Verizon Begins 'Testing' DSL Usage Caps It Refuses To Call Usage Caps

from the tightening-the-noose dept

For years now broadband providers have used a lack of competition to impose all manner of obnoxious additional fees on the backs of broadband consumers. That includes arbitrary and obnoxious usage caps and overage charges, which not only raise rates on captive customers, but quite intentionally make using streaming video competitors more expensive and cumbersome. Once caps are in place, large ISPs often exempt their own content from usage caps while still penalizing streaming competitors (aka zero rating).

ISPs used to claim that such limits were necessary to manage network congestion, but as that argument was increasingly debunked (caps don't actually help manage congestion) they've shifted their justifications to more flimsy alternatives. These days, ISPs usually offer no justification at all, or issue vague declarations that they're simply trying to help users "better understand their consumption habits."

Case in point: Verizon DSL customers in Virginia recently began noticing language on Verizon's website indicating that the company's already expensive (and slow) DSL service will now face ambiguous "usage" limitations depending on the speed of your tier. While caps are now pretty common among cable ISPs, it's the first time Verizon has begun flirting with such limits:

For some context: Verizon has long been trying to get rid of DSL customers it doesn't want to upgrade so it can spend more of its time focused on slinging ads at Millennials via its new Oath (Yahoo and AOL) brand. It has been doing this by either refusing to repair and upgrade these users, or by constantly imposing rate hikes on lines that can't even get close to the FCC's 25 Mbps definition of actual "broadband." Because regulations require they keep servicing these lines (since most were taxpayer subsidized), they've had to engage in more creative methods to drive users off of them.

When I pressed Verizon as to why the company felt the need to impose any "usage" restrictions upon slow, over-priced DSL lines at all, it first informed me that these aren't caps because they aren't being enforced (yet). It then tried to claim that the company was simply trying to help consumers "see their usage":

"We're not applying data caps, overage fees or any sort of restrictions on DSL customers," Verizon claims. "There is a small trial in Virginia of displaying data usage in customer billing. It affects less than 2,000 homes over three remote terminals. But while the customers are shown data allowances of 150-250 GB, none of them are charged if they exceed those amounts."..."We've never had a way for these customers to see their usage," a company spokesman added, stating this is "just a very small trial with that." "Lots of cable companies display broadband data usage to customers even though they don't impose data caps. I'm afraid this isn't as exciting as you think," the spokesperson argued.

But there's simply no legitimate reason for Verizon to even be hinting at usage caps. The company's DSL lines are so slow, the cost of providing the service is largely negligible, and the volume of bandwidth these lines consume are largely irrelevant. And if the company really wanted users to understand their consumption, it could have simply provided an actual usage meter that mirrors the meters you often see on routers or the OS. So why is Verizon doing this?

As ISPs flirt with usage caps, usually they'll first employ "soft caps" (read; intially unenforced) and a usage meter (usually inaccurate) aimed at "educating" users on their monthly bandwidth consumption. This usually warms consumers up to later efforts at hard caps and overage fees (usually around $10 per each additional 50 GB). It's like the boiling frog anecdote: once users are ok with the idea of such restrictions, ISPs can then tighten the noose slowly to further monetize these users -- with less of a backlash if than if you'd simply imposed hard caps from the start.

But in this case Verizon didn't even bother to offer users an actual usage meter showing their usage. I pressed Verizon as to why, if it's simply concerned about consumers understanding their usage, it didn't just provide users with an actual bandwidth meter? Why even use language hinting at usage limits at all? It's at that point the company stopped responding to my inquiries.

Again, Verizon has made it abundantly, repeatedly clear that it doesn't want to keep these DSL users as the company shifts focus. For Verizon, the goal is either to drive them to Verizon Wireless, or to a cable competitor (that in many instances will upsell them to a Verizon Wireless service bundle anyway). The very worst case scenario for Verizon is these users stick around and wind up paying even more money for last-generation DSL. "Educating consumers" is traditionally the very last thing on an ISP exec's mind when a company begins flirting with this kind of language.

It's pretty clear Verizon was experimenting with the idea of caps and simply hoped the limited footprint meant nobody would notice. And with net neutrality now formally slated to expire June 11, there's going to be a lot more "experimentation" where this came from.

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Filed Under: broadband, broadband caps, competition, dsl, usage caps

Companies: verizon