Allen Wan from Chicago dropped Stop the Cap! a postcard by good old snail mail about today’s broadband cap ‘n tier regime in place at some of America’s largest Internet Service Providers to make an important point: with Internet Overcharging schemes like usage caps and usage-based billing, America’s best broadband value may actually come from the United States Postal Service.

Allen breaks it down for us:

Allen’s chart points out that for large file transfers like movies, TV shows, and major software updates, consumers actually get more value on a per-GB basis burning those shows and software to a traditional or dual-layer (DL) DVD, and dropping them in the mailbox.

While prices for service may vary, so do Internet Overcharging schemes.  If a customer reaches their monthly limit one time too many, they will be relying on the post office to move files back and forth because companies like Comcast and Cox will terminate their service.  Other providers, like AT&T and Suddenlink, are content to simply send the customer a bill with overlimit charges on it.

With a marketplace duopoly, ineffective government oversight, and ever-increasing prices, the U.S. Post Office may still be in the running after all, thanks to Back to the Future-pricing from your ISP.

Suddenlink will introduce an Internet Overcharging scheme beginning with their customers in Amarillo, Tex. Oct. 3rd, according to a company document obtained by Stop the Cap!  But the new usage cap and overlimit fee scheme will not be limited to Texas.  The company’s internal memo notes the new limits will eventually be imposed on customers nationwide, and incredibly, the cable operator claims it will make their Internet service better:

Early next month, October 2011, Suddenlink will notify residential (non-business) Internet customers in Amarillo, Texas, of a new usage allowance plan (AP) that is designed to further enhance their Internet experience.

This allowance plan will be introduced to other residential Internet customers, in other Suddenlink communities, in the following weeks and months.

An introductory letter will be mailed to Suddenlink residential Internet customers, when our allowance plan goes into effect in their community. The introductory letter to Amarillo customers will be mailed on or about October 3, 2011.

In addition to the introductory letter noted above, we will launch a new Web page on or about October 3, 2011, at suddenlink.com/allowanceplan.

This new page will provide additional information about the allowance plan in the form of frequently asked questions (FAQs).

Suddenlink's national service area

On the first instance of exceeding the limit, the customer’s Internet service will be suspended until the customer reads and agrees to a web notification message that includes an understanding that on the fourth instance of going over their usage cap, customers will be billed $10 for every 50GB increment that exceeds their allowance, whether it is by 1MB or 40GB.  That pricing is identical to AT&T’s usage cap overlimit fee.

Amarillo residents already pay $55 a month for 15Mbps standalone broadband service from Suddenlink.

Stop the Cap! reached out twice today to Suddenlink officials to get their reasons for implementing the usage allowance program, what the specific allowances might be, and when the usage caps will reach markets beyond Amarillo.  We have still not heard back from them as we “go to press” but will update the piece if and when we do receive their comments.

Suddenlink’s employees are being trained on how to handle the inevitable complaints when customers discover their bills have suddenly increased.  Their employee FAQ:

Q. I only went over my allowance by 1 gigabyte, but I was still charged $10. I thought I would not be charged $10 until I was 50 gigabytes over my allowance. What happened?

Of the very few customers who go over their monthly allowance, we have found that most go over by a significant amount. Accordingly, to make this process as fair and simple as possible on all customers, we do not start charging until the third time someone goes over the allowance – and, once that happens, we automatically assign additional allowances to the account, in standard 50-gigabyte installments, at a standard price of $10 for each installment.

Customers can use all or some of that additional allowance, depending on their individual situations. What’s more, if they exceed the additional allowance of 50 gigabytes, another 50-gig allowance is automatically applied, again at the standard price of $10.

To help customers manage their Internet accounts, we have provided a way for them to monitor their monthly usage at Suddenlink.net.
• If you’re already registered at Suddenlink.net, log on, go to “My Account,” and then click the link for “My Internet Usage Summary.”
• If you’re not already registered at Suddenlink.net, visit that site, look toward the upper right corner for the log-in box and the link that reads “Don’t have an account? Sign up now!” Follow that link to a set of instructions on how to register your account, and then, when you’re finished, click the link for “My Internet Usage Summary.”

