Apple is set to announce a new iPhone or two early this afternoon, but some in the tech media notice the frenetic excitement of the newest Apple sensation has been tempered, in part because many of the new software and cloud storage features will run into usage caps for some, speed throttles for everyone else.

The imminent arrival of anticipated models iPhone 4S, expected to sell at AT&T and Verizon and iPhone 5, which is rumored to be sold exclusively by Sprint during a short sales window, remains a big deal for all three carriers.  Verizon is reportedly allowing its call center employees to take unlimited overtime in preparation for the anticipated rush of questions and orders.  Sprint, which has 33 million customers on two-year contracts, has made a commitment to sell at least 30.5 million Apple iPhones over four years, if reports by the Wall Street Journal turn out to be accurate.  That’s a lot of phones.

[flv width=”512″ height=”308″]http://www.phillipdampier.com/video/Sprint Getting iPhone 10-3-11.flv[/flv]

9 to 5 Mac shows off a mock image of what the newest iPhone 5 will probably look like. Pay close attention to the rounded edges and bezel.

Reports from the Wall Street Journal, WDAF-TV in Sprint’s home base of Kansas City, and Bloomberg News discuss the implications of Sprint’s deal with Apple.  (11 minutes)

That’s also an enormous gamble for Sprint, which is guaranteed no real profits from the venture until the year 2014.  If the company does win temporary exclusivity of an iPhone model that includes support for Sprint’s 4G network, WiMax, it will also bring the company an enormous number of new customers.

Among the most important new features of the phone is iOS 5, the latest version of Apple’s mobile operating system.  It comes loaded with new ways to burn through the stingy usage caps AT&T and Verizon Wireless are now providing their customers:

1. Over the air upgrades/activations: Apple’s notoriously huge software updates can be delivered to your wireless device without syncing it on a personal computer.  That means downloading software updates that can easily exceed the 200MB “light usage” plans some carriers sell budget-conscious customers;
2. Notification Center: Puts messages from e-mail, texts, and apps in a more convenient place to access and respond, increasing usage;
3. NewsStand: Leverages newspaper and magazine content in a single app, downloading content pushed to your phone, increasing usage;
4. Safari Sync: The Safari web browser will now sync with other instances of the browser on other devices to keep your reading list updated;
5. iMessage: Send texts, photos, and bandwidth-hogging video to friends and family, potentially driving up usage considerably;

But nothing is expected to spike wireless data usage like Apple’s new iCloud and iTunes Match, both of which manage and sync multimedia content and app purchases between devices “over the cloud.”  Unfortunately, repeated journeys of this type will burn through your usage allowance, and those with significant-sized libraries of photos, music, or videos are at serious risk of blasting past their usage cap.  Even customers who use more than 4-5GB on “unlimited data plans” sold by AT&T and Verizon will face the scourge of the speed throttle, which will reduce your zippy new phone to speeds that resemble dial-up.

AT&T and Verizon Apple iPhone customers are at the highest risk of facing the speed throttle, because Apple is not expected to support either company’s 4G data network.  Verizon only exempts 4G customers from the speed throttle when they use the 4G network.

The one company well-positioned to capitalize on these realities happens to be Sprint, which is keeping its truly unlimited data plan.  If Apple comes through with 4G support for Sprint, customers could not only say goodbye to AT&T and Verizon’s slower 3G speeds, they would also be able to rest easy knowing they won’t experience bill shock or a month in the dial-up speed penalty corner if deemed to be using “too much” service.

Customers of the two biggest carriers need to get familiar with switching to Wi-Fi as often as possible, and avoid using data-intensive features on usage-limited plans.  For Verizon and AT&T, it’s the best of all worlds — another two year contract for a usage-limited data plan that guarantees increased revenue and reduced costs.  For you, it’s an improved phone you can never use to its full potential.

[flv width=”512″ height=”308″]http://www.phillipdampier.com/video/Little Buzz Over New iPhone 10-4-11.flv[/flv]

The Wall Street Journal reports there isn’t as much buzz over this year’s newest iPhone.  Bloomberg talks about the software changes in the new phone, and WWLP-TV in Springfield notes Verizon’s unions are calling on Americans to boycott the new phone until Verizon workers get a fair contract.  (8 minutes)

Update 2:00pm ET:  The Wall Street Journal reports the Sprint iPhone will not support their 4G network: According to people familiar with the company’s plans, the hotly anticipated device won’t operate on long-term evolution or WiMAX fourth-generation networks. Those wireless networks promise speedier downloading to mobile devices of episodes of television programs, as well as cute baby photos. The people said the device will work on 3G networks, which are broadly in use today and are the standard for the current iPhone 4. AT&T says its HSPA+ network has 4G-like speeds.

