Bright House Networks, a cable company primarily serving Florida and other southeastern states says it has no plans to implement Internet Overcharging schemes like usage caps or consumption billing.  But a company spokesperson went even farther, telling Tampa Bay Online the cable company was not even considering them.

Bright House, which relies on Time Warner Cable’s programming negotiators and sells broadband under the Road Runner brand, was among the only companies in Florida that was willing to go on record stating they were not considering limiting broadband customers.

Other providers were unwilling to follow Bright House’s lead:

• AT&T: “2 percent of our customers were using 20 percent of our bandwidth,” said an AT&T spokesman, so the company slapped 150GB usage limits on DSL customers, 250GB on U-verse customers.  The overlimit fee is $10 for every 50GB extra.
• Verizon Florida: “At this point, we’ve not implemented any usage controls or broadband caps.  We’ll continue to evaluate what’s best to ensure our customers get the highest quality broadband service for the best value,” the company said.  But it also added: “We’re continuing to evaluate usage-based pricing for our wireline broadband customers.”

“Bandwidth caps stifle consumer choice,” said Parul Desai, public policy counsel for Consumer’s Union.  Desai notes customers do not sign up for pricey high-speed FiOS broadband service from companies like Verizon just to read e-mail.  Customers who are willing to pay premium prices for super high speeds certainly don’t want a usage cap devaluing their broadband package.

Comcast, for example, uniformly limits consumption to 250GB per month, even on high speed plans delivering over 50Mbps service.

“It’s like building a rocket that you blow up after it reaches 250 feet into the air,” says Stop the Cap! reader Will in Tampa, who shared the article with us.  “What is the point of having 50 or 100Mbps service from any provider if they slap a limit on it like that.”

Will thinks customers will abandon higher speed packages in droves once they realize they really can’t use them.

“With some of these companies talking about caps around 40GB per month, you can’t even take your connection for a test drive,” he says.  “You might as well stick with basic speeds, just to remind and discourage you from putting yourself over their stupid limits.”

Desai suspects broadband companies will try limiting their customers, if only because they face few competitors consumers can use instead and they have video services to protect.  But she suspects some consumers will either abandon or seriously downgrade their broadband service and find other ways to trade large files and content.

“It’s not inevitable they’re going to succeed,” she told TBO. “People only find value in broadband because of what they can access with it. If more people feel constrained, they’ll start looking for another way.”

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. (click to enlarge)

Apple’s wildly popular iPhone series gets an upgrade in September as the Cupertino, Calif., company prepares to unveil iPhone 5.  Although the new model is not expected to support 4G/LTE networks, significant upgrades are in the works for the next series of phones:

• iPhone 5 will use Apple’s new iOS 5, which means improved messaging and photo sharing;
• An improved 8-megapixel camera, up from the current 5-megapixel one that got mixed reviews on iPhone 4;
• The introduction of the A5 processor, currently used in iPad 2, to provide more power for apps and features;
• An edge-to-edge screen and rounded glass.

The iPhone currently accounts for half of Apple’s revenue and has almost an 18% share of the smartphone market and dropping.

To counter Google’s increasing share of the smartphone market with its Android operating system, Apple also promises to deliver a stripped-down, less powerful budget-priced iPhone series for the developing world.  While prices have not been announced, the new budget phone is likely to be priced at least $100-200 less than western models.

With iPhone 5 also expected to include built-in support for either GSM or CDMA networks, Apple’s newest phone could be released simultaneously by both AT&T and Verizon.

Whether customers will be able to take their phones activated on one carrier to another is another matter, as is whether Sprint, T-Mobile, and smaller carriers will be allowed to sell it.

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/Apple Introduces iPhone 5 6-22-11.flv[/flv]

Even without support for 4G/LTE, iPhone 5 is still likely to generate considerable enthusiasm, especially among would-be Verizon customers waiting for the next version of the phone.  But by then, unlimited data plans will be a dream.  Bloomberg News and WFXT-TV in Boston discuss iPhone 5’s release, and a clip from CNBC’s ‘The Titans’ explains the marketing genius of Apple and its iPhone product line.  (2 minutes)

Verizon is charging customers for text messages sent to mobile broadband devices, even though the devices themselves have no effective way to view the messages.  That allegation is the subject of a class-action lawsuit filed against the wireless carrier by Hagens Berman LLP, a law firm representing consumers who were unfairly billed for text messages from July 28, 2004 to the present.

