Verizon Wireless has a problem with customers who look for the cheapest possible plans for their most capable phones.  Those days are over, as the company introduces ‘mandatory’ data plans for customers using what they define as “enhanced multimedia phones.”

Going forward, phones that meet these four qualifications will be defined as such:

Enhanced Multimedia Phone

1. “Enhanced” HTML Browser
2. REV A
3. Launched on of after September 8, 2009
4. QWERTY keyboard

The first phone to achieve this distinction is the Samsung Rogue, due for release on September 9th.

Customers who try to purchase this, or other phones that “qualify” for this status will be required to choose either a service plan that already bundles “unlimited data” (defined as 5GB per month), or choose from one of these mandatory add-on plans:

A-la-carte data – No usage allowance — $1.99/megabyte
25 megabytes per month — $9.99/month
75 megabytes per month — $19.99/month

The one option not available to customers is a block on all data services, to prevent any billing at any of these prices.

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Verizon Wireless' Data Pricing "Refresh" (Courtesy: Boy Genius Report)

What will also no longer be an option is the $15 VCAST Vpak add-on, providing streaming video and includes unlimited data.  Customers signing up for VCAST Vpak before September 8th will be grandfathered in and be able to keep this add-on.  After September 8th, customers will find a $10 VCAST Video on Demand package on offer instead.  It provides unlimited video access, but no data allowance.  Customers will have to buy one of the add-on plans mentioned above.

Verizon Wireless’ internal marketing slides, leaked to The Boy Genius Report, speak to Verizon’s motivation for making these changes — money.  One slide notes that “over 60% of new activations would require a data plan next year” if the customer wanted access to both data and video on their new phone.  Additionally, the change “alleviates HTML capable handset subsidy pressures,” which essentially means they will be able to sell a more advances handset for less money, knowing they’ll make up the difference with a mandatory data plan charged over the life of a two year contract.

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Marketing Slide Shows Verizon Pushing Customers to Unlimited Data Option as a Better Value

Verizon defends the changes by noting prior to the mandatory data plans, customers who used their browser-capable phones had to either pay the $1.99/megabyte a-la-carte rate, choose a premium unlimited data plan, or get VCAST Vpak.  The company feels the 25 and 75 megabyte options may work for customers with light usage, but enough that would bring their data usage over five megabytes per month ($10 on the a-la-carte option).

Realistically, this is another example of a data provider providing consumption billing options at ever-greater pricing.  With the loss of the VCAST Vpak option, consumers are now pushed into more expensive options, and will likely be heavily marketed bundled services that include data, just to avoid the pricey mandatory 25/75 megabyte add-ons.

Customers should anticipate marketing of bundled plans and little, if any, mention of the “a-la-carte” option that does not add a monthly fee to the customer’s bill.  Indeed, the slides obtained from BGR don’t show the a-la-carte option at all on the “Choosing the best plan” slide.  Instead, it pushes customers to the unlimited data option “for just one penny more” for customers choosing the popular second level Verizon Wireless Select plan (with the data plan add-on), which includes 900 talk minutes.

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Verizon Select's Popular 900 Minute Option, Before the $9.99+ data add-on becomes effective.

Some Verizon Wireless customers relive better days, as they remain grandfathered on truly unlimited data plans chosen before the era of usage caps.  It’s just additional evidence that when usage capped broadband hits the scene, it’s only a matter of time before prices increase, and the usage cap allowances decrease.

Open Media Boston's creative reinterpretation of Comcast's logo

In August 2008, Comcast formally announced a 250GB monthly usage limit on their residential broadband customers, promising them that despite the fact only “the top 1% of customers would be considered excessive users,” a usage monitoring tool would be made available to customers to make sure they were under the limit imposed by Comcast.

One year later, Open Media Boston notes the usage measurement tool is still not available to customers.

Comcast’s “Excessive Use FAQ” points concerned customers to the McAfee security suite, which includes a bandwidth meter utility, and which Comcast provides for free for subscribers. Unfortunately, the software is only compatible with Windows machines, leaving Linux and Mac users out in the cold. To remedy this, Comcast suggests subscribers do “a search for ‘bandwidth meter,'” and find a meter on their own. This is true, but is akin to asking mobile phone customers to monitor their minutes with a stop watch.

Open Media Boston worries about the accuracy of some of the third party measurement software tools, claiming they are likely to also measure traffic moving between computers within a user’s home (such as backing up files on a network, streaming music on the home network, etc.) making consumers think they’ve already come close to exceeding their monthly limit when such traffic would not be counted by Comcast’s own measurement tool.

