Adam Rice

My life and the world around me

They hate us

I’m starting to believe that American telecommunications companies actively hate their customers.

AT&T Mobility has just announced a change to their terms of service for 3G that basically makes any broadbandy use of it a violation of their TOS. Time Warner Cable has just announced monthly volume caps (these are sometimes called bandwidth caps, but that phrase strikes me as ambiguous), the highest of which will be 40 GB for $55 per month; overages will be priced at $1/GB.

Contrast this with Japan, where for about $35/mo, you can get a service with 47 Mbps downstream and 5 Mbps upstream. At maximum saturation, you’d burn through a 40 GB cap in 19 minutes. TWC’s lowest cap of 5 GB would take less than 3 minutes to burn through. Now, admittedly, nobody in the USA is getting that kind of bandwidth in the first place (I’m getting my carrier’s top level of service, which is about a quarter that speed up and down). And it should go without saying that NTT is not imposing any kind of caps on their service.

But wait, it gets better. Right now, Japan’s leading wireless carrier is field-testing the next generation in mobile broadband, a protocol called LTE (in the US, we call it 4G; over there, they call it 3.9G). This is running at 120 Mbps in their tests, and they plan on doubling that by the time it’s deployed commercially. At that rate, you could burn through a 40 GB cap in less than three minutes. Over the air.

American consumers are getting shafted by their telecommunications providers. Paying a nickel for a text message that costs exactly nothing to deliver is only the start. And let’s set aside spying on their customers for the NSA. With these increasingly restrictive terms of service and tariffs, I get the impression that carriers not only want to limit our expectations, they want to lower them.

I can’t explain the difference in pricing and service between American and Japanese companies, I can only speculate. And my speculations sound like a conspiracy theory.

Over the last ten or so years, we’ve seen Enron used as an inspiration for running the entire economy. A friend who used to be a muckety-muck at a cellphone maker said that telecommunications companies ultimately want to move towards a tithing-based pricing model—where you pay them a certain fraction of your income.

I have to imagine that in the boardrooms of AT&T and TWC, they rub their hands with glee at how they’re finding new ways to screw over their customers, just as Enron traders chortled over “aunt Tillie” sitting in the dark because they had engineered a power outage. That may sound over the top, but there’s definitely something about these companies that makes them want to provide the shittiest service they think they can get away with, not the best that is technologically possible.

And the thing about communications is that there’s really no way to “save up” those bits or bytes. Every second that fiber is dark is a second you can’t get back. Volume caps create an artificial scarcity where none exists.

1 Comment

  1. I saw the news about testing the caps in Austin, and thought about you.

    My old service here in Japan (ODN) did have an *upload* cap, of so many GB over a day or so. If you exceeded the cap so many times, they’d cut off your service. I’ve since dumped them for another service with no cap. :)

    America is fast becoming an Internet backwater in terms of online population and access. Then again, at least you’re not like Australia, where most access is still metered. (And very stingily at that…)

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