Suddenlink’s decision to implement an Internet Overcharging scheme that couples usage caps with overlimit fees can be a real revenue-booster for the cable company, especially if a usage measurement tool decides to nip at your allowance with phantom usage that can eventually expose you to overlimit fees.

Simon, a Suddenlink customer in northern Texas contacted Stop the Cap! with news he managed to catch Suddenlink in the act of ginning up his broadband usage, measuring around 23GB of broadband usage in just one day:

Here is what Suddenlink’s usage measurement tool reports Simon has used during the month of August. Not the 23GB measurement recorded for Aug. 18.

“Suddenlink believes I used ~23GB and my router confirms I only used 2.22GB (a difference of 936%),” Simon writes. “It’s insane.”

Even more unusual is Suddenlink’s measurement tool recorded that usage on a day when a thunderstorm knocked out his cable broadband service for nearly six hours during peak usage times. It is not the first time Suddenlink’s meter has gone haywire.

Consumers are at the whim of broadband provider-supplied measurement tools, which are unregulated and unmonitored by federal, state, or local authorities. What those tools measure is what customers will be billed for, with no verification or proof of accuracy required.

Companies utilizing these measurement tools require customers to accept the provided measurements as the final word on the matter.

“I think it’s a repugnant money grab that needs to be regulated by the state or federal government,” Simon shares.

Unregulated metered billing is a dream come true for providers who can bill customers whatever they want.

Here is what Simon’s router measured on that same date – 2.22GB, almost a 1,000% difference… in Suddenlink’s favor.

It’s back to school season and Bell is teaching Canadian students a lesson in “bait and switch” broadband — pitching attractive broadband offers with generous usage allowances that evaporate when the school year ends.

Our regular Canadian reader Alex fills us in on the fine print (underlining ours):

The main lure is an extra 250GB of usage per month, but only for the first eight months. The activation fee and part of the monthly fee is also waived for the same amount of time.

Unfortunately, once the promotion expires (timed precisely after two college/university semesters are over), the price can increase by as much as $14 while the usage caps will be decreased by as much as 94%. Bell currently has a $25/month option to add 125GB. With or without it, the limit for usage based billing overlimit fees is $80.

Rogers usually launches a similar promotion for students, at similar prices. Back-to-school is also a competitive market for Canada’s cell phone companies.

Upon closer examination, we found the devil is indeed in the details:

• Internet 5: After eight months, your Internet usage allowance takes five, dropping like a rock from 265GB to 15GB per month. Your overlimit fee is $2.50/GB, up to $80.
• Fibe 5/1: After school is out, you’ll wonder why you took this deal when your 265GB allowance gets slashed to 15GB per month. Same overlimit fee as above.
• Fibe 15/10: You better have a long summer vacation planned when your 325GB usage cap falls to 75GB a month. That’s speed you can’t really use with an overlimit fee of $2/GB, up to $80.
• Fibe 25/10: $50 a month should buy a lot, but after eight months your 375GB shrinks more than half — to 125GB a month with an overlimit fee of $1.50/GB, up to $80.

Openmedia.ca is recommending Canadians take their own permanent vacation from cable and phone company Internet Overcharging schemes and consider switching to one of several independent ISPs offering far better usage allowances or unlimited use plans. The consumer group has a website to help direct you to the providers serving your province. In their view, not doing business with the bait and switch providers will send them a message they have to do better to compete for your business.

Public Knowledge, a public interest, pro-consumer group, has filed a petition calling on the Federal Communications Commission to enforce conditions imposed on the Comcast/NBC-Universal merger dealing with Comcast’s usage caps policy.

The group wants the FCC to investigate the legality of Comcast’s decision to exempt its own online video service from the usage caps Comcast is reintroducing on its broadband customers:

In evaluating the merger, both the FCC and the Department of Justice recognized that a combined Comcast/NBC-Universal would have an enhanced motive to discriminate against unaffiliated online video services that might compete with Comcast’s pay-TV cable service.  Because Comcast controls their subscribers’ connection to the internet, and subscribers could use that very connection to access video services  not controlled by Comcast, Comcast has the ability to manipulate those internet connections in a way that would disadvantage video competitors.