The lawsuit, originally filed August 4, 2010, in the United States District Court for the District of New Jersey, seeks compensatory damages and an injunction prohibiting Verizon from billing customers for text messages sent to mobile broadband devices.  The law firm sent out a reminder this week for customers either billed in the past or still being billed they still have a chance to join the lawsuit.

Verizon’s mobile broadband devices allow its customers to access the Internet through Verizon’s wireless network. Each device is assigned a unique 10-digit telephone number and therefore, text messages can be sent to the 10 digit number associated with the device. However, according to the lawsuit, the devices have no screens and users have no effective way to view them.

If Verizon billed you for text messages you cannot access in connection with your Verizon Mobile Broadband device, you can request further information or join the case at the firm’s website or by email at [email protected].

Verizon Wireless will end its unlimited data smartphone plan on July 6th, pushing future customers to choose usage tiers priced at $30 for 2GB, $50 for 5GB, or $80 for 10GB.  But existing customers with either 3G or 4G phones can keep their existing unlimited data plans indefinitely, according to leaked Verizon memos.

Droid Life has become information central about the end of unlimited data at Verizon, thanks to some good connections with employees willing to share internal company memos.  They’ve learned Verizon also plans to make some other price adjustments effective July 7th:

Tethering pricing (in addition to your existing data plan, charged separately):

• 2GB — $20/month
• 4GB – $50/month
• 7GB – $70/month
• 12GB – $100/month

Overlimit fee: $10 per gigabyte.

Tablet plan pricing changes: Delete $20-1GB tablet plan, replaced July 7th with a $30-2GB plan.

From a Verizon memo to employees:

Data Pricing Evolution…The Present
Our legacy data pricing structure was designed to address a somewhat different customer need profile than what we are seeing and can expect in the future.

Consider this. Data usage has more than doubled over the last three years. Consumers and business users alike are doing more and more with their mobile devices. The notion of “send and end” has migrated to “managing multiple aspects of one’s lifestyle through mobility.” Whether it’s social media (85%+ of Smartphone users), mobile internet (88%+ of Smartphone users), or email/applications (71%+ of Smartphone users), this usage has one thing in common—dramatically increased demand for data and media consumption.

As a result, we are evolving our approach around how we package our data solutions and pricing to our customers. Coming soon, Verizon Wireless will move from our existing pricing format to a structure designed to allow customers to choose the right data solution that best aligns with their needs.

The Value Benefit Equation…
With the new usage based pricing plans, the vast majority of our customers will be able to enjoy their typical level of data consumption for the same value that they outlay today. Additionally, for those who have greater requirements for data, we will have solutions that they can tailor to their unique needs.

Perhaps more importantly, given our strong desire to continue to provide enhanced capability and value to our customers, the new data pricing will apply to both our 3G AND 4G LTE networks. So in essence, for those customers in our ever and rapidly expanding 4G LTE network coverage footprint, users will gain the benefit of the fastest and most advanced 4G LTE network in the U.S. all for the same usage based value. More speed. More functionality. Same value.

When Verizon first spoke about AT&T ending its unlimited use plans, we noted company officials seemed hesitant to sign on to AT&T’s specific pricing model.  We interpreted that to mean AT&T was being too stingy in Verizon’s eyes.  Stupid us. Instead, Verizon is going to charge $5 more than AT&T for most of its data plans, presumably milking its much-better reputation for service and reliability.

The existing price for Verizon’s unlimited smartphone data plan is $29.99 per month.  After July 7th, one penny more buys you only 2GB on Verizon’s network.

Customers can lock in unlimited data if they sign up for service before the end of the day on July 6th.  All existing customers who want to keep their unlimited data plan can, apparently even when changing phones, for the foreseeable future.  But nothing is forever with AT&T or Verizon.  We suspect “forever” will expire when average smartphone data usage approaches the 2GB limit their future $30 plan will feature.  Currently, the vast majority of smartphone users consume less than 750MB of data per month.

Vincent, one of our regular Stop the Cap! readers sent along a link to a story about the decrepit state of American broadband: it’s a real mess for those who can’t get it, can’t get enough of it, and compare it against what other people abroad are getting.

Cracked delivers the top five reasons why American broadband sucks.  Be sure and read their take (adult language), but we have some thoughts of our own to share:

#5 Some of Us Just Plain Can’t Get It

Large sections of the prairie states, the mountain states, and the desert states can’t get broadband no matter how much they want it.  That’s because they are a hundred miles or more from the nearest cable system and depend on the phone companies — especially AT&T, Frontier, CenturyLink, and Windstream to deliver basic DSL.  AT&T is trying as hard as possible to win the right to abandon rural America altogether with the elimination of their basic service obligation.  Verizon has sold off some of their most rural territories, including the entire states of Hawaii, New Hampshire, Maine, Vermont, and West Virginia.  CenturyLink has absorbed Qwest in the least populated part of America — the mountain and desert west.

