Comcast today quietly announced its broadband customers in Fort Lauderdale, the Keys and Miami, Fla., will find a broadband usage cap of 300GB per month imposed on their Internet access starting Oct. 1, 2015, along with the option of buying a new $30 insurance plan to protect against overlimit fees and restore unlimited access.

Stop the Cap! reader Jose from Hialeah informed us Comcast formally began notifying affected customers in e-mail earlier today and updated their website (thanks to DSL Reports):

***An important update about your XFINITY Internet service:

We’re writing to let you know that we will be trialing a new XFINITY Internet data plan in your area. Starting October 1, 2015, your monthly data plan will include 300GB. We’ll also trial a new “Unlimited Data” option that will give you the choice to purchase unlimited data for $30 per month in addition to your monthly Internet service fee.

The majority of XFINITY customers use less than 300GB of data in a month, and therefore will not be affected by these changes. If you are not sure of your monthly data usage, please refer to the Track and Manage Your Usage section below.

Here are the details of the plan:

You’ll get 300GB of data each month. If for any reason you exceed the 300GB included in your plan in a month, we will automatically add blocks of 50GB to your account for an additional fee of $10 each. We’re also implementing a three-month courtesy program. That means you will not be billed for the first three times you exceed the 300GB included in the monthly data plan.

Here are the details of the Unlimited Data option:

If you don’t want a 300GB data plan, the new Unlimited Data option is an alternative that provides additional choice and flexibility, especially for customers who use lots of data. You can choose to enroll in the Unlimited Data option at any time for an additional $30 a month, regardless of how much data you use. Enrollment in this option goes into effect on the first day of the subsequent calendar month.

Notifications:

If you are on the 300 GB plan, we will send you a courtesy “in-browser” notice and an email letting you know when you reach 90%, 100%, 110%, and 125% of your monthly data usage plan amount. You can also elect to receive notifications at additional thresholds as well as set up mobile text notifications. Notices will not be sent to customers who enroll in the unlimited data option.

$30 a month will let Floridians bypass Comcast’s overlimit usage tolls.

What is remarkable about the introduction of Comcast’s latest usage cap trial is the naked monetization scheme that accompanies it. Comcast’s old arguments that usage caps provide an even usage experience and fairness for all customers has been replaced with a new $30 insurance plan that effectively restores the unlimited usage plan customers had until this month… for $30 more a month than they used to pay. Once Comcast collects your $30, the sky is the limit as far as usage is concerned.

Customers are howling about the changes on Comcast’s social media platforms and customer support forums. Stop the Cap! strongly urges Comcast customers to also complain to the Federal Communications Commission using this online complaint form. The more Americans that complain about capped Internet, the more likely the FCC will act on the issue.

“Comcast can just do whatever they want without asking or giving notice,” writes Jason. “So basically we all just got a $30 a month increase in our Comcast bill, such BS! I’ve been a Comcast customer over 20 years. I am done. This was the last straw.”

“Kiss my business goodbye,” wrote another customer. “I have had nothing but trouble with Comcast since I’ve had it.  Weekly outages, incompetent techs on the phone, etc. AT&T U-verse may not have speeds that are as fast as Comcast, but the service was reliable, and they didn’t try to stab us in the back with ridiculous fees. Hasta la vista, Comcast!”

For now, the Unlimited Data Option is only available to customers in Florida. All other Comcast customers living under the company’s usage caps will continue to face overlimit fees of $10 for each 50GB of usage they run up past their 300GB usage allowance.

Comcast has also suddenly clarified exactly which customers are facing a life with usage caps by publishing a lengthy list of zip codes where unlucky customers will not be allowed to receive unlimited broadband. (Last week, Stop the Cap! shared with readers the story of Comcast customers in Georgia being misled about usage caps by Comcast employees. Woodstock’s two zip codes – 30188 and 30189 – appear on the below list.):

Alabama

35020, 35021, 35023, 35111, 35211, 35401, 35403, 35404, 35405, 35406, 35440, 35444, 35446, 35447, 35453, 35473, 35475, 35476, 35486, 35487, 35490, 35630, 35631, 35632, 35633, 35634, 35645, 35660, 35661, 35674, 35677, 35741, 35748, 35750, 35756, 35758, 35759, 35763, 35773, 35801, 35802, 35803, 35805, 35806, 35810, 35811, 35816, 35824, 35899, 35901, 35903, 35904, 35905, 35906, 35907, 35952, 35953, 35954, 35961, 35972, 35987, 36528, 36571, 36572, 36575, 36582, 36587, 36602, 36603, 36604, 36605, 36606, 36607, 36608, 36609, 36610, 36611, 36612, 36613, 36615, 36617, 36618, 36619, 36652, 36693, 36695

Arizona

85145, 85619, 85653, 85658, 85704, 85705, 85709, 85712, 85713, 85715, 85718, 85719, 85735, 85737, 85739, 85741, 85742, 85743, 85745, 85746, 85749, 85750, 85755, 85757

Arkansas

72301, 72303, 72331, 72364, 72373

Florida – New Area for 300GB Usage Cap; Unlimited Data Option available for $30 extra per month.

