Double Whammy – AT&T Starts Data Caps and Lock-in to U-verse DSL

Earlier this week, on Monday May 2, AT&T quietly started imposing data caps (or limits) on their DSL Internet customers who are offered low prices as incentives to switch to AT&T. Regular DSL is capped at 150Gb per month and U-Verse DSL (more on that later) is capped at 250Gb per month. You’ll pay $10 per 50Gb extra per month. So much for those “special introductory prices.”

Now, that may seem like a lot of data to consume. However, the increase of video being watched over the Internet using content providers such as Netflix, Amazon, Apple, Roku, etc. as well as online gaming, could easily make households surpass those limits. This is true especially in western Nevada County in homes that are using DSL service and shutting off satellite service to cut costs. Add in multiple members of the household using the Internet for multiple broadband services, then the bills will start to resemble cell service without plans.

According to the A.C. Nielsen Co., the average American watches more than 4 hours of TV each day. 150Gb of data would be gobbled up by just 3 hours of HD video watching daily alone. Factor in the number of Internet users in your household, plus multiple devices (iPad, smart phones, etc.) using the Internet for varied uses, and you could have the surprise of seeing a huge data bill each month.

Spiral Internet Has No Data Limits on DSL

The good news is that one local Internet Service Provider offers DSL without data limits. Spiral Internet‘s contract with a second-tier provider allows us to provide Spiral DSL service over the AT&T network, but without the limitations AT&T is imposing on its own customers. Spiral offers one competitive ongoing price (as low as $22.95 per month for 1.5 Mbps service), same quality & speed of access, no surprises, no data limits, and no waiting (and waiting) on the phone for AT&T technical support. Just note that AT&T requires non-customers to maintain, at minimum, Plain Old Telephone Service (POTS) in order to have DSL with us. This runs about $12 per month with Federal taxes. But BEWARE, do not enable AT&T to switch your service to U-Verse, or you will never be able to switch.

Beware: Switch to U-verse and Have No Choices

AT&T has also quietly rolled out “U-verse” service locally. This is typically a “triple-play” (voice, Internet, TV) service in urban areas, but AT&T does not offer the TV portion here. In areas nearest to the AT&T central offices, the Internet speeds available can be faster, but the phone service is now the same as Vonage or Skype, referred to as VoIP (voice over Internet protocol).

U-verse DSL uses a different connection technology which locks out any other Internet Service Provider from offering customers their DSL service. Once a household switches to U-Verse, then their only DSL provider can be AT&T … forever. It is a closed network. So buyer beware.

AT&T sales staff is aggressively calling local households to switch to U-Verse. If you have a local provider or want to keep your options open, politely say “No, thank you.” You are not required to switch in the foreseeable future.

Spiral Internet actually pays AT&T thousands of dollars per month for the privilege of offering DSL service over their network. In any other line of business, we would be treated as respected partners. Somehow, AT&T sees other ISPs who offer their DSL service as competitors.

In some areas, U-Verse DSL may be the only wired broadband Internet service available. In our under-served rural community, it would be foolish to reject any kind of reliable high-speed Internet service. But AT&T’s U-verse will stifle competition moving forward.

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Locals Moving to Kansas City

Over the past few days, the loss of the Google Fiber project here in western Nevada County has sent the local community into a tailspin, with some businesses considering a move to the BBQ capital.

Located in Nevada City, Telestream stated that they’re here to stay. CEO Dan Castles cited new technologies in the delivery of HD video over dial-up service as the main reason. “We actually don’t need 1Gb service, now that our engineers have developed advanced compression algorithms for video transmission over copper wires. We are about to announce this at NAB in Las Vegas next week. No one will need Google fiber. It will be a game changer.”

Former Mayor Reinette Senum was outraged that any business would consider leaving Nevada City. “It’s clear to me that the recent frequent sightings of UFOs in Kansas City have played a key role in Google’s selection of that city for one gigabit service. I’m going to work with the folks at APPLE and see if we can secure funding for a locally based SETI program. If Google needs extraterrestrials, we’ll bring them here.”

Local blogger, Jeff Pelline, reported that he will be moving his family to Kansas City in the near future. “What could be better than having 1 Gb Internet service and access to some of the best barbecue in the world. Besides, Pat Butler runs the Nevada City Advocate from South Dakota. I can still blog about Nevada County in Kansas City. It’s a no brainer.”

We hope that since it’s only a few days after Google’s announcement, and only the first day of April, that the community can take a collective breath and not overreact.

YES, INDEED. WE PULLED A GOOD APRIL FOOL JOKE ON A LOT OF PEOPLE. (We did, in fact, get calls from the media.) However, we’ve removed parts of the original first paragraph and made some minor edits, as it appears people were taking the words a bit too seriously. A good April Fools prank contains a plausible element of truth, and we used it to our advantage. Since what is posted on the Internet gets sliced and diced into word bytes and can potentially cause confusion, we want to take care of our locally based businesses.

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Google Announces Kansas City, Kansas

This morning, Google announced that their Fiber for Communities deployment will be in Kansas City, Kansas with service being turned on sometime in 2012. Google stated on its blog that “our goal was to find a location where we could build efficiently”. …. read more. It’s clear that sister Kansas town, Topeka, which renamed itself Google for the competition, is probably feeling a touch bit disappointed today.

When Spiral Internet submitted the 95959google application last spring, we wrote in the application that we knew we wouldn’t be the first choice. But, if Google wanted to test 1Gb speeds in a rural geographically diverse area, we were it.

Last week, Chip and John attended the Next Generation Broadband state conference in Monterey. We had the opportunity to sit down and talk with a member of the Google Fiber for Communities team. He let us know that the “imminent announcement” would be the first of multiple fiber projects. We also made a good case for western Nevada County as a pilot rural project.

We think, there’s a chance of still getting that call from Google.

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