Home » Internet Overcharging » Recent Articles:

AT&T Censors Discussion of Internet Overcharging on its Website

AT&T’s support forums are being censored to stop a free and open discussion about the company’s elimination of an unlimited Internet experience.

We received word this morning from Stop the Cap! reader Roger, who tried to post a message including a link back to one of our stories exposing the myth of AT&T’s “congestion problems” to share with the large community of readers angry with AT&T about its Internet Overcharging scheme on its support forum.

“AT&T will not allow people to post links to your website,” Roger writes.  “Both myself and a friend of mine tried on two separate occasions to write messages that quoted from your facts and figures and linked back to them for readers looking for additional information, and AT&T removed them within minutes.”

Stop the Cap! can confirm AT&T is actively engaged in censorship on its support forum when I tried posting a message myself to test the theory, under my real name, including three links to three individual stories, and signed with a link back to our website’s home page.  Sure enough, within the hour, AT&T stripped out the links and implied we “revealed personal information” (about myself in the form of my name, which still appears as my ‘handle’) and were “spamming” the forum — a stretch when the only links were back to the content referenced in the piece.  A few other linked sites, including Broadband Reports, are not suffering the same fate when users link back to their content, at least for now.

(click to enlarge)

AT&T followed up claiming it does not allow messages that support the work of third-party groups, even if that “support” comes only from links back to content referenced in the forum.

“At least your message remained partially intact,” Roger adds.  “Ours were deleted completely.”

“With AT&T’s heavy handed ‘editors’ at work, no wonder there are concerns about Net Neutrality.  AT&T censors first, asks questions later.”

BitTorrent CEO Willing to Appease Providers for Unproven ‘Bandwidth Congestion’

Phillip Dampier March 24, 2011 Broadband "Shortage", Broadband Speed, Consumer News, Data Caps, Editorial & Site News, Online Video Comments Off on BitTorrent CEO Willing to Appease Providers for Unproven ‘Bandwidth Congestion’

BitTorrent, the company behind the popular file sharing protocol routinely blamed by providers for overburdening broadband networks and by Hollywood for distributing pirated content, took a tentative step today to oppose Internet Overcharging schemes.

Eric Klinker, CEO wrote a guest piece for GigaOM calling out AT&T for its announced 150-250GB usage caps:

While the trend toward metered bandwidth is not inherently pro-consumer, ISPs have staked out a singular public rationale: data caps are necessary to limit the consumption of “bandwidth hogs” in order to protect the network experience for everyone else. Such concepts are simplistic and easy to imagine. They are also completely wrong.

And with that, Klinker stumbled into a public relations and marketing effort defending the company’s culpability for increasing broadband traffic, and proposing a resolution for their ‘part of the problem’:

Since any data traffic that doesn’t induce congestion on a fixed cost network is essentially free; applications can voluntarily play a role in traffic prioritization. And since BitTorrent is a high percentage of global Internet traffic, we have a responsibility to be a part of the solution.

This was the primary motivator around our release of a new protocol a year ago, called µTP. The protocol essentially senses congestion and self-regulates to avoid contributing to Internet traffic jams.

Because µTP can never induce network congestion, it doesn’t contribute to an ISP’s cost. An ISP still has regular network maintenance expenses, but remember, with a fixed-cost network, traffic only becomes an economic burden if it contributes to congestion and forces the need for expansion.

As a result, µTP is exceedingly friendly to ISPs and their business model. µTP is open-source, and we invite application and cloud services providers to work with us directly or in the IETF’s LEDBAT working group in the ongoing innovation and usage.

Klinker

Some providers and their allied interest groups have disputed the diminished impact Klinker cites as a benefit of µTP, but in provider-world, the BitTorrent “problem” is rapidly becoming yesterday’s news anyway — online video is the new boogeyman.  NPD Research just released numbers showing peer-to-peer use has dropped from 16 percent of all U.S. Internet users to 9 percent over the last three years.

After making a spirited sales pitch for what he hopes will represent peer-to-peer 2.0, Klinker surrenders on behalf of everyone else, arguing the solution to America’s ‘broadband crisis’ is speed throttles during peak usage periods, and time of day pricing.  Klinker suggests broadband users might need to plan their “on-demand” viewing well ahead, or face the kind of “congestion pricing” Londoners face if they attempt a journey by car into the city center at high noon.  Klinker suggests Netflix customers should pre-schedule downloads of their movies the night before watching them, or else pay a fee for instant gratification.

That assumes, of course, you know what you want to watch the day before you do, that you can download Netflix content (you cannot), and that you didn’t remember you could accomplish the same thing if Netflix shipped the DVD out to you by U.S. Mail.

Are broadband rationing coupons far behind?

