Spangler

While the mainstream media and some of AT&T’s apologists tell consumers AT&T’s 2 GB monthly usage limit will impact only a handful of “abusers,” the cable trade press is telling its readers the industry insider’s secret — consumers will blow right through those caps.

Todd Spangler, who is an Internet Overcharging advocate and columnist for Multichannel News, a cable industry trade magazine, writes the implications of AT&T’s usage cap couldn’t be clearer to him.

The new iPhone 4, introduced yesterday to the predictable media crush, provides 10 hours of battery life for playing video, among other features.

But now that AT&T has eliminated its all-you-can-eat plan for smartphones, you will blow through the maximum 3G usage for the entry-level 200 MB plan if you watched just 4 minutes of streaming video per day. That would include commercials.

Even AT&T’s more generous DataPro 2-GB plan would allow just 35 minutes per day of streaming video (assuming you used your iPhone for nothing else), according to the carrier’s online data calculator.

Like a stopped watch, at least he’s right twice a day.

Spangler celebrates the opportunity AT&T’s overcharging scheme provides the cable industry to “grease the skids” for data caps and overpriced consumption billing on cable modem service.

In Spangler’s “Cable companies pay my salary”-world-view, it wasn’t that Time Warner Cable did the wrong thing when it tried to triple broadband pricing — to $150 a month — for the exact same level of service customers previously enjoyed.  It was all about its execution.

Spangler characterizes Time Warner Cable CEO Glenn Britt as a victim, burned over the company’s failed overcharging experiment in 2009.  When one plays with matches, is it any surprise there are consequences?

Consumers will respond to more overcharging schemes the same way they did a year before — with overwhelming condemnation and opposition.  It’s hard to convince consumers to pay a higher price for limits on usage while telling shareholders you’ve invested less to expand your network, charged more to access it, all while the costs to provide the service have dropped dramatically.  Consumers call that out for what it is: greed.

Make no mistake, consumers hate usage caps and overpriced consumption billing and Time Warner Cable has no justification to introduce either.

[flv]http://www.phillipdampier.com/video/CNBC ATT Cuts Unlimited Data 6-2-10.flv[/flv]

Normally business-friendly CNBC covers the introduction of the 2 GB usage cap on AT&T smartphone data usage.  Then the CNBC anchor got skeptical about AT&T’s claims this was good news for consumers, admitting she hates overcharging schemes that deliver a surprise on the bill at the end of the month.  Lance Ulanoff, editor of PC Magazine expressed some doubts himself.  (8 minutes)

Stop the Cap! reader Bones sends word the FCC needs volunteers to help keep America’s broadband providers honest about their speed claims.  But the agency warns heavily usage capped consumers they probably shouldn’t apply, and anyone consuming over 30 GB per month is disqualified.

The FCC SamKnows Broadband Community aims to gather and report statistical data on the performance of America’s broadband providers.  Thus far, most of the earlier speed results being studied by public officials come from data aggregated from voluntary visits to speed test websites.  But the data is subject to considerable variation depending on the speed test site chosen, traffic and capacity issues that only impact the route to the test site, and what else a consumer may doing with their connection during the test.  Many also conduct speed tests when a technical problem is apparent, using the speed test site to verify their suspicions.

The FCC will send 10,000 volunteers a free router that will hook up to one’s broadband connection and quietly test it several times daily.  Comprehensive measurements to be taken include latency, packet loss, DNS query times and failures, web page loading times, as well as the obligatory suite of speed tests.  The testing is done in the background and the results are uploaded to SamKnows for review.  The FCC can use the data from all of the volunteers to identify the true performance of national and regional Internet Service Providers.  Do their speed claims actually match reality?  Do they suffer from congestion problems and at what times of day?

