After a year-end customer audit, some Comcast customers report they are now being notified by the cable company they were not charged modem rental fees in error even though they previously purchased their own equipment.

“Late last year, I received a form letter from them notifying me that they had noticed that I wasn’t being billed for the modem they claimed they were renting to me,” wrote a Reddit contributor. “An hour-long phone call with four representatives later, the $8 charge was removed. However, it seems that since they increased the modem rental fee to $10 per month, they’ve brought my modem back into their flock.”

He isn’t alone.

Another customer found Comcast still billing him for a modem he returned to Comcast three months earlier.

“I’m now on my third month where I had to call, get a refund, and get a promise it won’t happen again,” wrote another Comcast customer.

The customer service representative argued the charges were valid, despite the fact the customer went to extraordinary lengths to document the return of the equipment to avoid being charged for it. Instead of claiming the customer never returned the modem, Comcast registered the customer’s newly-purchased modem as Comcast property.

“It shows that modem is with the customer,” said the confused Comcast representative.

“They are that s****y of a company, I saw this coming from a mile away,” said the customer, who recorded the return of Comcast’s modem in a video he made at the local XFINITY store. Despite that effort, he was unprepared for the possibility Comcast would unilaterally adopt his new equipment and claim it as their own.

Watching your Comcast bill like a hawk for unauthorized charges can also get confusing when Comcast keeps changing the name of the fee.

Customers with their own modems should find no charge for modems, gateways, or routers on their bill.

“I had to make three calls, each one more and more frustrating,” another customer complained. “The first was to remove the equipment fee, the equipment fee then morphed into a modem fee [… and the] final call was when the modem fee evolved into a router fee.”

One Comcast customer complained on the company’s own support forum he was charged modem fees for over a year for a modem he purchased himself.

“I have gone through customer service both on the phone and through chat,” complained the customer. “The charge will come off for a month and then get put back on my bill. I even went through Comcast Corporate Escalation and it was removed in October 2014. I went back through my bills and noticed that the charge went back on the very next bill and I have been charged ever since.”

To add insult to injury, Comcast now also bills a “change of service fee” to remove the erroneous charge, only to have it return the following month.

Because Comcast billing errors are so common, still another customer shared some tips on how to prove Comcast customer-owned equipment does not belong to the cable company.

“My advice if you are thinking about buying your own modem is to make sure you file all receipts,” said the customer. “I went through this same runaround with Comcast last year and luckily I still had both the sales receipt from Amazon as well as the Comcast document stating I had turned in my rented modem. It still took a few phone calls and a week or so for them to straighten it out. Pretty ridiculous.”

It’s a Merry Christmas from Time Warner Cable, with rate increases for one and all!

The cable company that usually waits for the holiday season to end before sending out annual “rate adjustment” notices got an early start this year with some dramatic price changes for many customers, with further rate hikes likely to follow later in 2015.

Taking a lead from Comcast, Time Warner Cable is hiking its broadband modem lease fee from $6 a month to $8 a month in January. That equals $96 a year for a modem that not too long ago used to be included at no extra charge as part of your broadband subscription. A typical customer with a Motorola SB6141 DOCSIS 3 cable modem can buy a brand new unit for nearly $20 less than what Time Warner will collect from customers each year for refurbished or used equipment… forever.

In 2013, Time Warner Cable’s Rob Marcus admitted the company does not charge modem rental fees to defray the cost of the equipment, but as a hidden rate increase designed to generate more revenue.

“The modem fee is a rate increase by all accounts, it takes a different form than usual […] it’s very much a part of the overall revenue generation program,” Marcus told an audience of investment banks.

Customers that lost analog channels after Time Warner Cable began converting part of its lineup to digital-only service were offered free Digital Adapters to continue receiving digital cable channels on older analog sets. Customers were expecting a promised $0.99 monthly lease fee for the devices starting January 1, 2015. Instead customers will now pay $2.75 a month for each DTA device, estimated to cost cable companies less than $50 each three years ago.

But the charges don’t end there.

• The Broadcast TV Surcharge for cable television subscribers will increase from $2.25 to $2.75 a month;
• A new “Sports Programming Surcharge” of $2.75 a month now applies to all cable television customers, whether they watch sports channels or not;
• That on-screen program guide does not come for free. The primary outlet “discounted guide” surcharge is rising from $2.77 to $3.27 a month;
• HBO will increase from $14.99 to $16.99 a month; the Movie Pass package of Encore movie channels and certain other networks is rising $2 a month, from $5.99 to $7.99.

