You Can Now Pay AT&T Extra To Adhere To The Dictionary Definition Of 'Unlimited'

from the pay-me-more-to-avoid-my-nonsense dept

For years, US wireless carriers have had a... somewhat nebulous relationship with the dictionary definition of "unlimited." As in, for the better part of two decades they've sold wireless data plans professing to be "unlimited," then included all manner of heavy handed limitations, often buried in mouse print. Verizon received wrist slaps for this way back in 2007. AT&T recently settled accusations that it lied to consumers about the throttling limitations in the company's "unlimited" plans (impacted consumers got all of $22 for participating in the class action).

None of these penalties were meaningful enough to really change industry behavior. AT&T and Verizon for example now charge more for "unlimited" plans that don't throttle 4K or HD video. And you need to pay more if you want to use your phone and "unlimited data plan" as a mobile hotspot. Sprint at one point even tried throttling all games, music, and movies unless users paid more.

Somehow we normalized paying wireless providers more money just to avoid arbitrary restrictions, then celebrate when they ease off even modestly. For example this week, AT&T announced that users that buy the company's most expensive wireless plan ($85-per-month "Unlimited Elite) will no longer see their connection throttled after a set amount of usage. In short, if you want AT&T to get close to adhering to the dictionary definition of "unlimited," you'll need to pay more:

"AT&T is adding a few more benefits to its $85-per-month top-tier unlimited plan at no added cost. Unlimited Elite subscribers will now truly have access to unlimited high-speed data and will no longer be subject to deprioritization after hitting 100GB of data per month. Customers will also get a bump from 30GB of monthly hotspot data up to 40GB as well as up to 4K video streaming — boosted from a maximum of 1080p. The new plan features will be added automatically for all current subscribers starting this week."

Network management technologies have evolved to the point where well-built modern networks can detect, adapt, and avoid congestion bottlenecks by deprioritizing select traffic with virtually no detection by the end users. So there's no real reason for many of these kinds of arbitrary restrictions to exist, outside of creating a sort of pricing funnel that shovels you to the most expensive plan if you'd simply like your connection to work normally. Yet the press has normalized this sort of thing to the point where outlets applaud a company for charging you more to avoid bizarre restrictions.

AT&T only made this modest concession because a similar plan by T-Mobile pressured it to (read: competition). But as investors inevitably force AT&T, Verizon, and T-Mobile to exploit the reduced competition from the Sprint/T-Mobile merger over the next few years, you'll see more and more nickel-and-diming, less real price competition, and fewer and fewer meaningful concessions. Especially if the government can't be bothered to restore net neutrality or the FCC's authority over telecom providers.

Filed Under: fees, mobile broadband, throttling, truth in advertising, unlimited
Companies: at&t

Despite A Decade Of Complaints, US Wireless Carriers Continue To Abuse The Word 'Unlimited'

from the that-word,-it-does-not-mean-what-you-think-it-means dept

Way back in 2007, Verizon was forced to strike an agreement with the New York State Attorney General for falsely marketing data plans with very obvious limits as "unlimited." For much of the last fifteen years numerous other wireless carriers, like AT&T, have also had their wrists gently slapped for selling "unlimited" wireless service that was anything but. Despite this, there remains no clear indication that the industry has learned much of anything from the punishment and experience. Most of the companies whose wrists were slapped have, unsurprisingly, simply continued on with the behavior.

The latest case in point is Boost Mobile, a prepaid wireless provider that was shoveled over to Dish Network as part of the controversial T-Mobile Sprint merger. For years the company has been selling prepaid "unlimited" data plans that aren't, by any definition of the word, unlimited. In part because once users hit a bandwidth consumption threshold (aka a "limit"), users find their lines slowed to around 2G speeds (somewhere around 128 kbps) for the remainder of the billing period.

No regulators could be bothered to thwart this behavior, so it fell to the wireless industry's self-regulatory organization, The National Advertising Division (NAD), to dole out the wrist slaps this time. The organization last week told Boost that it should stop advertising its data plans as unlimited, after getting complaints from AT&T -- a company that spent a decade falsely advertising its plans as unlimited:

"AT&T had challenged Boost for its “Unlimited Data, Talk & Text” claims, asserting that the prepaid brand’s 4G LTE data plans are throttled to 2G speeds once a monthly data cap is hit. For the “Talk & Text” portion, NAD sided with Boost, saying the company was able to support its message."

Carriers (including AT&T) have historically tried to claim that a connection is still technically "unlimited" if you slow it to substandard speeds, something regulators and the courts haven't agreed with. NAD didn't much like this explanation either, noting that trying to use modern services on the equivalent of a 1998 IDSN line amounts to the same outcome:

"At 2G speeds, many of today's most commonly used applications such as social-media, e-mail with attachments, web browsing on pages with embedded pictures, videos and ads and music may not work at all or will have such significant delays as to be functionally unavailable because the delays will likely cause the applications to time out,” NAD stated in its decision."

