Telekom Malaysia

A scheme to impose usage limits and speed throttles on Telekom Malaysia’s broadband customers was beaten back just a day after the plan was announced.

Malaysia’s largest telecommunications company announced the limitations at the same time in introduced new speed tiers and new pricing for them.

Customers were not pleased when they discovered TM’s UniFi broadband service came with high prices and usage caps:

TM UniFi Broadband Packages

• 5/5Mbps Service RM149/$46.73 now capped at 60GB per month.
• 10/10Mbps Service RM199/$62.41 now capped at 90GB per month.
• 20/20Mbps Service RM249/$78.09 now capped at 120GB per month.

In comparison, residents in nearby Singapore can buy 100Mbps service, with no limit, for RM200/$62.73 per month.

Those who exceed the limits would find their speeds throttled to about 10 percent of the speed they purchased, for the rest of the month.

Telekom Malaysia CEO Datuk Zamzamzairani Mohd Isa said the measures were part of its Fair Usage Policy.

Dato’ Zamzamzairani

“This policy is a standard industry practice to ensure that all subscribers get to enjoy the same web surfing quality,” he said.

Only it’s not standard industry practice, despite that often-heard excuse.  In countries where usage limits are common, those limits are being eased or discontinued as broadband expansion and competition drives the unpopular usage limits out of the market.

Malaysians weren’t willing to wait.

The social media firestorm of protest that followed the announcement forced the company to back down just one day after announcing the Internet Overcharging scheme.

An announcement on Twitter, noting customer feedback, stated “no volume cap 4 all #unifi packages 4 now.”  The company did say it would continue to “reserve the right to enforce a download limit to ensure all UniFi subscribers receive equal service quality,” but that type of language has been standard in service provider agreements for years.

Company officials told The Malaysian Insider customers “may abuse” the service, which is why they wanted the cap.

But customers feel they deserve value for money — the price being charged can be considered high for many countries in Asia even without the cap.

The Star newspaper notes:

With the latest announcement by Telekom Malaysia, many people are rejoicing. Among them is communications consultant Justin Then, who said he’s happy to note that Telekom Malaysia listens to consumers.

“Capping our high speed Internet access doesn’t make sense, if the Government wants Malaysians to seek out knowledge and be innovative,” he said.

A Twitter user, who asked to be identified only as Flo, said she’s glad Telekom Malaysia has decided not to employ the cap for now.

“We are paying a premium for technology that offers super high bandwidth, so a daily cap shouldn’t be applied. There’s no value in that; we would be better off with regular broadband,” she said.

One caveat.  As has been the case with a handful of U.S. providers seeking to monetize your broadband usage, rescinding usage caps today doesn’t guarantee they won’t be back tomorrow.  Indeed, TM has yet to remove them from their website, instead inserting in the fine print, “The monthly download volume policy will not be implemented until further notice.”

[flv]http://www.phillipdampier.com/video/Malaysia Telekom UniFi Promotional Video.flv[/flv]

TM’s slick promotional video unveiling the faster UniFi broadband packages asks y0u to “imagine.”  We did… imagining how in the world we can accomplish all of the things they show in the video with the company’s proposed arbitrary usage limits and speed throttles.  Imagine actually getting the service you paid to receive without a provider imagining how much use = “abuse.”  (6 minutes)

While the Federal Communications Commission hand-wrings over how far to dip its toe into the shark-infested water of corporate-controlled broadband, Finland has launched a major investigation over charges of price-fixing and collusion by the country’s major broadband providers.

The Finnish Communications Regulatory Authority (FICORA), equivalent to the Federal Communications Commission or the Canadian Radio-television and Telecommunications Commission, started the investigation over what it calls “gross overpricing” after receiving complaints from TeliaSonera that it was forced to pay outrageously high “local loop” prices to the former state-owned incumbent telephone company, Elisa Oyj.

The “local loop” refers to a part of a telecommunications network used for providing broadband subscriptions to end-customers. When an operator sells broadband outside its own operating area, it must lease part of a local loop from the operating area’s telecom operator. The sound pricing of the local loop market is a prerequisite for telecom operators to be able to compete in each other’s operating areas and thus be able to provide inexpensive broadband services to consumers.

