As Broadband Usage Caps Expand, Nobody Is Checking Whether Usage Meters Are Reliable

from the what-could-possibly-go-wrong dept

Despite the hype surrounding Google Fiber and gigabit connections, vast swaths of the U.S. broadband industry are actually becoming less competitive than ever. As large telcos like Windstream, Frontier, CenturyLink, and Verizon refuse to upgrade aging DSL lines at any scale, they're effectively giving cable providers a growing monopoly over broadband in countless markets. And these companies are quickly rushing to take advantage of this dwindling competition by imposing entirely arbitrary, confusing and unnecessary usage caps and overage fees in these captive markets.

The benefits of these pricey limitations are two fold: they allow cable providers to not only jack up the price of service, but they're an incredible weapon against the looming threat of streaming video competition. Caps and overage fees make using streaming alternatives notably more expensive, helping to protect legacy TV revenues. But cable operators are also exempting their own streaming services from these caps (as Comcast did with the launch of its own, new streaming platform this week), while still penalizing competitors. This kind of behavior is just one of several reasons why net neutrality rules are kind of important.

Oddly though, you'd be hard pressed to find politicians or regulators from either party that give much of a damn that this massive distortion of the level internet playing field is occurring. Which is why, unlike in other sectors, nobody anywhere is verifying whether ISP usage meters are accurate. As a result, there have been countless instances where users say they've been billed for bandwidth despite their modem being off or the power being out. And numerous studies have indicated ISPs routinely abuse this lack of oversight by overcharging for service.

Comcast has, of course, been at the forefront of imposing these usage limitations and overage fees. And unsurprisingly, consumers pretty consistently state that the cable giant -- already world renowned for historically-abysmal customer service -- isn't tracking usage or billing these customers accurately. Users who were billed for usage while away on vacation have had no real ability to challenge Comcast's meter readings. And Ars Technica documented another user this week who says he battled with Comcast for months over errant meter readings before cancelling fixed-line broadband service entirely:

"At one point, Weaver says he left town for three days and had left his wireless router unplugged, though the modem itself was plugged in. After his trip, Comcast's meter showed that he "used 500GB in three days of not even being home and not having a Wi-Fi network running," Weaver said. He then tried disconnecting the modem for three days and found that Comcast's meter finally stopped counting data usage, he said.

"I have been told no less than eight times that I can rest easy if I would just buy the $50 unlimited data plan," he said. "This whole thing reeks of scam."

In short it goes something like this: lobby to keep the broadband industry uncompetitive, use that lack of competition to impose arbitrary and unnecessary limits that hinder competitors, then charge users $50 more per month if they want to enjoy the same, unlimited connection they used to enjoy. It is a scam, but again, you'd be hard pressed to find absolutely anybody in government that gives much of a damn, despite the ploy's negative impact on competition and the health of the internet. What a wonderful time to dismantle some of the only rules we have protecting consumers from this kind of behavior, don't you think?

Filed Under: accuracy, broadband, broadband caps, competition, data caps, meters
Companies: comcast

Senator Wyden Proposes Bill That Would Protect Users From Bogus Data Caps

from the would-be-useful dept

As this paper documents, data caps, especially on wireline networks, are hardly a necessity. Rather, they are motivated by a desire to further increase revenues from existing subscribers and protect legacy services such as cable television from competing Internet services. Although traffic on U.S. broadband networks is increasing at a steady rate, the costs to provide broadband service are also declining, including the cost of Internet connectivity or IP transit as well as equipment and other operational costs. The result is that broadband is an incredibly profitable business, particularly for cable ISPs. Tiered pricing and data caps have also become a cash cow for the two largest mobile providers, Verizon and AT&T, who already were making impressive margins on their mobile data service before abandoning unlimited plans.

An analogy to rush hour traffic is useful here. Rush hour delays are generally caused by a spike in simultaneous demand for road access. Local governments often respond to this traffic congestion by instituting carpool lanes during certain hours, or introducing variable peak pricing for tolls, where prices are higher during the traditional workday commute than at other times. Both of these examples are methods to reduce demand during the time it is highest. It would make little sense to try and limit the total miles residents drive in a month as a means to solve rush hour congestion. Such monthly mile limits would needlessly impact residents who drive when the road is empty late at night and do not contribute to traffic congestion. Yet this is logic being employed when instituting monthly data caps.Monthly data caps are a tool that decreases consumption at all hours of the day.

The best way to resolve chronic network congestion in the long term is to invest and expand capacity. Yet, a review of the publicly available financial document for some of the largest ISPs in the country shows a decline in capital expenditures—the costs associated with building, upgrading and maintaining a network, such as construction, repairs, and equipment purchases—for their wireline networks.Many ISPs are spending less money on capital expenditures now, both as a ratio to revenue but also even in raw dollars,than they have in years past.

1. Require tools be available for users to really measure and manage their broadband usage
2. Have the FCC establish standards for ISPs to make sure that they only use data caps to manage network congestion, rather than as a way to "monetize data in ways that undermine innovation."

SMART DATA CAPS INSTEAD OF DUMB ONES.—The Commission shall evaluate a data cap proposed by an Internet service provider to determine whether the data cap functions to reasonably limit network congestion in a manner that does not unnecessarily discourage use of the Internet.

DISCRIMINATION OF CONTENT.—A covered Internet service provider may not, for purposes of measuring data usage or otherwise, provide preferential treatment of data that is based on the source or the content of the data.

Filed Under: broadband, data caps, meters, net neutrality, protection, ron wyden

Time Warner Cable Is Ready For A 'Conversation' About Rising Costs, But Not The One You Want To Have

from the choose-your-friends dept

Filed Under: cable, caps, costs, meters, tv
Companies: time warner cable

If AT&T Puts A Meter On Your Broadband, But That Meter Is Grossly Inaccurate, Is That Meter Really There?

from the questions-to-ponder dept

Filed Under: broadband, meters
Companies: at&t