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Craig Aaron

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AT&T: Pay Me, Screw Net Neutrality

Posted: 08/21/2012 10:54 am

From electricity to earmuffs, once you buy a product or service from a company, it shouldn't be any of its business how you choose to use it.

The power company doesn't say you can't use the energy-saving features on your new refrigerator unless you buy more electricity; and your grocer doesn't make you buy an extra loaf of bread if you stop purchasing potato chips.

Then there's the upside-down world of AT&T -- where Ma Bell's spawn sees nothing wrong with making you buy more of what you don't want just to use something you like.

AT&T's latest proposal is a clear violation of Net Neutrality -- the fundamental principle that keeps the open Internet free from discrimination -- and a serious test of whether the Federal Communications Commission will protect mobile users.

AT&T just announced that unless its iPhone customers subscribe to a more expensive "mobile share" unlimited text-and-voice plan, the company will cripple the device's built-in FaceTime app so users can't make mobile video calls.

So if you want to use an app rather than make a call -- something you'll be able to do on a "3G" network when Apple updates its operating system -- then you first have to pay for more old-fashioned phone calls and text messages. Say what?

Who Benefits?

AT&T is defending this plainly stupid and completely unnecessary restriction as offering customers an "added benefit."

But let's take a look at just how this works in practice: Say an AT&T iPhone customer today pays AT&T $70 each month for three gigabytes (3 GB) of data and 450 voice minutes. When Apple's iOS6 operating system is publicly released later this month, this same customer won't be able to use a portion of that 3GB of data they're already paying for to have one of those tear-jerking FaceTime conversations you've seen in the commercials.

No, to make FaceTime work, this user instead would need to pay AT&T at least $95 a month for a plan that includes just 1 GB of data, along with unlimited text and voice minutes that they didn't want or need in the first place.

Got it? To use your phone to make video telephone calls, which could reduce the amount of voice minutes you need to buy from AT&T, you'll first need to pay AT&T more money for less data and unlimited voice minutes.

What if you actually need more data? Get out your wallet, sucker.

Where's the Competition?

If we had actual competition for mobile phone services in America, AT&T's latest arbitrary excuse for you to pay more for less would never fly. You'd simply take your business elsewhere.

But we don't have any competition. We have a market dominated by AT&T and its partner in crime Verizon, which force consumers into ridiculous service plans that will now make you pay for the same data twice.

Indeed, Verizon just dispensed with the niceties and is simply making all new and upgrading users sign up for its own pricey "family share" plans. And it's only going to get worse, unless policymakers in Washington recognize these companies are ripping off Americans without restraint.

Think there oughta be a law against these kinds of shenanigans? Well, we do have decades of communications case law, statutes and regulations that have prevented this kind of anti-consumer behavior on traditional phone networks. That's why the old Ma Bell couldn't push their voicemail service by preventing customers from using answering machines.

What about Net Neutrality?

And though the big phone and cable companies have done their best to ensure that our government looks the other way when they abuse their market power, the FCC did manage to enact a Net Neutrality rule in December 2010 that, while weak, still should prohibit AT&T from screwing over iPhone customers this way.

The FCC's rule explicitly says mobile Internet service providers are not allowed to "block applications that compete with the provider's voice or video telephony services." And here we have AT&T prohibiting their customers from using a video telephone service unless they first pay AT&T more money -- not for more data, but for AT&T's voice and text services.

It's pretty much an open-and-shut case that this latest move is a Net Neutrality violation.

So why would AT&T even go this route? Though AT&T's reputation as a regulatory puppet master has taken a hit in recent months (contrast its failed union with T-Mobile with Verizon's current dalliance with the cable cartel), its political influence is still strong in Washington.

And AT&T -- which tepidly endorsed the FCC's Net Neutrality rules when they were approved -- understands that if it can get the FCC to condone this kind of Net Neutrality violation, then they can get away with just about anything.

(Verizon again has taken a more direct route to the same goal -- suing the FCC and claiming the agency lacks the authority to make any rules at all.)

History Lessons

History makes it quite clear that carriers and ISPs will consider all sorts of ridiculous things in the name of propping up declining revenue streams like voice and text.

Today AT&T blocks FaceTime unless you pay their toll, but tomorrow it will be Skype, Google Voice or iMessage.

And that's why users everywhere need to speak out against AT&T's harrowing vision for our wireless Internet future.

