A very pricey upgrade

Frontier Communications’ DSL modem rental fee is now as high as $6.99 a month in some of the phone company’s service areas, $14.99 a month if you want the convenience of a wireless router built-in.  That’s $84 and $189 a year, respectively, for equipment that cost the company a fraction of that.

“Lymelizzard,” a would-be Frontier DSL customer in Robbinsville, North Carolina, considers that highway robbery.

“I can go and buy the modem at a store and it would be less than one year of rental,” he wrote on Broadband Reports’ Frontier forum.

Frontier Communications’ regular monthly prices are not exactly aggressive in North Carolina, charging up to $50 a month for 3Mbps DSL, $55 for up to 7Mbps, before the modem rental fee and other charges are included.  A customer with Frontier’s wireless router would pay more than $70 a month, just for 7Mbps DSL service:

Frontier's No-Contract Prices for New Customers Only. Prices less for 1-2 year contracts that include $165 early termination fee for Double Plays and up to $120 early termination fee for High-Speed Internet only plans. One-time charges up to $60. Additional charges, taxes and terms apply.

Frontier has quietly increased equipment fees over the years.  Back in 2010, the company raised the rental fee to $4.50 a month.  Some service areas have been paying $6.99 a month since 2009, but now face even higher prices if they want a home “Wi-Fi” hotspot included.

Something else has changed at Frontier as well.  The company is making it more difficult for customers to purchase their own modems and use them instead, skipping the modem rental fee.  Customers trying to save several dollars a month now face a brick wall when contacting customer service.

“The salesman on the phone even said [the modem rental fee] wasn’t a good deal but he could not waive it,” Lymelizzard wrote.  He declined to become a Frontier DSL customer, considering the modem rental fee a deal-breaker.

“I’m surprised that all the Joe Customers out in Frontier-land haven’t complained,” he said. “This is merely a money grab on Frontier’s part. I could see the fee for a year, maybe two, but for the life of the account that’s bogus.”

It’s Cell Company Customer Crackdown-month for AT&T and Verizon Wireless as the two carriers increasingly engage in aggressive “management” of their wireless data networks.  Days after AT&T announced it would throw customers off legacy unlimited data plans if caught using “unofficial” tethering applications, Verizon has reportedly locked out customers from accessing web pages over jailbreak apps like MyWi, redirecting requests to a Verizon Wireless $20 Mobile Hotspot offer instead.

Mobiledia reports Verizon now requires users have a hotspot-capable data plan if they want to tether data from their smartphones to other devices.  At regular prices, those plans start at $20 for 2GB of usage, with a $10/GB overlimit fee.  Certain LTE/4G customers have fared better, being offered unlimited tethering for $30 a month — an option not available to 3G phone owners.

The Federal Communications Commission’s Net Neutrality policy exempted wireless providers from observing its core principles, giving carriers carte blanche to block websites and third party applications from their networks, and Verizon has put the green light to good use.

AT&T has favored direct punitive measures against customers who don’t respond to their demands to upgrade by auto-enrolling customers in $45 tethering plans or threatening legacy customers with the loss of their unlimited data plan.

Some media reports — including those from Mobiledia — have declared third party tethering applications “illegal,” which is inaccurate.  While carriers may not like these applications and declare use of them contrary to their respective acceptable use policies, they do not violate any laws.

AT&T is keeping the pressure on their grandfathered unlimited data plan customers.  Earlier today, AT&T confirmed rumors they are prepared to revoke customers’ unlimited usage plans if they are caught tethering their phones without an authorized tethering and mobile hotspot plan purchased directly from the company.  BGR quotes an AT&T spokesperson:

Earlier this year, we began sending letters, emails, and text messages to a small number of smartphone customers who use their devices for tethering but aren’t on our required tethering plan. Our goal here is fairness for all of our customers. (This impacts a only small percentage of our smartphone customer base.)

The letters outline three choices:

1. Stop tethering and keep their current plan (including grandfathered unlimited plan)
2. Proactively call AT&T or visit our stores and move to the required tethering plan
3. Do nothing and we’ll go ahead and add the tethering plan on their behalf — after the date noted in their customer notification.

An AT&T customer told 9to5 Mac he was threatened with the unilateral loss of his unlimited data plan if he was still unofficially tethering his phone after Aug. 11th, a date AT&T has since said may not be everyone’s “cutoff date”:

I was just informed that as of Thursday, August 11th, if you use MyWi or any tethering on the phone or using the phone as a modem, AT&T will automatically change your unlimited plan to a 2GB tethering plan for 45 dollars without the customer’s consent. This is for those who received emails or texts about the use of tethering without an AT&T tethering plan.

It’s clear AT&T is going hard line on their unlimited data plan customers, first sending notice they will throttle the speeds of any customer on an unlimited plan deemed a “heavy user,” and now threatening to terminate unlimited usage plans for customers who violate the company’s tethering terms and conditions.

We have received dozens of e-mails from readers trying to add Verizon Wireless’ coveted 4G $30 unlimited-use Mobile Hotspot feature to their accounts, with varying results.  We’ve compiled, with the help of our readers, a guide to assist you in scoring the only good thing to come from Verizon’s recent changes in data pricing.  If you follow these steps, you should be good to go.

