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Comcast’s New Traffic Meter Makes Customer The Traffic Cop; Admits Up to 1GB Represents “Background Traffic”

Phillip Dampier December 3, 2009 Comcast/Xfinity, Data Caps 41 Comments
Comcast's new usage gauge is being tested in Oregon

Comcast's new usage gauge is being tested in Oregon

Comcast’s long promised “usage gauge” has arrived.  The company promised to provide one to customers more than a year ago when it imposed a 250GB monthly usage limit on its residential broadband accounts.  Although generous in comparison to some other providers that limit customers to as little as 1-5GB of usage per month, Comcast’s allowance and the meter re-emphasizing it has created controversy among customers concerned about usage caps, potential overlimit fees or speed throttles.

Stop the Cap! reader “bones” sent along word of the measurement tool beta test in the Portland, Oregon area, and reviewing the accompanying data exposes some inconvenient facts such usage limits will have on customers.

Comcast’s version of the ‘gas gauge’ depicts usage on a bar graph and is updated monthly.  Company officials claim the average user consumes just 2-4 gigabytes per month, a debatable figure.  Comcast claims about 1% of their subscribers exceed 250GB of usage per month, but does not indicate whether that number has been on the increase as the company unveils new premium speed, premium priced broadband tiers.

Comcast hired NetForecast to “independently” verify the accuracy of the meter, which they claim produces results within 0.5% accuracy.

The company’s report concludes with praise for Comcast’s new meter, claiming it “will shine a new light on a previously unknown and misunderstood aspect of the digital age. NetForecast believes that this information will allow consumers to become better informed, and better informed consumers will help positively shape the Internet’s future.”

It also increases resentment towards a company that makes them check a meter to be sure they are within their “allowance” for the month, particularly when that company makes loads of money on broadband service.

NetForecast’s tests do reveal several new pieces of information to the “net meter” controversy:

  1. The company found up to 1GB of traffic per month represented “background traffic associated with modem management.”  That’s a considerable amount of data counted against a customer’s usage, especially for customers stuck on lower consumption usage plans;
  2. The increasing complexity of some web pages and their underlying structure can contribute to additional traffic associated with “protocol overhead”;
  3. Poorer line quality can result in increased traffic due to retransmission requests;
  4. “Unexpected” traffic is so substantial, it warranted its own section in the NetForecast report:

Traffic can be generated by more than just PCs. Any device that has access to the wireless router is a potential Internet traffic generator—including smart phones, game consoles, digital video recorders, printers, cameras, etc. Many non-PC devices “phone home” to a manufacturer or supporting service. These automated connections are transparent to the user as a convenience so the user is unaware of the traffic generated.

The most likely source of unexpected traffic, however, is from software running on PCs throughout the home. The Windows operating system and most popular software have automated update programs. These updates often download and are installed automatically without the need for user intervention. The automation is generally designed for the convenience and protection of the consumer, but the traffic it generates may come as a surprise.

Each program update download may be modest in size, however, when you multiply a modest download by the number of programs calling for updates and the number of PCs in the house, the traffic attributable to updates can be substantial. Furthermore, in some cases the vendor default update settings are very aggressive, with some default settings checking each hour and downloading every possible option even though they are not all needed. For example, a software program may load its interface in a dozen languages even though all household members only know how to read English.

That’s just the beginning.  The company also documented “surprise usage” from smartphones downloading updates, photo sharing sites, online backup, and other online applications.  Perhaps most important are online video services:

A large volume of traffic may be going to digital video recorders such as TiVo. A user in the home may have rented a movie from Amazon, Netflix. Blockbuster, etc. Renting the movie will be a known traffic-generating event, however, many services also preload the start of other movies as well as trailers to make them instantly available should they be called for. As in other situations described above, traffic is consumed for the consumer’s convenience but without his or her knowledge.

If Comcast’s meter results showing your usage doesn’t make sense and you don’t believe or understand the numbers, wait until you read how it is your responsibility, as a customer, to do all the sleuthing.