Kent: The days of system upgrades are over.

Finally, we offer some tips at suddenlink.com/allowanceplan, about ways to keep usage within the monthly allowances we’ve established.

Q. Can I have fewer than 50 gigabytes or less than $10.00 applied to my account the next time I go over?

Not at this time. The 50-gigabyte installments and $10 per installment charges have been standardized in all areas where we’ve rolled out this allowance plan, to make the process as fair and simple as possible on all customers.

Q. I don’t recall being notified that this was starting in my area. When did that happen?

We mailed letters announcing this change to all customers in your area several weeks before the allowance plan was put into place. I’m sorry if you missed that letter, but rest assured, very few customers – less than 1 out of every 100 – go over their allowance. And for the very few customers who do go over their allowances, charges are waived the first couple of times.

Q. What gives Suddenlink the right to do this?

We occasionally make changes to our Internet services, consistent with our Residential Services Agreement, which is published on our website. This allowance plan is one of those changes.

If asked: To view our Residential Services Agreement, go to Suddenlink.com, and look for a link near the bottom of the page titled, “Terms & Policies.” Click on that link and then look for another link titled, “Residential Services Agreement.” Click on that link and then scroll down the page until you see the sections related to Internet service, such as Section 46.

Suddenlink’s new Internet Overcharging website is not yet active, so we are unsure exactly what plan limits will be, but Suddenlink has been no stranger to usage caps.  The company introduced a usage meter in several markets in the summer of 2009, and used to claim usage limits were partly to handle traffic loads on a limited number of cable systems that were in the process of upgrading.  Once the upgrades were complete, the caps were supposed to be relaxed or retired.

Then, Suddenlink president and CEO Jerry Kent appeared on CNBC last September to announce that people don’t realize the days of system upgrades are over and it was time to rake in the profits:

“I think one of the things people don’t realize [relates to] the question of capital intensity and having to keep spending to keep up with capacity,” Kent said. “Those days are basically over, and you are seeing significant free cash flow generated from the cable operators as our capital expenditures continue to come down.”

Suddenlink’s journey to usage caps includes all the hallmarks we foretold in an article published on Stop the Cap! in 2009:

1. Establish a foundation for usage caps.  In their 2009 FAQ, Suddenlink conflated broadband usage with electricity: “What is “Internet usage”?  Much like electric usage is measured in kilowatts, and water usage is measured in gallons, Internet usage is measured in gigabytes (GB).”
2. Establish a ‘pulled from the air’ number of gigabytes (which often conveniently later becomes your usage allowance) and then tell subscribers what they can do with that.  In Humboldt County, Calif., in March 2011, Suddenlink began telling “heavy users” what other customers were doing with what the company deemed a more appropriate, average amount of Internet service.  Suddenlink also told customers the Internet service they were providing was for “entertainment only.”
3. Tell customers such tools are actually for their benefit.  See above.
   
4. Lie to customers when a usage meter suddenly shows up or terms and conditions are quietly changed to support an Internet Overcharging scheme.  In 2009, Suddenlink introduced a usage meter but tried to reassure customers, telling them: “Does Suddenlink plan to set a maximum usage allowance for its Internet customers, like other companies are doing? Do you plan to charge extra if a customer’s usage is too high?  Those steps are not part of our current plan. Our only goal at this time is to help the few customers whose usage is well above (two to three times higher than) the typical range to identify the reasons for that high usage and take steps to protect and secure their computers and accounts.”

You used too much. Look what you can do with an "average" amount of usage instead.

Now usage caps will protect and enhance Suddenlink’s profits on Internet service.  Remarkably, Suddenlink put itself in the “predicament” of facing increased customer demand of the Internet through its own marketing.  The company’s website heavily promotes its bandwidth-heavy Suddenlink2GO™ service to “watch TV online anytime, anywhere in the U.S. on any computer for FREE when you subscribe!”