33001, 33004, 33009, 33010, 33012, 33013, 33014, 33015, 33016, 33018, 33019, 33020, 33021, 33023, 33024, 33025, 33026, 33027, 33028, 33029, 33030, 33031, 33032, 33033, 33034, 33035, 33036, 33037, 33040, 33042, 33043, 33044, 33045, 33050, 33051, 33054, 33055, 33056, 33060, 33062, 33063, 33064, 33065, 33066, 33067, 33068, 33069, 33070, 33071, 33073, 33076, 33109, 33122, 33125, 33126, 33127, 33128, 33129, 33130, 33131, 33132, 33133, 33134, 33135, 33136, 33137, 33138, 33139, 33140, 33141, 33142, 33143, 33144, 33145, 33146, 33147, 33149, 33150, 33155, 33156, 33157, 33158, 33160, 33161, 33162, 33165, 33166, 33167, 33168, 33169, 33170, 33172, 33173, 33174, 33175, 33176, 33177, 33178, 33179, 33180, 33181, 33182, 33183, 33184, 33185, 33186, 33187, 33189, 33190, 33193, 33194, 33196, 33199, 33233, 33242, 33301, 33304, 33305, 33306, 33308, 33309, 33310, 33311, 33312, 33313, 33314, 33315, 33316, 33317, 33319, 33321, 33322, 33323, 33324, 33325, 33326, 33327, 33328, 33330, 33331, 33332, 33334, 33337, 33351, 33355, 33388, 33394, 33434, 33441, 33442, 34142, 34974

Georgia

30002, 30004, 30005, 30008, 30009, 30011, 30012, 30013, 30014, 30016, 30017, 30018, 30019, 30021, 30022, 30024, 30025, 30028, 30030, 30032, 30033, 30034, 30035, 30038, 30039, 30040, 30041, 30043, 30044, 30045, 30046, 30047, 30052, 30054, 30055, 30056, 30058, 30060, 30062, 30064, 30066, 30067, 30068, 30069, 30071, 30072, 30075, 30076, 30078, 30079, 30080, 30082, 30083, 30084, 30087, 30088, 30090, 30092, 30093, 30094, 30096, 30097, 30098, 30101, 30102, 30103, 30104, 30105, 30106, 30107, 30108, 30109, 30110, 30111, 30114, 30115, 30116, 30117, 30120, 30121, 30122, 30123, 30125, 30126, 30127, 30132, 30134, 30135, 30137, 30139, 30141, 30142, 30144, 30145, 30146, 30147, 30149, 30150, 30152, 30153, 30157, 30161, 30165, 30168, 30171, 30172, 30173, 30176, 30178, 30179, 30180, 30182, 30183, 30184, 30185, 30187, 30188, 30189, 30205, 30213, 30214, 30215, 30220, 30223, 30224, 30228, 30230, 30236, 30238, 30248, 30250, 30252, 30253, 30257, 30260, 30263, 30265, 30266, 30268, 30269, 30272, 30273, 30274, 30276, 30277, 30281, 30288, 30290, 30291, 30292, 30294, 30296, 30297, 30303, 30304, 30305, 30306, 30307, 30308, 30309, 30310, 30311, 30312, 30313, 30314, 30315, 30316, 30317, 30318, 30319, 30320, 30322, 30324, 30326, 30327, 30328, 30329, 30330, 30331, 30332, 30334, 30336, 30337, 30338, 30339, 30340, 30341, 30342, 30344, 30345, 30346, 30349, 30350, 30354, 30358, 30359, 30360, 30361, 30363, 30369, 30410, 30411, 30413, 30414, 30417, 30423, 30427, 30428, 30429, 30434, 30439, 30442, 30445, 30457, 30467, 30471, 30477, 30501, 30504, 30506, 30507, 30517, 30518, 30519, 30520, 30527, 30529, 30530, 30533, 30534, 30542, 30543, 30548, 30549, 30554, 30558, 30564, 30567, 30575, 30606, 30607, 30620, 30622, 30624, 30634, 30635, 30643, 30655, 30656, 30666, 30673, 30677, 30680, 30701, 30733, 30735, 30746, 30802, 30805, 30807, 30808, 30809, 30812, 30813, 30814, 30815, 30816, 30817, 30824, 30828, 30830, 30901, 30904, 30905, 30906, 30907, 30909, 30912, 30914, 31002, 31063, 31064, 31068, 31096, 31301, 31302, 31304, 31305, 31307, 31308, 31309, 31312, 31313, 31314, 31315, 31316, 31318, 31320, 31321, 31322, 31323, 31324, 31326, 31328, 31329, 31331, 31333, 31401, 31404, 31405, 31406, 31407, 31408, 31409, 31410, 31411, 31415, 31419, 31421, 31543, 31545, 31546, 31555, 31560, 31566, 31568, 31569