NetForecast’s prescription for “rogue traffic” requires the customer to shut off their computers and other connected devices for a “digitally silent” period (overnight or on a weekend when traveling).  Then, the customer gets to follow this routine:

At the end of the digital silence turn on one PC and log back into the Comcast meter portal, or you can check from an Internet cafe or other means while you are away. If true digital silence was achieved, the meter should not have incremented by more than 1GB. If there is more than 1GB use over even several days, then there is certainly some other traffic consumer connected through the router.

If the digital silence experiment worked, then carefully add devices back to the home network while watching the meter. Note that the meter only increments once per hour, so it may take some time to find a rogue traffic source. On the other hand, the home may simply be a highly connected place that is leveraging many aspects of the Internet, and the traffic may be entirely due to legitimate use.

“I guess those of us who are Comcast customers get to add this to our ‘list of things to do’ when we are trying to enjoy our broadband service,” writes Stop the Cap! reader Karen in Portland.  “Can you imagine telling a customer whose wireless wi-fi was ‘borrowed’ by a neighbor that they have to do all this when half the time, those customers don’t even understand how to enable wi-fi security?”

Each and every byte gets counted.  Almost.

Exempt from the usage meter are Comcast’s digital phone service and on-demand video services sent to your television. That’s a nice benefit for Comcast, but not so nice for their competitors, such as voice-over-IP telephone services and the aforementioned Netflix, Amazon, and other on-demand broadband video services. Programming sent to your computer over Comcast’s forthcoming TV Everywhere service does count against your allowance, however.

With a 250GB allowance, it may be some time before most customers find themselves routinely having to limit their usage to avoid exceeding it.  But that assumes Comcast doesn’t follow some other providers into a limbo dance of lowered usage allowances.  With a meter in place, it’s as simple as lowering the cap and telling the customer to check before they use.

What do Comcast customers think?  Comcast’s blog amusingly illustrates some company employees love it, and most consumers hate it:

“Finally! This is great stuff, I cannot wait for this to roll out in our market. We’ve been waiting and customers have been asking for months. Keep up the good work out there, and let’s never stop being innovative. We ROCK!” — Ozzie Navarro, presumably the ‘we’ is this instance refers to an author employed by Comcast.

“How is it great that you’re capping a service I pay monthly for at great expense? Now I can see it in a meter, wow! Upgrade your damn infrastructure to support more bandwidth instead of cutting off customers.” — Jason

“Don’t think you are fooling people by saying, ‘Only x% of people use over 250gb/month, and 1-x% of people won’t have to worry.’ Would you outright deny that you are implementing this feature because you feel your TV industry is threatened by Netflix, Slingbox, Hulu.com, et al.? You say it is to provide all users with a better experience. You say that because some people are “hogging the internet”, grandma can’t look at photos of her grandchildren fast enough. Did it ever occur to you that more people are using more web-intensive programs everyday? It’s not like bandwidth is a finite resource. As much as you guys want to say it is, bandwidth is only limited by ISPs. You love to say that your “networks are overburdened.” Hate to point out the obvious, but you are the ones selling the service so you should plan accordingly for usage. You sell people an advertised rate of 10Mbps, knowing full well that unless everyone else in their neighborhood is offline, there isn’t a snowball’s chance in hell you’ll get these speeds.

