Home » oversight » Recent Articles:

Internet Service Providers Object to Letting the FCC Know About Their Service Outages

Phillip Dampier October 27, 2011 Competition, Consumer News Comments Off on Internet Service Providers Object to Letting the FCC Know About Their Service Outages

A Federal Communications Commission proposal to require Internet Service Providers to report service outages may meet with legal challenges, despite the agency’s insistence the program is designed to help monitor network reliability and potential cybersecurity threats. Incorporating a real-time malicious IP feed could further strengthen these efforts by offering immediate insights into harmful activities targeting critical infrastructure.

The FCC has been seeking service outage reports since May, when it first asked providers for information to track 911 outages over broadband Voice Over IP networks and determine if further regulations were needed to increase service reliability.

The agency is also reported to be concerned about botnet attacks — coordinated denial-of-service attacks on individual websites done for political, personal, or profit-motivated reasons.

Providers object to turning over the data, accusing the agency of exceeding its authority.  Some are signalling they might challenge the requirements in court if the Commission doesn’t curtail the program.

Providers may be objecting because the data collected could become public, allowing anyone to chart the reliability of each respective broadband service provider.  Competitors could potentially use that information to their advantage.  Additionally, data that shows ongoing problems could be used to justify additional oversight or regulatory measures to improve performance. Beyond NIS2, the DORA Readiness Check helps organizations prepare for the Digital Operational Resilience Act. By pinpointing gaps in your current setup, you’ll gain clear insights into necessary enhancements.

Jeffery Goldthorp, the FCC’s associate bureau chief for cybersecurity and homeland security admits the agency might not have a clear mandate to pursue its monitoring program, telling CNET there was ambiguity in the agency’s authority.

Republican FCC Commissioner Robert McDowell goes further, saying “in my view, we do not have Congress’s authority to act as suggested.”

Telephone Companies Bilking Consumers for Fatter Revenue Is as Simple as “ABC”

The primary backers of the ABC Plan

Today, Federal Communications Commission Chairman Julius Genachowski is scheduled to deliver a major announcement on reforming the Universal Service Fund (USF) — a federal program designed to subsidize the costs of delivering telecommunications services to rural America.

The reform, long overdue, would transition a significant percentage of USF fees every telephone customer pays towards broadband deployment — a noble endeavor.  For years, Americans have paid more than $5 billion annually to phone companies large and small to maintain rural landline service.  Small co-op phone companies depend on the income to deliver affordable service in places like rural Iowa, Kansas, and Alaska.  But large companies like AT&T and Verizon also collect a significant share (around $800 million annually) to reduce their costs of service in the rural communities they serve.

That’s particularly ironic for AT&T, which time and time again has sought the right to abandon universal rural landline service altogether.

Genachowski’s idea would divert USF funding towards broadband construction projects.  The argument goes that even low speed DSL requires a well-maintained landline network, so phone companies that want to deploy rural broadband will have to spend the money on necessary upgrades to provide just enough service to earn their USF subsidies.  The lower the speed, the lower the cost to upgrade networks and provide the service.  Some may choose wireless technology instead.  Since the telephone companies have fought long and hard to define “broadband” as anything approaching 3-4Mbps, that will likely be the kind of speed rural Americans will receive.

At first glance, USF reform seems like a good idea, but as with everything at the FCC these days, the devil is always in the details.

Dampier: Another day, another self-serving plan from the phone companies that will cost you more.

While headline skimmers are likely to walk away with the idea that the FCC is doing something good for rural broadband, in fact, the Commission may simply end up rubber stamping an industry-written and supported plan that will substantially raise phone bills and divert your money into projects and services the industry was planning to sell you anyway.

Stop the Cap! wrote about the ABC Plan a few weeks ago when we discovered almost all of the support for the phone-company-written proposal comes from the phone companies who back it, as well as various third party organizations that receive substantial financial support from those companies.  It’s a dollar-a-holler astroturf movement in the making, and if the ABC Plan is enacted, you will pay for it.