You know the story about boiling a frog. If you put it in the pot and slowly turn up the heat, the frog won't know it's being cooked. That's exactly what AT&T's doing here. Only the amphibians in question are its customers.

If you're one of them, look out. The water is starting to bubble.

 

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From electricity to earmuffs, once you buy a product or service from a company, it shouldn't be any of its business how you choose to use it. The power company doesn't say you can't use the energy-s...
From electricity to earmuffs, once you buy a product or service from a company, it shouldn't be any of its business how you choose to use it. The power company doesn't say you can't use the energy-s...
 
 
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HUFFPOST SUPER USER
MAB
10:28 AM on 08/31/2012
Anyone see AT&T's latest response to this, a scathing letters to consumers. Do a Google search.
07:43 AM on 08/25/2012
Unfortunately the FCC deliberately excluded wireless providers from any obligations under "network neutrality" in their promulgation of the rule. And that's a scandal! We've been stuck with incorrect theories about (not so) free markets in the cascade of deregulation the lobbyists have used for a couple of decades in their pursuit of their client's financial interests. This usually leaves the public in the lurch. The concept of the 'commons' the electromagnetic spectrum obviously is disappeared a long long time ago. Our airwaves have been converted to private ends.
HUFFPOST SUPER USER
smokeypenguin
11:16 PM on 08/23/2012
I don't even know why people go for the iPhone when things like this happen. They always seem to have the highest priced plans even after all these years, and yet I pay about $60 a month for my Nexus S which does all of the things the iPhone does.

Personally, I'm done with the subsidized phone model. Once my contract is up, I'll be banking the extra savings for when I want or need to upgrade my phone.
04:49 AM on 08/23/2012
This is the only way the carriers can make money selling ridiculously overpriced iPod 3G's, they use a subsidized model then eek every penny they can get out of you in ridiculous contracts.

If people started buying their own phones and using prepaid plans we'd be much better off.
07:42 PM on 08/22/2012
You wrote:

"AT&T just announced that unless its iPhone customers subscribe to a more expensive "mobile share" unlimited text-and-voice plan, the company will cripple the device's built-in FaceTime app so users can't make mobile video calls."

If you want to make mobile video calls, you will need more bandwidth. Does this need to be explained?
Lack of bandwidth alone can cripple this app.

There are plenty of valid complaints to be made about our "too big too fail" telecommunications providers - including Sprint, although you fail to mention them at all. This is not one of them.

Please, I think highly of Free Press.net I find it embarrassing to read a rant like this from their Communications director.

Today, tomorrow and yesterday, it's always best to do your homework before you publish, especially when you use your business letterhead.

David Roknich
http://indyradio.nu
ScentOpine
Stop throwing votes away. Support any 3rd party.
11:28 PM on 08/26/2012
You are out of bounds.

I pay AT&T for my wire-line service that says I can use X amount of bandwidth. Wireless should work EXACTLY the same way. I've been working in wire-line & wireless telecom R&D for 30 years. AT&T has over-subscribed and over-promised. If lack of bandwidth can cripple the app, let it cripple the app. Then users can shop around for either a better compression technology (i.e. better app) or better wireless service.

If AT&T can charge users for more bandwidth or priority quality of service, it can do so for any 3rd party app, not just their own apps. AT&T is still running an ancient business model that AOL, AT&T and Yahoo have all tried and failed because end-user applications are difficult to write and these companies do not have solid leadership to win in the market with best of class products and service. Instead these companies, especially AT&T, nickle and dime with poor quality end-user apps and half-baked integration.

Apple also forces you to drink their cool-aide, and while not perfect, their leadership has vision and has seen to it that the user experience is best in class.