“The authority has discovered flaws and problems in the pricing of several telecom operators, and there is even reason to suspect that unlawful activity occurs in the broadband market,” FICORA said in a statement.

Within three months, Elisa must reduce its pricing to a level based on actual costs and deliver new price tariffs and cost calculations to FICORA. According to FICORA’s calculations, the unreasonability of pricing is significant. For example, the monthly price of a local loop must be reduced by more than 20 percent.

“The objective of the provisions is to prevent operators with significant market power from enjoying a monopolistic pricing capability, promote competition and thereby ensure versatile and reasonably-priced telecom services for citizens,” FICORA states.

Finland telecommunications law does not allow corporate providers to gain the upper hand over consumers.  FICORA aggressively oversees the Finnish broadband market to ensure no individual company or group of companies can collude to set prices artificially high, discourage competition, or deliver sub-standard service in non-competitive areas.

Finland was the first country in the world to declare broadband a universal right, and every citizen should have access to at least 1Mbps service no later than this July.  By 2015, Finland plans to deliver universal access to at least 100Mbps service.  Finland is a world leader in broadband adoption — as of 2007 a full 79 percent of Finns regularly access the Internet.  With universal access a national priority, FICORA referees the private marketplace to make sure the Finnish people benefit the most from the broadband revolution.

The Authority has warned other operators to either voluntarily review their pricing, or face the potential consequences of further investigations extending into the summer and autumn of this year.

Cox Cable is joining a steady parade of broadband providers giving the boot to one of the Internet’s oldest services – Usenet newsgroups, telling customers if they want to keep receiving the service, they’ll have to pay someone else to get it.

Broadband Reports notes Cox customers are receiving e-mail notifications about the imminent demise of a service that many newer subscribers probably know nothing about:

Declining newsgroup usage in recent years has highlighted the need to focus our resources on other priorities, such as increasing our Internet speeds and providing new services, including Cox Media Store and Share. We understand that our newsgroup subscribers may want to continue accessing Usenet. Therefore, we have worked with leading newsgroup service provider Giganews to offer special pricing for Cox subscribers.

Giganews is a well-respected, albeit expensive newsgroup service provider offering more than one year of message retention, useful for those using the service to obtain older files. Copyright enforcement on newsgroups is lax, which is one reason some Internet Service Providers may not wish to bother with the service any longer.  But it’s not entirely a piracy haven.  Old time radio show enthusiasts trade programs back and forth and others use the service to discuss wide-ranging topics with an international audience.

Despite the end of newsgroup service, Cox Cable does not plan to compensate customers with a lowered broadband bill.

A Giganews representative visited the Cox users forum on Broadband Reports to promote the deal:

The “deals” Giganews is offering Cox users are fairly standard, and include a two month 50% discount off of Giganews’ “Diamond Plan” (and 10% for the rest of your subscription). Users interested in less expensive plans will get 50% off of those plans for a month (and 10% for the rest of your subscription). That 10% lifetime discount is being offered for the first time ever, according to a GigaNews rep that has stopped by our Cox forum.

There are cheaper alternatives.

Karl Bode over at Broadband Reports offers an additional detail on Frontier’s Internet Overcharging experiment which is now being tested in Minnesota:

Late last week, someone familiar with business operations at Frontier Communications indicated to Broadband Reports that the company was going to begin testing a new capping scheme for heavy users. “Just wanted to let you know that Frontier is sending out letters to the top 50 bandwidth users in Mound Minnesota,” said the individual.

The city of Mound, a suburb located 19 miles to the west of Minneapolis/St. Paul, is home to 9,800 residents.  Mound is the birthplace of the Tonka truck, named after Lake Minnetonka, which surrounds Mound.  Residents of Hennepin County have watched their local phone company change hands several times over the years from Contel to GTE of Minnesota to Verizon to Citizens Telecommunications Company of Minnesota, which does business as Frontier Communications. Frontier has served this part of Minnesota since the end of August, 2000.

Hanus

For a community aggressively pursuing a downtown revitalization and redevelopment program designed to make the community attractive to new residents and businesses, news that the local DSL provider is now going to limit broadband usage and overcharge those who exceed their arbitrary limits is not good.

Among city officials, Mayor Mark Hanus and councilman David Osmek are both Frontier broadband customers.  The city is proud to stream its regular city council meetings online, something Frontier DSL customers will now have to avoid if they want to preserve as much of their 5GB monthly usage allowance as possible.