[Read Universal Service Reform Proposal from Big Telcos Would Rocket Phone Bills Higher and Astroturf and Industry-Backed, Dollar-a-Holler Friends Support Telco’s USF Reform Plan.]

Here is what you probably won’t hear at today’s event.

At the core of the ABC Plan is a proposal to slash the per-minute rates rural phone companies can charge big city phone companies like AT&T and Verizon to connect calls to rural areas.  You win a gold star if you correctly guessed this proposal originated with AT&T and Verizon, who together will save literally billions in call connection costs under their plan.

With a proposal like this, you would assume most rural phone companies are howling in protest.  It turns out some are, especially some of the smallest, family-run and co-op based providers.  But a bunch of phone companies that consider rural America their target area — Frontier, CenturyLink, FairPoint and Windstream, are all on board with AT&T and Verizon.  Why?

Because these phone companies have a way to cover that lost revenue — by jacking up your phone bill’s USF surcharge to as much as $11 a month per line to make up the difference.  In the first year of implementation, your rates could increase up to $4.50 per line (and that fee also extends to cell phones).  Critics have been widely publicizing the increased phone bills guaranteed under the ABC Plan.  In response, advocates for the industry are rushing out the results of a new study released yesterday from the Phoenix Center Chief Economist Dr. George S. Ford that claims the exact opposite.  Dr. Ford claims each customer could pay approximately $14 less per year in access charges if the industry’s ABC Plan is fully implemented.

Genachowski

Who is right?  State regulators suggest rate increases, not decreases, will result.  The “Phoenix Center,” unsurprisingly, has not disclosed who paid for the study, but there is a long record of a close working relationship between that research group and both AT&T and Verizon.

But it gets even worse.

This shell game allows your local phone company to raise rates and blame it on the government, despite the fact those companies will directly benefit from that revenue in many cases.  It’s a real win-win for AT&T and Verizon, who watch their costs plummet while also sticking you with a higher phone bill.

The USF program was designed to provide for the neediest rural phone companies, but under the new industry-written rules being considered by the FCC, just about everyone can get a piece, as long as “everyone” is defined as “the phone company.”  There is a reason this plan does not win the hearts and minds of the cable industry, independent Wireless ISPs, municipalities, or other competing upstarts.  As written, the USF reform plan guarantees virtually all of the financial support stays in the Bell family.  Under the arcane rules of participation, only telephone companies are a natural fit to receive USF money.

Genachowski will likely suggest this plan will provide for rural broadband in areas where it is unavailable today.  He just won’t say what kind of broadband rural America will get.  He can’t, because the industry wrote their own rules in their plan to keep accountability and oversight as far away as possible.

For example, let’s assume you are a frustrated customer of Frontier Communications in West Virginia who lives three blocks away from the nearest neighbor who pays $50 a month for 3Mbps DSL broadband.  You can’t buy the service at any price because Frontier doesn’t offer it.  You have called them a dozen times and they keep promising it’s on the way, but they cannot say when.  You may have even seen them running new cable in the neighborhood.

Frontier has made it clear they intend to wire a significantly greater percentage of the Mountain State than Verizon ever did when it ran things.  Let’s take them at their word for this example.

The telephone companies have helpfully written their own rules for the FCC to adopt.

Frontier’s decision to provide broadband service in West Virginia does not come out of the goodness of their heart.  At a time when landline customers are increasingly disconnecting service, Frontier’s long-term business plan is to keep customers connected by selling packages of phone, broadband, and satellite TV in rural markets.  Investment in DSL broadband deployment has been underway with or without the assistance of the Universal Service Fund because it makes financial sense.  Our customer in West Virginia might disconnect his landline and use a cell phone instead, costing Frontier any potential broadband, TV and telephone service revenue.

Under the ABC Plan, Frontier can be subsidized by ratepayers nationwide to deliver the service they were planning to provide anyway.  And what kind of service?  The same 3Mbps DSL the neighbors have.

If your county government, a cable operator, or wireless competitor decided they could deliver 10-20Mbps broadband for the same $50 a month, could they receive the USF subsidy to build a better network instead?  Under the phone company plan, the answer would be almost certainly no.