Then you have the nerve to say because so many people are “abusing their privilege” you must implement a bandwidth cap to “maintain the integrity of our networks.” I pay $50/month just to access this wonderful series of tubes known as the internet. When I was sold this plan, I was told very specifically that it was UNLIMITED.  That meant, if I maxed out my possible internet consumption everyday — no big deal — that’s what unlimited means. It’s becoming more and more obvious that this whole thing is a money grab, much like overdraft fees from our favorite financial institutions. I love how in the last comment you preach about rolling out your DOCSIS 3.0 system, which will supposedly let people have higher speeds. You don’t plan on upgrading the amount we can use per month though do you? That was suspiciously left absent from your article. Basically you are giving us the power use the internet in more innovative ways, but punishing us for trying to take advantage of your speeds. Thanks for giving me the ability to hit the upper limit more easily and quickly!” — Matt

“So a service whose advertising mentions NOTHING about data caps is actually capped, eh? That’s nice. It’s also really nice that you’re rolling out a faster product, so people can use up their allotted internet EVEN FASTER. Comcast doesn’t want people not paying for their ridiculously overpriced TV service, so they cripple their internet so you don’t have a choice. Really nice.” — Comcast customer

One Year After Imposing 250GB Cap, Comcast Customers Still In The Dark About Their Usage

Phillip Dampier August 24, 2009 Comcast/Xfinity, Data Caps 9 Comments
Open Media Boston's creative reinterpretation of Comcast's logo

Open Media Boston's creative reinterpretation of Comcast's logo

In August 2008, Comcast formally announced a 250GB monthly usage limit on their residential broadband customers, promising them that despite the fact only “the top 1% of customers would be considered excessive users,” a usage monitoring tool would be made available to customers to make sure they were under the limit imposed by Comcast.

One year later, Open Media Boston notes the usage measurement tool is still not available to customers.

Comcast’s “Excessive Use FAQ” points concerned customers to the McAfee security suite, which includes a bandwidth meter utility, and which Comcast provides for free for subscribers. Unfortunately, the software is only compatible with Windows machines, leaving Linux and Mac users out in the cold. To remedy this, Comcast suggests subscribers do “a search for ‘bandwidth meter,'” and find a meter on their own. This is true, but is akin to asking mobile phone customers to monitor their minutes with a stop watch.

Open Media Boston worries about the accuracy of some of the third party measurement software tools, claiming they are likely to also measure traffic moving between computers within a user’s home (such as backing up files on a network, streaming music on the home network, etc.) making consumers think they’ve already come close to exceeding their monthly limit when such traffic would not be counted by Comcast’s own measurement tool.

The cable company washes its hands of responsibility for third party tools, saying it cannot vouch for any of them.  But they have told Open Media Boston one thing for certain: “Comcast’s determination of each customer account’s data usage is final.”

So where is Comcast’s official tool?  “We have talked about launching a tool. We are committed to launching one. It is in employee testing,” Comcast spokesperson Charlie Douglas told Open Media Boston.

Comcast contacts the most egregious offenders of their 250GB monthly cap by telephone to give them a warning they are way over the limit.  Company officials claim most customers work to reduce their usage after getting such calls.  But should a customer find themselves on Comcast’s bad side a second time within a six month period, their service will be canceled and the company will prevent them from signing up again for service for a one year period.

“Trust Us”: Cogeco’s Usage “Gas Gauge” Great For Measuring Profits, Not So Good for Measuring Actual Usage

Phillip Dampier August 24, 2009 Canada, Cogeco, Data Caps Comments Off on “Trust Us”: Cogeco’s Usage “Gas Gauge” Great For Measuring Profits, Not So Good for Measuring Actual Usage

Broadband Reports this morning revisited Cogeco, the Canadian cable company that engages in Internet Overcharging, but relies on a usage-measurement gauge that customers say can be off from dozens to hundreds of megabytes every day.  Stop the Cap! also reported on this issue in June, with customers outraged that their monthly bill’s accuracy depends on a tool that is very good at making the company extra money, but not so good at fairly measuring actual usage.  The problems continue.

It’s ironic that the electric meter outside of Cogeco headquarters is subject to verification, the gas pump dispensing fuel to Cogeco’s service trucks is audited by Measurement Canada, which also verifies the accuracy of the scale used by the grocery store deli to weigh the meat for the submarine sandwiches purchased by some of their employees.  What isn’t audited, much less independently verified, is Cogeco’s usage measurement tool.