One group of ISPs the agency will have trouble measuring are those that heavily limit their customers’ use.  In fact, the Test My ISP website warns off customers with low data caps because the project is expected to send and receive about 4 gigabytes of data in full over the course of each month. While the program designers felt that much data was so insignificant it would not create a problem, some greedy ISPs out there beg to differ.  With some providers offering usage allowances at 5 or fewer gigabytes per month, the FCC quickly learned it doesn’t want to be responsible for spiking consumer broadband bills with any overlimit fees.

As a result, they’ve asked those usage capped consumers to think twice about applying for the traditional testing program:

Our units download approximately 2GB per month and upload around 2GB. If you’re on a product with a low usage cap then we’d advise against signing up, or at least informing us beforehand so that we can apply a different testing profile.

The FCC also isn’t interested in sending test units to customers they designate as “heavy downloaders”:

We’d classify anything above 30GB per month as being too heavy for us to gather useful results.

With the increasing use of multimedia content and other high bandwidth applications being released to the Internet masses, we beg to differ with the arbitrary definition that 30 GB constitutes “heavy downloading.”  We understand the agency doesn’t want other online usage to create an issue for the accuracy of its speed tests, but they should take better care with their language.  One could use a file backup service and easily consume more then 30 GB uploading and never download more than a gigabyte.

A screenshot of the types of data SamKnows will be collecting and measuring (click to enlarge)

Other restrictions:

• You have a fixed line broadband Internet connection to your residence.  This is not for WISPs, mobile broadband, or other wireless broadband services.
• You use a standalone device to connect to your broadband service – i.e not a USB ADSL modem.
• You have a stable broadband connection (i.e. it doesn’t disconnect frequently). Note that this is just referring to the connection – not the speed.
• You have a spare power socket near your existing router (or wherever you plan to connect the unit. Keep in mind that a network cable must run between the unit and your router though! We supply a 1m cable).
• You need to be on one of the ISPs that we’re measuring.
• You are not an employee or a family member of an employee of one of the ISPs being monitored.

Also, you must agree to the following:

• Not to unplug the unit or your ISP’s router unless I’m away for an extended period of time.
• Not attempt to reverse engineer or alter the unit.
• To notify Samknows if and when I choose to change ISPs.
• To return the unit to Samknows should I no longer wish to be involved (Samknows to pay reasonable postage costs).
• To connect the unit in the way described in the documentation.
• To keep Samknows updated with valid contact details (i.e. email and postal address).

SamKnows is a British company hired by the FCC to conduct the speed test project.  SamKnows is already familiar to British broadband consumers for its comprehensive broadband availability checker showing all of the broadband choices available based on the address where service is to be installed.

The company also reports on broadband news, mostly impacting Europe.

And before the paranoid start suggesting this is Obama’s Internet Spy Box, SamKnows offers this:

However, the unit simply acts as a standard switch or standard router and does not look at any of the packets flowing across your network. It only monitors traffic volumes for the purposes of deciding when to run (or not to run!) the tests and to measure consumption.

Testing information uploaded from the unit to our servers contains no information about you whatsoever. Furthermore, all such communications are encrypted, ensuring that results cannot be tampered with en-route.

Your individual unit’s test results will be available to you alone. Your unit’s results will also be aggregated with others from the same ISP to form a larger average set of results that can be viewed publicly.

We have absolutely no intention of doing anything that may adversely affect your privacy or security.

[flv width=”512″ height=”308″]http://www.phillipdampier.com/video/ITN News Ofcom report says broadband is not up to speed 7-28-09.flv[/flv]

The implications for the FCC’s national speed test program could mimic Great Britain’s, where providers were held to account for wide variations between speeds promised and those actually delivered.  Meaningful broadband reform in the States could include a requirement that providers’ marketing claims be provable, compelling at least some to perform competitive upgrades instead of delivering broken promises.  This ITN News report from last summer illustrates what happened when UK provider speed claims were put to the test.  (3 minutes)

Walt Mossberg (left) discusses the current state of American broadband with FCC Chairman Julius Genachowski (right)

FCC Chairman Julius Genachowki told attendees at the D: All Things Digital conference America scores dead last in a study measuring the rate of change in broadband innovation.  American broadband is stuck in neutral while every other ranked nation is moving forward faster in understanding the importance of deploying fast, reliable, and universal broadband.  Genachowski directly ties broadband to improving local economies, propelling growth in jobs, and improving education and health care.