Simon Fitch, the consumer advocate of the Federal-State Joint Board on Universal Service, which advises the FCC on universal service matters, says the ABC Plan is a consumer disaster.

“Although a stated goal of the FCC’s reform effort is to refocus universal-service funding to support broadband, the industry’s ABC plan requires no real commitment to make broadband available to unserved and underserved communities,” Fitch writes. “Companies would receive funds to provide broadband with upload and download speeds that are already obsolete. States would be given no real enforcement power.”

Fitch is certain companies like AT&T and Verizon will receive enormous ratepayer-financed subsidies they don’t actually need to provide service.

Back to AT&T.

In several states, AT&T is seeking the right to terminate its universal service obligation altogether, which would allow the same company fiercely backing the ABC Plan to entirely walk away from its landline network.  Why?  Because AT&T sees its future profits in wireless.  Under the ABC Plan, AT&T could build rural cell towers with your money to provide “replacement service” over a wireless network with or without great coverage, and with a 2GB usage cap.

At the press conference, Genachowski could still declare victory because rural America would, in fact, get broadband.  Somehow, the parts about who is actually paying for it, the fact it comes with no speed, coverage, or quality guarantees, and starts with a 2GB usage cap on the wireless side will all be left out.

Fortunately, not everyone is as enamored with the ABC Plan as the groups cashing checks written by AT&T.

In addition to state regulators, Consumers Union, the AARP, Free Press, and the National Association of Consumer Advocates are all opposed to the plan, which delivers all of the benefits to giant phone companies while sticking you with the bill.

There is a better way.  State regulators and consumer groups have their own plans which accomplish the same noble goal of delivering subsidies to broadband providers of all kinds without increasing your telephone bill.  It’s up to the FCC to demonstrate it’s not simply a rubber stamp for the schemes being pushed by AT&T and Verizon.

Northern Fla. Broadband Network ‘Wasted’ $6.8 Million of $30 Million Grant With No Resulting Service

Phillip Dampier September 26, 2011 Broadband Speed, Community Networks, Public Policy & Gov't, Rural Broadband, Wireless Broadband Comments Off on Northern Fla. Broadband Network ‘Wasted’ $6.8 Million of $30 Million Grant With No Resulting Service

The network envisioned with the help of a $30 million federal broadband grant, now in jeopardy.

A consortium of 15 rural north Florida counties awarded a $30 million federal broadband grant to provide a “middle-mile” wireless broadband network for the region has spent almost $7 million of its federal grant on consultants, design engineers, land acquisition and staffing without breaking ground on a single construction project.

In February 2010, the Obama Administration announced the broadband grant to deliver rural Florida residents a way to finally obtain high-speed access to the Internet within three years.  Now, a year-and-a-half later, not a single tower of the wireless network has been built, residents have been told they will never receive Internet service directly from the project, and one of the key members of the North Florida Broadband Authority charged with constructing the network has called one of the major contractors “incompetent.”

Last week, federal officials suspended the grant amid growing accusations of wasteful spending and lack of oversight.

NFBA was supposed to be building a wireless wholesale-access network across 15 counties that would deliver ISPs, government agencies, libraries, and other institutional users packages of 6, 12, 25, 60, 150Mbps or faster service, linked with fiber to Orlando and Tampa.

Although media coverage touted the project as delivering improved access to residential customers in Baker, Bradford, Columbia, Dixie, Gilchrist, Hamilton, Jefferson, Lafayette, Levy, Madison, Putnam, Suwannee, Taylor, Union and Wakulla counties, the NFBA project will not directly make broadband service available to consumers.  Would be residential customers will have to hope an incumbent Internet Service Provider chooses to participate and resells access to the network across the region.  Otherwise, those taxpayers will only be able to use the network they paid for at a local library.

That is, if the project ever gets completed.

To date, financial statements from the NFBA reflect the biggest checks paid to-date have gone to architecture and design consultants, which have received a total of more than $3.37 million dollars.  In contrast, NFBA has paid $0.00 for on-site construction and site work as of the end of the last quarter.  Money has also been spent on “Administrative and Legal Expenses” amounting to more than $863,000, and $1.54 million has been spent on property appraisal, acquisition, and expenses related to establishing rights-of-way.