Illinois

62910, 62960

Indiana

47520, 47586

Kentucky

40150, 40160, 40162, 40175, 42001, 42002, 42003, 42027, 42029, 42048, 42053, 42058, 42069, 42082, 42086, 42127, 42134, 42141, 42152, 42223, 42321, 42323, 42324, 42326, 42330, 42332, 42337, 42344, 42345, 42367, 42374, 42701, 42702, 42712, 42716, 42718, 42724, 42726, 42732, 42733, 42740, 42748, 42749, 42754, 42757, 42758, 42764, 42783, 42788

Louisiana

71201, 71202, 71203, 71209, 71225, 71227, 71229, 71234, 71238, 71280, 71291, 71292, 71294

Maine

03901, 03903, 03904, 03905, 03908, 04003, 04008, 04011, 04032, 04066, 04078, 04079, 04086, 04222, 04287, 04530, 04562, 04565, 04579

Mississippi

38611, 38618, 38619, 38621, 38632, 38635, 38637, 38641, 38649, 38651, 38654, 38661, 38664, 38666, 38668, 38670, 38671, 38672, 38674, 38676, 38680, 38683, 38801, 38802, 38803, 38804, 38824, 38826, 38828, 38829, 38834, 38835, 38843, 38846, 38849, 38855, 38856, 38857, 38860, 38862, 38866, 38868, 38869, 38876, 38879, 39041, 39042, 39043, 39046, 39047, 39056, 39066, 39071, 39073, 39079, 39110, 39145, 39151, 39154, 39157, 39167, 39170, 39174, 39175, 39193, 39201, 39202, 39203, 39204, 39206, 39208, 39209, 39210, 39211, 39212, 39213, 39216, 39217, 39218, 39232, 39269, 39272, 39301, 39302, 39303, 39304, 39305, 39307, 39309, 39320, 39325, 39335, 39338, 39342, 39347, 39348, 39355, 39364, 39366, 39367, 39401, 39402, 39406, 39422, 39437, 39439, 39440, 39441, 39442, 39443, 39455, 39465, 39475, 39477, 39481, 39773

South Carolina

29108, 29127, 29401, 29403, 29404, 29405, 29406, 29407, 29408, 29409, 29410, 29412, 29414, 29418, 29420, 29424, 29425, 29426, 29429, 29438, 29439, 29445, 29449, 29451, 29455, 29456, 29461, 29464, 29466, 29470, 29482, 29483, 29485, 29487, 29488, 29492, 29628, 29803, 29822, 29829, 29831, 29841, 29842, 29847, 29860, 29901, 29902, 29904, 29906, 29907, 29911, 29920, 29924, 29944, 29945

Tennessee

37010, 37013, 37014, 37015, 37020, 37022, 37025, 37026, 37027, 37029, 37030, 37031, 37032, 37033, 37036, 37037, 37042, 37046, 37048, 37049, 37051, 37055, 37059, 37060, 37062, 37064, 37066, 37067, 37069, 37071, 37072, 37073, 37074, 37075, 37076, 37080, 37082, 37083, 37085, 37086, 37087, 37090, 37098, 37115, 37119, 37122, 37127, 37128, 37129, 37130, 37131, 37132, 37135, 37137, 37138, 37141, 37143, 37145, 37148, 37149, 37150, 37152, 37153, 37165, 37166, 37167, 37172, 37179, 37181, 37185, 37186, 37187, 37188, 37189, 37190, 37201, 37203, 37204, 37205, 37206, 37207, 37208, 37209, 37210, 37211, 37212, 37213, 37214, 37215, 37216, 37217, 37218, 37219, 37220, 37221, 37228, 37229, 37232, 37235, 37236, 37238, 37240, 37243, 37246, 37306, 37318, 37324, 37330, 37352, 37366, 37398, 37701, 37705, 37709, 37710, 37713, 37714, 37716, 37719, 37721, 37722, 37725, 37726, 37737, 37738, 37742, 37748, 37754, 37755, 37756, 37757, 37763, 37764, 37766, 37769, 37770, 37771, 37772, 37777, 37779, 37801, 37803, 37804, 37806, 37807, 37820, 37821, 37828, 37829, 37830, 37840, 37841, 37843, 37845, 37847, 37849, 37852, 37853, 37854, 37862, 37863, 37871, 37872, 37876, 37882, 37886, 37887, 37892, 37902, 37909, 37912, 37914, 37915, 37916, 37917, 37918, 37919, 37920, 37921, 37922, 37923, 37924, 37929, 37931, 37932, 37934, 37938, 37996, 37998, 38002, 38010, 38011, 38014, 38015, 38016, 38017, 38018, 38019, 38028, 38029, 38036, 38039, 38046, 38048, 38049, 38052, 38057, 38060, 38061, 38066, 38067, 38068, 38069, 38075, 38076, 38103, 38104, 38105, 38106, 38107, 38108, 38109, 38111, 38112, 38113, 38114, 38115, 38116, 38117, 38118, 38119, 38120, 38122, 38125, 38126, 38127, 38128, 38131, 38132, 38133, 38134, 38135, 38137, 38138, 38139, 38141, 38152, 38157, 38305, 38326, 38339, 38357, 38365, 38367, 38375, 38504, 38547, 38549, 38553, 38555, 38556, 38557, 38558, 38560, 38565, 38570, 38571, 38572, 38577, 38583