Update 4:00pm ET: The announcement event finally concludes with news the iPhone 5 is vaporware for now.  Sprint will end up with the same Apple 4S phone AT&T and Verizon will sell on their respective networks. The San Jose Mercury News was not thrilled with the event:

At a rollout that lacked some of the thrills and surprises of past product releases — and disappointed some in attendance who expected a completely made-over iPhone 5 — Siri stood out as the sexiest new feature on an iPhone that, contrary to speculation, isn’t any thinner or different looking on the outside than its predecessor, the iPhone 4.

“This phone is better than the iPhone 4 in many ways, even though it looks the same,” said Avi Greengart, an analyst with Current Analysis on hand for the unveiling before several hundred reporters, bloggers, analysts and other guests. “Sales will be wildly successful, but Apple fanboys’ expectations probably were not met today.”

The new phone, which will be available Oct. 15 after pre-orders begin Oct. 7, will cost $199 for a 16-gigabyte version, $299 for 32GB and $399 for 64 GB. It had been center-stage in the tech blogosphere for months, as pundits weighed in with what they saw as the most obvious bells and whistles Apple would unleash on their growing fan base. Tuesday, some were surprised by how wrong that had been.

The phone that everyone thought would be thinner than the iPhone 4, pretty much resembled its older sibling. But as analysts had suspected, the new phone is much faster, thanks for the new A5 chip inside it, and it has plenty of consumer-pleasing attributes, most of them inside the case.

Courtesy 9 to 5 Mac

AT&T has begun sending out warnings to wireless customers deemed to be using too much of their “unlimited data plans” and are now subject to speed throttling that will reduce their wireless Internet experience to one more familiar for dial-up users.

Life in the slow lane is the price AT&T customers pay for being a member of the Top 5% Data User Club.  Running the numbers, that means using more than around 4GB of wireless usage per month.  One customer who managed to rack up 11GB in September, even before the new speed throttle plan took effect Oct. 1, has already found himself in the speed reduction doghouse with a warning message he received Sept. 29.

Although the customer did not reveal what he was doing to achieve 11GB of usage in one month, the two most common ways to run up usage are watching a lot of streamed video or using your phone to tether to other wireless devices, especially laptops.  Some wireless customers are attempting to use their unlimited data plans as a home broadband replacement, especially in rural areas where cable or DSL service is not available.  That’s an option AT&T doesn’t seem to want customers to consider.

In addition to eliminating unlimited use plans for new customers more than a year ago, the company has increasingly cracked down on existing customers grandfathered into unlimited use plans.  In addition to banning third party tethering apps, AT&T is now simply reducing speeds for heavy users to make high bandwidth applications like video and even some forms of streaming audio impossible when residing in the penalty box.

But don’t worry: you can still use your data plan to read e-mail or browse simple web pages.  The company also advises customers can use unlimited amounts of Wi-Fi, whether they provide it or not.

Hours before the deadline imposed by the Canadian Radio-television and Telecommunications Commission, Rogers Communications responded Tuesday evening to the CRTC, which demanded Rogers correct malfunctioning speed throttle technology that slowed certain online gaming traffic to a crawl, because is mistook it for peer-to-peer file sharing traffic.

In a four-page letter to the Commission, Rogers essentially rehashed the Commission’s original concerns and then attempted to explain why the company throttles broadband traffic in the first place:

We manage P2P upload traffic because if we did not, this traffic would grow to occupy the capacity available on our network and so impact our customers’ experience. The vast majority of P2P upload traffic is being sourced by non-Rogers customers. Without our traffic management practices, our customers, including online gamers, would experience difficulty uploading traffic. The traffic management we do slows down the upstream delivery of P2P file sharing but does not prevent it. Since P2P file sharing is not as time sensitive as other forms of traffic, we believe managing it has little impact on customer satisfaction.

Remarkably, unthrottled peer-to-peer traffic on other Internet Service Providers in places like the United States does not seem to threaten the viability of those networks, but evidently Rogers is a special case.