Frontier and Windstream are betting their business models on rural DSL, and while some are grateful to have anything resembling broadband, neither company earns spectacular customer ratings.

So long as rural broadband is not an instant profit winner for the phone companies selling it, rural America will remain dependent on dial-up or [shudder] satellite fraudband.

#4 Often There are No Real Options for Service (and No Competition)

Cracked has discovered the wonderfully inaccurate world of broadband mapping, where the map shows you have plentiful broadband all around, but phone calls to the providers on the list bring nothing but gales of laughter.  As if you are getting service at your house.  Ever.  Stop the Cap! hears regularly from the broadband-deprived, some who have had to be more innovative than the local phone company ever was looking for ways to get service.  Some have paid to bury their own phone cable to get DSL the phone company was reluctant to install, others have created super-powered Wi-Fi networks to share a neighbor’s connection.  The rest live with broadband envy, watching for any glimpse of phone trucks running new wires up and down the road.

Competition is a concept foreign to most Americans confronted with one cable company and one phone company charging around the same price for service.  The most aggressive competition comes when a community broadband provider throws a monkey wrench into the duopoly.  Magically, rate hikes are few and fleeting and speeds are suddenly much better.  Hmmm.

#3 Those Who Have Access Still Lag Behind the Rest of the World

We're #35!

This is an unnerving problem, especially when countries like Lithuania are now kicking the United States into the broadband corner.  You wouldn’t believe we’re that bad off listening to providers, who talk about the innovative and robust broadband economy — the one that is independent of their lousy service.  In fact, the biggest impediment to more innovation may be those same providers.  Some have an insatiable appetite for money — money from you, money from content producers, money from taxpayers, more money from you, and by the way there better be a big fat check from Netflix in the mail this week for using our pipes!

Where is the real innovation?  Community providers like Greenlight, Fibrant, and EPB that deliver their respective communities kick-butt broadband — service other providers would like to shut down at all costs.  Not every commercial provider is an innovation vacuum.  Verizon FiOS and Google’s new Gigabit fiber network in Kansas City represent innovation through investment.  Unfortunately Wall Street doesn’t approve.

Still not convinced?  Visit Japan or Korea and then tell us how American broadband resembles NetZero or AOL dial-up in comparison.

#2 Bad Internet = Shi**y Economy

The demagoguery of corporate-financed dollar-a-holler groups like “FreedomWorks” and “Americans for Prosperity” is without bounds.  Whether it was attacking broadband stimulus funding, community broadband endeavors, or Net Neutrality, these provider shills turned broadband expansion into something as worthwhile as a welfare benefit for Cadillac drivers.  Why are we spending precious tax dollars on Internet access so people can steal movies and download porn they asked.  Why are we letting communities solve their own broadband problems building their own networks when it should be commercial providers being the final arbiter of who deserves access and who does not?  Net Neutrality?  Why that’s a socialist government takeover, it surely is.

It’s like watching railroad robber barons finance protest movements against public road construction.  We can’t have free roads paved by the government unfairly competing with monopoly railway companies, can we?  That’s anti-American!

The cost of inadequate broadband in an economy that has jettisoned manufacturing jobs to Mexico and the Far East is greater than we realize.  Will America sacrifice its leadership in the Internet economy to China the same way we did with our textile, electronics, appliances, furniture, and housewares industries?  China, Japan and Korea are building fiber optic broadband networks for their citizens and businesses.  We’re still trying to figure out how to wire West Virginia for 3Mbps DSL.

#1 At This Point, Internet Access is Kind of a Necessity

The United Nations this week declared the Internet to be a basic human right.  Conservatives scoffed at that, ridiculing the declaration for a variety of reasons ranging from disgust over any body that admits Hugo Chavez, to the lack of a similar declaration for gun ownership, and the usual interpretation of broadband as a high tech play-toy.  Some folks probably thought the same way about the telephone and electricity around 1911.

Yes, the Internet can be frivolous, but then so can a phone call.  Cursed by the U.S. Post Office for destroying their first class mail business, by telephone directory publishers, and those bill payment envelope manufacturers, the Internet does have its detractors.  But should we go back to picking out commemorative stamps at the post office?  Your local phone and cable company sure doesn’t think so.  We don’t either.