Granted NAD's punishments never really carry much weight. As a self-regulatory organization NAD's function is basically to pre-empt tougher, more comprehensive regulatory action on things like false advertising (which are already pretty rare in telecom). So usually what happens is the organization steps in, doles out a few wrist slaps for ads that have already been running for a year or two, leaving little incentive for real reform in an industry long known for its falsehoods. Which is precisely why we keep reading this same story in the press with little substantive change.

Filed Under: false advertising, unlimited
Companies: at&t, boost mobile

Verizon Is Still Abusing The Hell Out Of The Word 'Unlimited'

from the beating-up-the-dictionary dept

Back in 2007, Verizon was forced to strike an agreement with the New York State Attorney General for falsely marketing data plans as "unlimited" when the plans had very clear limits. Thirteen years later and it's not clear the company has learned much of anything.

Verizon's 2020 wireless plans still falsely claim that users get "unlimited" data for a premium price point on top of base surcharges. But you're to ignore that things like HD and 4K streaming cost extra. Or the fact that if you're enrolled in something like Verizon's recent "Unlimited Plus" plan, "unlimited data" is defined as up to 15 GB of usage, after which your connection is throttled for the remainder of the billing cycle. Such surcharges of course don't include additional fees to connect additional devices to this so-called "unlimited" connection, be it your Apple Watch or your tablet.

Verizon recently updated this plan, offering double the data allotment (30 GB) when connected to Verizon's 4G LTE network, while providing "unlimited data" while users are connected to its newer 5G network:

"Unlimited Plus gives customers double the 4G LTE premium data for jetpacks, tablets and laptops, and includes unlimited access to blazing-fast 5G Ultra Wideband speeds when connected on 5G Ultra Wideband devices."

While that superficially sounds nice, Verizon's 5G network is barely available to the vast majority of customers. One recent study found that due to coverage issues with the millimeter wave spectrum Verizon is using for 5G, 5G was available roughly 0.4% of the time even in "launched" markets. The other problem? Verizon's "unlimited" plans continue to include not only a ban on faster HD and 4K streaming (unless you pay more), but all manner of additional surcharges to connect additional devices to your already pricey connection:

"As of late last week, Verizon introduced a new version of its “Unlimited Plus” plan, which attaches to existing wireless plans for an extra $30 a month. Then, if you would like to connect more devices to your plan beyond your phone, you can sign up for an unlimited connected device plan and upgrade to Unlimited Plus for another $10 a month. If you have a tablet or hotspot, Verizon will sell you another unlimited plan for those for an extra $20 a month.

The new “Unlimited Plus” offers unlimited-unlimited 5G and up to 30 GB of “premium” 4G LTE data. So it appears you get double the unlimited data as well as an infinite amount of 5G service which is probably not provided in your area (or if you turn the corner, or go indoors in an area that has the service). But if you are connecting a hotspot, laptop, or tablet to your plan, then Verizon redefines unlimited again, this time to mean up to 50 GB of 5G data (almost not available anywhere) and then you get speed throttled to 3 Mbps for the rest of the billing cycle, but just on those devices."

There's simply no way the majority of normal consumers actually understand what most of this means. And that's of course quite by design. One, the complexity and caveats make it difficult to impossible to compare Verizon's pricing to its competitors. That helps mask the fact that U.S. wireless subscribers pay not only some of the highest prices in the developed world for wireless data, but those connections are some both some of the slowest in the world, and inundated with all kinds of murky restrictions on what you can do with your new connection. How innovative!

The other major benefit is that consumers confused by these plans will generally subscribe to the most expensive plan they can afford to avoid headaches. Basically, Verizon and other U.S. wireless carriers adore making their plans intimidating and confusing because they know you'll pay a premium to avoid bullshit surprises and headaches in the middle of your billing cycle. They're effectively intentionally sowing confusion, then charging you a premium to avoid arbitrary penalties. Like the airlines, banking, and other industries, U.S. policymakers treat reining in this kind of behavior as a non-starter.

Which is why it was surprising that net neutrality rules, which mandated transparency and other base-level restrictions on this kind of stuff, managed to get passed in the first place. But not only did the Trump administration eliminate these hugely popular consumer protections based on bullshit data, they effectively lobotomized the agency's authority over telecom at lobbyist behest. Said lobotomized FCC then rubber stamped the T-Mobile Sprint merger (without even looking at the data or warnings by antitrust experts), ensuring less overall price competition over the next few years.

In short if you're an American who likes paying a lot for mediocre, spotty service delivered on a platter of intentionally confusing options designed to nickel-and-dime you into oblivion, things are looking good for you over the next 3-5 years. Enjoy!

Filed Under: fcc, truth in advertising, unlimited, wireless
Companies: verizon

Canadian Wireless Carrier Rogers 'Surprised' That People Like Unlimited Data Plans

from the surprised-by-the-obvious dept

Despite industry claims, US wireless is painfully mediocre. US consumers pay some of the highest prices for mobile data in the developed world, thanks to regulatory capture and wireless competitors who embrace "competition theater" more than actual price competition. Also contrary to industry claims, these high prices don't necessarily reflect quality; US LTE (4G) speeds are not only among the slowest in the developed world, arbitrary throttling, caps, and other usage restrictions reduce the value of these connections even further.