When questions began to be raised about why the project had spent so much on so little, the fur began to fly, according to the North Florida Herald:

Christopher Thurow of Bradford County, accused [contractor] Government Services Group of being “incompetent.” Government Services Group answers to the Authority and is in charge of managing the project.

Then Rapid Systems, one of the project’s engineering companies, began making accusations of not getting paid. But GSG pointed to what it said was inadequate documentation by Rapid Systems and not following payment procedures.

Adding to the controversy was that GSG had been let go from managing the Florida Rural Broadband Authority (FRBA), a program similar to the North Florida Broadband Authority.

Multiple FRBA meetings were canceled, and the project was behind schedule, said Rick Marcum, chairman of FRBA.

“We felt like we needed to move in a different direction,” he said.

Since then, Government Services Group has filed a lawsuit against FRBA, saying there is a breach of contract.

At the North Florida Broadband Authority, some members allege a conflict of interest between GSG and Capital Solutions, which was contracted by GSG to oversee the administration of the grant money.

The apparent conflict comes from the accusation that Government Services Group CEO Robert Sheets is 25-percent owner of Meridian Services group, where Lisa Blair is CEO and president. Blair also is the CEO of Capital Solutions.

NFBA project members seem content to blame most of the problems on others, as well as on a sudden discovery their initial network design would not meet the performance requirements of potential wholesale customers.  That meant a wholesale re-design of the project into a “interconnected-ring network” design topology.  The rest of the delay, according to the NFBA, was because the project was sitting around waiting for government approvals:

This entire process (which included design re-evaluation, engineering services procurement, and network redesign) was carried out over a period of two to three quarters, which was the period of time designated in the original Baseline Plan for the turnkey link design phase as well as for subsequent equipment procurement, site acquisition, and pre-deployment activities. Additional variance from the Baseline Plan resulted substantial delays that were incurred awaiting wage-rate determinations (more than 3 months), awaiting a response to a waiver request to allow eligibility of Long term Operational leases (requested process in December, 2010, AAR submitted in April 2011, received in June, 2011); and comments from the Program Office on a Route Change Request (2 months).

That explanation did not pass muster with grant administrators at the National Telecommunications and Information Administration, the federal agency overseeing broadband grants.

“NFBA has experienced a number of external and internal delays on its project and, as a result, NTIA has serious concerns regarding the project’s long-term viability and, in the short-term, its ability to implement and deploy the proposed project during the grant award period,” the NTIA wrote in a statement.

As a result, the NTIA has suspended the program, ending all work, pending some sort of oversight agreement with the NFBA being concluded before Oct. 10.

The NTIA wants all invoices and disbursements from the $30 million grant approved directly by them before any more money is spent on the project.

To date, filings indicate the project has no signed customers of any kind, institutional, commercial or otherwise.  NFBA anticipates it will “outline service to 308 anchor institutions by project closeout,” with “outline” at this point defined as “offer.”

However, NFBA claims to have received a “Commitment Letter for a substantial monthly service commitment from one of our last mile partners, and we expect to receive additional Commitment Letters over the next quarter as we continue to actively engage last mile providers in the network region.”

Last-mile partners are the ones that will ultimately deliver service to residential and business customers.

Dixie County resident and Stop the Cap! reader Jimmy Dixon, who alerted us to the latest developments, calls it “a good government program hijacked by greedy consultants and incompetent local officials.”

“This was supposed to be about serving the unserved — we the people — and instead the project will only sell to government buildings and libraries, and whatever ISPs choose to buy access,” he writes. “But when an ISP won’t sell DSL to your home today, nothing about this grant will make them sell it tomorrow.”

Indeed, Dixon says the local phone company in his area continues to have no plans to wire his neighborhood for DSL, grant or no grant.

“They frankly told me it did not make economic sense to extend DSL here, and unless the government directly defrayed those expenses, they never will service us,” Dixon shares. “But I guess until recently it was just fine to line the pockets of consultants with millions in taxpayer dollars to not deliver service to anyone else, either.”

