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Public Knowledge Asks FCC to Investigate Comcast’s Unfairly-Applied Usage Caps

Public Knowledge, a public interest, pro-consumer group, has filed a petition calling on the Federal Communications Commission to enforce conditions imposed on the Comcast/NBC-Universal merger dealing with Comcast’s usage caps policy.

The group wants the FCC to investigate the legality of Comcast’s decision to exempt its own online video service from the usage caps Comcast is reintroducing on its broadband customers:

In evaluating the merger, both the FCC and the Department of Justice recognized that a combined Comcast/NBC-Universal would have an enhanced motive to discriminate against unaffiliated online video services that might compete with Comcast’s pay-TV cable service.  Because Comcast controls their subscribers’ connection to the internet, and subscribers could use that very connection to access video services  not controlled by Comcast, Comcast has the ability to manipulate those internet connections in a way that would disadvantage video competitors.

Specifically, Public Knowledge accuses Comcast of violating FCC condition G.1.a.:

“Neither Comcast nor C-NBCU shall engage in unfair methods of competition or unfair or deceptive acts or practices, the purpose or effect of which is to hinder significantly or prevent any MVPD or OVD from providing Video Programming online to subscribers or customers.”

The group argues that unfairly applied usage caps impact Comcast’s online video competitors. Customers will choose the service that does not eat away at their monthly broadband usage allowance, making competitors operate on an unfair playing ground.

The group has raised questions about the industry’s movement towards Internet Overcharging schemes like usage caps and speed throttles and has repeatedly requested the FCC question how data allowance levels are developed, evaluated, and evolve over time.

Comcast Brings Back Its Usage Cap… Now With Overlimit Fees for Your Inconvenience

Mr. Greedy has just landed in Nashville and wants another $10 from Comcast customers who blow through their allowance.

Comcast’s temporary withdrawal of its 250GB usage cap did not last long. Although the company rescinded its usage limit in May to consider new options on how to handle “heavy users,” it hinted caps might be back, sometimes accompanied by automatic overlimit fees for customers who exceed their allowance.

Broadband Reports has learned Comcast plans to introduce a new 300GB usage cap on its customers in Nashville with an overlimit fee of $10 for each 50GB a customer runs over their limit.

Comcast customers in Nashville were told in an e-mail message from the company the new usage cap and overlimit fee represented “an evolution” for Comcast’s broadband service.

From Comcast’s website in Nashville:

When you exceed 300 GB of data usage, you will receive an email, an in-browser notice and an additional 50 GB will be automatically allocated. In order for customers to get accustomed to the new data usage management plan, we will be implementing a courtesy period. That means you will not be billed for the first three times you exceed the monthly 300 GB allowance during a 12-month period. Should you exceed the monthly allowance after the courtesy period expires, you will automatically be charged $10 each time we need to provide you with an additional 50 GB of data for usage beyond your plan.

How generous of them.

Customers traveling southeast from the city down Interstate 24 can be in Chattanooga in several hours and experience EPB Fiber — a community broadband provider that provides speeds up to 1,000Mbps and does not have usage caps, nor a “need” to charge customers another $10 whether they exceed their usage cap by 1 or 49 gigabytes.

Comcast’s newest Internet Overcharging scheme takes effect Aug. 1, and currently applies only to Nashville customers. Those who want to give Comcast a piece of their mind about the subject of usage caps can share their feelings by calling Comcast Customer Security Assurance at 1-877-807-6581 to speak with a service representative. Let them know you want no part of Comcast’s unnecessary usage caps and overlimit fees. If EPB and Google Fiber can offer unlimited broadband without any problems, so can Comcast. Let them know how you feel.

Amazon Slaps 50MB Usage Cap on Kindle Browsing Over AT&T’s 3G Network

Phillip Dampier July 24, 2012 AT&T, Consumer News, Data Caps, Wireless Broadband 2 Comments

Amazon.com has quietly introduced a 50 megabyte usage cap on Kindle owners using 3G-equipped models to browse web pages over AT&T’s 3G wireless network. Customers exceeding the limit after July 1 reportedly began receiving this pop-up message on their device:

The Experimental Web Browser is currently only available for some customers outside of the United States and may be limited to 50MB of browsing over 3G per month. This limit does not apply when customers are browsing over Wi-Fi.

The new usage cap does not affect users browsing Amazon.com, Wikipedia, and the Kindle store.

Web browsing on an electronic ink display instinctively has a built-in cap: the limited patience of the user trying to browse websites that were never designed for the Kindle experience.

But some enterprising hackers managed to jailbreak the Kindle device and turn its free 3G connection into a wireless mobile hotspot.

That means Amazon was footing the bill for Kindle owners who have re-purposed the device to provide Internet connectivity to wireless phones, laptops, tablets, and other Wi-Fi enabled devices.

At AT&T’s prices, Amazon decided to pull the plug after 50MB, which is barely enough for a few dozen busy web pages accessed during the month.

Time Warner Cable’s One-Sided Conversation About Usage Caps Continues

Phillip Dampier July 24, 2012 Consumer News, Data Caps, Editorial & Site News 6 Comments

Still not listening

Around the beginning of July, Time Warner Cable invited customers facing the imminent arrival of their 5GB-usage capped “Internet Essentials” plan the opportunity to participate in “conversations” with the cable operator on a special website.

As we near the end of the month, despite readers sending a number of comments to Time Warner about the plan, the company has chosen to publish just one, which has nothing to do with the issue:

Ann McGarity
I am very upset at the loss of channel 9. We were without it before when we had Dish for a while and one of the reasons we returned to TWC was to get it back. Now we have to put up with Maine news and will have no idea about important NH issues. This is very disturbing, particularly in this political season. Can anything be done?

Apparently Time Warner isn’t too interested in what customers have to say, even on a website that was supposed to be all about dialogue.

Suddenlink Executives Join Canada’s Pension Plan to Buy Out the Company

Phillip Dampier July 19, 2012 Consumer News, Suddenlink (see Altice USA) 1 Comment

Suddenly Bought

Well-compensated management at Suddenlink are teaming up with private equity firm BC Partners and the Canada Pension Plan’s CPP Investment Board to buy out Suddenlink Communications in a deal for the $6.6 billion company.

The transaction will leave Suddenlink’s founder and current CEO Jerry Kent in charge and part-owner of the company. Some other members of top management are also participating in the buyout deal.

Suddenlink is currently owned by investment bank Goldman Sachs through its private equity arm, Quadrangle Group LLC and Oaktree Capital Management LP.

The buyers will assume $4 billion of Suddenlink’s outstanding debt and BC Partners and CPP Investment Board are taking on $500 million of additional debt to fund the purchase.

Kent

Kent says the deal is designed to infuse additional capital into Suddenlink’s operations, which primarily serve smaller communities in Texas, West Virginia, North Carolina, Oklahoma, Louisiana, Arizona, and Arkansas. Suddenlink launched in 2003 with the acquisition of discarded cable systems originally owned by Cox and Charter Communications. Today the company serves 1.4 million residential customers, making it the seventh largest cable operator in the country.

With Kent remaining in charge, few changes are expected. In 2011, Suddenlink adopted an Internet Overcharging scheme including usage caps and overlimit fees that it is gradually rolling out to all of its customers.

Investors see revenue growth opportunities from Suddenlink, particularly as it further monetizes broadband.

“This represents a unique opportunity to acquire a leading cable operator that has consistently generated industry-leading results,” said André Bourbonnais, who heads private investments for CPPIB.

Kent had been reportedly shopping the cable system around to private-equity firms over the past several months, on the condition he got to remain in charge and early investors could cash out.

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