Unfortunately the American duopoly most Americans cope with maintains a stranglehold on efforts to bring America literally up to speed with competing nations.  Worse, there is no end in sight as long as America relies entirely on incumbent providers to get the job done.

Americans pay some of the highest prices in the world for mediocre broadband, and it’s only getting worse with the introduction of usage limiting schemes like data caps and so-called consumption billing.

Genachowski is attempting to facilitate improved broadband across the United States, but is hampered by private industry undermining the FCC’s authority to help push improvements forward.  Recent industry-driven court challenges to the FCC’s authority have led to the agency seeking a different path to regain its regulatory footing.

The FCC chairman sees the biggest challenges coming in wireless broadband, where a spectrum shortage is limiting potential capacity and available bandwidth.  Genachowski seeks an accommodation with the nation’s television stations to relinquish UHF spectrum where possible to bolster wireless networks.

Conference host Walt Mossberg challenged Genachowski on why more isn’t getting done and why accepting the current state of the marketplace is acceptable.  He also criticized providers for charging high prices for slow service and attacked Comcast for its set top box, claiming if there was an open market for these things, no one would buy it, that it would be the worst thing on the shelf.

[flv width=”512″ height=”308″]http://www.phillipdampier.com/video/All Things Digital Genachowski 6-2-10.flv[/flv]

Excerpts from FCC Chairman Julius Genachowski’s visit with Walt Mossberg at the June 2nd D: All Things Digital conference.  (6 minutes)

Apple's iPhone 4

As expected, Steve Jobs introduced America to the new Apple iPhone 4 today at Apple’s Worldwide Developer Conference in San Francisco.  Karl Bode at Broadband Reports did a great summary on what’s new, so I won’t reinvent the wheel:

As everyone had expected, Apple just announced the long-awaited iPhone 4. According to his Jobsness, the phone is 24% thinner than the iPhone 3GS and as expected has a more powerful primary 5MP camera with flash — and a new camera on the front that will be used primarily for video chat. The phone’s stainless steel frame (sandwiched by glass) is being partially used as an antenna, something that may prove helpful for connectivity issues.

Other specs: Dual mics, 802.11n WiFi, GPS, compass, accelerometer, Quad band HSDPA (7.2Mbps), gyroscope (perfect for gaming, insists Jobs). The company says they’ve also improved the device’s battery. It can now handle 7 hours of 3G talk, 6 hours of 3G browsing, 10 hours of Wi-Fi browsing, 10 hours of video, or 40 hours of music. The phone also records HD video (720p at 30fps, insists Steve), and the new flash will stay on during video recording.

Amusingly, Apple ran into network connectivity issues while trying to demonstrate the phone’s higher resolution screen (join the club, Jobs). According to Apple, the phone comes in white or black, with the 16GB version costing $199 and the 32GB version costing $299. The phone will be available on June 24, with pre-orders beginning on June 15.

Karl also notes, as others have confirmed with us, AT&T is so eager to get this new phone into your hands (along with a new two-year contract), they are waiving the usual two-year waiting period before customers can upgrade their phones.  If your contract expires anytime this year, you can obtain the phone at the subsidized price.

But should you?

For many, the iPhone 4 will represent an incremental upgrade, especially if you aren’t a power user.  In this economy, is it worth $200-300 for a new phone and a new service commitment?

The upgrade for current customers, who can keep their unlimited data plan, may make sense -if- you receive tolerable service from AT&T and feel the latest phone would directly benefit you.  You should consider, however, that signing a new contract will lock you into another two year marriage with the company that drove more Americans crazy with bad service, dropped calls, slow data, and irritating customer service than any other.  A divorce will cost you up to $325 per phone. Their 3G coverage isn’t all that, either.

