Cable operators have been looking for a way to expand their broadband service to outside the home, and Comcast, Bright House, and Time Warner Cable have found their answer: WiMax technology from Clearwire.  They’ve joined Intel and Google as minority investors, collectively owning 25% of Clearwire, after investing more than $3 billion dollars in the wireless broadband service.  What do they get for the buy-in?  The chance to market Clearwire services to their cable broadband customers for “on-the-go” broadband.

Comcast High-Speed 2go Metro service launched Tuesday in Portland, Oregon providing consumers with portable speed up to 4Mbps in Clearwire’s own 4G network service area.  Comcast customers can sign up for a promotion for $49.95 a month for one year, which includes their wired cable modem service, a Wi-Fi router, and Clearwire wireless service (regular price after the promotion is $72.95 monthly).  Customers can access the service in any Clearwire 4G service area nationwide.  Where Clearwire doesn’t offer service, customers can “roam” on Sprint’s 3G data network nationwide for an additional $20 a month more.  There are no known usage limits at this time.  Existing Comcast broadband customers in Portland can add the Clearwire-based service starting at $30 a month.

The service will work for laptops, but not mobile data devices.  Comcast’s investment in Clearwire made such a venture possible, and is expected to compete with mobile phone broadband data plans, which typically offer 5GB of service for $50 a month.

Comcast will sell service in Atlanta, Chicago and Philadelphia by the end of 2009.

While the service will be useful for Comcast customers who travel or who want more reliable, fast wireless data access, Clearwire’s ability to serve as a true competitor to Comcast, Time Warner Cable, and Bright House may be compromised by those partnerships.

Could Clearwire effectively create promotions and plans that could lead to customers cutting the cord on their cable broadband provider?  Should cable companies increase their investments and ownership interest in Clearwire, would it ultimately matter to them where you obtained service?

The Pacific Technology Alliance claims to be a "grassroots" organization representing consumer interests.

From time to time, Stop the Cap! readers send us news tips based on things they find in their local newspaper or online.  Shaffa in Seattle sent us a link to a letter to the editor in the Seattle Times which seemed to be right up our alley.  The writer, Tom Gurr, executive director of something called the Pacific Technology Alliance, wrote the newspaper advocating the redefining of broadband as “a necessary, transformative element to modern life.”  Gurr advocates widespread deployment of broadband service to all Americans.  So far so good.

We cannot overstate the economic impact, to both the individual and the nation, of building out broadband infrastructure and making it available and accessible to all. But not all Americans have access to broadband, and not all Americans who have access are able to use broadband. Price or concerns about privacy and data security are barriers for some. For these individuals and communities, the degree of “openness” or “neutrality” of the network is irrelevant.

America can universally reap the rewards of broadband through its infrastructure deployment, removal of barriers to adoption and investment in more efficient and cost-effective smart networks needed for tomorrow’s dynamic and ever-evolving applications and content.

Whoops… what was that part about “openness” or “neutrality” of the network being “irrelevant?”

As Stop the Cap! readers already know, Net Neutrality issues can go hand in hand with availability and price, and I have yet to meet anyone who hasn’t pondered how private their information is kept (particularly their credit card numbers used online) and how secure their computers are from external attack from viruses and spyware.

In communities with little competition, speed can fall behind more competitive cities nearby.  Prices are almost always lower when providers do battle to secure and keep customers.  Interfering with a consumer’s broadband service to maximize revenue or protect existing business models is a risky proposition if your biggest competitor doesn’t.  Customers will flee across town to “the other guy” for service.

It seemed odd to advocate for widespread broadband deployment while taking time out to swipe at Net Neutrality.  The closing line of the letter seemed slightly vague as well, so it was time to bring out The Google and figure out where this organization is coming from.

… Continue Reading

From $199 to much more, Apple & AT&T expect premium prices for iPhone addicts.