Part of the sales pitch Time Warner makes to justify rate increases is that broadband speeds have increased up to 100Mbps. Except they haven’t in many Time Warner Cable markets, which remain locked in with maximum speeds of 50/5Mbps for the indefinite future.

Thanks to Stop the Cap! reader Joseph for sharing Time Warner’s letter with us.

The Federal Trade Commission today filed a lawsuit against AT&T for its practice of subjecting grandfathered unlimited data customers to speed throttles that dramatically cut speeds up to 90 percent after customers use more than 3GB of data on AT&T’s 3G network or 5GB on its 4G network. Thus far, according to the FTC, AT&T has throttled at least 3.5 million unique customers a total of more than 25 million times.

The FTC’s complaint alleges that the company failed to adequately disclose to its customers on unlimited data plans that, if they reach a certain amount of data use in a given billing cycle, AT&T reduces – or “throttles” – their data speeds to the point that many common mobile phone applications – like web browsing, GPS navigation and watching streaming video –  become difficult or nearly impossible to use.

“AT&T promised its customers ‘unlimited’ data, and in many instances, it has failed to deliver on that promise,” said FTC Chairwoman Edith Ramirez. “The issue here is simple: ‘unlimited’ means unlimited.”

FCC chairman Thomas Wheeler publicly complained about Verizon’s plans to start a similar throttling program on its wireless network, questioning the fairness of cutting speeds for certain customers while exempting others. Both Verizon and AT&T have claimed speed throttles are part of a fair usage policy that allows all customers to share its wireless resources. Broadband providers have often painted a picture of a “bandwidth hog” taking a disproportionate share of network resources away from other customers, but there is no evidence heavier users are creating conflicts for other users, especially as wireless carriers encourage customers to use more data.

From AT&Ts website

The logic of rationing Internet use for unlimited customers while providing unlimited access to those willing to pay usage-based charges escaped the FTC, which is what brought the suit.

According to the FTC’s complaint, AT&T’s marketing materials emphasized the “unlimited” amount of data that would be available to consumers who signed up for its unlimited plans. The complaint alleges that, even as unlimited plan consumers renewed their contracts, the company still failed to inform them of the throttling program. When customers canceled their contracts after being throttled, AT&T charged those customers early termination fees, which typically amount to hundreds of dollars.

The FTC alleges that AT&T, despite its unequivocal promises of unlimited data, began throttling data speeds in 2011 for its unlimited data plan customers after they used as little as 2 gigabytes of data in a billing period. According to the complaint, the throttling program has been severe, often resulting in speed reductions of 80 to 90 percent for affected users.

According to the FTC’s complaint, consumers in AT&T focus groups strongly objected to the idea of a throttling program and felt “unlimited should mean unlimited.” AT&T documents also showed that the company received thousands of complaints about the slow data speeds under the throttling program. Some consumers quoted the definition of the word “unlimited,” while others called AT&T’s throttling program a “bait and switch.” Many consumers also complained about the effect the throttling program had on their ability to use GPS navigation, watch streaming videos, listen to streaming music and browse the web.

The complaint charges that AT&T violated the FTC Act by changing the terms of customers’ unlimited data plans while those customers were still under contract, and by failing to adequately disclose the nature of the throttling program to consumers who renewed their unlimited data plans.

FTC staff worked closely on this matter with the staff of the Federal Communications Commission.

The Commission vote authorizing the staff to file the complaint was 5-0. The complaint was filed in the U.S. District Court for the Northern District of California, San Francisco Division.

One of the largest grocery chains in the United Kingdom is giving away free unlimited 16Mbps broadband for a year, including a free wireless router, as long as customers cover the usual monthly line rental fees.

The service is offered without a voice dialing plan, which means customers will pay for any voice minutes they use, except when those calls are to or from Tesco Homephone customers. Internet customers also receive a free year of Tesco Internet Security and UK-based phone support. The optional phone service also includes Caller ID, Caller ID blocking, and Directory Inquiries.

In fact, Tesco’s offer will actually be a money-maker for customers who already have home phone service because Tesco also includes Clubcard points on every bill, which can be redeemed on purchases made at the chain.

After 12 months, the price reverts to Tesco’s current standard offering: 16Mbps for $9.68 a month.

Tesco’s line rental charge, required on all landlines and DSL service costs $24.83 a month.

In comparison, CenturyLink charges $39.95 a month for 10Mbps service for a year before the price increases. But customers will pay considerably more than that, as that price does not include taxes, fees, and surcharges, including a Carrier Universal Service charge, National Access Fee surcharge, a one-time, High-Speed Internet activation fee, and state and local fees that vary by area and certain in-state surcharges. A monthly modem rental fee also applies.