But “free” becomes $10 for every 50GB if you watch too much.

How to Get Unlimited Back: If you are a Suddenlink residential customer who does not want to face restricted-use Internet, you can avoid the limits by switching to Business Class service, which will not have caps.  Unfortunately, pricing information was not immediately available to us.  One customer in Lubbock noted he paid $69 a month for 6Mbps Business Class service and $107 a month for 107Mbps residential service, so expect to pay comparatively more for lower speed service.

Canadians looking for more competitive wireless prices and faster service may think they’re going to get them if they sign on to a new campaign sponsored by Rogers Communications that calls on the Canadian government to eliminate spectrum “set-asides” for the country’s smaller wireless competitors.  Rogers wants those frequencies for itself, critics charge, and they have the resources to outbid any new player in the country’s wireless market.

From Rogers’ “I Want My LTE” Website:

[…] There are some who are supporting a Federal Government regulation that would limit who can have access to the spectrum. Such regulation would exclude select companies from the upcoming auction to license the 700 MHz spectrum band. The outcome of this auction will have a major impact on deploying LTE across Canada. If a decision is made that prevents certain companies, including Rogers, from participating in the spectrum auction, it would be a recipe for leaving Canada behind the rest of the world, stalling Canadian innovation and limiting who can access LTE.

The website offers a pre-written plea to policymakers in government to allow for an open bidding process for the forthcoming 700MHz frequencies many wireless companies crave for their robust performance.

The problem is, according to industry observers, if a wide-open, no-limits auction takes place, it’s a virtual certainty Canada’s largest wireless companies — Bell, Telus, and Rogers, would walk away with most, if not all of the auctioned spectrum.  Even worse, it will stall competition that will lead to lower prices.

“The future of affordable wireless rates is at risk, not the future of long-term evolution (LTE) networks,” said Chief Operating Officer Stewart Lyons. “Mobilicity has helped bring down the cost of wireless in Canada significantly and we need to augment our limited amount of spectrum to ensure affordable pricing continues.”

“[The] big 3 wireless carriers have more spectrum than they need and will stop at nothing to dress up and misrepresent their hidden agenda of eliminating competition so they can raise their rates back up again,” he added.

The government is not planning to ban Rogers and the others from the spectrum sale.  They just want to set aside some frequencies for bidding among the smaller, newer competitors.  But even that is too much for Rogers, who has bad memories from the last spectrum auction that allowed those competitors to become established in the first place.

Today, new cell service providers like Wind Mobile, Mobilicity and Quebecor’s Videotron are forcing larger carriers to reduce prices or lose business.

Fido is actually Rogers under a different name.

For some Canadians, wireless bills have dropped a lot since the competition arrived.  Some are leaving Rogers in favor of better prices elsewhere.

Andy Lehrer from Toronto had a cellular plan with Fido, an ostensibly independent cell phone company that is, in fact, owned outright by Rogers Communications.  Lehrer was paying Fido $150 a month for his Blackberry voice and data plan.  Today, with one of the new competitors, he pays $44 a month for a plan that offers more data and talk time.

Although new competitors still have just under 5 percent of the Canadian market, the price differences have become too enormous to ignore in many cases, especially if a customer is willing to give a new carrier a break as it works through growing pains.

Lehrer told the Globe & Mail his cellular reception is poorer, but not bad enough to make him switch back to Rogers’ Fido.

Convergence Consulting Group Ltd. notes the price disparities mean savings as much as 58 percent with new competitors’ combined voice and data plans.  For data services alone, new providers charge as much as 83 percent less.

If Rogers and the two others head home from spectrum auctions with everything up for bid, it will assuredly stall competition and help protect today’s high wireless prices.  Rogers, Bell, and Telus have never seen fit to undercut each other, adopting a rising prices raise all balance sheets-approach at doing business.  But scrappy new entrants like Wind and Mobilicity are willing to slash prices to attract customers.  But nobody will buy service if those companies cannot obtain necessary spectrum to actually compete.