High demand for a product often carries a premium price to acquire and use it.  The Apple iPhone, one of those few mobile products that can generate lines extending out the door of a retailer, is one such product.  AT&T Mobility, which still holds an exclusive contract with Apple for iPhones in the United States, has made it clear it will not be making any price changes to its wireless data plans with the introduction of the Apple 3G S on June 19.  Speculation about lower pricing started with AT&T Mobility CEO Ralph de le Vega, who spoke at a conference last month indicating he was amenable to “limited data plans for lower fees.”  That message was soon modified into a more generic ‘price cut’ as the story traveled.

“We’ve been very happy with our pricing,” AT&T spokesman Mark Siegel told Dow Jones Newswires.

AT&T already charges a pretty penny for iPhone users on their network.  Customers signing up for service face a minimum voice plan of 450 minutes for $39.99.  An “unlimited” data plan, required for the iPhone, adds $30 per month.  AT&T claims the average iPhone customer spends about $90 per month for voice and data.  The company also reserves the right to crack down on excessive data usage and limits some applications.

Should de le Vega’s tolerance of limited data plans become reality, plans with more specific usage limits may be forthcoming, at a moderately discounted price.

AT&T has had a bad week in the public relations arena, as current iPhone owners continue to object to the full-price upgrade price they may have to pay if they are in a two year contract.  Thousands have signed a Twitter petition and have filled AT&T’s online support forums with complaints about AT&T “price gouging” loyal customers.

AT&T has enjoyed significant revenue from their exclusive arrangement with Apple.  But iPhone users are dedicated to their combination phone and data device, and try to get their money’s worth.  That has put pressure on AT&T’s network, and despite the company’s revenue from its premium priced plans, has been criticized for not keeping up with that demand.

Verizon Wireless, AT&T’s biggest competitor, trashed AT&T’s proposed upgrades as inadequate:

Verizon Wireless CEO Lowell McAdam characterized AT&T’s promises as “too little too late”. He said that AT&T’s “ceiling for their network will be the floor for our network.” McAdam called AT&T’s announcement on its network upgrade old news—about a year old. He also noted AT&T’s promises to upgrade speed are spin.

The Ovation Wireless Modem, used by Broadband2Go from Virgin Mobile

Virgin Mobile, a reseller of the Sprint network, will launch a new nationwide wireless internet service in late June, offering prepaid plans and a USB modem (the Novatel Ovation™ MC760) available for sale exclusively at Best Buy for an anticipated price of $149.99.

Broadband2Go will be marketed as a prepaid wireless mobile Internet service that is capable of supporting Sprint’s EVDO Rev. “A” network, and includes a built-in gauge that shows the amount of usage remaining.

Despite claims that Broadband2Go will provide “lightning fast” speed, it, like every other wireless data service, cannot compete with most wired providers on speed.  It can, however, provide convenient mobility for those who have limited access needs that don’t justify a $60 a month data plan from one of the four big carriers with a two year contract commitment.

Broadband2Go requires no contract or service commitment.  Want to walk away?  Just don’t purchase another refill card.

The cost of convenience is expensive, however.  The pricing for the service is very high, the usage limits low, and the expiration dates on refills short and annoying:

$10 buys you 100MB of access that expires 10 days after activation.
$20 buys you 250MB of access that expires 30 days after activation.
$40 buys you 600MB of access that expires 30 days after activation.
$60 buys you 1GB of access that expires 30 days after activation.
Use it or lose it.  Once the refill expires, your usage ends with it.

Obviously with these limits and prices, confining oneself to web browsing and e-mail is a good idea.  Watching two low resolution movies on the 1GB plan would cost you nearly $30 each.

Cricket provides a wireless data plan without a contract for $40 a month for up to 5GB of usage (they reserve the right to slow down your speed or terminate your account if you exceed that).  Cricket doesn’t have the reach Sprint’s network has, but charges a lower price for the modem and service, proving to be a viable alternative in cities with Cricket network coverage.

