Vint Cerf, “Chief Internet Evangelist” for Google’s Public Policy Blog, raised objections and concerns about the broadband industry’s efforts to impose “consumption-based billing” on customers.

Cerf noted plans by several cable operators to test usage caps in an effort to manage their Internet traffic.

“At least one proposal  has surfaced that would charge users by the byte after a certain amount of data has been transmitted during a given period, […] a kind of volume cap, which I do not  find to be a very useful practice,  ” said Cerf.

“Given an arbitrary amount of time, one can transfer arbitrarily large amounts of information,” he said.

Excerpt: “Network management also should be narrowly tailored, with bandwidth constraints aimed essentially at times of actual congestion. In the middle of the night, available capacity may be entirely sufficient, and thus moderating users’ traffic may be unnecessary. Some have suggested metered pricing — charging by the megabyte rather than flat fee plans — as a solution to congestion, and prices could be adjusted at non-peak periods. These kinds of pricing plans, depending on how they are devised or implemented, could end up creating the wrong incentives for consumers to scale back their use of Internet applications over broadband networks.”

To date, the two largest cable broadband providers, Comcast & Time-Warner are already considering moving to a consumption-based billing system, but with no decrease in existing rates.   Instead, customers exceeding those usage caps will find overage charges on their monthly bills.

Several DSL providers, most notably Frontier Communications, have already imposed even more draconian usage caps on their customers; Frontier now limits DSL customers to just 5GB of traffic per month.

NBC has announced plans to stream its National Football League games live online this fall, with exclusive access to extra camera angles and multiple video streams, in near high definition broadband bitrates.   Viewers will also have access to live blogging from NBC sports announcers and game highlights and live statistics. Plus, fans can stay updated on their NFL Game Line picks, making the online experience even more engaging and interactive.

NBC & The National Football League plan to stream pro football this fall, but those with usage capped broadband will probably have to stick with old fashioned TV to watch.

Unfortunately, broadband customers on usage capped services need not apply – the video quality will consume too much bandwidth and will drive many customers well over their monthly caps before the season comes to an end.   So while Verizon FiOS customers will be able to sit back, popcorn in hand, Frontier DSL customers will need to stick to the live blogging, text based web pages,  and hope their favorite game is on local television.

NBC has also warned metered broadband customers to avoid the 2,200 live hours of Olympics coverage starting in the next few days.   It will simply be untenable for a usage capped customer to spend time viewing live coverage without quickly exceeding their usage cap.

It’s just another example of the impact usage caps bring to Americans trying to take advantage of the latest benefits the broadband platform can provide.   Virtually every day, customers will find another application they simply cannot afford to access, all because of unjustified bandwidth limitations.

The NBC logo is a registered trademark of NBC/Universal.   NFL and the NFL shield design are registered trademarks of the National Football League.   Their use does not constitute approval of the content herein.

Viewers may have to stick with TV to watch the Olympics for free.

While the rest of the wired world gets ready to sit back and enjoy Olympics coverage from China, Americans are being told you can have the Olympics online, but you better not have metered broadband access.

When NBC partnered with TVTonic to provide NBC Olympics On The Go,  it had to specifically warn viewers with metered broadband access not to bother.   Streaming high quality video feeds can consume a significant amount of bandwidth, and can easily allow unassuming viewers to win the the gold in the Biggest Bandwidth Overlimit Fee competition.

TVTonic's warning to broadband users to not use the service if they are using a broadband provider with usage caps.

Content providers are starting to wake up to the real threat of the imposition of usage caps across the United States, limiting cable and DSL broadband customers from accessing content that was developed specifically for the broadband platform.

TVTonic is just one of several online services that could effectively be shut out of doing business in the United States because of broadband usage caps.   The company provides access to over 100 broadband Internet TV feeds, many transmitted in “high definition” quality, all of which would bring viewers ever closer to hitting their monthly limit.

Other providers such as Hulu and Joost provide legal access to hundreds of TV series, movies and specials at no charge to viewers.   But with bandwidth usage caps, will you be willing to spend your limited bandwidth watching?

Suspiciously, the “bandwidth crisis” that the industry continues to blame for the imposition of unreasonable usage caps stops at the water’s edge.   Customers in Japan and Korea enjoy broadband connections often a hundred times faster than what is available in the United States, at much lower prices and no restrictive caps.   In fact, outside of North America, nobody has heard of a bandwidth crisis.

While many broadband providers continue to reap handsome profits from their broadband services, demands for higher shareholder returns and struggling quarterly results from their other product lines in a stagnant economy have led many to decide investing in a lobbying scare campaign is a better use of their money.   It’s easier to try and convince Americans they are the problem, and limit service accordingly.

Frontier’s quiet introduction of a ridiculously low 5GB per month usage cap represents a materially adverse change to their contract with customers. While many Frontier DSL customers maintain a month-to-month relationship with the company, with no penalties for terminating service, there are many who signed up for promotions obligated to a term of 12-36 months of service, with steep penalties for cancelling service before the term expires.

If you are a Frontier DSL customer upset about the imposition of the 5GB usage cap, you have several avenues of recourse. Simply find which category of subscriber you are below and follow the instructions to begin the process of challenging this change in service.

Be aware that Frontier’s contract states that subscribers have 30 days to opt out or cancel service after a change in the terms of service has first been announced. Although ISPs should notify you with a letter in your mailbox or a specific e-mail on a subject of this level of importance, to date Frontier has chosen to notify customers through a change on their website, buried in fine print. Their terms and conditions permit this, and that means you only have until August 23, 2008 to complete the process of opting out of this usage cap. If you continue to subscribe after than date without opting out, you are agreeing to continue service under the new contract terms with no further right to opt out by default.