Q&A

1. What is a Mobile Hotspot and What Is Verizon offering? — Verizon Wireless offers customers a service to turn their 3G or 4G phones into a Wi-Fi provider, letting you connect your other portable devices, like a tablet or laptop, to your Verizon Wireless data connection to access the Internet over Wi-Fi.  Technically, this feature is built-in to most smartphones, but cell phone companies monetize it by charging you an extra monthly fee to use the service.  Traditionally, Verizon charges $20 extra a month (on top of your data plan) to enable this feature, and has limited it to 2GB of use per month.  Each additional gigabyte will cost you $10.  But when Verizon introduced its new 4G LTE network, early adopters to 4G phones got access to this feature for free, for a limited time.  On 7/7, Verizon’s new limited-use data plans took effect, and Verizon expired the free 4G Mobile Hotspot feature.  To placate 4G owners, it offered them the chance to continue getting unlimited use of this feature, for an extra $30 a month.

That’s a stiff price to pay on top of your monthly data plan, but because Verizon’s LTE network is currently fast enough to serve as a home broadband backup (we consistently get speeds of 11/3Mbps on LTE from our headquarters), $60 total for unlimited wireless Internet isn’t completely outrageous at those speeds.  Yes, it’s ridiculous Verizon disabled a feature built in and functional on phones in other countries, but it is the same story with other carriers as well.  We even agree with the proposition you should be able to use your unlimited data plan for anything you want, but that’s just not a reality at the moment.

2. Who exactly qualifies for the $30 unlimited Mobile Hotspot? — We have been able to confirm for sure that anyone who activated or at least ordered a 4G phone before midnight on 7/7 is qualified to upgrade to this plan.  You cannot, however, activate the plan on a 3G phone.  Only 4G models qualify.  Where things get murky is whether or not customers who currently have 3G phones can still upgrade to a 4G model after 7/7 and get this plan.  Droid Life believes the answer to this question may be “yes” based on two tweets sent from Verizon Support:

We are more skeptical, however, based on the accumulated responses we’ve collected from Verizon Wireless from our readers, which admittedly are all over the map.  Verizon reps have not been offering consistent information about the Mobile Hotspot plan since it was first announced more than a week ago.  The company is preoccupied with reassuring existing customers they were not at risk of imminently losing their unlimited data plans, an entirely different subject.

I would not upgrade to a 4G phone today in hopes of scoring this Mobile Hotspot plan unless you have the name of an employee you can use if you complete the order, try to activate the feature, and encounter resistance.  In truth, Verizon can do anything they want for any customer, new or otherwise.  The trick is finding an employee with the authority to make things happen.  Be prepared to escalate or call back if you encounter a roadblock.

3. What happens if I have a 4G phone and start a Hotspot session with a 3G signal, is it still unlimited? — Yes.  Any Mobile Hotspot session originated on this plan on a 4G phone is unlimited regardless of what network conditions you encounter, as long as you are on Verizon’s network.

4. Does this apply to mobile broadband, provided by a dongle or a MiFi device?  — No.  Only 4G smartphones qualify for this plan.

5. How many people can share my Mobile Hotspot connection at the same time? — Verizon traditionally says five, but my phone (Samsung Charge) supports up to 10 concurrent Hotspot connections.  That’s a lot, so if everyone piles on, expect some slowdowns from the shared connection.

6. Can you add and drop the featured plan and get it back later? — Verizon has not said.  The company has not responded to questions about the longevity of this plan, whether it could be withdrawn, or whether customers can add and drop it (and add it back) at will.  We see that as evidence this is a promotional add-on that is likely to be withdrawn for new customers at some point in the future.  Verizon traditionally grandfathers customers already on a plan indefinitely, which means if you have it, you can keep it.  If this feature is important to you, we recommend you add it and keep it active.  When it’s gone for new sign-ups, it’s gone.

7. I do not see the plan under Verizon’s My Services on their website.  Should I be concerned? — No.  The plan was being offered to customers initiating new Mobile Hotspot sessions on their 4G phones, but not to all.  We never found it on Verizon’s website.  The only indication it is active on your account is finding this: “4G SMARTPHONE HOTSPOT” listed on this page (to access, you must first login to your Verizon Wireless account and select the line on which the feature was ordered.)

Ordering Advice

We have found multiple methods of securing this plan, and with the thanks of Stop the Cap! reader DJ, we have even located the all-important plan number, which you can reference when contacting Verizon.  If you run into a roadblock calling Verizon customer service, or can’t get the plan added while visiting a Verizon Wireless corporate store, we have some other suggestions.

1. Customers who already had a 4G phone before 7/7 can call Verizon Wireless from your phone at 611 or 1-800-922-0204 Monday-Sunday 6am-11pm ET.  Tell them you wish to add plan code #76153 — $30 Unlimited 4G Mobile Hotspot.

