ISPs Now Forcing Cordcutters to Sign up For TV to Avoid Caps Oregon ISP Bend broadband (see our user reviews) has long been at the forefront of the rush to impose usage caps, and now they're at the forefront of another trend in metered billing: removing caps if users bundle phone and TV services. According to a blog post by the company, Bend is deploying a number of new speed upgrades, including new Ultra 50, Ultra 100 and Ultra 300 Mbps speed tiers. The company is telling users on its Bronze and Silver Internet plans that they should be eligible for a free upgrade later this month.

But another post adds a different wrinkle: Bend says it's removing its current usage caps if you bundle TV and phone service. These caps have historically ranged from 150 to 500 GB. "Customers who subscribe to Bronze or above internet (including Silver, Gold and Platinum) and Essentials or above TV (including Preferred, Preferred Plus and The Works) are no longer limited on data usage and will no longer pay overage fees," says the company. Using usage caps to force customers to retain services they may not want appears to be the latest fashion in the industry, and given caps aren't really necessary on fixed-line networks, it's another way caps can be used anti-competitively in the market. Facing dwindling TV subscribers AT&T recently did something differently, offering to remove caps from its U-Verse broadband service if users bundle DirecTV TV service. "The continued migration of Netflix usage from mailed DVD to Internet streaming/download, as well as other data intensive uses of the Internet, are impacting all providers of high-speed Internet service," Bend claims in a FAQ. "While we certainly acknowledge and appreciate that content rich services like Netflix make our high-speed offering more valuable to the end user, the volume of data associated with this content drives significant incremental investment in the network and the need to purchase more bandwidth in order to maintain the user experience and this must be funded." And here you were thinking that the already high prices for U.S. broadband more than helped fund the modest investment needed to keep pace with Netflix demand. Like most ISPs, Bend doesn't offer any math to support the narrative that growing video consumption makes usage caps necessary -- because it's simply not true. This new tactic is worth remembering when cable subscribers start crowing over the next few quarters about how they're "conquering cord cutting." In reality, they're simply forcing people to take TV services they may not want by pricing broadband and TV much cheaper than broadband alone -- and now by forcing users to subscribe to legacy TV to avoid broadband usage penalties. This new tactic is worth remembering when cable subscribers start crowing over the next few quarters about how they're "conquering cord cutting." In reality, they're simply forcing people to take TV services they may not want by pricing broadband and TV much cheaper than broadband alone -- and now by forcing users to subscribe to legacy TV to avoid broadband usage penalties.







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Most recommended from 100 comments

jorcmg

join:2002-10-24

USA 47 recommendations jorcmg Member I get it That's so amazing that after you pay the cable tv fee then the network is able to handle the unlimited data.



Totally magical.

TechyDad

Premium Member

join:2001-07-13

USA 28 recommendations TechyDad Premium Member Monopoly Abuse How long until this behavior triggers an abuse of monopoly lawsuit? In many cases, these ISPs are the only source of wired, high-speed Internet available in their areas. They are using this monopoly to force people away from competitors - not only streaming/cord-cutting but satellite TV as well. It's not illegal to have a monopoly, but it's illegal to use that monopoly to gain an advantage in a different market where you compete with other people/businesses. (See the Microsoft lawsuit where Microsoft used their desktop OS monopoly to push their web browser and keep people off other web browsers.)

buzz_4_20

join:2003-09-20

Biddeford, ME 25 recommendations buzz_4_20 Member Silly me... I thought that the network was funded by the F**ing money I pay every f**ing month for my internet connection. pandora

Premium Member

join:2001-06-01

Outland 24 recommendations pandora Premium Member Did anyone not see this coming? Cable and content producers aren't going to release the goose laying golden eggs without a fight. margegenever

join:2010-08-19

USA 18 recommendations margegenever Member Aided by lack of competition As long as many consumers have limited choice of ISP (or no choice at all), they will be at the mercy of their ISP.



The solution is to make the "last mile" of cable or fiber to the home a public utility that is shared by multiple ISPs. When the FCC essentially did this for a while with copper phone lines, long distance rates dropped dramatically. Perhaps wireless Internet will one day eliminate the monopolies. Given telecom money and political connections, I have my doubts...