Our ITMP policy does not target any customer group or content: it is designed to allow us to manage traffic to maximize our customers’ overall experience. Online gamers, in particular, need a responsive upstream network. In an effort to provide the best service for all of our customers, Rogers’ ITMPs limit only P2P file sharing applications to a maximum of 80kbps of upstream throughput. Our traffic management deploys specialized network appliances to classify traffic and apply our policy where appropriate. Gamers who would like to win extra cash online may play different motobola joker123 games.

That explains why the Canadian Gaming Organization (CGO) was so upset about Rogers’ throttling technology malfunctions which can slow game traffic to a crawl. But Rogers decided in light of the evidence exposing the gaming traffic throttling problem, the best thing to do was to blame someone else. Getting the right kind of server with the right Keywords can be helpful:

The technology and software in use at Rogers is provided by a leading network equipment vendor: Cisco. This is the same technology that is in place in hundreds of other ISPs worldwide, and Rogers does not believe the problems we have experienced are unique to our network.

Most traffic, such as web browsing or email, can be clearly identified by our Cisco equipment with very little chance of error. In very rare situations, traffic that is not P2P file sharing may be misclassified, such as was the case with World of Warcraft (WoW). Rogers has experienced a small number of cases of gaming traffic being misclassified as P2P file sharing traffic. In these cases, gaming customers have only been affected when running P2P file sharing simultaneously with a misclassified game. The typical game requires less than 80 kbps and so would not be affected even if a misclassification were to occur. It is only when the games are running in conjunction with P2P file sharing that our ITMP would be deployed. This has been confirmed by repeated testing in our lab. We have currently resolved all of these cases.

In other words, if customers shut off the offending peer to peer software, gaming traffic won’t be impacted by the throttle which reduces file sharing speeds to around 80kbps, which is just above dial-up.

Rogers’ “Rube Goldberg” Throttled Traffic Resolution Flow Chart. (All you wanted to do was play your online game in peace.)  Our suggestion for improvement: turn off the broadband traffic throttle and upgrade your network and the problems go away for everyone.

Rogers denies there is a problem worth getting upset about, because in their view, game traffic doesn’t need anything faster than 80kbps anyway.  Rogers’ attitude and response were both hotly contested by CGO co-founder Jason Koblovsky, who says his members are still directly and clearly affected by Rogers’ throttle.

“Rogers is stating here that they are actively dealing with throttling issues, and suspecting throttling when connection problems are being reported to them.  Quite frankly we are seeing quite the opposite,” Koblovsky says.  “They are actively refusing to even acknowledge that throttling might be taking place, and evidence of this has been submitted to the Commission in previous complaints proving what Rogers is claiming with this flowchart is false.  Hopefully the CRTC can read flowcharts and connect the dots.”

Rogers says it will take a two-step approach to make further corrections to reduce the impact of its errant broadband throttle, but did not provide any timeline.

“In the few cases where we have determined there has been a misclassification of an online game, we have used a two-stage solution to fix the problem. In the short term, we whitelist the game manufacturer’s servers. Whitelisting means creating a policy that will not apply ITMPs to packets going to and from a game manufacturer’s servers no matter how the traffic is classified. This can usually be accomplished in a very short period of time. Whitelisting is effective where the game manufacturer’s server can be located. The second stage is a long term solution that involves a software upgrade created by Cisco and deployed on our network that will correct the misclassification. We note that we did not use whitelisting until recently. Using whitelisting allows us to resolve problems much more quickly than was the case with WoW.”

Whitelisting, according to CGO, is not a sufficient solution to the problem because game manufacturers often change or add additional servers that Rogers will not initially be aware of, requiring constant tweaking to keep the whitelist up to date.

CGO co-founder Teresa Murphy added that “World of Warcraft traffic isn’t safe until the final fix from Cisco is applied to all Rogers-controlled Deep Packet Inspection systems.  Until that happens, if Blizzard moves any of their servers (as they did last summer), the whitelist will no longer apply to World of Warcraft traffic, and we’ll be back in this same situation all over again.  We’re also curious as to the current status of the other games users reported to Rogers back in March which were experiencing the same problems as World of Warcraft, but which didn’t get as much user outcry as World of Warcraft garnered.  There has been no update from any Rogers employee regarding these other games, which we find concerning.  Updates were sparse on the World of Warcraft issue before the CRTC complaint went in, but updates to users on the forums became non-existent after Rogers was forced to admit their practices with WoW.”

Rogers also promises to begin testing the top-ten most popular gaming titles on an ongoing basis to make sure game traffic for those applications goes unaffected.  Woe to those who don’t make the top-ten list, however.