Regardless of the outcome, North America in general has a long way to go to find the lower wireless prices commonplace abroad.

Cellular South, a regional wireless provider serving Mississippi, western Tennessee, and parts of Florida and Alabama, relaunched operations this morning as C Spire Wireless.

Company officials claim C Spire will be the first carrier to offer “personalized wireless services” that will adapt to customers based on how they use their phones and other  devices.

“We have entered a new era in wireless – an era centered on broadband networks, mobile computing devices and now personalized services. Completing calls is only a small part of what we deliver our customers,” said Hu Meena, president and CEO of C Spire. “Since 1988, our main focus has been on providing exceptional service for our customers and their wireless needs. Those needs have changed dramatically and will do so at an even more rapid pace in the future.”

Among the changes underway across the mobile industry is an effort to end unlimited wireless data plans for smartphone customers, but that won’t be the case at C Spire, which is retaining unlimited smartphone data usage for many of its service plans, sort of.

“C Spire understands that when customers have to measure and limit their data, they aren’t getting the optimal experience with their wireless provider. That’s why the company is introducing Individual and Family Choice Plans that offer customers the ultimate in choice and flexibility, and access to infinite data,” the company said in a statement.

But there is a major catch — that “infinite” data usage does not include streaming multimedia content.  That comes extra: priced free through October 29. Then 2 hours for $5, 5 hours for $10, or unlimited usage for $30.

How many "percs" can I win picking out the sloppy spelling errors on C Spire's website?

C Spire does away with counting megabytes or gigabytes and asks customers to guess how many hours they expect to use streaming media applications on their phones. That means customers will pay $50 a month for C Spire’s Choice D 500 plan, which includes unlimited web browsing and e-mail, plus 500 talk minutes per month.  But if you want to listen to unlimited online radio or stream video, that price increases to $80 a month.  But that $80 does buy an unlimited experience at that point.

C Spire’s pricing reflects the failure of strong Net Neutrality protection, allowing carriers to charge extra for different types of content on its network.

Wireless mobile broadband customers still face a cap on C Spire’s data-only plans: 1GB for $19.99, 3GB for $29.99 or 5GB for $49.99.

Users must spend at least 50 percent of their usage during the month within a C Spire service area.  Excessive roaming can get your service suspended.  As a regional carrier, that means “home usage” is limited to a handful of southern states.

But company officials are spending little time discussing their pricing and plans, instead focusing on how C Spire will “personalize” the wireless experience.

No other wireless provider understands its customers and adapts to their wireless needs like C Spire. Customers will see this unique personalization in apps and content that fit who they are, services that anticipate their needs, and rewards they’ll get just for using their phone in new ways. C Spire’s industry-leading personalization capabilities are powered by Pulse, a proprietary system that enables the company to understand and develop a closer relationship with its customers. In turn, C Spire recommends and provides the right selection of technology experiences tailored for each customer – giving them unmatched wireless personalization.

C Spire offers what they are calling “percs” — points that customers can collect based on interacting with the company’s website and social media platforms, the number of years they remain loyal to C Spire, and opting into company research programs including their Scout Program, which track apps usage.

The rewards on offer at the moment are not impressive — waiving late bill payment fees, priority access to customer service, feature upgrades, and discounts on accessories and shipping.

The company’s website has been unresponsive at times this morning and customers on C Spire’s Facebook page are complaining they are confused about pricing and plan changes, particularly those related to streaming data usage.

C Spire's Rewards Program

[flv width=”480″ height=”290″]http://www.phillipdampier.com/video/C Spire Ads 9-26-11.flv[/flv]

Magic Sparklies: The wireless company’s new advertising campaign introduces Cellular South’s new brand: C Spire Wireless (1 minute)

Big cable companies are targeting their non-customers, and those current customers who refuse to sign up for triple-play bundles, with some of the most aggressively-priced promotions in years.  The two largest, Comcast/Xfinity and Time Warner Cable, have been sending out letters offering dirt cheap $20 Internet service or cable television packages that include DVR service, a second set top box, and hundreds of digital cable channels for $49.99 a month for two years.