Specifically, Public Knowledge accuses Comcast of violating FCC condition G.1.a.:

“Neither Comcast nor C-NBCU shall engage in unfair methods of competition or unfair or deceptive acts or practices, the purpose or effect of which is to hinder significantly or prevent any MVPD or OVD from providing Video Programming online to subscribers or customers.”

The group argues that unfairly applied usage caps impact Comcast’s online video competitors. Customers will choose the service that does not eat away at their monthly broadband usage allowance, making competitors operate on an unfair playing ground.

The group has raised questions about the industry’s movement towards Internet Overcharging schemes like usage caps and speed throttles and has repeatedly requested the FCC question how data allowance levels are developed, evaluated, and evolve over time.

Mr. Greedy has just landed in Nashville and wants another $10 from Comcast customers who blow through their allowance.

Comcast’s temporary withdrawal of its 250GB usage cap did not last long. Although the company rescinded its usage limit in May to consider new options on how to handle “heavy users,” it hinted caps might be back, sometimes accompanied by automatic overlimit fees for customers who exceed their allowance.

Broadband Reports has learned Comcast plans to introduce a new 300GB usage cap on its customers in Nashville with an overlimit fee of $10 for each 50GB a customer runs over their limit.

Comcast customers in Nashville were told in an e-mail message from the company the new usage cap and overlimit fee represented “an evolution” for Comcast’s broadband service.

From Comcast’s website in Nashville:

When you exceed 300 GB of data usage, you will receive an email, an in-browser notice and an additional 50 GB will be automatically allocated. In order for customers to get accustomed to the new data usage management plan, we will be implementing a courtesy period. That means you will not be billed for the first three times you exceed the monthly 300 GB allowance during a 12-month period. Should you exceed the monthly allowance after the courtesy period expires, you will automatically be charged $10 each time we need to provide you with an additional 50 GB of data for usage beyond your plan.

How generous of them.

Customers traveling southeast from the city down Interstate 24 can be in Chattanooga in several hours and experience EPB Fiber — a community broadband provider that provides speeds up to 1,000Mbps and does not have usage caps, nor a “need” to charge customers another $10 whether they exceed their usage cap by 1 or 49 gigabytes.

Comcast’s newest Internet Overcharging scheme takes effect Aug. 1, and currently applies only to Nashville customers. Those who want to give Comcast a piece of their mind about the subject of usage caps can share their feelings by calling Comcast Customer Security Assurance at 1-877-807-6581 to speak with a service representative. Let them know you want no part of Comcast’s unnecessary usage caps and overlimit fees. If EPB and Google Fiber can offer unlimited broadband without any problems, so can Comcast. Let them know how you feel.

Suddenly Bought

Well-compensated management at Suddenlink are teaming up with private equity firm BC Partners and the Canada Pension Plan’s CPP Investment Board to buy out Suddenlink Communications in a deal for the $6.6 billion company.

The transaction will leave Suddenlink’s founder and current CEO Jerry Kent in charge and part-owner of the company. Some other members of top management are also participating in the buyout deal.

Suddenlink is currently owned by investment bank Goldman Sachs through its private equity arm, Quadrangle Group LLC and Oaktree Capital Management LP.

The buyers will assume $4 billion of Suddenlink’s outstanding debt and BC Partners and CPP Investment Board are taking on $500 million of additional debt to fund the purchase.

Kent

Kent says the deal is designed to infuse additional capital into Suddenlink’s operations, which primarily serve smaller communities in Texas, West Virginia, North Carolina, Oklahoma, Louisiana, Arizona, and Arkansas. Suddenlink launched in 2003 with the acquisition of discarded cable systems originally owned by Cox and Charter Communications. Today the company serves 1.4 million residential customers, making it the seventh largest cable operator in the country.

With Kent remaining in charge, few changes are expected. In 2011, Suddenlink adopted an Internet Overcharging scheme including usage caps and overlimit fees that it is gradually rolling out to all of its customers.

Investors see revenue growth opportunities from Suddenlink, particularly as it further monetizes broadband.

“This represents a unique opportunity to acquire a leading cable operator that has consistently generated industry-leading results,” said André Bourbonnais, who heads private investments for CPPIB.

Kent had been reportedly shopping the cable system around to private-equity firms over the past several months, on the condition he got to remain in charge and early investors could cash out.