2. If you activated a new 4G phone after 7/7, call VZW’s Orders & Activations Hotline at 1-877-807-4646.  Work through the prompts.  You may be prompted to accept a customer agreement and get “trapped” in a menu asking you to press “1” or “2” after accepting the customer agreement.  Press “0” and wait to be transferred to a live agent.  Tell them you wish to add plan code #76153 — $30 Unlimited 4G Mobile Hotspot.

3. If rebuffed by either, try calling 1-316-681-9940, the number to a Verizon store in Kansas that has employees active in several phone forums helping people trying to get on this plan.  They should be able to add the plan to any 4G phone account, whether you are in Kansas or not.  Again, reference plan code #76153 — $30 Unlimited 4G Mobile Hotspot.

Let us know if you still have any problems in our comments section!

A Verizon Wireless tweet from this morning welcoming customers to a new era of "wonderful usage based plans."

Verizon Wireless might be regretting having a Facebook page open for comments after users started excoriating the company yesterday, when it first publicly broached the subject of its now-implemented wireless Internet Overcharging scheme.

“The price is too damned high,” exclaimed one customer livid that new customers would pay $30 for just 2GB of data usage (one penny higher than the company’s now-retired unlimited use plan).  “$80 for 10GB?  And I thought AT&T was greedy,” commented another.

Judging from the countless hundreds of negative comments, Sprint is about to have a robust quarter of new customer additions defecting from Verizon.  Sprint retains its unlimited use plans on both its 3G and 4G networks, although the speeds do not compare favorably to Verizon’s LTE/4G network.

Matt Hamann summed up the sentiment of customers who despise usage caps, even if they are currently grandfathered on an unlimited use plan:

Hey, Verizon…I will *never* add another smartphone to my plan until you come up with fairer data prices. $30 for 2GB?? You gotta be kidding! How is this fair? How is it in your customer’s best interests?

Bottom line: IT ISN’T! It’s 90% corporate greed. What’s the best way to get more revenue from customers, huh?

Listen here: I’m already looking for better options. As soon as I find one, I’m gone. And I’ll take every family member and friend that I can along with me.

The best mobile provider you are no more.

Verizon created considerable confusion for their customers by saying nothing until just a day before the new plans took effect.  Although the media has covered the imminent end of unlimited data for over a week, customers have not been notified by Verizon itself, despite one customer’s claim Verizon told him they mailed letters in advance of the plan changes.

As we have reported, those customers with pre-existing unlimited data plans will be able to retain them indefinitely, even if they upgrade to a new phone in the future, and even if they renew their contract.  Only new customers, those changing plans or any new lines added to a family plan will face the “wonderful” tiered pricing Verizon tweeted about this morning.

To commemorate Verizon Wireless’ new mobile data prices, we present a clip from the leader of ‘The Rent is Too Damned High’ party.

Mobile Hotspot App from Verizon Wireless (Courtesy: Pocketnow.com)

Things got considerably more confusing over the mobile Hotspot feature — a tethering application built into most Verizon smartphones.

Verizon Wireless representatives were sharing conflicting information with Stop the Cap! about the availability and pricing of this feature as late as this morning, but we’re now confident we have an answer the company will commit to for impacted customers.

For 3G Verizon Wireless smartphones, nothing changes.  It was $20 a month for 2GB before July 7th, and remains the same going forward.  For LTE/4G phone owners, things are much more confusing.  Existing customers have been enjoying free tethering on a special promotion made available only to 4G customers for several months now.  That promotion officially ended this morning.  A software update is imminent for 4G phone owners which will remove the free Hotspot feature and replace it with a prompt for one of two options:

• a $20 for 2GB Hotspot plan
• $30 Hotspot plan with unlimited usage

Most would be foolish not to lock in unlimited tethering with the $30 plan, which is a much better deal going forward.  Where the confusion comes in is for customers rushing out to upgrade their existing phones to a 4G phone just to lock in unlimited data -and- unlimited Hotspot tethering.

We spoke yesterday afternoon to Verizon Wireless representatives who denied any knowledge of the $30 unlimited tethering plan or confused it with the basic unlimited data plan.  Eventually, we were told only pre-existing customers with already-activated 4G phones would qualify for the option of choosing the $30 unlimited tether plan.  It was too late, even before yesterday at midnight, for others to hop on board this deal.

But by this morning, we were starting to get different answers, culminating in a Verizon representative telling Stop the Cap! any customer who placed an order for a 4G smartphone through Verizon Wireless that invoked a plan change (part of the process of ordering the phone direct from Verizon assures that) would have likely found the addition of the “Verizon Mobile Hotspot Promo” as one of the line items added to your plan as part of the order.  If so, that qualifies you for the $30 unlimited tethering option, even if you are still waiting for your 4G phone to arrive in the mail.

Verizon claims after you receive and activate your new 4G phone, attempts to use the Hotspot feature should offer you the choice for the $30 Hotspot plan.  If it does not, we have the name and contact details of a Verizon employee that should be able to cut through the red tape and get you this plan.  The only requirement is you had to order the phone before midnight on July 7th.

Verizon does not know at this point if customers will be offered the promotional $30 unlimited price for a limited time only, or will forfeit it forever if they do not accept it immediately (or drop the optional add-on at some point).