Before regulators, the media, and elected officials, Comcast’s executive vice president David Cohen has repeatedly told all who can hear that there are no usage caps on Comcast’s broadband service.

“There isn’t a cap anymore. We’re out of the cap business,” Cohen began saying in May 2012 after the cable company dropped its nationwide 250GB usage cap. But in several markets, mostly in the southern and western United States, Comcast snuck the caps back on residential Internet customers, only this time they claim it isn’t a usage cap at all.

“We effectively offer unlimited usage of our services because customers will have the ability to buy as much data as they want,” says the cable company these days.

But if the “usage caps” are actually gone, why is Comcast issuing executive-level memos to its customer service representatives and supervisors that repeatedly state the company does, in fact, have “data caps” in about a dozen cities across the country — part of an ongoing market trial that suggests Comcast is considering extending a new 300GB usage allowance nationwide.

Stop the Cap! reader Joe, an AT&T U-verse customer in Woodstock, Ga. — 30 miles north of downtown Atlanta — was offered a deal to switch to Comcast for 75Mbps Internet service at an attractive price. All Comcast had to do was convince Joe he would never have to deal with Comcast’s 300GB cap that is being tested in Atlanta. Joe, like many Internet customers, will not sign up with a company that imposes usage allowances on its wired broadband customers. He isn’t interested in checking a usage meter and considers broadband usage overlimit fees a deal-breaker.

So Joe called Comcast to get some straight answers. Does Comcast impose its usage cap on customers in Woodstock, which is part of Comcast’s greater Atlanta service area? Current Comcast broadband customers in Woodstock tell Stop the Cap! the company absolutely does impose a 300GB usage cap on Internet service, and some have the overlimit fees to prove it. But Comcast’s customer service representative insisted it just was not true. To back her up, not one but two Comcast supervisors also swore Woodstock is not affected by “data caps.”

Joe knew enough to record the call. Because if he did sign up for service and maintained his current usage, often in excess of 400GB a month, that “good deal” offered by Comcast would be replaced by nightmarish overlimit fees of $10 for each 50GB increment he exceeded his allowance.

Stop the Cap! reader Joe recorded his Aug. 22, 2015 conversation with Comcast — a company that really, really, really wants to convince potential customers in Georgia there are no Internet data caps on its broadband service outside of the city of Atlanta. Except there are, including in Joe’s city of Woodstock, Ga.

Comcast executives repeatedly claim Comcast doesn’t have “usage caps” on its Internet service anywhere, but you will quickly lose count adding up the number of times Comcast’s representative specifically refers to Comcast’s “data caps” and its official “data cap document.”

(This recording has been edited for brevity and clarity. Tones indicate where significant edits were made, during the time Joe was left on hold and as the representative moves towards a last ditch sales pitch. At the end of the clip, Joe shares his first impressions after he hung up with Comcast. (8:28)

You must remain on this page to hear the clip, or you can download the clip and listen later.

“What makes me laugh is the fact she is so uncertain. Obviously Comcast doesn’t properly train their employees,” Joe writes. “Comcast reps spreading bad information like this is negligent [when they tell] unsuspecting customers that there is no data cap. I honestly cannot tell if this woman was flat-out lying, or was just poorly trained.”

Joe isn’t the only one being misinformed by Comcast.