Even with the comparably more generous usage allowance Cricket offers, wireless broadband service is best reserved for users who require mobility or those who only require basic access to web pages and e-mail.

Engadget Labs expected a highly competitive shootout among the nation's top four wireless data providers. They found four carriers charging essentially the same thing for the same thing: $60/month for 5GB of usage

One of the frequent myths heard from telecom industry executives is that broadband is a highly competitive marketplace, with lots of choices and a diversity of pricing plans to meet the needs of every subscriber.  That’s why they should be allowed to set whatever pricing, terms and conditions, throttles, caps and tiers they wish — after all, there are plenty of other choices.

Not exactly.

In addition to the duopoly wired broadband marketplace in most cities (one cable company and one telephone company), outside of dial-up or the occasional wi-fi network, there is always wireless Internet provided by mobile phone companies.

Engadget Labs just completed an excellent, comprehensive review of the nation’s primary wireless data providers — AT&T, Sprint, T-Mobile, and Verizon.  They were searching for the answer to the question, “what is the best mobile data provider in America?”  They anticipated a range of service offerings, speeds, and prices.  What the ended up with is a realization that, at least when it comes to prices, it’s as simple as can be.  The nation’s four largest providers all charge the same thing for the same thing: Up to 5GB of usage for $60 per month.  Your actual speeds, overlimit fees, coverage, and promotional sign-up deal may vary.

Sadly for consumers, we can’t compare these options on monthly throughput allowance or monthly rate plans. In a fashion that only a colluder could love, the big four here in America all have matching monthly rate plans with matching monthly caps (5GB). So much for choice, right?

There is also no need for any “experiments” in usage caps on wireless data.  They all offer precisely the same limits.  Why experiment when you can simply match the competition, charge the same price, and sit back and cash the checks?

Contrary to popular belief, all four major US carriers offer capped mobile broadband plans to consumers. In other words, it’s not unlimited. In fact, you’ll only get 5GB of throughput per month before those nasty overage charges start to kick in, so you should go ahead and cast aside those dreams of using an AT&T data stick to replace your in-home cable internet service. We can’t say we like the cap, but that’s just the way things are at present time — hopefully we’ll look back in a year or so and laugh at the preposterousness of plans past.

I wouldn’t hold my breath.  Once a carrier puts a cap on, it can be extremely difficult to get rid of it.  Considering the capacity of wireless providers to expand bandwidth is hampered by spectrum availability and the speed race that seems to be getting a higher priority, controlling usage on your network to make sure customers don’t “abuse it” is paramount for all of these carriers.  Exceed your cap at your financial peril.  Overlimit fees are designed to punish:

• AT&T: $0.49/MB
• Sprint: $0.05/MB
• T-Mobile: $0.20/MB
• Verizon: $0.05/MB

(Verizon & AT&T charge different overlimit fees on lower-priced, lower consumption tier data plans.)

As far as speed goes, even a slow DSL account should be able to perform better than wireless “broadband” data services available today.  Engadget reports these speed results:

• AT&T: 239.01KBps down; 77.95KBps up
• Sprint: 121.27KBps down; 36.94 KBps up
• T-Mobile: 127.33KBps down; 54.05KBps up
• Verizon: 102.9KBps down; 63.22KBps up

Engadget’s summarized points to consider:

• Every major plan runs right at $60 per month for 5GB of throughput.
• Sprint is the only carrier that avoids dinging you with an activation fee.
• AT&T and T-Mobile are the only two with true worldwide roaming support (GSM bands).
• International data roaming is absurdly expensive; you’re infinitely better off just buying a prepaid data card in the country you travel to.
• AT&T offers the most data card options; T-Mobile offers the least (just one).
• Even domestic overage charges are pricey; don’t buy a data card to act as your primary ISP — this stuff is for backup / traveling only.
• Sprint will cut you a $9.99 discount if you bundle a data card in with a phone in a Simply Everything package.