Klinker’s willingness to submit his own company’s peer to peer technology to provider speed throttles is likely to earn him a dressing down by investors wondering what the future holds for a protocol that can be dosed with Xanax at provider will.  Handing over the power to make your file sharing technology painfully slow and frustrating is likely not going to win new converts, either.

Before willing to subject everyone to solutions for broadband providers’ scary predictions of a broadband exaflood, would it not be better to actually obtain verifiable evidence there is a congestion issue in the first place?

Bell CEO: Bandwidth Usage Charges Are About Monetizing Video Traffic for Shareholders

Cope

In another example of providers telling the public (and lawmakers) one thing, while saying something very different to their own shareholders, Bell Canada’s CEO made a remarkable admission about why the company imposes Internet Overcharging schemes on its customers:

“As we see a growth in video usage on the Internet, making sure we’re monetizing that for our shareholders through the bandwidth usage charges,” CEO George Cope told listeners in a financial conference call last autumn.

That is a far cry from the story Mirko Bibic, Bell’s government affairs representative tells to anyone who will listen. Michael Geist, a Canadian syndicated columnist on technology law issues notes Bibic has told a different tale while appearing before Parliament’s Standing Committee on Industry to answer questions on usage based billing held in February.

For Bibic, usage-based billing is about “fairness” and solving alleged congestion issues.

“As for small businesses, which are generally on the same network as residential users, what you have is really a case where the congestion during peak periods is largely a residential phenomenon. It’s in that area that we’ve addressed the usage-based billing issue, and all we’re asking the CRTC for is to follow a fundamental principle of fairness,” Bibic told MPs. “If we asked 97% or 98% of Canadians if they would be prepared to pay more so that the 2% of heaviest users pay less, I’m pretty sure of what the answer would be.”

Bibic

Bibic’s argument has been repeatedly undercut by his own bosses, Geist notes.

In August, Cope told shareholders “our data revenue growth was 3.8% for our Residential Services business, particularly driven through an increase in Internet ARPU of 3.3%. And interesting, almost all that increase now coming from usage based billing as the demand for Internet use explodes through the use of video services, and we’re continuing to see an increase in the revenue per customer.”

By November, Cope was turning Bibic’s bandwidth “fairness and congestion” lemons into lemonade, celebrating data revenue growth of 5 percent, “driven principally by the bandwidth usage revenue being up 83% year-over-year.”

Cope not only decapitates his company’s arguments for usage-based billing, he also shines the light on who they will impact: if providers are to be believed that usage caps will only affect a tiny percentage of customers, how can data revenue be up a whopping 83 percent year-over-year. Are a handful of Canada’s “heavy” broadband users responsible for this growth, or are an increasing number of Canadian consumers finding themselves over the “generous” limits Bell has established because they used their broadband connections to stream movies and television shows.

As Geist notes, “no one should be under the illusion that UBB is anything other than a revenue maximization strategy in a market with limited competition, not one premised on fairness or network congestion.”

An Open Letter to Content Producers: Netflix, Hulu, Valve, Microsoft, Sony, and Nintendo

Dear Content Producer:

Your money train is leaving the station.

Customers are about to start making some very important choices about what they do on the Internet. AT&T announced this month they are going to start capping their DSL customers at 150GB per month and their fiber-to-the-neighborhood U-verse customers at 250GB per month, with overlimit fees for those who exceed them.

Comcast already has a 250GB per month cap, currently loosely enforced. Time Warner Cable has strongly advocated usage-based billing for years. Other telecommunications companies are all either supporting or considering these Internet Overcharging schemes for one reason, and one reason only:

It makes them absolute boatloads of cash.

Canada already lives with this reality. So does Australia, although they’re backing away from it. South Korea? Japan? Europe? Nope. Flat-rate Internet service is the norm there.  In Europe, mobile customers are demanding the removal of bandwidth caps American providers are still trying to attach to customers’ bills.

So how does this impact you? 250GB a month is a lot, and you’ll be fine? Sure. For now.

But what happens when Sony introduces the Playstation 4, or Microsoft announces the Xbox Next? Games aren’t exactly going to get smaller, and online distribution is far and away the future of games and software in general. Right now a game for the 360 or PS3 can be as large as 20GB. PC game enthusiasts routinely cope with 10-12GB game upgrades, and woe be unto you if you have to reinstall your Steam library and have 20-30 (or more) games to restore.

Internet Overcharging schemes make providers, and the lobbyists who do their bidding, very wealthy.

For the “Massively Multiplayer Online” game universe, incremental software updates and upgrades often come through BitTorrent, which exposes users to peer-to-peer traffic well beyond the size of the update itself.  In fact, as games increasingly turn towards Cloud storage and distribution, the traffic adds up.

For online video companies, your very business model could be at risk.  Netflix? Hulu? People are no longer satisfied with grainy, compressed video.  They want HD content, and you’ve answered the call.  But as consumers increasingly face 8-10GB per movie (at 720p, 15GB+ for 1080p), the usage racked up is going to blow past all of these caps.

