Analysis: Usage Caps Now Apply to 56% of Broadband Users
AT&T will implement its new usage caps and overage charges for all high-speed Internet customers today, although the policy was first announced back in March.
Analysts are suggesting that the telco is paving the way for other Internet service providers to enact innovative pricing mechanisms designed to curtail bandwidth hogs and, more importantly, protect network investment.
AT&T has placed a 150 GB usage cap on DSL services and a 250 GB cap on U-verse services. Users who exceed the new usage cap three times during the life of their account will be charged overages — $10 for every 50 GB over the respective limit.
With this new initiative AT&T is targeting what it considers consistently heavy users. AT&T states that its average DSL customer uses around 18 GB a month and, as a result, these changes will only impact about 2% of all DSL customers who consume “a disproportionate amount of bandwidth.”
AT&T is not alone in its quest to curtail bandwidth hogs. Nationwide cable providers including Comcast, Cox Communications and Charter Communications already have usage ceilings in place; however, they warn users who exceed the limits rather than charge them for the extra usage.
In all, approximately 42 million of the country’s 75 million broadband subscribers, or 56% have some form of caps, according to a Multichannel News analysis based on Leichtman Research Group’s subscriber estimates for the fourth quarter of 2010. Read more
AT&T to Impose Metered Billing for Wired Broadband Subs
AT&T confirmed this morning that beginning in May it will impose metered billing on all traditional DSL and U-verse broadband subscribers.
AT&T will start sending letters to users that it will place a 150 GB usage cap on DSL services and a 250 GB cap on U-verse services. AT&T also plans to charge overages for users who exceed the new usage cap three times during the life of their account. Overages will be $10 for every 50 GB over the respective limit.
With this new initiative AT&T is targeting what it considers consistently heavy users. AT&T states that its average DSL customer uses around 18 GB a month and, as a result, these changes will only impact about 2% of all DSL customers who consume “a disproportionate amount of bandwidth.” Read more
U-verse on Xbox 360 and Smartphone
AT&T U-verse subscribers will have the ability to access service via the Xbox 360 as of October 15.
Current U-verse subscribers may access video service after they have downloaded and installed special software onto their Xbox. New U-verse subscribers will be required to purchase an Xbox kit with the download for $99. The software will enable the Xbox to access live TV, manage and playback DVR recordings and navigate on-demand content and interactive applications. Read more
Apps Seemingly Everywhere for TV

Many video providers are creating apps for the iPad.
Dish Network is “slinging” content to mobile devices such as the Apple iPad. Time Warner Cable is also developing a prototype application for the iPad. AT&T U-verse is making content available to smartphones. Verizon is developing a video application for devices than run Google’s Android operating system too. It seems like every distributor has or will have a means of making video content available to mobile devices.
Filling the “three screens” with content seems to be well on the way. Consumers will have many different choices for providers that can send content to whatever device is convenient, when it is convenient for the consumer to watch it. Is this a good thing, bad thing or just another part of the digital metamorphosis?
Mobility with the capability of effectively expanding the options for communications and entertainment is efficient.
Good or bad? Time will tell.
For more, see this Wall Street Journal article.
AT&T Reaches Agreement with Rainbow Media
AT&T U-verse announced last Thursday that it reached a new carriage deal with Rainbow Media.
Rainbow, part of Cablevision Systems, owns AMC, IFC and WE tv. The agreement with U-verse expired July 1, but was extended another 14 days for negotiations.
“We are happy to report that AMC, IFC and WE tv will remain on AT&T U-verse,” AT&T said in a statement. “We’re very satisfied that we were able to reach the fair deal we wanted for our customers – one that includes the right content, across platforms, at prices that are in line with the marketplace, and that helps us with important strategic content initiatives. We are very grateful to our customers for their support.”
Rainbow also released a statement: “We’re pleased to have reached an agreement with AT&T for AMC, WE tv, IFC and Sundance Channel that truly recognizes the value of our networks. We look forward to continuing our partnership with AT&T and are excited to continue to bring their subscribers our award-winning programming, including the new season of AMC’s Mad Men on Sunday, July 25.”
AT&T Deploys Bonded VDSL
In an attempt to extend the reach of its U-Verse services, AT&T has begun deploying pair-bonded very high bit-rate DSL (VDSL) in the last-mile, copper portion of its fiber-to-the-node (FTTN) network.
The technology — which bonds two copper wires together – extends the network’s reach an additional 1,000-2,000 feet in a neighborhood. The variety of DSL that AT&T is using, VDSL, has a useful range of around 3,000 feet from the video-ready access devices (VRADs) that are the fiber-fed nodes in the U-verse network.
AT&T initially announced its intention to deploy pair-bonding back in 2007, but was faced with unexpected delays along the way, including modem chipset issues. The technology was supposed to help AT&T compete head-on with the broadband speeds offered by DOSCIS 3.0 cable systems. However, AT&T now reports that pair bonding won’t increase the bandwidth the telco can deliver over the network. Instead, the telco plans to use the technology to enhance its reach, offering video to more subscribers.
AT&T at Odds with Rainbow Media
AT&T has begun providing set-top-box delivered messages to its U-verse subscribers that may lose access to AMC, WE Tv and IFC as soon as July 14. According to reports, Rainbow Media and AT&T have not reached agreement on renewal of the Rainbow-owned channels. Rainbow Media Holdings is owned by Cablevision.
At risk is the season premiere of Mad Men on July 25. AT&T reportedly began sending messages to subscribers on July 9 letting them know that while the agreement had been extended until July 14, a resolution on a new agreement was imminent. AT&T has indicated that they wish to come to a fair agreement, but that they have reached an “impasse,” in their negotiations.