CGO calls Rogers’ response wholly inadequate.

“The way the CRTC has put this to Rogers is that the CRTC expects a plan with dates to have this misclassification issue resolved. This just simply hasn’t happened here,” Koblovsky added.  “The CRTC has been pretty clear to Rogers they want no possibility of misclassification here on any programs, games etc.”

The Canadian Radio-television and Telecommunications Commission (CRTC) has issued new guidelines for consumers with complaints about their Internet Service Providers’ throttling practices that puts the burden of proof on the consumer to demonstrate an ISP is engaged in wrongful behavior before the CRTC will act.

The revised guidelines appear to come in response to complaints from consumers who have been subjected to dramatically reduced speeds when using Rogers Cable Internet service to play online games while also running file sharing software in the background. Rogers’ speed throttling technology appears to be unable to discriminate between game traffic, which is not subject to speed reductions, and file swapping traffic, which is.

The Canadian Gamers Organization filed a formal complaint with the CRTC this summer accusing Rogers of engaging in Network Neutrality violations.

The CRTC gave Rogers until today to fix the errant speed throttle or respond to the agency with an explanation for the delay.  As of this hour, Rogers appears not to have responded.

Last week, the CRTC began a crackdown of its own — against consumers bringing Internet complaints.  The CRTC modified the complaint procedure to instruct consumers to first work with their ISP and application developers to resolve any outstanding issues before filing complaints.  From the updated CRTC Guidelines:

How to make an Internet performance complaint

Before you complain to the CRTC about an Internet traffic management practice, you should first contact your Internet service provider to see if it can resolve the issue.

If your service provider doesn’t address your complaint to your satisfaction, and you believe that your service provider’s traffic management practices are not compliant with the CRTC’s policies, you can complain to the CRTC. Before doing this, make sure that you know your rights.

Rogers chokes the speed of undesireable peer to peer file traffic, but other applications like online gaming are also impacted. Consumers are complaining about the collateral damage.

What to include in your complaint

In your complaint, explain why you think your service provider’s traffic management practice doesn’t meet the requirements set out in their traffic management policy.  It is not necessary to provide technical details about the problem, but the CRTC needs enough information to understand the problem.  Please, clearly describe:

• What part of the traffic management policy you believe the provider has not followed
• When the problem occurred, and whether it is a recurring problem
• Which software program, or application, has been affected
• How the application has been affected
• The steps you’ve taken to try to resolve the issue with your service provider, including your provider’s response to your complaint

Consumer groups are not pleased the CRTC won’t engage directly in independent oversight of ISP speed throttling practices regardless of consumer complaints.

“We are not a consumer-protection agency,” the CRTC’s Denis Carmel was quoted as saying back in July.

“The CRTC must start enforcing its own policies,” says Canadian Gamers Organization co-founder Jason Koblovsky. “The CRTC needs to put a plan forth to ensure that regular audits are done on Internet Providers rather than relying solely on consumer complaints. We are asking the public to tell the CRTC that enough is enough: the Commission needs to take a much more proactive role in ensuring that Internet providers play by the rules. We are ready to act politically and force a solution here if need be.”

Koblovsky expanded his views on the subject in a blog entry:

We find this policy update to be more of an insult to consumers, and puts the responsibility of monitoring ISP’s use of [speed throttles] directly on the back of consumers. This is not acceptable by any means, and none of the policy recommendations we made that were thrown out by the CRTC in our initial complaint were taken into consideration, or for that matter seriously by the CRTC. This is a slap in the face to what we have been fighting for, and that is the CRTC has the responsibility to follow through, monitor and enforce its policies.

[…] Not one ISP has been found by the CRTC to be acting against net neutrality policy since they acted on this in 2009 with several complaints sent to the CRTC by consumers being dismissed due to lack of evidence over years of enforcement failure by the commission. There is no indication here that the CRTC is going to be dealing with a very high evidentiary thresh hold put on the consumer to launch a CRTC investigation in this policy update. All this update does is provide information on CRTC complaints procedures that are already in place, and consumers are already abiding by.

[…] Maybe it’s time we start acting politically on this issue instead, drop the CRTC from the picture to force the CRTC through legislation to listen to consumers, and start putting forth a much better effort on their responsibility to the public to enforce their policies. Or better yet, start billing the CRTC for our efforts on each complaint we become a part of.

Read this excellent analysis of game throttling and how Canadian ISPs master the art of Internet Overcharging.

