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AT&T Begins a Trial To Cap, Meter Internet Usage

An anonymous reader writes "On the heels of Comcast's decision to implement a 250-GB monthly cap, and Time Warner Cable's exploration of caps and overage fees, DSL Reports notes that AT&T is launching a metered billing trial of their own in Reno, Nevada. According to a filing with the FCC (PDF), AT&T's existing tiers, which range from 768 kbps to 6 Mbps, would see caps ranging from 20 GB to 150 GB per month. Users who exceed those caps would pay an additional $1 per gigabyte, per month."

9 of 421 comments (clear)

  1. Software updates by DataBroker · · Score: 5, Interesting

    How about software updates? I'm just curious if software sellers will be coerced into offering quality software on the original install disks, or mailed updates, instead of just expecting that every user will happily download 1/4 of their monthly cap just to keep software current.

    1. Re:Software updates by hairyfeet · · Score: 5, Interesting

      Actually updates give MSFT a very big boost. The plans here in North AR are 25Gb-$35(DSL) or 36Gb-$45(cable),but in both cases they don't count Windows updates or anything coming from the Microsoft Kb sites,since they would rather you go get the updates. Of course since the cap my trying different distros is pretty much toast,and of course any updates you get from say Ubuntu or Red Hat count against your cap.

      Mark my words,they are ALL going to end up with crappy 20-40Gb caps unless you pay through the nose. Then we'll see how quick sites like Youtube dry up without anyone able to watch the vids. BTW,whatever happened to all that money and tax breaks we gave the telecoms throughout the 90's to upgrade our infrastructure? And what about all those miles and miles of dark fiber that was left after the dotbomb bust of 2K? I have a feeling we are all about to get really screwed.

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  2. Cost effectiveness by cheebie · · Score: 4, Interesting

    So now they will need to monitor the amount of bandwidth you use, set up a database to keep track of it, change their billing software so it can deal with variable billing, and verify that the customer actually paid the (variable) correct amount. All to collect a few bucks from a few customers.

    There's a reason the phone companies go to unlimited calling plans. It means they save big bucks on the hardware and software needed to keep track of your usage. Those systems are not cheap and they eat into the computing power that could be used for routing calls. So instead they jack up your bill by the average amount you would spend, and let you go to town. They still get the money, but they don't have to maintain (as much of) a billing system.

    AT&T will try this for a while, realize it's a losing proposition that annoys their customers, and go back to the way it was.

    (This assumes rational behavior, of course. That is definitely not a given)

    1. Re:Cost effectiveness by mysidia · · Score: 3, Interesting

      Ah, but the software modifications are a one-time cost. And the additional metered usage is a revenue source.

      They may size the caps so everyone exceeds it a little, thus a subtle price increase to pay for it.

      It's not particularly expensive to have software automatically add fees.

      Historically, the manual human work required in usage billing was costly.

      Now the telcos have it down to an art: due to the advent of cell phones.

      Nickel and diming customers for things like $0.10 a text message and $.20 a minute over the monthly minutes is standard fare: they already have software to (in general) handle usage billing.

      Extra usage fees for internet will just be an extension of that.

      $80/month DSL "Includes 100gb of monthly transfer!" (* fine print: $0.10 in overage fees per kilobyte usage over the monthly usage included with your plan)

  3. Upside: Incentive for botnet cleanout. by Ungrounded+Lightning · · Score: 4, Interesting

    One upside to a unilateral application of bandwidth billing by the ISPs: The implications for Botnets and other malware.

      - It provides a financial incentive to users to get their machines cleaned out and keep them that way.
      - It provides an easily measurable cost of the traffic imposed by malware, which can then be used in prosecutions against those who deploy and use it.

    Which brings up other issues:

      - Will AT&T bill for incoming packets? Even those not solicited?
      - If you're charged for all incoming packets how do you STOP somebody's botnet from sending you packets? DDoS attacks could become Distributed Denial of Funds...
      - Will they charge for ICMP packets?
      - How about the packets they use to communicate with and control their modem (which don't even get to the customer's interface)?

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  4. I wonder... by skam240 · · Score: 3, Interesting

    I wonder if I could sue my town or state in so limiting my internet choices through government granted monopoly. Given that all of the major players (who get the government granted monopolies) all seem to be moving towards usage caps it would be nice if it was easier for competitors to enter the market. Particularly with download and upload speeds comparable to cable and without the lag of satellite services.

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  5. speaker wire by epine · · Score: 4, Interesting

    Speaker wire is the reason "unlimited" will never exist in pure form. The same people who purchase $8,000 speaker wires are quite convinced that even if they were capped at 1TB/hour for their holographic porn, it would still be a curly hair shy of the real thing.

    I'd have no problem with capped download if the cap decayed at a sensible exponential rate, the same way that gmail's free storage ticks ever upward. If the cap doubled every two years (corresponding to a 40% annual cost reduction in the cost of carrying traffic, which I'm certain the optical portions of the backbone achieve), then ten years from now, the current monthly cap would have evolved into the daily cap. At that rate, you're already watching a three hour HD movie every day of your life, or multibooting every Linux distro that every existed at the same time onto your 256 core processor.

    Depending on the cost of your speaker wire, this might or might not suffice.

  6. Re:Lack of competition by ritcereal · · Score: 3, Interesting

    Your logic doesn't add up.

    You are for published bandwidth caps that are substantially lower than the 'artificial' unknowns of yesterday? I know I've transfered more than 100GB a month...in fact I've transfered 455 GB this past month have have heard NOTHING from my ISP. (btw thats BYTES not bits, and which do you think the telco's will use?)

    You also say not to whine about bandwidth caps for $30 a month. Well lets think about this. If you can find $4 per mb/sec connectivity from Cogent...so yea lets say $10 per mb/sec for the case that Cogent is ridiculously cheap (*cough* sprint *cough*), and given the fact that I am a relatively heavy user of bandwidth but only am averaging 1.32 mb/sec for the ENTIRE month...and yet I pay $40ish per month and that is WITH a discount today. Yet my telco is paying how much for that 1.32 mb/sec?

    Do some math next time. This is 2008 sir, bandwidth and copper and dark fiber are still plentiful. Bandwidth caps are retarded and ONLY exist to make the telco's rich.

  7. wow. just wow by had3z · · Score: 4, Interesting

    it's funny as hell to see so many people talking seriously about how many gigs / months you can download, or about municipal fiber. i live in romania, and i bet 99% of you don't know where that is. the lowest plan comes with unlimited internet, 100 mbps metropolitan download, tv, and a phone with unlimited calls in the same network, all for about 15 euros. competition is a beautiful thing, isn't it? the only competition americans get is how companies get to screw you harder.