Let them charge users for premium service, but don't let them block content.
02:21 PM on 08/22/2012
The problem is you can use Skype with any phone or computer but FaceTime is only on Apple products. I will be leaving AT&T after my contract is up I am tired of their petty nickel and diming me. Other companies are offering better plans and data.
12:34 PM on 08/22/2012
Perhaps we shouldn't be using wireless technology. . . .
See: www.EMRActionDay.org/science for hundreds of scientific studies that show wireless radiation and Wi-Fi are dangerous to the health of biological beings, by damaging DNA, causing cancer, harming the endocrine system and the production of melatonin by the pineal gland, effecting fertility rates, causing sleeplessness and depression, etc. etc . Since radiation poisoning is cumulative, every new source of wireless radiation adds to the poisoning. Frequencies from wireless radiation, as measured by RF meters, are trillions of times higher than those of the human brain and the Earth's own natural healing resonance.
08:12 AM on 08/22/2012
The FCC net neutrality ruling explicitly exempts cellular networks, so unfortunately this is not illegal. The carriers will argue that the are selling you the device, so it is their right to dictate its feature set. They're not blocking an application from accessing their network, they're crippling the application installed on the device. And unlike WiFi or Ethernet, which allow any device to connect as long as it has a MAC address and complies with open standard network protocols, cellular network restrict access to devices with SIM cards issued by the carrier. The carriers decide which devices are allowed to access their network and what features those devices can provide. Last year, Apple showed the U.S. carriers an iPhone 5 prototype that didn't support a removable SIM card, and the carriers revolted, forcing Apple back to the drawing board. These networks are inherently not neutral. I'm not sure it makes sense to even discuss cellular networks in the context of net neutrality. At the very least, they require far more radical reforms to even be comparable with open networks.
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HUFFPOST SUPER USER
Sarkazmo
Not liberal, not conservative, I am an individual.
07:32 AM on 08/22/2012
This is honestly nothing more than a way to squeeze more money out of consumers. I tell you why. Your 'phone' is about as much a phone as a toaster is. The smartphone is a wireless computer that can be addressed via a phone number. All that comes out and is received is DATA. Whether you make a phone call, or go to a web page, or text, or do anything else with it is a data connection. Data plans and this crap that AT&T is trying to pull are complete lies to the consumer and designed solely to get more of your money in their bank accounts.
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HUFFPOST SUPER USER
Wayne Caswell
Consumer Advocate & Founder of Modern Health Talk
11:49 AM on 08/22/2012
Agreed. Streaming audio & video consume lots of bandwidth too, but they're not blocked, and neither are big downloads. They could have resolved any bandwidth worries with data caps but chose not to, so the ONLY reason to block FaceTime is to extort more of your money.
03:24 AM on 08/22/2012
You say this plan is more expensive, but it isn't for everyone. First, the example you gave doesn't include texting, which most people have. That would put it as a $90 plan ($40 talk, $30 data, $20 for text). Secondly the 1GB plan with one smart phone is $85 not $95. Depending on someones usage that could be a reduction in price. If someone is paying for 3 GB but using only 500MB that would be a savings. Also, those plans include tethering.

My wife and I saved money by switching our plans this week. We have 2 smartphones with the cheapest talk plan and texting, and an iPad. We use about 1GB of data on both phones and around 500 MB on the iPad (it is mainly used around WiFi). Yet we had 3GB plans for all of them and were paying $180 ($60 talk, $30 text, $90 in data...$30 for each device) we now pay $160 for 4GB shared between them. We saved $20.

Granted, some people will see an increase, a single user who uses over 1GB of data but less than 3GB would.

You point out "block applications that compete with the provider's voice or video telephony services." I don't think that counts in this case, because at this time AT&T does not offer a video telephone service. The wording makes it sound as if it only a violation if the block something that competes with them.
02:24 PM on 08/22/2012
Skype and it's free. You must work for AT&T from the sound of it.
03:16 PM on 08/22/2012
No I don't work there, I just have an issue with the fact that the author of this article, let his preconceived notions overrule facts.  He just assumes it is a more expensive plan, while in some cases it is, and some it isn't, but he didn't let that deter him from painting with a broad brush.  Plus he also completely avoided the fact that this app doesn't compete with their own products, and telecommunications have an exemption from those net neutrality laws. If someone is going to write and article, he should get his facts right.  
04:51 AM on 08/23/2012
Lol. I pay $30 a month for my plan that includes 5 gigs of 4g data and 100 minutes of talk time (plenty for me). If I wanted more talk time I'd pay $45 for 2 gigs of data and unlimited talk/text.