Cogeco customers have resorted to installing their own third party monitoring tools, from built-in traffic measurement in some routers to software applications that they run on their computers.  Thus far, reports of serious discrepancies have caused an indefinite delay before Cogeco actually begins billing overlimit fees and penalties, but many customers are asking why they have to resort to checking up on Cogeco in the first place.

One Toronto resident can’t understand it:  “Since when do customers in this country have to validate a business billing system?   Customers should be assured of fair and accurate billing under the law in Canada. I see a lot of legal challenges coming for this.”

Cogeco customers note the discrepancies will add up — to Internet Overcharges:

“Ever since I slapped Tomato [third party firmware] onto my router and started monitoring my [usage], Cogeco has constantly been anywhere from 20mb to 700mb off every day,” complains one user. “Any discrepancy is unacceptable with their outrageous overage charges,” the user adds. “Twenty five to thirty gigabytes is the difference between paying fifty dollars a month for your Internet or eighty dollars a month,” says another, adding that the problems are “unacceptable.”

As Karl Bode notes in his story, whether the meter works right or not, the customer will still be expected to pay in the end.

Netgear Will Help Internet Subscribers Independently Measure Broadband Use

Phillip Dampier July 21, 2009 Data Caps 5 Comments
Netgear's Rangemax™ Dual Band Wireless-N Gigabit Router - Premium Edition (WNDR3700) will be Netgear's first router to include usage monitoring capability built-in.

Netgear’s Rangemax™ Dual Band Wireless-N Gigabit Router – Premium Edition (WNDR3700) will be Netgear’s first router to include usage monitoring capability built-in.

For many consumers asked, “how many gigabytes do you use on your Internet connection each month,” the answer is often a question: “what is a gigabyte?”

Because of efforts of Internet Service Providers to try and implement Internet Overcharging schemes, consumers who have no interest watching a company-provided web page “gas gauge,” will at least be given an independent way of assessing their monthly usage – through the router that often connects a cable or DSL modem to a home computer.

Netgear will introduce a new router this August that will include built-in usage monitoring tools.  The Netgear Rangemax™ Dual Band Wireless-N Gigabit Router – Premium Edition (WNDR3700) will sell for $190, and is targeted to high end users.  Netgear promises to introduce the feature on new router models going forward, eventually becoming a standard feature on every router sold by the company.  Software upgrades will be available to introduce the measurement tool to older equipment already in use.

Usage monitoring tools aren’t actually new.  Replacement “firmware” such as Tomato and DD-WRT, already measures usage, typically with a monthly consumption total.  That makes it much easier than some software measurement tools, which can only measure usage when left running (and only on a single computer).

Similarly, in the realm of website monitoring, the integration of log analysis tools has seen a parallel evolution. While Netgear’s upcoming router brings usage monitoring tools into the spotlight for network management, log analysis tools have long been at the forefront of web administrators’ toolkits. Just as Netgear plans to make usage monitoring a standard feature, log analysis tools have become an indispensable standard for dissecting website traffic patterns and ensuring optimal online performance. These tools offer a comprehensive view of website activity, surpassing the capabilities of basic software measurement tools, and have proven their value as essential assets in maintaining web functionality and security.

Most consumers are not interested in measuring usage, but with the threat of overlimit fees and penalties or service termination, router manufacturers have begun to include measurement tools to help consumers keep track just in case.

Some providers, like Comcast, provide a monthly allowance of 250GB and only actively pursue the top 1% of customers who wildly exceed that.  Others, as have been regularly documented on Stop the Cap!, create very low limits, and then overcharge consumers with penalty fees when they exceed them.  Time Warner Cable met extremely hostile opposition to their roundly-attacked “tier experiment” in April, and quickly shelved the proposal until a company “education” campaign can be run.  The importance of checking usage will vary depending on how draconian of a limit one’s provider sets for its customers.