Up in Canada the problem is even worse, thanks to industry consolidation the US appears poised to replicate. Rogers, historically one of the more embarrassing Canadian telcos on the net neutrality front, has seen its stock drop this week after the company was forced to slash its revenue expectations for this year. The reason? Rogers, under pressure from the public and regulators, was forced to introduce unlimited data plans this year, causing a user exodus from more expensive, metered offerings that sock users with costly per gigabyte surcharges.

Rogers, for its part, was amusingly surprised by the sudden consumer interest in (relatively) straight forward wireless data plans that don't nickel-and-dime users to death:

"Enthusiasm for wireless data plans that don't charge overage fees has forced Rogers Communications Inc. to slash its revenue expectations for this year. Senior executives told analysts Wednesday that they were positively surprised that about one million customers have switched to its unlimited wireless data plans, but acknowledged that has meant less revenue from overage fees generated when consumers surpass the monthly limits."

That Rogers was surprised here speaks volumes about how in touch North American telecom giants are with consumer demand. The company proceeded to note that while it was taking a slight hit this year, the shift toward less confusing, unlimited data plans was a good thing overall for everybody:

"Chief executive Joe Natale said Rogers did an analysis before making the wireless plan change, but was surprised by how quickly consumers gravitated to the new unlimited data offerings.

"That ended up being three times the rate that we had anticipated, which I think is a good thing," Natale said.

He said the switch to unlimited wireless data plans, which began in late June, was the beginning of a "critical and necessary shift" that has three long-term advantages: higher consumer data usage, increased customer satisfaction and lower costs to acquire and retain customers.

"Overage is a big pain point for customers. Rather than continue to perpetuate that complexity, which drives all sorts of ... costs in our organization, we said 'Let's bite the bullet. Let's create a very simple construct. And let's get to the simplicity dividend as quickly as we can.'"

Granted it's worth noting that just like in the States, Rogers' "unlimited" data plans aren't truly unlimited; you'll still hit a usage cap after which your mobile data speeds will be dramatically reduced for the remainder of the billing period. Still, baby steps and all that. That said, Canadian consumers still pay even higher prices for mobile data than users in the US, thanks largely to mindless industry consolidation leading to just three major competitors. It's a trail the US is intent on stumbling down as well despite ample evidence of negative outcomes.

Filed Under: canada, competition, data caps, unlimited
Companies: rogers

Early 5G Plans Show Cell Carriers Haven't Learned Much About Misleading 'Unlimited' Plans

from the ill-communication dept

A little more than 12 years ago, Verizon was forced to strike an agreement with the New York State Attorney General for marketing data plans as "unlimited" when the plans had very clear limits. Carriers have received numerous subsequent wrist slaps for the practice in the decade since, but none of these lessons appear to have gotten through.

Case in point: Verizon recently launched its first ever 5G hotspot for use on the company's barely available 5G network. To use it, you'll need to pony up $650, which is three to four times higher than the cost most pay for a comparable 4G hotspot. From there, you'll need to pay Verizon $85 per month for an "unlimited" 5G data plan, which is roughly $10 more per month than a comparable 4G plan. And of course, this being Verizon, the company's "unlimited" data plan is not really unlimited:

"Verizon said hotspot-only plans "start at $85 a month (plus taxes and fees)." Verizon describes the $85-per-month hotspot plan as "unlimited" when you go through the online checkout process. But the fine print states that customers get 50GB of high-speed 5G data, and 5G speeds are reduced to 3Mbps after that. The plan treats 5G and 4G data separately; it provides 15GB of high-speed 4G data and slows users down to 600kbps after that. Verizon allows 4K video streaming on 5G, while limiting video on the 4G network to 720p."

Oh yeah, that's not confusing at all. And speeds of 600 kbps and 3 Mbps are a pretty far cry from what anybody would consider "next-generation" (technically they don't even meet the FCC's 25 Mbps standard definition of broadband).

Carriers tap dance around criticism by suggesting that the data plan is technically unlimited because your data line will always work -- albeit at reduced speeds. But that long list of caveats is still very clearly "limits" by any modern understanding of the word. Carriers should have simply stopped using the word years ago, but because there was no real penalty outside of a wrist slap for misleading customers as to the limits on these connections, the behavior simply never stopped. Consumers like the simplicity of "unlimited" data. Cell carriers like to pretend they're providing it.

With the erosion of FCC authority and elimination of net neutrality protections, it's likely all of this is going to only get dumber should this looming lawsuit against the FCC go the industry's way (a ruling there is expected pretty much any day now). There's now no real penalty if an ISP wants to dramatically mislead consumers as to restrictions placed on a consumer's line, just as long as they bury a complicated explanation somewhere deep in their TOS. And more than a decade after carriers were first criticized for marketing "unlimited" data plans with very real limits, we appear to have made little to no real progress.

Filed Under: 5g, exaggerations, throttling, unlimited
Companies: verizon