Comcast

Comcast promotions vary in different markets, depending on who their competitors are.  The best pricing goes to new customers, as a recent promotion sent to suspected DSL customers in their service areas illustrates.

(click to enlarge)

The cable company is pitching 12 months of Xfinity Performance (typically around 12Mbps) for $19.99 a month for the first year for new customers only.  Some customers report they can cancel penalty-free at the end of the first year, while others are told Comcast is actually pitching a two-year contract where the price of the service increases to $34.99 a month during the second year (a early cancellation fee pro-rated to less than $50 applies in some areas if you cancel early).  This pricing applies to standalone service, which makes it aggressively priced.  Most cable providers charge a higher price for Internet-only service.  Some customers also report a $25 or more installation fee applies (and in some areas an in-person install is required for new customers).  We’ve heard from some readers that successfully qualified for the promotion under the name of a spouse if they have had Comcast service previously.  Otherwise, Comcast usually requires customers to be without service for 90 days before they are considered “new customers.”

Customers can try calling 1-877-508-5492 to request this offer: $19.99/Month for 1 year with no additional service required (Code at bottom of letter: LTP79376-0014).

If that number does not work from your calling area, other numbers to try include: 1-877-298-0903 (CA, TX), 1-877-508-5492 (CA, WV), 1-877-494-9166 in NJ (currently pitching 6-month version of this promotion without contract.)

If 12Mbps is not fast enough, ask the representative what promotional pricing exists for faster speeds.  Some customers scored 35Mbps service for $10 more per month.

A separate ongoing promotion from Comcast offers Blast Internet service at 25Mbps+ on similar terms.  But pricing varies wildly in different markets.  Customers in California were able to purchase this promotion for as little as $19.99 a month with a year-long contract, while customers in Chicago were asked to pay $39 for essentially the same service.

Comcast’s promotions list runs several pages, so if you are shot down asking for these promotions, ask about other current offers or hang up and try calling again and asking to speak with someone else.  Your results may vary depending on the representative you speak with.  Remember Comcast’s 250GB usage cap applies to all residential service plans.

Time Warner Cable

In addition to regular Road Runner standalone Internet service promotions that deliver Standard Service speeds for $29-35 a month for a year, Time Warner has been getting very aggressive trying to win back cord-cutters and those who have left for a competing pay television provider.  The cable company has mailed letters to non-cable TV customers in the northeast pitching substantial discounts on cable TV service price-locked (but no commitment term for you) for two years and includes free DVR equipment, DVR service, and a second set top box with digital cable TV for $49.99 a month.  They’ll even credit back the cost of any early termination fees charged by another provider over the course of the first year of service.

(click to enlarge)

The promotion is intended primarily for customers who already receive service from another provider, but new customers can call 1-855-364-7797 and ask for the offer without the competing provider early termination fee rebate.  If you do receive service from another provider, there are various requirements and steps to follow to qualify for up to $200 in termination fee credits.  Visit SwitchtoTWC or call them to learn the details.

Neither of these promotions work for existing Time Warner Cable customers.  If you already subscribe, discounts will be offered when you threaten to cancel service.  Retention deals from Time Warner Cable can be as aggressively priced as new customer promotions.  We have found retention offers made during the initial call to request a service disconnection are often not very aggressive.  Most representatives try and pare back your package before starting to offer retention pricing (which gradually gets better the more times you reply, “is that the best you can offer?”)

Our best recommendation is to call and request to cancel service 2-3 weeks from today and wait for a Time Warner Cable retention specialist to call you (answer those mystery caller ID calls — it could be Time Warner).  The reps that call you directly often deliver the most aggressive retention deals.  If nobody does reach out to you, call Time Warner yourself a few days before the disconnect is scheduled and ask them to make you an offer to rescind your disconnect request.  You may find some serious savings taking this approach.  If not, you still have time to rescind your disconnect request on your own before the plug gets pulled.