Netgear’s announcement can be read both positively and negatively.  It’s positive because it allows customers to independently measure their monthly usage and expose any providers who “play with the numbers” and overbill customers for usage never consumed.  It’s negative because it plays into industry arguments that measurement tools are a necessary element to conduct business, and helps establish a foundation to implement Internet Overcharging schemes.  Critics call such schemes unnecessary, considering the highly profitable returns providers enjoy at current pricing.

Cisco Systems, which owns Linksys, another major router manufacturer, is also considering bandwidth measurement tools for its router line in the future.

Frontier Reveals Plans of Usage Cap Implementation to Employees; Leaves Customers In The Dark Until It’s A Done Deal

Phillip Dampier August 6, 2008 Broadband "Shortage", Competition, Data Caps, Frontier 12 Comments

Stop the Cap! has obtained new evidence outlining the scheduled implementation of Frontier’s new usage cap, its rationale, and how the company intends to convince customers that a usage cap is right for them.

New documents  made available exclusively to Stop the Cap! show a company relying on highly questionable, possibly manipulated data to argue for usage caps, at a time when many cap opponents have accused the broadband industry of fixing the facts around the narrative of  a need for metered Internet service.   The documents also raise new questions about whether company officials are using actual Frontier usage data, which we easily obtained from our own sources, or if they are simply telling a different version of reality to their employees.

The Implementation Plan

Despite the representations by Frontier customer service made to several readers of Stop the Cap!, there definitely is a 5GB usage cap, as published on the company’s website.   However, sources tell us the wording of the usage cap announcement may not have been completely vetted by company officials, and its appearance may have been premature.   The company has started to tweak the language on the page, perhaps in response to the predictable backlash, now adding language to tell customers they will not  be charged any overuse fees or face service interruption if they exceed the cap at this time.

Company officials are following a careful plan, the details of which we have obtained,  to roll out the usage cap in Frontier service areas,  starting with notification of the “problem of bandwidth usage” in a newsletter to be mailed to customers in September, stating Frontier’s position on the problems of bandwidth consumption and inviting a dialogue on the issue.

Company officials will also continue to  use the same flawed statistics published on their website to give customers a measure of what 5GB of usage constitutes.   No independent evidence backing up their claim of a bandwidth consumption problem, or the actual impact on Frontier’s network, or their resulting costs, will be provided to consumers.

With the ultimate outcome already pre-determined by company officials, the implementation of a 5GB cap is already underway across all of their residential DSL product lines (which vary according to speed provided).   Company officials will also conduct focus group testing and further marketing research in an effort to determine how to market the new service limitations, and convince customers that a 5GB  monthly cap is a reasonable and fair solution.

The company will also announce bandwidth measurement tools available to subscribers starting in 2009, so they can monitor just how rapidly they will exceed Frontier’s usage caps.

Customers exceeding 5GB per month will eventually be offered an option to consume more bandwidth at yet-to-be-determined rates, but there are questions as to whether an unlimited consumption plan will ever be available from Frontier.

The rationale for the cap, outlined in different documents  supplied to Stop the Cap!, varies according to who the document’s audience is.   Customer service personnel are being told the usage cap is a result of excessive bandwidth consumption.   But another document emphasizes the increased revenue potential a capped DSL product provides.

This raises new questions about whether the usage cap is truly intended to be a reasonable solution to their claims of a “broadband crisis,” or a financial rescue plan to enhance profits and offset substantial losses from their other divisions, particularly traditional telephone service.   Company officials draw direct lines between the  growing returns available from broadband services and how that revenue has become increasingly important to company profits as well as shareholder value and return in a difficult economic environment.

It’s a win-win for any company that can successfully increase profits, decrease investment in infrastructure, and convince customers that the resulting dramatic reduction in service represents a  positive change.

“The average customer uses less than 1.5GB per month”

Frontier's Idea of Dialogue With Customers: "You Give Us Your Money & We Promise To Give You Less Service."

