ISPs Now Charging Broadband Users A Steep Premium If They Want To Avoid Usage Caps


#1

I called this a while ago and I wish I was wrong. Its only a matter of time until it hits your ISP. I blame all the wireless carriers here. I can only hope there is a “T-Mobile” option available in the future.

Article:

Thanks to the lack of broadband competition, the ISP push to impose unnecessary and arbitrary usage caps shows no sign of slowing down. Comcast continues to expand its “trial” of usage caps and overage fees, while AT&T has followed suit. And both companies have now started adding a new wrinkle to the mix, charging consumers $30 to $35 more per month if they want to avoid usage caps entirely. That’s right, despite broadband getting cheaper than ever to provide, ISPs are now charging you a massive monthly premium if you want the same unlimited broadband service you enjoyed yesterday.

Now Suddenlink, a US cable operator recently bought by French telecom Altice, is also joining the festivities. The company is now informing customers that they can avoid usage caps if they’re willing to sign a long-term contract. In year one of that contract avoiding usage caps is “free.” In year two it will cost users $5 more a month, and $10 a month after that. Obviously there’s nothing stopping the “hey, don’t cap me” fee from skyrocketing further down the road. The caps and added fees are necessary, Suddenlink insists, to improve the “consumer experience”:
"Data plans are one step among several that help us continue delivering a quality Internet experience for our customers. Other steps include the sizable investments we’ve made and continue making to provide greater downstream and upstream system capacity and more bandwidth per home. Even with those investments, a relatively few customers use a disproportionate amount of data, which can negatively affect the Internet experience of those who use far less. That’s why, as a complement to our network investments, we’ve established data plans."
The particular usage cap “experience” at Suddenlink has been a rocky one for customers. Suddenlink originally imposed usage caps back in 2012, but had to back off the attempt after users complained they were being billed for usage when their modems were off or they weren’t at home (regulators have shown no interest in regulating meter accuracy, so as a result they often aren’t). By 2013 the ISP claimed it had sorted out most of its problems, and now imposes current usage caps that range from 250 GB to 550 GB, depending on speed. Users pay $10 per each 50 GB over the cap they travel.

While Suddenlink’s $10 is better than the $30-$35 being charged by AT&T and Comcast to avoid being capped, the precedent remains problematic all the same. Usage caps simply aren’t necessary on modern, well-managed networks; flat-rate pricing has proven perfectly profitable enough to help fund infrastructure improvements. What usage caps do is protect legacy TV from Internet video, while letting companies charge a captive audience more money for a product whose provisioning costs are dropping. Just ask Suddenlink CEO Jerry Kent, who acknowledged the latter to investors a few years ago:
"I think one of the things people don’t realize [relates to] the question of capital intensity and having to keep spending to keep up with capacity. Those days are basically over, and you are seeing significant free cash flow generated from the cable operators as our capital expenditures continue to come down.”
Kent has since crowed to investors about how usage caps “have become a significant revenue stream for us.” And that’s great for broadband duopolies, but notably less great for consumers already paying some of the highest broadband prices in the developed world. It’s also problematic for the startups, small companies and other innovators that are going to be hurt by the move toward zero rating only the biggest, wealthiest companies from usage caps (yet another layer of new revenue on a service that costs less and less to provide, especially if you’re happily skimping on customer service).

As we’ve noted a few times companies like AT&T and Verizon are giving up on unwanted DSL customers, in turn creating a stronger cable monopoly – one that intends on taking full advantage.

Source: techdirt


#2

T-Mobile isn’t perfect but public perception is on their side.

Their binge-on program is a total disregard of Net Neutrality.

“Pay us as a provider and we will make your data part of our binge-on program!”


The state of ISPs in the states is so bad comparatively to the rest of the developed world it is scary.


#3

Wow. I just signed up for a 250Mbps down, 20Mbps up connection with unlimited bandwidth for $75/mo. Would have been $65/mo for 100/10.

Canadia FTW


#4

You are lucky then, I have had friends tell me horror stories about their places where they live being insane in their charges and speed combinations.

100 a month for things like 3 down .5 up.


#5

Very true. But at the moment they have the best offering when it comes to data. I pay $50/month for my wife’s phone prepaid. She has an iPhone 6s and likes to crush pandora all day long. I bet these companies do come down with these usage caps (luckily mine doesn’t have this implemented…yet) and then someone like Google will swoop in with a “T-Mobile-ish” model with “unlimited” data. I bet it would be something similar to what they do with netflix, siriusxm, spotify…etc. And yes, it is a complete disregard of Net Neutrality. They won’t give a shit until someone sues them. They still have the best business model of them all…no cancellations fees. You can sign up for a plan and finance a phone…cancel them 2 months later and they will unlock the phone for you and you can continue to finance the phone with them even though you just parted ways.


#6

There is only one answer to this and it is impossible. We all just stop using the internet :smile:. Obviously never going to happen, but the only way to show companies they can’t have their cake and eat it too is to simply stop using their products and or services.

Perhaps in Nov-Jan when everyone moves to Canada, Comcast will lose enough business to reverse course?!?!


#7

Wow. That IS a horror story. I’m not going to be able to sleep tonight.
I thought I had it bad right now with 5 down .8 up.


#8

Enjoy your canadian internet…there is a reason why people in canada vpn to use U.S. Netflix.


#9

Hmm… $5/mo for a VPN, or an extra $35/mo for worse internet with unlimited bandwidth…?


#10

wtf you talking about?


#11

In the united states?


#12

Canada, though Bell? B something if I recall right.


#13

the first month I got hit with the data cap overage, I paid over 150 because it’s $10 per 50gb over and I used like 850gb (suddenlink). Now I pay a bunch per month cause it’s a slightly better deal to pay in advance :frowning:


#14

Where do you live @Philspaz? What ISP is it? do they not warn you that you are over the cap? I would lose it on some one over the phone if that was me. lol.


#15

I can still get on with my VPN.


#16

Rogers Cable. Bell is the other major provider.


#17

This really the state of so many businesses. They just want to make more profit on providing the same service they have been providing. A breakthrough will come out to make their product cheaper to produce and they decide to charge the customer more. All they care about is money and it’s one of the breaking points of capitalism. Those check and balances aren’t really working out here for us.


#18

Tyler, TX Suddenlink, they don’t charge you the first two months you go over, we just weren’t paying attention the 3rd month… didn’t make that mistake again :smile:


#19

I would say that people will start to use their phones as Wifi hotspots instead and “cut the cord” with ISP’s then. That will only be possible if you have unlimited data like I do through my work phone.


#20

The shitty part is that even “Unlimited” plans are unlimited until a certain point and then they throttle you.

Check your contracts to make sure.

The prime reason caps exist is to directly punish cord-cutters.