“I’ve been lied to so many times about this,” Jamil Duder wrote. “Sometimes I will get in touch with their online support just to see what they will tell me this time for my own amusement. I’ve been told everything. It has been removed, it never existed, it’s actually 600GB not 300GB, etc.”

In fact, Comcast’s enforcement of its data cap has spread well beyond the city limits of Atlanta. Despite claims from Comcast to the contrary, customers around the state report they are now limited to 300GB of usage before overlimit fees kick in.

“Absolutely unacceptable, and you wonder why they have the reputation as the worst company in America,” Joe writes.

So why would Comcast blatantly misinform customers about usage caps. The company is in an unenviable position in several of the cities where they are testing their caps. Most of Comcast’s competition in the usage cap trial markets comes from AT&T U-verse, which itself claims a 250GB usage cap — one that customers also know isn’t being enforced.

For Joe, sticking with AT&T’s slower Internet speeds in return for peace of mind his usage is not being limited is a better prospect.

Eric Ravenscraft suspects Comcast isn’t too happy with complaints it is getting about data caps from its customers either. He recently received a call from Comcast seeking feedback on what customers would like to see changed about the caps. But in typical Comcast fashion, getting rid of the caps does not seem to be an option. Instead, the representative claimed “obviously, the plans are outdated,” which suggests Comcast will adjust your allowance, not get rid of it.

Ravenscraft believes the most effective force to convince Comcast to ditch its caps altogether might be the Federal Communications Commission.

“If you want to do something about it, rope the FCC in. Let them know how you feel about this,” Ravenscraft writes. “Not only does this give the FCC another complaint to add to the pile, Comcast is required to respond to your complaint—by contacting you directly—within 30 days after the FCC forwards your complaint along.”

Several readers are doing exactly that every time they are charged an overlimit fee by Comcast. Within 30-60 days, Comcast has reportedly credited back the overlimit charges to complaining customers.

“I’ve filed 10 complaints with the FCC each time I get an overlimit fee on my bill, and I always get the overlimit fees credited back,” reports Stop the Cap! reader Jeff in Atlanta. “It takes about five minutes to fill out the complaint form — a minor nuisance, but now I effectively don’t have a Comcast usage cap and I am costing them more money dealing with my complaints every month than they would ever get charging me extra in the first place. Imagine if we all did that.”

“Comcast sucks but we might actually have a shot at making things better if we all do this,” Ravenscraft adds. “Most cities aren’t subject to these restrictive data cap trials, but they’ll eventually roll out nationwide if customers here don’t speak up loudly enough. We’ve got a weirdly unique opportunity to actually change how the internet works in the U.S.”

Phillip Dampier: A cable trade publication is lecturing its readership on better broadband the industry spent years claiming nobody wanted or needed.

Remember the good old days when cable and phone companies told you there was no demand for faster Internet speeds when 6Mbps from the phone company was all you and your family really needed?

Those days are apparently over.

Multichannel News, the largest trade publication for cable industry executives, warns cable companies gigabit broadband speeds are right around the corner and the technological transformation that will unleash has been constrained for far too long.

Say what?

Proving our theory that those loudest about dismissing the need for faster Internet speeds are the least equipped to deliver them, the forthcoming arrival of DOCSIS 3.1 technology and decreasing costs to deploy fiber optics will allow cable providers to partially meet the gigabit speed challenge, at least on the downstream. Before DOCSIS 3.1, consumers didn’t “need those speeds.” Now companies like Comcast claim it isn’t important what consumers need today — it’s where the world is headed tomorrow.

Comcast 2013:

Comcast executive vice president David L. Cohen writes that the allure of Google Fiber’s gigabit service doesn’t match the needs or capabilities of online Americans.

“For some, the discussion about the broadband Internet seems to begin and end on the issue of ‘gigabit’ access,” Cohen says, in a nod to Google Fiber. “The issue with such speed is really more about demand than supply. Our business customers can already order 10-gig connections. Most websites can’t deliver content as fast as current networks move, and most U.S. homes have routers that can’t support the speed already available to the home.” Essentially, Cohen argues that even if Comcast were to deliver web service as fast as Google Fiber’s 1,000Mbps downloads and uploads, most customers wouldn’t be able to get those speeds because they’ve got the wrong equipment at home.

Comcast 2015:

“We’ve consistently offered the most speeds to the most homes, but with the current pace of tech innovation, sometimes you need to go to where the world is headed and not focus on where it is today.”

“The next great Internet innovation is only an idea away, and we want to help customers push the boundaries of what the Internet can do and do our part to inspire developers to think about what’s possible in a multi-gigabit future.  So, next month we will introduce Gigabit Pro, a new residential Internet service that offers symmetrical, 2-Gigabits-per-second (Gbps) speeds over fiber – at least double what anyone else provides.”