Remarkably, Frontier has told employees that the average customer uses less than 1.5GB of usage per month. But Stop the Cap! has seen company data which suggests otherwise, and that raises questions as to whether company management is really aware of the actual usage profile of their customers, or if they are simply not disclosing the facts to employees now forced to defend their 5GB “solution.”

For instance, we have noted that in just one division, Elk Grove, California, more than 40% of customers already well-exceed 5GB of usage per month, often consuming more than 20GB of usage.   In other divisions, the numbers tell a story wildly different from what Frontier management is telling their employees.

We’ve also seen figures that illustrate the myth of the “bandwidth hog.”   While every division has stories of a handful of heavy users obviously running a torrent client or server 24 hours a day, which can consume hundreds of gigabytes of usage over a  month, there is absolutely no evidence those users represent a growing percentage of Frontier’s customers.   Additionally, Frontier’s existing acceptable use policies already provide avenues for the company to address those engaged in prohibited activities without punishing their entire customer base.

In fact, the company’s own research shows broadband usage growth increasing, but at a largely even rate, as customers begin to take advantage of new broadband-tailored services, such as streaming video.

It’s also notable Frontier has a partnership with Netflix to provide new customers with the benefits of a Netflix membership when signing up to a Frontier product bundle.   Ironically, Netflix is launching a new service to deliver video content to subscribers who use a home terminal sold by the company that connects to their broadband service.   Frontier customers attempting to use the service will exceed their usage cap just using the service a few times per month.

The overall Internet bandwidth growth pattern is comparable across many providers, and is not out of line with historical averages.   To be sure, the Internet is rapidly growing, but so are the resources to manage that growth.   Many costs, such as bandwidth, are actually declining, particularly for the industry’s largest players on a “per-gigabyte” basis.

Maggie Wilderotter, CEO of Frontier Communications, uses numbers that simply don’t add up:

Broadband usage consumption at Frontier in on track to increase by 100% year over year. It is important to note that close to 80% of our customers will NOT REACH the 5 Gb cap for several years.

Let’s do the math.   Using their own figures, which are disputed by their own internal numbers, let’s discover what “several years” equals in Frontier time:

Frontier’s Predicted Usage Trend

January 1, 2008   Customer utilizes 1.5GB usage
January 1, 2009   Customer utilizes 3GB usage
January 1, 2010   Customer utilizes 6GB usage

If you are a Frontier DSL customer in western New York, even relying on their numbers disclosed to employees, by the time you are finished raking your leaves in the fall of 2010, you will already be considered a “bandwidth hog” by Frontier, subject to overuse penalties.

We’re Doing This Because They’re Doing It

Prominent among Frontier’s reasons for implementing a bandwidth usage cap is that other companies are doing it.   As Stop the Cap! has observed, the lack of competition in many areas has allowed a duopoly of broadband providers to emerge, easily allowing for both companies to mirror rate increases and restrictions without fear of mass subscriber defection.

Frontier also complains it is forced to invest millions of dollars in their network and infrastructure as a result of Internet growth.   Their latest 10-Q SEC filing suggest a lower amount, but regardless, these kinds of investments have always been a factor in broadband services.   Independent research of bandwidth usage illustrate the trends are completely in line with well-predicted trends made several years ago without panic from bandwidth providers, and many of these costs also come from broadband subscriber growth, which Frontier itself trumpets as a success in its messages to employees.

The challenge Frontier faces is that it remains a small player in a narrowing field of large national providers.   Larger companies with more resources enjoy greater economy of scale in both equipment and bandwidth costs, and the ability to leverage multiple services (video, telephone, and very high speed data) over a high capacity fiber optic or hybrid fiber/coaxial network.   Those stuck with aging copper wire on telephone poles are at an immediate disadvantage.

Frontier recognizes these challenges, and has managed to find the financial resources to continue acquiring additional companies to incorporate into its portfolio, most recently including Commonwealth Telephone Enterprises,  Inc. ($1.1 billion), Global Valley Networks, Inc. and GVN Services through  a purchase from Country Road Communications,  LLC ($62 million).   It’s also attempting to build its own fiber-to-the-home network in limited areas, typically in new housing developments or apartment buildings.