AT&T and Verizon: The Doublemint Twins of Wireless

Mirroring AT&T’s announcement last month that it would begin implementing speed throttles for wireless unlimited data plan customers who are among the “top 5% of users,” Verizon Wireless quietly made changes last week allowing the company to throttle its own unlimited data plan “heavy users” who consume more than 2GB of usage per month on its 3G network.

But Verizon claims it isn’t actually throttling the speeds of customers, it is simply engaging in “network optimization practices” and using “network intelligence” to reduce speeds (sometimes to near-dial-up) while connected to a “congested cell site.”

That will prove a distinction without much difference to customers who rely on 3G data usage using cell sites Verizon deems congested.  They may also find the time spent in Verizon’s penalty box unusually long.

“You may experience [reduced speeds] for the remainder of your then current bill cycle and immediately following bill cycle,” Verizon’s FAQ states.

That can mean customers paying $30 a month for an “unlimited data plan” may find 3G usage a very slow experience for a maximum of two months before they are off Verizon’s throttle list.

The new speed throttle policy began Sept. 15.  Verizon:

Network Optimization practices and throttling is network intelligence.  With throttling, your wireless data speed is reduced for your entire cycle, 100% of the time, no matter where you are. Network Optimization is based on the theory that all customers should have the best network possible, and if you’re not causing congestion for others, even if you are using a high amount of data, your connection speed should be as good as possible. So, if you’re in the top 5% of data users, your speed is reduced only when you are connected to a congested cell site. Once you are no longer connected to a congested site, your speed will return to normal. This could mean a matter of seconds or hours, depending on your location and time of day.

Verizon has not said exactly how many of its cell sites it deems as “congested,” at what times that congestion is most likely to occur, and admits there is currently no way customers can learn when they are connected to a congested site so they can make an informed decision about their usage.

But the company does say customers can avoid the penalty:

1. Upgrade to a 4G phone and hope for good 4G LTE coverage.  Customers using Verizon’s 4G network are not currently subject to a speed penalty for “excessive use.”
2. “Upgrade” to a tiered data plan with usage allowances.  Verizon will not throttle the speeds of customers who are not on unlimited data plans.
3. Reduce your data usage, especially in areas where congestion is likely.

Choke collars are in season at AT&T and Verizon Wireless, leaving Sprint's unlimited service looking more consumer-friendly by the day.

Those suggestions require potentially pricey new handsets, require customers to abandon their existing unlimited data usage plan, or simply get you thinking twice before launching a data session, fearing being grounded for up to two months with a dramatically reduced level of service.

The biggest impact of the network speed throttles will be among data-heavy iPhone users.  Apple’s iPhone doesn’t support 4G, and is likely to continue to rely on 3G network coverage when the next version of the popular phone is introduced in October.  Ultimately, Verizon’s new policy means iPhone devotees using more than 2GB per month may have to abandon their phone or their unlimited data plan if they want to avoid the throttle.

Verizon also found a way to keep customers from canceling penalty-free, noting contract changes that reserved the right to implement network management techniques were made in February.  The 60-day window for the “materially-adverse” contract change cancellation policy expired in April.  Verizon:

By alerting customers in February 2011, and including the notice in our terms and conditions as of February 3, 2011, we made sure customers knew we began reserving the right to implement Network Optimization practices.  In February 2011, we began alerting customers:

• Data Management – (note: now named “Network Optimization” to more accurately describe the tools) – Verizon Wireless may reduce data throughput speeds in a given bill cycle for customers who use an extraordinary amount of data and fall within the top 5% of data users.  The reduction will only apply to those using congested cell sites and can last for the remainder of the current and immediately following billing cycle.  The reductions will only apply when appropriate in locations and at times of peak demand.
• Data Optimization – (note: now named “Video Optimization” to more accurately describe its function) – Verizon Wireless is implementing optimization and transcoding technologies in its network to transmit data files in a more efficient manner to allow available network capacity to benefit the greatest number of users, and although unlikely, the process may minimally impact the appearance of the file as displayed on the mobile device.

Interestingly, AT&T’s own speed throttle penalty was estimated to kick in after 4GB of usage, not the 2GB Verizon is using as its benchmark for “network optimization.”  Verizon also says customers with their Mobile Hotspot feature will find that usage exempted from counting towards the 2GB threshold.

Verizon has opened up a new web page explaining the throttling policy.

[Thanks to Stop the Cap! reader Mileena, among many others, who shared the news with us.]