Nelson (Image: Multichannel News)

Rich Nelson’s guest column in Multichannel News makes it clear American broadband is behind the times. The senior vice president of marketing, broadband & connectivity at Broadcom Corporation says the average U.S. Internet connection of 11.5Mbps “is no longer enough” to support multiple family members streaming over-the-top video content, cloud storage, sharing high-resolution images, interactive online gaming and more.

Nelson credits Google Fiber with lighting a fire under providers to reconsider broadband speeds.

“Google’s Fiber program may have been the spark to light the fuse — Gigabit services have fostered healthy competition among Internet and telecommunications providers, who are now in a position to consider not ‘if’ but ‘when and how’ to deploy Gigabit broadband in order to meet consumer’s perceived ‘need for speed’ and maintain their competitive edge,” Nelson wrote.

But the greatest bottleneck to speed advances is spending money to pay for them. Verizon FiOS was one of the most extravagant network upgrades in years among large American telecom companies and the company was savaged by Wall Street for doing it. Although AT&T got less heat because its U-verse development costs were lower, most analysts still instinctively frown when a company proposes spending billions on network upgrades.

Customer demand for faster broadband is apparent as providers boost Internet speeds.

The advent of DOCSIS 3.1 — the next generation of cable broadband technology — suggests a win-win-win for Wall Street, cable operators, and consumers. No streets will have to be torn up, no new fiber cables will have to be laid. Most providers will be able to exponentially boost Internet speeds by reallocating bandwidth formerly reserved for analog cable television channels to broadband. The more available bandwidth reserved for broadband, the faster the speeds a company can offer.

Many industry observers predict the cable line will eventually be 100% devoted to broadband, over which telephone, television and Internet access can be delivered just as Verizon does today with FiOS and AT&T manages with its U-verse service.

The benefits of gigabit speeds are not limited to faster Internet browsing however.

Nelson notes communities and municipalities are now using gigabit broadband speeds as a competitive tool selling homes and attracting new businesses to an area. According to a study from the Fiber to the Home (FTTH) Council, communities with widely available gigabit access have experienced a positive impact on economic activity — to the tune of more than $1.4 billion in GDP growth. Those bypassed or stuck in a broadband backwater are now at risk of losing digital economy jobs as businesses and entrepreneurs look elsewhere.

The gigabit broadband gap will increasingly impact the local economies of communities left behind with inadequate Internet speeds as app developers, content producers, and other innovative startups leverage gigabit broadband to market new products and services.

The Pew Research Center envisioned what the next generation of gigabit killer apps might look like. Those communities stuck on the slow lane will likely not have access to an entire generation of applications that simply will never work over DSL.

But before celebrating the fact your local cable company promises to deliver the speed the new apps will need, there is a skunk that threatens to ruin your ultra high speed future: usage-based pricing and caps.

At the same time DOCSIS 3.1 will save the cable industry billions on infrastructure upgrade costs, the price for moving data across the next generation of super high-capacity broadband networks will be lower than ever before. But cable operators are not planning to pass their savings on to you. In fact, broadband prices are rising, along with efforts to apply arbitrary usage limits or charge usage-based pricing. Both are counter-intuitive and unjustified. It would be like charging for a bag of sand in the Sahara Desert or handing a ration book to shoreline residents with coupons allowing them one glass of water each from Lake Ontario.

Cox plans to limit its gigabit customers to 2TB of usage a month. AT&T U-verse with GigaPower has a (currently unenforced) limit of 1TB a month, while Suddenlink thinks 550GB is more than enough for its gigabit customers. Comcast is market testing 300GB usage caps in several cities but strangely has no usage cap on its usage-gobbling gigabit plan. Why cap the customers least-equipped to run up usage into the ionosphere while giving gigabit customers a free pass? It doesn’t make much sense.

But then usage caps have never made sense or been justified on wired broadband networks and are questionable on some wireless ones as well.

Stop the Cap! began fighting against usage caps and usage pricing in the summer of 2008 when Frontier Communications proposed to limit its DSL customers to an ‘ample’ 5GB of usage per month. That’s right — 5GB. We predicted then that usage caps would become a growing problem in the United States. With a comfortable duopoly, providers could easily ration Internet access with the flimsiest of excuses to boost profits. Here is what we told the Associated Press seven years ago:

“This isn’t really an issue that’s just going to be about Frontier,” said Phillip Dampier, a Rochester-based technology writer who is campaigning to get Frontier to back off its plans. “Virtually every broadband provider has been suddenly discovering that there’s this so-called ‘bandwidth crisis’ going on in the United States.”