“We’re all in the same boat, and it’s sinking fast.”

Read the special investigative report published by the North Florida Herald here.

Citibank Demands Burlington Telecom Rip Down and Return Fiber Cables and Equipment

Phillip Dampier September 21, 2011 Broadband Speed, Burlington Telecom, Community Networks, Competition, Editorial & Site News, Public Policy & Gov't, Video Comments Off on Citibank Demands Burlington Telecom Rip Down and Return Fiber Cables and Equipment

Burlington Telecom offices in Burlington, Vt.

Citibank has sued the city of Burlington, Vt., and the city’s legal firm demanding municipal-provider Burlington Telecom hand back their fiber-to-the-home network and pay damages in excess of $33.5 million dollars.

Citicapital, which owns the equipment that operates Burlington’s community network, says Burlington Telecom has defaulted on their lease payments, and has demanded the city “de-install and return” the fiber network — everything from set-top boxes and in-home wiring to ripping fiber cables directly out of underground vaults and off telephone poles.  Citi also wants BT’s vehicle fleet turned over to them.

Burlington Telecom has been a poster child of poorly-planned and implemented city-owned broadband, and a series of financial and operational scandals led state investigators to consider criminal charges for misappropriating taxpayer funds to sustain the network.  While prosecutors ultimately declined to file charges, the resulting scandal in the mayor’s office has left the city with a network it stopped paying for, and the potential much of it could be auctioned off to the highest bidder, which could turn out to be Comcast or FairPoint Communications.

Citicapital claims the city has not made a direct lease payment since November, 2009.  The bank had been drawing down funds deposited in a special escrow account the city was required to open as part of the lease-to-purchase transaction.  That account has also run dry, and the bank claims it has received no payments since May of 2010.

Citibank’s attorneys filed suit:

“BT continues to use Citibank’s equipment and vehicles unlawfully and without its permission and continues to depreciate the value of Citibank’s assets in order to generate revenue for itself,” the bank’s attorneys charged.

Citibank wants a judge to award punitive damages in excess of its remaining loan balance “because Burlington’s intentional breach of the agreement amounts to a reckless or wanton disregard of Citibank’s clear contractual rights.”

“It’s ironic that a bank that received a taxpayer-financed multi-hundred-billion-dollar bailout now wants taxpayers in Burlington to pay them excessive damages,” shares Stop the Cap! reader and Burlington resident Joe, who shared the story with us.  “I think we should be calling it even after three years of big bank bailouts.”

The lawsuit has city residents worried because attorney fees, and any resulting damages or settlement agreement with the bank, will likely run well into the millions of dollars.  Every month the city remains in arrears, Citibank’s agreement calls for at least $235,000 in missed payment fees and interest.  Taxpayers will likely cover most, if not all of that amount.

“I don’t think anybody should be surprised,” City Councilor Paul Decelles, R-Ward 7 told the Burlington Free-Press. “I always believed this day was going to come. Now we have enormous mess on our hands.”

Citibank wants their fiber back.

Christopher Mitchell from Community Broadband Networks notes Burlington Telecom was an aberration in a country with many successful community-owned broadband networks.

“We have watched in dismay as Burlington Telecom transitioned over the past four years from a model community network to the worst case scenario,” Mitchell wrote on the group’s blog. “This situation proves only that community networks can suffer from bad management in some of the many ways private telecom companies can suffer from bad management (resulting in anything from bankruptcy to prison).”

“Communities can learn lessons from Burlington’s situation — chief among them that transparency is important,” Mitchell observed. “As with other public enterprise funds, the operation should be regularly audited and oversight must be in place to catch errors early, when corrections are easier and less costly.”

Among Burlington Telecom’s problems included overpriced, uncompetitive broadband service that never took full advantage of fiber’s speed and versatility.  Earlier news accounts included speculation BT had trouble securing sufficient connectivity with a backbone provider to sustain faster speeds, but it left the company at a competitive disadvantage against incumbent cable operator Comcast.  Burlington Telecom also failed repeatedly to build community support to establish a firewall against frequent political shots fired at the network as it became a partisan hot potato.