Who knows what happens in the next five years, or ten.  Considering Canada, where a similar duopoly of broadband providers have lowered usage allowances, do you really expect anything different down here?  The only thing likely to be raised is the monthly price, which remains higher here than in most places around the world.

Google has the right idea with their experimental 1Gbps fiber-to-the-home network. The problem is, that’s only going to serve one (or perhaps a few) communities in the U.S.  The rest of the country will have to survive with ‘Ultra’ cable broadband packages serving up 10-20Mbps service or DSL that barely manages 6Mbps.  If you don’t live in an urban area, tough luck.  You will be lucky to get 3Mbps service.

Broadband service upgrades come painfully slow in the absence of robust competition.  Time Warner Cable and other providers are slowly starting to roll out DOCSIS 3, which allows speeds up to 100Mbps, assuming the average consumer can afford the Cadillac price that comes with it.  Many phone companies continue to bet the farm on their DSL service, which can also be expensive when it’s the only broadband service in town.

Against this backdrop, the rest of the world marches on, and beyond, North America.

South Korea? They’re promising national speeds of 1Gbps by 2013 — for $27 a month!

How has this happened?  Where have we gone wrong?

For starters, the broadband providers have very powerful lobbyists — quite a few of which are ex-legislators. Together, they wage their public policy battles on both the state and federal level, often writing the bills a compliant legislator is willing to introduce as their own.

Washington regulators take a "see no evil, hear no evil" approach to regulating super-sized corporations who can cause them trouble.

The Federal Communications Commission has adopted a “see no evil, hear no evil” approach to broadband, capitulating when a chairman occasionally strays too far into the industry minefield laid to protect their business agenda.  As a result, the agency is a toothless dog.  It recently adopted a “Net Neutrality” policy all but written by Verizon, who ironically is now spending money to fight the rules they helped write.  As a backup, virtually every Republican and several Democrats have teamed up to pass a Resolution of Disapproval seeking to overturn the weak-kneed Net Neutrality rules the FCC adopted.  Lobbyists are well paid to cover every contingency.

Consumers — your customers — can’t do much about this beyond writing their members of Congress and complaining.  But because they did not enclose a check or money order made payable to the respective politician’s campaign fund, the result will be a form letter response weeks, if not months later… after the corporate agenda is enacted into law.

We just cannot fight this battle all by ourselves.  Recognizing the realities of today’s politics, we need your help to fight money and power with money and power.

The video game industry earns billions yearly. You have already faced battles in Washington, so you know how this works. You can fight for your interests while protecting ours by ensuring broadband service is cheap, plentiful, and unlimited. The same story applies to other content producers, such as online video, software, and any other company that wants to move to online distribution to power their business. You cannot succeed if customers are too afraid of using your service because of a bandwidth cap.

The remarkable thing is that countries many Americans cannot find on a map are now beating the United States with better and cheaper broadband while we hand over our digital economic future to a duopoly. That will not buy us better service, just bigger bills for “fast enough for you” Internet access.

So that’s it. Act now. Act strongly. If you cannot stand up for your customers, you may not have any.

Signed: A gamer. A movie watcher. A music listener. An enjoyer of entertainment. A lover of the Internet.

Broadband consumer and reader Jason Ballew penned this guest editorial, with some editing and additions from Stop the Cap! editor Phillip M. Dampier.

AT&T Data Caps: Gizmodo’s Joe Brown In Over His Head on G4TV’s Attack of the Show

Joe Brown was obviously not the right person for G4TV’s Attack of the Show to talk to about the issue of Internet Overcharging.

As AT&T begins notifying their DSL and U-verse customers they are about to face usage limits on their broadband service, G4TV sought out reaction from the features editor of Gizmodo.com, who was wholly unprepared to inform viewers about the facts behind AT&T’s usage caps and their implications for customers.

While Brown and G4TV were joking about users having to curtail game downloads, for millions of AT&T customers, it’s no laughing matter.

AT&T’s announced 150-250GB limits will eventually cost customers $10 or more for each extra 50GB allotment, on top of their already-expensive broadband service package.

“It really had to happen eventually I think,” Brown told viewers.  “People are using a lot of bandwidth.”

Gizmodo's Joe Brown talks with G4TV's Attack of the Show

But Brown’s observation conflicts with AT&T’s own claim “only a tiny minority of customers” will use more than the company wants to allow, with the average AT&T customer consuming 18GB per month.  AT&T isn’t telling the full story about that either.

For those “heavy users” AT&T wants to restrict first, the implications go well beyond curtailing Netflix and playing online games.