That year, Frontier claimed most of its 559,300 broadband subscribers consumed less than 1.5 gigabytes per month, so 5GB was generous. Frontier CEO Maggie Wilderotter trotted out the same excuses companies like Cox and Suddenlink are still using today to justify these pricing schemes: “The growth of traffic means the company has to invest millions in its network and infrastructure, threatening its profitability.”

Just one year later, Frontier spent $5.3 billion to acquire Verizon landline customers in around two dozen states, so apparently Internet usage growth did not hurt them financially after all. Frankly, usage growth never does. As we told the AP in 2008, the costs of network equipment and connecting to the wider Internet are falling. It still is.

“If they continue to make the necessary investments … there’s no reason they can’t keep up” with increasing customer traffic, we said at the time.

We are happy to report we won our battle with Frontier Communications and today the company even markets the fact their broadband service comes without usage caps. In many of Frontier’s rural service areas, they are the only Internet Service Provider available. Imagine the impact a 5GB usage cap would have had on customers trying to run a home-based business, have kids using the Internet to complete homework assignments, or rely on the Internet for video entertainment.

So why do some providers still try to ration Internet usage? To make more money of course. When the public believes the phony tales of network costs and traffic growth, the duped masses open their wallets and pay even more for what is already overpriced broadband service. Just check this chart produced by the BBC, based on data from the Organization for Economic Co‑operation and Development. Value for money is an alien concept to U.S. providers:

The usual method of combating pricing excess is robust competition. With a chasm-sized gap between fat profits and the real cost of the service, competitors usually lower the price to attract more customers. But the fewer competitors, the bigger the chance the marketplace will gravitate towards comfort-level pricing and avoid rocking the boat with a ruinous price war. It is one of the first principles of capitalism — charging what the market will bear. We’ve seen how well that works in the past 100+ years. Back in 2010, we found an uncomfortable similarity between broadband prices of today with the railroad pricing schemes of the 1800s. A handful of executives and shareholders reap the rewards of monopolistic pricing and pillage not only consumers but threaten local economies as well.

The abuses were so bad, Congress finally stepped in and authorized regulators to break up the railroad monopolies and regulate abusive pricing. We may be headed in the same direction with broadband. We do not advocate regulation for the sake of regulation. Competition is a much more efficient way to check abusive business practices. But where an effective monopoly or duopoly exists, competition alone will not help. Without consumer-conscious oversight, the forthcoming gigabit broadband revolution will be stalled by speed bumps and toll booths for the benefit of a few giant telecommunications corporations. That will allow other countries to once again leap ahead of the United States and Canada, just as they have done with Internet speeds, delivering superior service at a lower price.

China now ranks first in the world in terms of the total number of fiber to the home broadband subscribers. So far, it isn’t even close to the fastest broadband country because much of China still gets access to the Internet over DSL. The Chinese government considers that unacceptable. It sees the economic opportunities of widespread fiber broadband and has targeted the scrapping of every DSL Internet connection in favor of fiber optics by the end of 2017. As a result, with more than 200 million likely fiber customers, China will become the global leader in fiber infrastructure, fiber technology, and fiber development. What country will lose the most from that transition? The United States. Today, Corning produces 40% of the world’s optical fiber.

Global optical fiber capacity amounted to 13,000 tons in 2014, mainly concentrated in the United States, Japan and China (totaling as much as 85.2% of the world’s total), of which China already ranked first with a share of 39.8%. Besides a big producer of optical fiber, China is also a large consumer, demanding 6,639 tons in 2014, 60.9% of global demand. The figure is expected to increase to 7,144 tons in 2015. Before 2010, over 70% of China’s optical fiber was imported, primarily from the United States. This year, 72.6% of China’s optical fiber will be produced by Chinese companies, which are also exporting a growing amount of fiber around the world.

John Lively, principal analyst at LightCounting Market Research, predicts China could conquer the fiber market in just a few short years and become a global broadband leader, “exporting their broadband networking expertise and technology, just like it does with its energy and transportation programs.”

Meanwhile in the United States, customers will be arguing with Comcast about the accuracy of their usage meter in light of a 300GB usage cap and Frontier’s DSL customers will still be fighting to get speeds better than the 3-6Mbps they get today.

Comcast plans to upgrade its cable broadband facilities nationwide to support gigabit broadband using DOCSIS 3.1 technology within two years, according to a company official.

DOCSIS 3.1 will allow existing hybrid fiber-coax infrastructure to support broadband service speeds up to 10Gbps, but most consumers would find the equipment costs to support speeds that fast on a home network prohibitive. Commercial customers might not.

“We’re testing it this year,” Robert Howald, Comcast’s vice president of network architecture, told FierceCable. “Our intent is to scale it through our footprint through 2016. We want to get it across the footprint very quickly. We’re shooting for two years.”