The key that permits you to unlock your contract can be found within the Frontier Residential High-Speed Internet Terms and Conditions:

Our Right To Make Changes

UNLESS OTHERWISE PROHIBITED BY LAW, WE MAY CHANGE PRICES, TERMS AND CONDITIONS AT ANY TIME BY GIVING YOU 30 DAYS NOTICE BY BILL MESSAGE, E-MAIL OR OTHER NOTICE, INCLUDING POSTING NOTICE OF SUCH CHANGES ON THIS WEB SITE, UNLESS THE PRICES, TERMS AND CONDITIONS ARE GUARANTEED BY CONTRACT. YOU ACCEPT THE CHANGES IF YOU USE THE SERVICES AFTER NOTICE IS PROVIDED.

If You Are a Frontier DSL Customer With No Minimum Term Commitment Obligation

1. Call Frontier Residential Customer Service Serving Your Area
2. Tell them you wish to terminate your DSL service because of the imposition of the 5GB usage cap.
3. Get a date certain when your service will expire and arrange for the return of any Frontier property.
4. Arrange for an alternative provider, and make sure to ask about service promotions for new customers.

If You Are a Frontier DSL Customer with a 12/24/36 Month Minimum Term Commitment

1. Gather the following material before calling – A copy of your service contract, a copy of the terms and conditions for opting out of contract changes as shown above, a copy of the Residential Acceptable Use Policy with the language about the 5GB usage cap noting the contract language was changed on July 23, 2008 (it’s at the bottom of the page), a pen and paper to take down names and information.
2. Call Frontier Residential Customer Service (1-800-921-8101). Ask for and write down the name of the representative and extension number, if any.
3. Tell them you are calling to opt out of the July 23, 2008 change to your contract which imposes a usage cap of 5GB per month on your usage. Explain that when you initiated service with Frontier, no such limitation was imposed in your contract, and this usage cap represents a materially adverse revision to your contract. Explain that in accordance with the provision under the Terms & Conditions, section “Our Right to Make Changes,” you are exercising your right to opt out and not accept the change in terms they are imposing, and that you are doing so within the 30-day window permitted by the contract.
4. Under the terms of this contract, Frontier has two options. First, they may accept your opt out request and waive the 5GB usage cap for the remainder of your existing contract. If they do, you are not obligated to follow their usage cap until your term length contract expires. You are obligated to continue service with Frontier for the remainder of your contract because the materially adverse change does not apply to you. If you still elect to cancel, they may impose the early termination fee. Or second, they may refuse to waive the 5GB usage cap, at which point you then have the right to terminate your contract immediately with no imposition of an early cancellation fee. It is an either/or proposition. They cannot unilaterally change the terms of a contract with you unless the contract language specifically permits them to do so (and you agreed to that).
5. Do not be surprised if the low level customer service representative you first speak to is unwilling to accept your opt out request. Do not be surprised if their immediate supervisor is not willing to accept your request either. Customer service representatives may not be empowered to process such a request. Some may even attempt to argue with you about it. If you meet resistance, you should hang up and call the “Executive Office” customer service department at 1-866-819-3932. The Executive Office is empowered to do considerably more to resolve customer complaints.
6. If you are uncertain if your request will be processed in accordance with your conversation, ask for a confirmation in writing that your service will be cancelled with no termination penalty. It also wouldn’t hurt to ask for a mailing address to send a written formal letter opting out of their contract changes so that you cover all the bases. Usually getting the names of the people you are speaking with during your phone call(s) will suffice, however.
7. It is extremely important that in all your dealings with customer service, you remain polite, professional, and persuasive. Never raise your voice, belittle, or demean Frontier or their representatives. In most cases, the person you are speaking with had no involvement in Frontier’s decision to impose usage caps and may not even be familiar with the issue. Attacking them will not get you the results you are looking for. If you meet resistance, thank them for their time and move on up to the next representative or the Executive Office. You should definitely inform them of your reasons for opting out of your contract and clearly and firmly state you will not do business with an Internet provider imposing a usage cap, particularly one that advertises in their own phone directory that their service offers, “unlimited access to the web – NO usage fees, NO toll charges.” (Frontier Rochester White Pages, Blue tabbed section, p.22)

If you encounter difficulties, please feel free to post your story here in our Comments section. You’ll find a link at the top of this article. If you encounter a particularly helpful representative, feel free to give us contact information so that others can follow your successful navigation to a satisfactory outcome. Sometimes one representative will develop a reputation of working with customers while others remain difficult. If others can contact the friendly representative directly, it can speed up the process.

Frontier may also suggest that they are not actively enforcing any usage cap at this time. However, this should not discourage you from exercising your rights to not agree to the changes they have made to their contract language. Just because they are not enforcing it today doesn’t mean they won’t enforce it 60 days from now, at which point your time window to exit your contract will have expired. Explain to the representative that you must insist on following through with your request to opt out because their contract requires you to do so to preserve your rights.

Dave Burstein, reporting for GigaOM, said that two FCC Commissioners were overheard discussing Frontier’s decision to cap its customers at 5GB of usage per month at an FCC hearing in Washington.

The Federal Communications Commission has taken an interest in the broadband industry and reviewing its competitiveness and service, particularly to underserved rural areas. They are also concerned about net neutrality – where large Internet Service Providers can offer preferential treatment to their partners with faster backbone speeds, exemptions from usage caps, and more prominent placement of their content.

Burstein reports, “Frontier in 2007 had capital spending of $315,793 which seems like a lot until you note their Depreciation expense was $374,435. [A] five gigabyte [cap] is so low even a 2002 style network can handle it, but not maintaining the network is going to hurt them and their customers.”