The cable company washes its hands of responsibility for third party tools, saying it cannot vouch for any of them.  But they have told Open Media Boston one thing for certain: “Comcast’s determination of each customer account’s data usage is final.”

So where is Comcast’s official tool?  “We have talked about launching a tool. We are committed to launching one. It is in employee testing,” Comcast spokesperson Charlie Douglas told Open Media Boston.

Comcast contacts the most egregious offenders of their 250GB monthly cap by telephone to give them a warning they are way over the limit.  Company officials claim most customers work to reduce their usage after getting such calls.  But should a customer find themselves on Comcast’s bad side a second time within a six month period, their service will be canceled and the company will prevent them from signing up again for service for a one year period.

Netgear’s Rangemax™ Dual Band Wireless-N Gigabit Router – Premium Edition (WNDR3700) will be Netgear’s first router to include usage monitoring capability built-in.

For many consumers asked, “how many gigabytes do you use on your Internet connection each month,” the answer is often a question: “what is a gigabyte?”

Because of efforts of Internet Service Providers to try and implement Internet Overcharging schemes, consumers who have no interest watching a company-provided web page “gas gauge,” will at least be given an independent way of assessing their monthly usage – through the router that often connects a cable or DSL modem to a home computer.

Netgear will introduce a new router this August that will include built-in usage monitoring tools.  The Netgear Rangemax™ Dual Band Wireless-N Gigabit Router – Premium Edition (WNDR3700) will sell for $190, and is targeted to high end users.  Netgear promises to introduce the feature on new router models going forward, eventually becoming a standard feature on every router sold by the company.  Software upgrades will be available to introduce the measurement tool to older equipment already in use.

Usage monitoring tools aren’t actually new.  Replacement “firmware” such as Tomato and DD-WRT, already measures usage, typically with a monthly consumption total.  That makes it much easier than some software measurement tools, which can only measure usage when left running (and only on a single computer).

Similarly, in the realm of website monitoring, the integration of log analysis tools has seen a parallel evolution. While Netgear’s upcoming router brings usage monitoring tools into the spotlight for network management, log analysis tools have long been at the forefront of web administrators’ toolkits. Just as Netgear plans to make usage monitoring a standard feature, log analysis tools have become an indispensable standard for dissecting website traffic patterns and ensuring optimal online performance. These tools offer a comprehensive view of website activity, surpassing the capabilities of basic software measurement tools, and have proven their value as essential assets in maintaining web functionality and security.

Most consumers are not interested in measuring usage, but with the threat of overlimit fees and penalties or service termination, router manufacturers have begun to include measurement tools to help consumers keep track just in case.

Some providers, like Comcast, provide a monthly allowance of 250GB and only actively pursue the top 1% of customers who wildly exceed that.  Others, as have been regularly documented on Stop the Cap!, create very low limits, and then overcharge consumers with penalty fees when they exceed them.  Time Warner Cable met extremely hostile opposition to their roundly-attacked “tier experiment” in April, and quickly shelved the proposal until a company “education” campaign can be run.  The importance of checking usage will vary depending on how draconian of a limit one’s provider sets for its customers.

Netgear’s announcement can be read both positively and negatively.  It’s positive because it allows customers to independently measure their monthly usage and expose any providers who “play with the numbers” and overbill customers for usage never consumed.  It’s negative because it plays into industry arguments that measurement tools are a necessary element to conduct business, and helps establish a foundation to implement Internet Overcharging schemes.  Critics call such schemes unnecessary, considering the highly profitable returns providers enjoy at current pricing.

Cisco Systems, which owns Linksys, another major router manufacturer, is also considering bandwidth measurement tools for its router line in the future.

CRTC Review of the Internet Traffic Management Practices of Internet Service Providers

July 6 — July 14, 2009
Conference Centre – Outaouais Room
140, Promenade du Portage
Gatineau, Province du Québec
Canada

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The CRTC hearings are being held to establish guidelines on practices that internet service providers use to manage traffic and congestion on their networks.  Among the issues under consideration: reducing the speeds of certain Internet applications such as peer-to-peer traffic, establishing usage allowances and/or limits on usage, and whether such practices potentially favor existing providers by protecting their other businesses from competition.

Hearing Transcripts

The official written transcripts of the CRTC hearing proceedings, primarily in English, released by the Canadian Radio-television Telecommunications Commission.