It also gives the company that loves to cap more of your money.

Unfortunately, waiting for the iPhone to arrive at Verizon Wireless is increasingly less likely to be a panacea for AT&T’s Internet Overchargitis.  That’s because AT&T and Verizon are the Mary Had a Little Lamb of big telecom:

Everywhere that AT&T went,
AT&T went, AT&T went,
Everywhere that AT&T went
Verizon was sure to go.

It’s a safe bet that by the time Verizon brings forth the coveted iPhone, it will have an Internet Overcharging scheme matching AT&T’s.

If you are seeking to upgrade to a smartphone, it’s increasingly likely you’ll find a better deal with Sprint or T-Mobile, both of which have no plans for AT&T’s pricing schemes.

The best way to get a company like Verizon or AT&T to pay attention is to avoid their products when they charge too much.  A dramatic reduction in demand for AT&T’s iPhone among new customers, for example, would send a clear message to Wall Street that their love of usage caps is hurting shareholder value in a big way.  They follow the money.  If existing customers hang on to their $30 unlimited plans while other customers head elsewhere to avoid AT&T’s Internet rationing, you’ll see an overnight conversion among many industry players suddenly demanding a return to the unlimited buffet.

Or better yet, how about giving every customer a choice of both types of plans — pay less for limited service or pay today’s prices for unlimited.

[flv width=”636″ height=”380″]http://www.phillipdampier.com/video/Apple – iPhone 4 6-2010.mp4[/flv]

Apple proclaims the arrival of iPhone 4, calling it a revolutionary upgrade.  Apple released this video showcasing iPhone 4’s video capabilities that AT&T has now effectively hobbled with a wireless Internet rationing plan that punishes customers who try to use the phone’s new features.  (6 minutes)

Phillip Dampier

S1209 would have sailed through the North Carolina Senate 39-5 this afternoon had it not been for Sen. Joe Sam Queen who objected to the third reading of the bill.  Senator David Rouzer (R-Johnston, Wayne) also changed his vote from “no” to “yes” which would have ultimately left the count at 40 for and 4 against.  After that, the Senate adjourned and will take up the bill once again on Monday.  What a job well done… for the cable and phone companies.

Brian Bowman reports that none of the Wake County senators opposed the bill or asked that the moratorium be removed.

Out of the entire North Carolina Senate, there are just four good guys?:

Senator Joe Sam Queen (Haywood, Yancy, Avery, Madison, McDowell, Mitchell) [email protected]
Senator Steve Goss (D-Alexander, Ashe, Watauga, Wilkes) [email protected]
Senator James Forrester (R-Gaston, Iredell, Lincoln) [email protected]
Senator John Snow (D-Cherokee, Clay, Graham, Haywood, Jackson, Macon, Swain, Transylvania) [email protected]

Be sure to send all four of these folks your enormous thanks for doing the right thing.  Apparently that is becoming more and more difficult these days.

For those who forgot why this fight matters, here’s a reminder.  Watch it.

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/Martha Abraham, Mars Hill NC.mp4[/flv]

The people in Mars Hill, N.C. cannot afford to forget.

Now let’s talk reality for a moment.  I’ve been involved in legislative battles on issues regarding telecommunications policy all the way back to the late 1980s when I was fighting for home satellite dish-owner rights.  Back then it was a struggle against big cable, too.  It took several tries, but we eventually won that one.  Along the way, a lot of the same legislative trickery involved in S1209 reminded me of similar experiences back then.  We shouldn’t make the same mistake twice.  Let’s take a look:

The revised S1209 establishes a subcommittee to study municipal broadband funding issues while buying the industry a one year reprieve from any other cities or town going their own way.  The members on this fact-finding endeavor are specifically defined:

• A cable service provider.
• A wireless telecommunications service provider.
• A local exchange provider that is not a wireless telecommunications service provider.
• A local exchange provider that is a wireless telecommunications service provider.
• A city that operates a cable system and an electric power system as a public enterprise.
• A city that operates a cable system as a public enterprise and does not operate an electric power system as a public enterprise.
• A city that is a member of a joint agency established under G.S. 160A-462 for the operation of a cable system as a public enterprise.
• The North Carolina League of Municipalities.