People get so ripped off with their iProducts and insanely overpriced contracts.
10:24 PM on 08/21/2012
Good article, but ummm, hello?! Sprint still offers unlimited plans, AND they've got this awesome offer http://news.yahoo.com/sprint-throws-400-families-ditch-verizon-t-181547997.html.
I donno why anyone does business with ATT, sh*tty service at a sh*tty price. At least Verizon is quality.
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HUFFPOST SUPER USER
Jim Marusak
free-agent meteorologist
07:07 PM on 08/21/2012
thank god i have a pre-paid phone plan (net-10). i know it's not perfect compared to most people. but let's face it, 30 bucks every 2 months is not bad and does enough for what I need. and if i wanted to upgrade my phone and get the 55/month plan, unlimited data/text/calling, i could do so easily but don't really need to do it attm. and if i go overseas, so I get a cheap pre-paid phone in that country, no big deal. why pay more than I have to?
04:52 AM on 08/23/2012
Prepaid is the only way that makes sense. The subsidized phone model in this country is the root of our troubles.
05:27 PM on 08/21/2012
AT&T has GOT to have earned the "MOST HATED COMPANY EVER!" award and rightfully so! They treat their customers like crap, they lied to FCC and got caught, they shove the WORST plans on customers claiming "THE MORE YOU SPEND the more you save)" which translate to YOU GET CHARGED MORE FOR LESS SERVICE".

Just wait till the complaints and tempers begain to boil when the "shared everything costomers" realized how they are beinh ripped off. I wouldnt bundle ANYTHING on att. It is a NIGHTMARE when you dispute one discrepancy on the bill, and because everything is tied to "one bundled service" , everyone and every thing is in jeaopardy if you dont give in to pay it.
....KEEP YOUR PLANS , SERVICES AND LINES SEPARATE on the beast!

I am SO over this "FAT Ma Bell"!
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HUFFPOST SUPER USER
NoMoreMoneyChangers
03:14 PM on 08/21/2012
Get rid of the Iphone. As a matter of fact, get rid of ALL Smartphones. SmartPhones are designed to pull more and more and more money out of you. That is the ONLY purpose of them really. What the companies are doing is smart because frankly people are addicted to smart phones. And companies know it.

I can NEVER make sense of my Iphone bill and am getting ready to leave AT&T alltogether and I have been with AT&T for years now. I have NEVER been able to make sense of my bill. I can reduce my services but my taxes and fees suddenly go up. It is really weird. I have also started noticing new charges on AT&T's bill. Instead of the 911 charge there is NOW the 911 charge and another charge called 911 Addon or something. I pay about $20.00 per month in fees and taxes and my original bill is only $70.00. That pushes my bill up to almost $100.00.

Just get rid of all these bloodsucking smartphones because the exploitation won't stop.AT&T is a BEAST with an INSATIABLE appetite. It will NEVER be satisfied and will spend every waking moment figuring out how to pull more money from customers.
05:42 PM on 08/21/2012
I have saved thousands from when AT&T started data caps and I left. I am not paying for something I don't know how much I am using and can get bill shock from. I don't regret it for one second. I use a $10 pay-as-you-go plan and my unlocked Android at hot spots.
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HUFFPOST SUPER USER
NoMoreMoneyChangers
07:39 PM on 08/21/2012
Straighttalk charges only $45 per month and that is Walmart's plan. That is for unlimted Everything and now they are allowing people to bring over their smartphones from Tmobile and At&t including the Iphone.
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HUFFPOST SUPER USER
NoMoreMoneyChangers
07:39 PM on 08/21/2012
Who is your current carrier?
05:48 PM on 08/21/2012
You don't have to get rid of Smartphones. People who sign up for ATT are voting yes for their absurd billing practices. People should vote for companies that use flat rate billing. I use Cricket Communications. They have 2.5GB monthly plan that has unlimited text, and voice for 55$. (including domestic long distance) add $4.03 in extra fees, and $5 for device insurance, and my bill each month is always $64.03. Of course there are acceptable use limits, but as a normal user, I never need to worry about my bill going up from month to the next. I have great 3G service in my area. Tethering is an extra $10. People need to stop buying products and services that support company imposed limitations/restrictions.
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HUFFPOST SUPER USER
NoMoreMoneyChangers
07:38 PM on 08/21/2012
Can you stream youtube videos using Cricket like youtube. That is one of the major drawbacks to switching to a smaller carrier. Normally people will have to use wifi to stream but can you stream youtube videos on your phone using 3G?
02:43 PM on 08/21/2012
This is nothing new either. My old Samsung flip phone could block calls from any number I chose. Simple. My iPhone - no ATT sells a special plan for that. Tethering? No have to buy a special plan for that too.
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HUFFPOST SUPER USER
NoMoreMoneyChangers
03:15 PM on 08/21/2012
AT&T charges for pretty much everything now. You can't even get a limited text messaging plan. AT&T only has one and that is the MAX for an additional $20.00 per month. On TOP of your plan and data plus all those ridciulous fees and taxes.