Comcast is also claiming to move forward with its 2Gbps fiber to the home service in select areas located close to existing fiber infrastructure, but first promised the service would be available to customers in early summer. To date, Stop the Cap! cannot find any customer actually subscribed to the service.

Customers will be able to lease DOCSIS 3.1 equipment from Comcast starting in early 2016. As more customers get the equipment, Comcast will likely realign its broadband offerings to further boost speeds.

The “New and Improved” Don’t Care Bears

Rob Frieden has two words for Comcast customers getting scary letters and phone calls threatening to turn their legacy cable modems into paperweights: caveat emptor.

Frieden, author of Winning the Silicon Sweepstakes: Can the United States Compete in Global Telecommunications? knows enough to fend off the misinformation used to upsell customers away from the modems they own free and clear into Comcast’s rented $10/month alternative.

“Despite its commitment to improving its customer service, Comcast keeps writing and robocalling me with an offer I can refuse,” Frieden writes on his blog. “In a rather alarmist tone, Comcast wants subscribers to infer that their modem soon will no longer work.”

At issue are customers still using legacy DOCSIS 2.0 cable modems — one generation behind the current DOCSIS 3.0 modems Comcast wants customers to use. Frieden knows one day Comcast may decide to stop supporting DOCSIS 2.0, an older, less-capable cable broadband standard. Although that day is nowhere in view yet, it hasn’t stopped aggressive Comcast telemarketers from warning customers they “need upgraded equipment” that comes with a never-ending $10 a month rental fee.

“My Motorola DOCSIS 2.0 compliant modem works just fine and it cost me a princely $5 at a garage sale,” Frieden writes.

Frieden

As soon as Comcast finds out you are using an older modem you own, Frieden writes they may try to dissuade you from using it and push you towards their alternative.

“Comcast does not want you to know that the new rented modem will not provide any faster service unless you subscriber to a triple digit, high-end service tier,” Frieden adds.

Comcast’s official position is that DOCSIS 2.0 modems will work just fine with all Comcast Internet plans at speeds below 50Mbps. But they infer if you are not using a DOCSIS 3.0 modem (preferably theirs), “you won’t experience the blistering fast speeds now available.” That implies all Comcast customers with DOCSIS 2.0 modems will get less robust performance across the board, but in fact Comcast’s statement refers to the limitation DOCSIS 2.0 customers have upgrading to speeds they may never need.

After Comcast’s telemarketing machine has you convinced you need to upgrade to their perpetually profitable rented modem, they will also ask why not upgrade your router as well? Comcast suggests customers upgrade to at least a 802.11n model because older 802.11g routers only support up to 20Mbps.

“If you lease your modem, router, or gateway device from us, we’ll upgrade it at no extra charge,” Comcast claims, inferring the upgrade will come free. Except it isn’t. It just won’t cost you more than the $10 a month you are probably already paying.

Stop the Cap! readers regularly tell us Comcast often cuts corners and simply bills customers modem rental fees even for customer-owned equipment. Our reader Amanda is the latest victim and she is about fed up:

I took a look at my bill and for no reason Comcast suddenly started charging me $10 a month for a voice/data modem rental that I don’t have. Beware and check your bill thoroughly. Comcast sneaks charges on for services you don’t have. Absolutely hate this company. On top of the bogus $10 they raised all the rates so my bill went from $186 a month to $219 a month. I would never recommend Comcast to anyone. Horribly deceptive company. Oh and then there is the junk equipment that Comcast uses. I have had three X1 boxes replaced in a year. I’m thinking about going with U-Verse for TV and staying with Comcast for Internet.

Comcast’s “new and improved” customer service becomes especially hostile when customers like Amanda catch the company cheating, forcing her and others into lengthy investigations and appeals to get the bogus fees removed and earlier charges refunded:

So I talked with Comcast today and got nowhere. They basically don’t want my business after 18 years and are giving me a hard time about refunding me the charge for the modem. They said it will take at least 14 days for them to look into the issue with the modem being mine and not being leased from Comcast. I told them I want to cancel and they transferred me to a recording telling me how to send in my equipment via UPS. 18 years and they will not budge on changing my pricing without signing a two year contract! So after 40 minutes on the phone with them I am extremely mad and frustrated. Now I have to waste my time filing complaints with the Better Business Bureau and the attorney general. And even more time switching my services to another provider. It seems that Comcast has changed its tactics and now instead of trying to retain their customers they are saying go ahead and leave. And can only imagine the nightmare of returning all the equipment.

If you can’t prove your cable modem doesn’t belong to Comcast, they may conveniently bill you an unreturned equipment charge of $70, like one customer experienced in 2014.