The city promises a “vigorous defense” against the lawsuit, and observers suspect a judge will not order the city to shut the network down, because it would cease the only revenue stream the company generates that could be used to pay a negotiated settlement with the bank.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/WCAX Burlington Citibank Sues BT 9-20-11.mp4[/flv]

WCAX in Burlington explores how much of a case Citibank has in its lawsuit against the city and its attorneys over Burlington Telecom.  (4 minutes)

AT&T’s Measurement Tools Called Wildly Inaccurate: Suspiciously Usually in Their Favor

Phillip Dampier March 30, 2011 AT&T, Consumer News, Data Caps, Editorial & Site News 4 Comments

Imagine if your electric utility billed you for service based on a meter that was developed by the company, had no third party verification, no oversight by a Bureau of Weights and Measures, and wrote provisions into the company’s terms and conditions that allowed the company to terminate your service if you complained too much about the resulting bills.

Rethink possible.  AT&T.

When America’s largest phone company implements its arbitrary and unjustified Internet Overcharging scheme this May, it will bring its controversial usage meter to bear on every one of its broadband customers — a meter implicated in wild over-measurements of customers’ broadband usage — usage that will put customers perilously close to, or over the limits AT&T wants to establish.  The result?  Fat additional profits in the form of $10 overlimit penalties for every 50GB AT&T says you consumed for broadband traffic that costs them pennies to deliver.

The broadband usage meter is no stranger to controversy and lawsuits over accuracy issues.  Despite reflexive denials that a particular provider’s usage meter couldn’t be wrong, far too many have had to backpeddle and confess that the meter that should have measured $40 in usage and resulted in $4,000 bills instead “was in error.”

Whether providers are developing meters that are just flat inaccurate or are quietly putting a virtual finger on the scale to increase the opportunity of overlimit profits is unknown, but past history shows the meters typically overmeasure usage, not undercount it.

Without independent verification and ongoing oversight, some customers wonder if AT&T is sticking a virtual finger on AT&T's usage scale.

Some recent past history:

  • Telstra is Australia was implicated in December for a wireless usage meter that occasionally reported more than three times the usage measured by wireless phone owners’ built-in usage measurement tools.  Company representatives ended up crediting some customers as much as $3500AUD in inappropriate overlimit fees that should never have been charged.  Complaints continue to arrive as late as February about overbilling;
  • Telecom New Zealand’s usage meter overmeasured usage this month resulting in overcharges and throttled speeds under the ISP’s “fair use policy.”  One customer was billed for 27GB of usage during one overnight period, despite the fact the computer was switched off;
  • BT in the United Kingdom confirmed it overbilled some of their broadband customers in February when their usage meter measured usage for customers who had switched their computers off or took them away on holiday.  As far as BT was concerned, those computers were still at home and still racking up web usage.  Only last week, the company finally confessed their meter was inaccurate — overmeasuring usage that never happened;
  • AT&T’s counterpart in Canada — Bell, cannot manage to measure customer usage correctly either, so it suspended its usage tracker tool temporarily.  In February, one customer tired of overbilling proved a point when he took his computer to the United States just to guarantee it could not go near Bell’s network.  The result?  Bell said he used 500MB anyway;
  • In February, a class action lawsuit was filed against AT&T for “overmeasuring” wireless usage in some instances by up to 300 percent;
  • Last fall, Verizon was forced to refund $25 million dollars for phantom data usage charges for service many customers claimed they never used.

In virtually all of the prior incidents, a common pattern emerges, usually ending when providers fall on their swords, admit error and issue refunds:

  • Phase 1: Initial denials from providers there is a problem with the meter, usually blaming the customer, the customer’s measurement tool, or the process used instead;
  • Phase 2: Once proven to be an issue, an effort to downplay its significance and impact with claims that only a “tiny” percentage of customers were affected;
  • Phase 3: Refusal to submit usage meters, wholesale costs, and other components of Internet Overcharging to third-party verification;
  • Phase 4: Refusal to allow an independent audit of customer accounts to verify overbilled customers were properly refunded every penny of excess charges;
  • Phase 5: Class action lawsuit or government investigation commences;
  • Phase 6: Settlement reached with refunds or low value coupons to customers who take the time to request one;
  • Phase 7: Report excess profits from unclaimed refunds on balance sheet.