Action Alert and Alternatives for Mound, Minnesota

For Mound residents who do not want to be forced to limit their broadband activities to the ridiculously low 5GB allowance Frontier is now enforcing, we recommend these actions:

1) Call Frontier Communications at 1-800-921-8101 and tell them you will not keep your Frontier broadband service with a usage cap and you are prepared to take your business elsewhere immediately if they do not rescind their “experiment.”  If they attempt to charge you an early termination fee or cancellation fee if you do decide to cancel, let us know through the Contact link at the top of the page or in the comments attached to this article.

2) Contact your local media — the Minneapolis Star-Tribune, the Lakeshore Weekly News, The Laker, local news radio and television stations and let them know you think they should be covering this story and its potential impact on the local economy in Mound.

3) Your best alternative broadband provider is cable operator Mediacom which does not have a usage limitation on their broadband accounts.  Their speeds and pricing are also much better, based on Frontier’s advertised pricing of  “as low as” $49.99 a month for Frontier High-Speed Internet Max 3Mbps service or “prices starting at” $39.99 a month for Frontier High-Speed Internet Lite 768kps service.

Mediacom offers 3, 12 and 20Mbps broadband service in Mound.  Here are the details:

For New Mediacom customers:

Mediacom offers soon-to-be-ex Frontier customers free standard installation and a 12-month introductory offer for 12/1Mbps service for $49.95 a month.  Telephone service is also available through Mediacom with a bundled service discount.  Customers looking for a budget broadband alternative can sign up for 3Mbps service for $29.95 a month if they also take digital cable or digital phone.  For customers looking for the highest speeds, Mediacom offers 20/2Mbps service for $59.95 a month if you also get digital cable or phone service.

Mediacom is Mound's incumbent cable company

For Current Mediacom Non-Broadband customers:

If you have cable from Mediacom but use Frontier for broadband, you can switch to Mediacom cable modem service and obtain special discounts.  Add Mediacom’s 12/1Mbps service to your existing cable TV account for $19.95 a month for 12 months, or 20/2Mbps service for $59.95 a month for 12 months.  Installation is done by the customer.

Questions about Mediacom service in Mound can be directed to 1-800-332-0245.  Mediacom’s local offices in and around Mound are at:

4) Customers who are absolutely stuck with Frontier broadband who anticipate approaching or exceeding the 100/250GB usage levels should explore a business broadband account with Frontier.  Although pricing may vary from city to city, residents of Rochester who confronted the original effort to impose a 5GB usage cap in western New York found business account DSL service was not much more expensive than residential service, and carried no usage limitations.  Pricing is likely to be less than the punitive rates Frontier wants to charge residential customers for exceeding their allowances.

AT&T has announced it is bringing its U-verse broadband, telephone, and television system to Springfield, Missouri providing residents an alternative to cable service from Mediacom.

“We’re very excited to offer a competitive choice to Springfield consumers,” said Kris Ryan, general manager of AT&T Home Solutions for the greater Missouri region.

Unfortunately, most Springfield residents will have to wait before the service becomes available in their neighborhood.  AT&T has only limited service available in Springfield, Battlefield, Nixa, Republic and parts of Fremont Hills.  The company has a tradition of announcing U-verse, and then slowly deploying service on a neighborhood-by-neighborhood basis over the next several years.

Potential customers noticed, complaining that entire zip codes in and around the Springfield area currently do not have U-verse available.

When the service does arrive, residents can expect pricing ranging from $19 – $167 a month, depending on how many channels and what type of broadband speed is desired.

Mediacom can beat AT&T’s broadband speeds in Springfield, as it upgraded to DOCSIS 3 service, permitting customers to get up to 50Mbps service from the cable company. AT&T’s U-verse tops out at 18Mbps in the Springfield area.

Residents can check to see if U-verse is available at their address by visiting the AT&T U-verse qualification website.

[flv width=”360″ height=”260″]http://www.phillipdampier.com/video/KSFX Springfield ATT Launches U-verse in the Ozarks 3-22-10.flv[/flv]

KSFX-TV in Springfield reports on the unveiling of U-verse in the greater Springfield area.  (1 minute)