Suddenlink to Charge Users More to Avoid Usage Caps Joining Comcast and now AT&T, Suddenlink will soon be charging its broadband customers a premium if they want to avoid the company's usage caps. Stop the Cap states that Suddenlink residential broadband customers will now "qualify" for unlimited broadband if they subscribe to either of Suddenlink’s two fastest Internet plans in any respective market. In most Suddenlink markets that means signing up for either the ISP's 100 or 200 Mbps tiers, or in gigabit areas either its 200 Mbps or gigabit tiers.

But the honor of enjoying unlimited data will come at a price and with a catch. One, users on those tiers will need to call Suddenlink if they want unlimited data. Two, the unlimited option will only be free for the first year of a contract. In the second year the option will cost users an additional $5 a month. After that, users will pay $10 a month extra. While that's certainly better than the $30 to $35 now being charged by AT&T and Comcast for unlimited data, it doesn't really negate the fact that usage caps on fixed-line networks shouldn't exist in the first place. Usage caps are a price hike on uncompetitive markets, with the added bonus for ISPs of protecting TV revenue from Internet video. Suddenlink began imposing usage caps and charging overage fees back in 2012, but had to temporarily suspend the effort after numerous customers complained about being billed for usage when their modem was off or they weren't at home. Suddenlink resumed overage fees in 2013, though consumers have sporadically continued to complain that their router's usage doesn't match Suddenlink's own meters. Suddenlink's current caps range from 250 GB to 550 GB, depending on speed. Users pay $10 per 50 GB over the cap they travel. "Data plans are one step among several that help us continue delivering a quality Internet experience for our customers," insists the company's FAQ. Of course if you're a regular, you know the "consumer experience" has nothing to do with usage caps. Nor are caps implemented to manage network congestion, a narrative the industry gave up on several years ago. They're implemented for one (well, two) reasons: to raise broadband rates in markets with limited competition, and protect TV revenues from Internet video. They're effectively a cash grab on an uncompetitive service that's getting cheaper than ever to provide, something outgoing Suddenlink CEO Jerry Kent acknowledged quite clearly at an investor conference last fall. “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,” Kent said. “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.” And now, with the industry rush to make unlimited a "premium" option, US broadband customers already paying some of the highest broadband prices in the developed world -- get to pay more than ever. And now, with the industry rush to make unlimited a "premium" option, US broadband customers already paying some of the highest broadband prices in the developed world -- get to pay more than ever.







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Most recommended from 29 comments



kdwycha

join:2003-01-30

Ruskin, FL 15 recommendations kdwycha Member Well... Soon it's time to depart to a country that supports innovation and unlimited Internet and watch from a distance as the corporations turn the US into a third world country.

TestBoy

Premium Member

join:2009-10-13

Irmo, SC 5 recommendations TestBoy Premium Member What about a DDOS? Open wireless? So when I want my neighbour to suffer all I have to do is send him a crapload of data he or she did not ask for so they can get hit with a huge overage?



What will they do? Forgive it? Kick the person off the service?



This isn't like gas, electricity, or water where you have full control of what you use.

Advertisers can screw you with ads..... a perfect stranger can screw you....

The user has almost -no control- over what data is sent down the pipe to them.

Red Hazard

Premium Member

join:2012-07-21

O Fallon, IL 4 recommendations Red Hazard Premium Member Double Whammy Cord cutters already pay higher internet fees for not bundling and now get capped (pun intended) for streaming or pay the ransom.

Jim Kirk

Premium Member

join:2005-12-09

49985 4 recommendations Jim Kirk Premium Member Split them up Yet another reason why cable and telcos should be forced to split their TV and broadband operations.