In too many cases, multi-billion dollar telecom companies that rely on those meters to measure and bill customers for their usage were implicated not for undermeasuring usage, but overmeasuring it — often substantially.

Some AT&T customers are already disturbed with what could be history repeating itself.  A reader of Broadband Reports in Skokie, Ill., compiled his own detailed analysis and found AT&T’s measurement tool grossly overmeasured his usage, and even worse, couldn’t do simple math and overmeasured him again when adding up his daily usage totals:

AT&T said that I had used 361GB in a single month! Surely this couldn’t be right. I’m a heavy user, but every time I even so much as glanced at my usage stats they’ve always been in the 200GB range. Surely something was amiss, so I decided to dig deeper.

It’s an old habit, but the first thing I do when I suspect something is wrong with any bill is enter all the line items into a spreadsheet and add them up myself. It sounds like busywork, but sometimes you’ll catch unlisted charges that have been phantomly added to your bill, or occasionally an outright math error. I couldn’t believe what I found. AT&T’s usage meter results insist I had used 341.39GB down, and 20.18GB up. But when I added all the daily detail entries (the DSL equivalent of a call log), only 332.8GB down and 0.72GB up are accounted for.

AT&T is claiming that I used 361.57GB of data, but according to their own daily data I only used 333.52GB, an 8.5% overcharge.

This AT&T customer discovered AT&T overmeasured his usage far more than it undercounted it. (Lines above the baseline show downstream traffic AT&T overmeasurement; lines below show undercounted usage. Click to enlarge.)

In total, this particular customer reports his usage was overmeasured by a whopping 33 percent. He is not alone.  A robust thread of similar results is active on Broadband Reports.

AT&T’s response to the early criticism follows the same path taken by other providers, starting with denials.

“We’re addressing ways we can make the labels and information on the online metering tool more clear for customers between now and May (when the new policy goes into effect),” said AT&T spokesperson Seth Bloom.  “I can also assure you our team is performing checks everyday to ensure accuracy.  That said, we believe we have an accurate tool.”

“Other tools may measure at different 24-hour periods than we do, and most likely do not take into account the standard network protocols (e.g. Ethernet, IP) that are used to provide applications and content to our customers via the Internet.  As you know, this is fairly standard to incorporate when measuring broadband traffic and is applied by other ISPs who measure usage.”

Customers and columnists alike are worried about AT&T's new data limits. This Milwaukee Journal-Sentinel columnist is not thrilled, and neither are customers who overwhelmingly want unlimited broadband access.

“In the end, AT&T expects the caps to impact only the aforementioned 2% [that comprise its heaviest users].”

With the right level of over-measurement, virtually anyone can be a member of the “2% Club.”  One customer told Connected Planet AT&T was already overmeasuring her DSL account by as much as 4,700%.

How can you measure your usage to compare against AT&T?

“It’s not hard to maintain independent usage statistics to double-check AT&T’s numbers,” says the Broadband Reports reader in Skokie. “If you have a DD-WRT compatible router, it will keep your upload and download history automatically. If you don’t have a compatible router, you can still run WallWatcher or MRTG to get the total bandwidth used by your router. Finally, if your computer is connected directly to your DSL modem without a router, you can run software like Net Meter to track your internet usage.”

Customers inconvenienced by unnecessary usage meters which threaten to expose them to unjustified overlimit fees is just one more reason why we call out these Internet Overcharging schemes.  Call AT&T and let customer service know you intend to switch providers if AT&T implements their usage cap scheme in early May.  Tell them regardless of what kind of usage you incur each month, you cannot afford the chance AT&T’s apparently inaccurate usage meter could expose you to a higher bill.  Tell them you don’t want the hassle, and the only way you will remain as a customer is if they do away with the entire scheme.

Search This Site:

Contributions:

Recent Comments:

Your Account:

Stop the Cap!