July 6, 2009 — CRTC Web Document

July 7, 2009 — CRTC Web Document

July 8, 2009 — CRTC Web Document

July 9, 2009 — CRTC Web Document

July 10, 2009 — CRTC Web Document

July 13, 2009 — CRTC Web Document

July 14, 2009 — CRTC Web Document

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Hearing Audio

Unfortunately, audio from the session of July 6 is not available at this time.  Please consult the official written transcripts provided above. Also, hearings in Canada often feature speakers that switch fluidly between English and French when delivering testimony or answering questions. The vast majority of the hearing was conducted in English. On July 13th, there was some extended testimony delivered in French. Some Bell employees flipped back and forth between English and French during their testimony as well. Therefore, for those who are not bilingual, we have included a special audio file recorded from the simultaneous English translation feed on that day.

July 7, 2009

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p style=”text-align: center;”>CRTC Hearing: Day Two – Morning & Afternoon Session — Gatineau, PQ – July 7, 2009 (207 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

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July 8, 2009

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p style=”text-align: center;”>CRTC Hearing: Day Three – Morning Session (Part 1) — Gatineau, PQ – July 8, 2009 (57 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

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p style=”text-align: center;”>CRTC Hearing: Day Three – Morning Session (Part 2) — Gatineau, PQ – July 8, 2009 (42 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

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p style=”text-align: center;”>CRTC Hearing: Day Three – Afternoon Session (Part 3) — Gatineau, PQ – July 8, 2009 (25 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

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p style=”text-align: center;”>CRTC Hearing: Day Three – Afternoon Session (Part 4) — Gatineau, PQ – July 8, 2009 (78 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

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July 9, 2009

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p style=”text-align: center;”>CRTC Hearing: Day Four – Morning Session (Part 1) — Gatineau, PQ – July 9, 2009 (68 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

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p style=”text-align: center;”>CRTC Hearing: Day Four – Morning Session (Part 2) — Gatineau, PQ – July 9, 2009 (56 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

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p style=”text-align: center;”>CRTC Hearing: Day Four – Afternoon Session (Part 3) — Gatineau, PQ – July 9, 2009 (37 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

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p style=”text-align: center;”>CRTC Hearing: Day Four – Afternoon Session (Part 4) — Gatineau, PQ – July 9, 2009 (48 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

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July 10, 2009

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p style=”text-align: center;”>CRTC Hearing: Day Four – Morning Session (Part 1) — Gatineau, PQ – July 10, 2009 (73 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

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p style=”text-align: center;”>CRTC Hearing: Day Four – Morning Session (Part 2) — Gatineau, PQ – July 10, 2009 (41 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

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p style=”text-align: center;”>CRTC Hearing: Day Four – Afternoon Session (Part 3) — Gatineau, PQ – July 10, 2009 (29 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

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July 13, 2009

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p style=”text-align: center;”>CRTC Hearing: Day Five – English Translation Feed — Gatineau, PQ – July 13, 2009 (281 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

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p style=”text-align: center;”>CRTC Hearing: Day Five – Morning Session (Part 1) — Gatineau, PQ – July 13, 2009 (33 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

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p style=”text-align: center;”>CRTC Hearing: Day Five – Morning Session (Part 2) — Gatineau, PQ – July 13, 2009 (91 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

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p style=”text-align: center;”>CRTC Hearing: Day Five – Afternoon Session (Part 3) — Gatineau, PQ – July 13, 2009 (66 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

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p style=”text-align: center;”>CRTC Hearing: Day Five – Afternoon Session (Part 4) — Gatineau, PQ – July 13, 2009 (67 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

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July 14, 2009

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p style=”text-align: center;”>CRTC Hearing: Day Six – Morning & Afternoon Session — Gatineau, PQ – July 14, 2009 (159 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

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Recordings courtesy of: “Bonkers”

Bell's Usage Allowance and Speed Chart (click to enlarge)

Broadband Providers: How Low Can They Go?

When a broadband provider insists on the need to implement Internet Overcharging schemes on their customers to control costs and “manage their network,” it’s a safe bet they’ll also manage to find a way to increase your bill.  Bell, one of Canada’s largest Internet service providers, has reduced usage allowances on some of their popular Internet service plans, in some cases substantially.

Usage Allowances

Essential Plus:  2GB usage allowance (was 20GB)
Performance: 25GB usage allowance (was 60GB) (Bell’s most popular plan) 

Customers can now purchase “Usage Insurance” policies from Bell for “peace of mind” in case they go over plan limits starting at $5/month, which provide additional allowances.

Bell claims the reduction in usage allowances comes with reduced pricing for broadband service, but many customers who forget to purchase “insurance” could be subjected to overlimit penalties of $2-2.50/GB, with a maximum penalty of $30 per month.

Bell customers looking for a place to complain have one less place to do so: Bell pulled the plug Friday on their support forum, popular with thousands of Bell customers looking for support or to share their feelings about Bell service.  The company has remained silent on the reasons for doing so.  No warning or advance notice was given.