“As a software developer who works under a Linux environment and is forced to telecommute from home one week per month, these caps would absolutely kill me,” writes Joe Stein from Sparks, Nev.  “If you are a retired person using your computer to check e-mail and browse the headlines, you will obviously never exceed AT&T’s caps, but for technology innovators and those like me in the software development field, 150GB is nothing.”

Stein downloads regular updates for Linux, exchanges software back and forth with the office several times a day, and uses video conferencing regularly when he works from home.

“Not all online video is about adult entertainment or downloading movies,” Stein says.  “Usage caps hurt anyone who has to work with large files or business-related video, and after the events this week, AT&T can afford to leave off the caps.”

Brown claims AT&T conducted “a study” in two cities which found that 98 percent of their customers used far less than the usage caps would allow.  What Brown does not know is that those two cities are Beaumont, Texas and Reno, Nevada — hardly superstars in the tech revolution.

“Nobody moves to greater Reno to be a software superstar, which is why I am in San Jose, Calif., all the time,” Stein says.  “But there is more to this area than casinos.”

Stop the Cap! has been helping consumers in both cities avoid AT&T because the company’s “study” came at the same time it was experimenting with an Internet Overcharging scheme that limited customers to as little as 20GB of usage per month — a strong incentive for customers to avoid high bandwidth services,  or better yet AT&T.  So it’s no surprise broadband users who know better chose an alternative provider, including Stein.

“I first became aware of the usage cap debacle a few years ago when AT&T tested usage caps in the Reno area, which covers Sparks,” Stein says.  “I saw the impact first hand when customers started getting notified they would have to pay substantially more for basic Internet service.”

Lvtalon

AT&T first limited their broadband customers to as little as 20GB of usage per month, then claimed the average customer only uses 18GB, making their 150GB DSL cap "generous."

Stein left for the cable company — Charter Communications, and they have usage caps too, but they are rarely enforced and much higher than what AT&T offers DSL customers, Stein says.

Brown claims AT&T is trying to “get out ahead of people using too much,” a point in conflict with the fact AT&T is willing to sell consumers additional bandwidth on its “overcongested” network.

Brown’s suggestion that “bandwidth costs money” is partially true, but not in the context of AT&T’s usage limits.  The company that can afford fiber optic upgrades to deliver limitless television and telephone service apparently cannot afford the pennies in bandwidth costs customers consume as part of their broadband service, which can run $50 a month or more.

Pondering broadband usage “fairness” is a losing proposition for consumers… and reporters, too.

Once someone blindly accepts the premise AT&T needs data caps, with no evidence usage presents a technical or financial challenge for the company, the debate is quickly reduced into a numbers game about “how much usage is fair.”

Clearly for Brown and his friends, who admit they are dangerously close to reaching or exceeding AT&T’s limits, the answer to Brown wondering aloud if the caps would “do it for him” should be no.

Stop the Cap! believes no cap is worth living with, especially on AT&T’s enormous-sized broadband network, now increasingly designed to handle the multimedia rich Internet and their U-verse platform.

It is doubtful many will be assuaged by Brown’s comments that “AT&T sounded pretty cool” about how they will deal with those who exceed their arbitrary usage limits.  Why?  Because after the “fair warnings” AT&T will provide customers on its artificially limited network, they will drop the sledgehammer of higher bills on top of customers’ heads.

Brown should know better, especially after finding AT&T unwilling to discuss how often it intends to revisit its usage cap levels.  AT&T’s counterparts in Canada have already foreshadowed the answer.  Once the cap regime is in place, several companies lowered them, sometimes repeatedly, to further monetize broadband usage.  They also raised the prices of overlimit fees, often substantially.

AT&T depends on uninformed consumers and reporters not understanding the true facts about Internet Overcharging schemes.  It’s not too late for reporters like Joe Brown to undo the damage, however.

Stop the Cap! strongly encourages everyone to examine the evidence we have compiled here over the past two and a half years.  It’s not hard to discover AT&T’s usage caps have nothing to do with fairness, are arbitrary and unnecessary, and come as a result of providers seeking higher profits in an undercompetitive marketplace.

If we do not uniformly and loudly oppose usage limits, America’s broadband rankings, digital economy innovation, and high technology jobs are all at risk, just to satisfy AT&T’s insatiable appetite for higher profits.

(P.S. – Joe: How did you miss Comcast has been capping their customers at 250GB for two years now.  Say it ain’t so, Joe!)

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/G4TV Attack of the Show ATT Caps Their Data Usage 3-15-11.flv[/flv]

G4TV’s ‘Attack of the Show’ misses the boat on AT&T’s Internet Overcharging scheme.  They did better covering Time Warner Cable’s attempt at Internet Overcharging in 2009.  It’s time to revisit this issue and get involved in the fight that could hurt the very audience watching this show.  (6 minutes)

Search This Site:

Contributions:

Recent Comments:

Your Account:

Stop the Cap!