Now, can anyone reading tell me who is -not- on the list?  Have you guessed?

-You- are missing from this list!

Everyone else is in the back room — cable and phone companies, cities, and a lobbying group representing cities.  But not one North Carolina consumer who lives with broadband challenges day in and day out has a place at that table.  What do they know anyway?

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/Brooks Townes Weaverville NC.mp4[/flv]

Brooks Townes in Weaverville doesn’t have a seat at the table, either.

How ironic that everyone holding a seat claims their interests coincide with ordinary citizens like you and I.  After all, we’re supposed to be what this fight is all about.  Sometimes, our interests will meet.  Other times, especially when it comes to legislative strategies, they might not.

An Uncomfortable Revelation Caught On An Open Mike

Thanks to WUNC’s Laura Leslie, you can listen yourself as Senator Clodfelter, not realizing his mike was on, tells Senator Blue, “Now I’ll tell you that the … what I call the crazies who circulate around this issue are not going to like this [S1209 revision with a moratorium], but the municipalities are all on board. They negotiated it, they negotiated it so it’s not possible….” Blue asks Clodfelter how long he’s been talking with the groups representing municipalities. Clodfelter’s response: “We’ve been meeting daily — twice daily, so they’re all on board with this precise text.” The recording ends with Clodfelter presumably tapping his mike. Is this thing on? You bet it is. (June 2, 2010) (50 seconds)
You must remain on this page to hear the clip, or you can download the clip and listen later.

We already know what Senator Clodfelter feels about the people who are appalled at yet another embarrassing year of legislators falling all over themselves to do big cable and phone companies another favor.  In his mind, we’re the “crazies” — the indignant citizens fed up with the time, money, and effort not spent building 21st century broadband networks, but instead devising strategies to prevent building them.

Corning has a plant in North Carolina that manufacturers endless miles of fiber optic cable that 40 members of the North Carolina Legislature just said they don’t need.  Send it somewhere else.

Those 40 senators just told citizens — who are still using dial-up Internet access in the Appalachians, or who can’t afford the asking price for service in Spring Creek, or who only get excuses from AT&T why certain homes in Alamance County can have broadband, but they cannot — they really don’t care.  What AT&T, Time Warner Cable, and Embarq wants is much more important.

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/Layten Davis Spring Creek NC.mp4[/flv]

…More important than the needs of folks like those in Spring Creek.

So while they propose to hold a debate over the merits of the free market vs. community’s doing-for-themselves when the free market fails them, countless thousands of North Carolina’s residents go without or are still hearing modem tones as they connect at speeds dozens of times slower than everyone else.

With a legislature hellbent on stalling or stopping projects that ameliorate this serious problem, no wonder North Carolina’s broadband rankings are falling fast.  In 2007, the Census Bureau ranked North Carolina 35th in broadband adoption.  A year later, the state was down to 41st.  At least you can be proud you’re not West Virginia, right?

But then again, there are eight more positions to drop, so there is still room to make things even worse.

Now I ask myself, what could have possibly happened to deliver 40 votes into the hands of big cable and phone company interests.

Could it have been the time honored trick of dividing and conquering the opposition?  For cities who want to deliver service, the threat of “either/or” seemed particularly effective.  Either take our one year moratorium -or- face the ludicrous original legislation that required a community-wide referendum if Mrs. Nickels over on Fairfax Drive needs a new cable installed at her home to get a better picture.  Either way, because certain folks didn’t say no way to either choice, it’s a victory party for Time Warner Cable, with no need to BYOB — they’ll provide it themselves.  Besides, say the bill’s supporters, we’re offering a chance to hear your voice and views on our stall-tactic fact-finding subcommittee.  Senator Clodfelter even thanks you for being reasonable and adult about all this.