GLEanon

@comcast.net 14 recommendations GLEanon Anon What?! Customers using the services they pay for is impacting the network?! OMG!!! (more extortion on the way)

Gilitar

join:2012-02-01

Mobile, AL 14 recommendations Gilitar Member The FCC should intervene The FCC should squash this practice before it gets going good. By doing this people will be held hostage from cutting the cord. If they want to offer a discount to those who subscribe to TV that's fine, but to cap non TV customers is plain wrong. tvoldtimer

join:2010-09-16

Shawnee, KS ·Google Fiber

8 recommendations tvoldtimer Member Thankful for Google Fiber All the more reason I am so glad I will soon be moving to GF. I can at long last say adios to AT&T and insane rates for slow DSL and POTS telephone. It seems like every month the bill creeps up another couple of dollars, meanwhile the service never gets any better. Say what you will about Google and their motives, but I believe we would not be seeing much improvement by the incumbents without the threat posed by GF.

maartena

Elmo

Premium Member

join:2002-05-10

Orange, CA 4 recommendations maartena Premium Member I'll switch. I have 2 other options which are capless:



DSLExtreme, which is an AT&T U-Verse reseller that resells throughout the entire AT&T U-Verse deployment nationwide, and does NOT enforce any caps.



Sonic.NET, local VDSL provider in California.



Both of them are SLOWER then Charter/TWC, and luckily Charter/TWC will have no caps for 7 years.....

Flyonthwall

@teksavvy.com 3 recommendations Flyonthwall Anon They are lucky they aren't forcing it I'd love to see them try that. I doubt anyone that wants to cut the cord is going to sub back up just to avoid low caps. People are more likely to learn to do without or cut back on internet usage rather than reward poor company behavior. Now I understand why all the write ups about free wifi and why we don't need it anymore, company shills trying to remove the alternatives to usage fees. sandman_1

join:2011-04-23

11111 3 recommendations sandman_1 Member Ridiculous



Why does BendBroadband charge for usage beyond my monthly allowance?

The continued migration of Netflix usage from mailed DVD to Internet streaming/download, as well as other data intensive uses of the Internet, are impacting all providers of high-speed Internet service. While we certainly acknowledge and appreciate that content rich services like Netflix make our high-speed offering more valuable to the end user, the volume of data associated with this content drives significant incremental investment in the network and the need to purchase more bandwidth in order to maintain the user experience and this must be funded. BendBroadband is not funded in any way by Netflix or other content providers. BendBroadband made the decision to implement tiered usage allowances and overage charges based on the principal that not all customers use the same amount of internet usage and should be charged according to their usage patterns. As we see often in the press today there is a growing acceptance that usage based high-speed Internet pricing is required due to the impact of services like Netflix and is ultimately the fairest approach to pricing.



"Netflix doesn't fund us!", what the monthly service fee is just for giggles dumbass?



" As we see often in the press today there is a growing acceptance that usage based high-speed Internet pricing is required due to the impact of services like Netflix and is ultimately the fairest approach to pricing. ". Ohh god...really now? Per their website:Why does BendBroadband charge for usage beyond my monthly allowance?The continued migration of Netflix usage from mailed DVD to Internet streaming/download, as well as other data intensive uses of the Internet, are impacting all providers of high-speed Internet service. While we certainly acknowledge and appreciate that content rich services like Netflix make our high-speed offering more valuable to the end user, the volume of data associated with this content drives significant incremental investment in the network and the need to purchase more bandwidth in order to maintain the user experience and this must be funded. BendBroadband is not funded in any way by Netflix or other content providers. BendBroadband made the decision to implement tiered usage allowances and overage charges based on the principal that not all customers use the same amount of internet usage and should be charged according to their usage patterns. As we see often in the press today there is a growing acceptance that usage based high-speed Internet pricing is required due to the impact of services like Netflix and is ultimately the fairest approach to pricing."Netflix doesn't fund us!", what the monthly service fee is just for giggles dumbass?" As we see often in the press today there is a growing acceptance that usage based high-speed Internet pricing is required due to the impact of services like Netflix and is ultimately the fairest approach to pricing. ". Ohh god...really now?