As  Stop the Cap! will reveal in an exclusive report later this week, Frontier and other traditional wireline telephone companies are rapidly losing revenue from traditional telephone subscribers as they disconnect service, relying on their wireless phone or competing voice over IP telephone services.  Broadband remains a shining beacon in a sea of economic challenges the traditional telephone company industry faces. The push for profitability of this successful product line is becoming more critical than ever.   Limiting subscriber use enhances those profits.

Run The Clock Out On The Contract Customer

Frontier’s customer service representatives have been told to resist efforts by consumers with term contracts with the company to pursue their right to terminate service without incurring any early termination fees.   We have learned that customer service representatives have been instructed to tell customers trapped in multi-year DSL contracts that  Frontier is not currently enforcing a usage cap, so there is nothing for them to opt-out from.

But as Stop the Cap! has already reported, customers under contract have the right to exit that contract if the company unilaterally attempts to change the terms.   Frontier’s own marketing tells customers a “price protection agreement,” a feature of a term contract, protects them from price increases for the balance of the contract.   But with a 5GB usage cap, those exceeding the cap face significant penalties or overage fees for doing so beginning as early as next year.   Where’s the price protection?

Through an opt-out procedure the company includes in its terms and conditions, customers have 30 days to notify the company it does not accept the material change a 5GB usage cap represents to their contract.   After 30 days, continued use of the service constitutes acceptance of the new terms going forward under an existing contract.

Until Frontier guarantees in writing that a customer under contract will be exempted from any usage cap or corresponding overage fees for the balance of their contract, we continue to recommend the consumer cancel their contracts within the 30 day window that opened on July 23, 2008 when the company first published a notice to customers of the 5GB usage cap.

“We want to establish a dialogue with customers.”   OK, Here’s What We Have To Say

Although the company claims to want to take the time to engage in a dialogue with customers, their actions thus far have largely been in one direction.   In the material we were able to review, it’s clear the company has already determined exactly what steps it plans to take and has a timeline for doing so.   The only thing left is the focus group and market research to try and find a way to sell their customers on their plans and do damage control.

Stop the Cap! continues to urge Frontier, a secondary competitor in many markets, to reconsider their plans to implement this usage cap.   In addition to cannibalizing your own customer base, who will flee in greater numbers to competitors as consumers become educated about the impact of such caps, this kind of usage capped service at current pricing attracts regulatory review of the current state of broadband service in this country.

More importantly, this may well represent the biggest missed opportunity to deliver a marketing win for Frontier in the history of the company.   DSL has managed to survive against cable competition because it is willing to compete on price, even if it cannot always match the speeds that cable and fiber optic platforms can deliver.   To survive in this marketplace, being willing to deliver that lower price and more flexibility is the only way DSL can ultimately succeed in areas where a faster competitor is available.

A 5GB capped DSL service in metro Rochester against Road Runner guarantees the end of Frontier DSL as a meaningful player in that market, especially if Time-Warner capitalizes on the cap in their marketing, which is likely.   In areas where Verizon FiOS is rolling out service, Frontier employees should be updating their resumes and start looking for work elsewhere.   Your career path at Frontier ends where Verizon’s unlimited, extremely fast, and competitively priced fiber optic broadband network begins.

It’s not too late to make the right choice and plug into the reality of today’s broadband marketplace.  That’s our dialogue to you, with the sincere hope Frontier executives will pick up what we’re putting down before the last customer out the door switches off the lights.

Coming Up Tomorrow: How Frontier Competes With Time-Warner & Other Providers
Friday: Frontier’s Losses Accelerate in The Phone Line Business
And next week: Undoing the Damage; Becoming a More Effective Competitor & Customer Reaction to Frontier’s Bandwidth Cap Plans

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