AT&T thanks you as well.

Just keep those “crazies” out of the room.

Cable and phone companies get seats, so they can continue to deliver their talking points that don’t actually deliver broadband to any underserved area of North Carolina. Haven’t they said enough already?  As Senator Queen asked, where is the broadband service for my communities?

In the end, the fact finding mission (cough) will deliver a watered-down report that will find its way into the nearest recycling bin.  The cities’ strong views on municipal broadband will be diluted because they’ll have four competing voices from private industry saying the exact opposite.  Besides, after yesterday’s performance in the Senate Finance Committee, does anyone really believe members like Senator Hoyle care what the subcommittee will have to say?  He can just make it up as he goes along, just as he did when supposedly quoting the mayor of Salisbury.

After all the years spent watching negotiations over legislation, allow me to share this one piece of advice — collaborate and compromise with interests that seek to bury you at your own risk.  Big money interests will call you every name in the book for standing and fighting for your principles (and a few legislators too), but if you make it known it’s time for the other side to start compromising — by actually delivering service and charging a reasonable price for it, there wouldn’t have been a need to engage in this battle in the first place.

That’s why this “crazy” website didn’t back down when Time Warner Cable brought its “new and improved” Internet Overcharging scheme to the table after consumers rebelled against the original plan.  The cable company promised a listening tour, to take advice from reasonable consumers, and to modify its plans accordingly.  Some folks played the game on their field — debating numbers back and forth about what an appropriate amount of rape and pillaging of our wallets was tolerable.  Time Warner changed a few numbers and blessed us with a counteroffer that would have only tripled broadband prices for the same level of service.  Couldn’t we be reasonable and take their offer?

We said no and stood by it, even if it meant going down with a fight.  By not backing down, we won the battle knowing full well the war wasn’t actually over yet.  But you can’t win a battle, much less a war, if you surrender and refuse to fight.

In the end, we were right and they were wrong.  We even proved they were never really interested in listening in the first place.

The correct way forward is to remain 100 percent committed to opposing S1209, so long as it stalls, bans, slows, or sets onerous conditions on providing broadband relief.  That means calling every senator between now and Monday and then doing the same in the House.

The three words you need to remember are real simple:

Kill this bill.

If you are spending time negotiating over who gets to sit in what chair on the subcommittee, you are not paying attention.

Kill this bill.

If you are trying to split the difference over how long the moratorium is going to last, you do not understand.

Kill this bill.

If you are trying to extract some extra concessions to reduce the rape and pillaging of your citizens, stand up, take a deep breath, go outside, and then tell the first person you see to call their representatives and tell them to:

Kill this bill.

If you are a consumer, you’re probably already upset.  In a polite, persuasive, and persistent way, tell your elected officials you understand S1209 has been modified thanks to a compromise, but nobody bothered to compromise with you.  You aren’t interested in this bill in any form, and you know that legislator is going to do the right thing and vote no to:

Kill this bill.

If they vote yes, all they’ve managed to kill is your faith in them as your elected representative.  That’s something that can be taken care of at the next election.

Maybe people like me are crazy to dare to presume that our elected officials work first and foremost for “we the people” and not for the phone and cable company.  Maybe it’s nuts to spend so much time and energy fighting legislation that is so obviously written by and for the industry that cuts a check to the first representative willing to put their name on it and introduce it.  We’ve seen the merits of those who tried the same thing last year.  Only one of them is no longer with the state legislature, brought down on ethics charges.  How surprising.  This year’s fight is lead by a retiring senator who will never endure the satisfaction voters might get disconnecting him from the legislature for selling them down Telecom River.  That is not too surprising either.