company DSL.

Verizon offers this coverage check tool to determine if service is available in your area. If not, you can leave your e-mail address and phone number and Verizon will contact you as the service expands.

This Verizon-provided video introduces the company’s new LTE Home Internet service, a wireless broadband option without data caps for those looking for rural access or something better than phone company DSL. (1:25)