For some time both Verizon and AT&T have been telling the FCC and state Commissions that they want to replace rural telephone lines with cellular connections, which means bringing cellular data plans to rural areas. We’ve now finally seen Verizon’s plans for what rural cellular data plans will look like:
The headline on this Verizon web site is “use the power of the Verizon 4G LTE Network to give you a lightning-fast Internet connection in your home,” followed later on in the offer with the header “Ditch your Low-Speed Internet.”
Those phrases sound great until you then see the offered speeds: “Fast Internet access with average speeds of 5 – 12 Mbps download and 2 – 5 Mbps upload.” I guess for somebody who’s been on dial-up this might be lightning fast, but it’s awfully hard to call this broadband.
But then comes the real kicker when they list the price and the monthly data caps:
- 10 GB monthly data cap $60
- 20 GB monthly data cap $90
- 30 GB monthly data cap $120
- $10 per additional gigabit of usage.
Before I totally scoff at this, it’s important to realize that there are already many households trying to get by using today’s cellular plans for home data. Compared to those plans this new offer is a little better. But these new plans are not broadband and it displays the greed of the cellular companies that they can even put such a plan into the public with a straight face. What these plans say to anybody living in a rural Verizon or AT&T area is – you’re screwed.
It’s easy to put these plans into perspective. Just last week I was traveling in Minnesota and there was a day that I used my cellular data plan to power by laptop broadband. In just one day, doing only normal business things, I used over a gigabit of data. I didn’t watch video or do anything that was a blatant data hog. And so the $120 plan would not even power my one business laptop for a month and I’d be paying that much per month and facing $10 for every gigabit I went over 30 GB.
Cellular data in this country is among the most expensive data used anywhere in the world. When you look at charts that are occasionally compiled of worldwide data prices per megabit the only places more expensive are Antarctica, some parts of Africa, and remote islands. And Verizon wants to take that ultra-expensive cellular data and extend it into rural homes.
This pricing by Verizon should end once-and-for-all the arguments that I hear all of the time that the future of rural broadband is wireless. Verizon has it within their means to offer an affordable alternative broadband product from rural cell towers – and this is not it.
I can fully understand why cellular companies don’t want to sell broadband connections in urban areas that are used to streaming Netflix – busy cell sites are really not made for that and such a connection ties up a valuable channel for a long time. But in rural areas where there are fewer people using cell towers the wireless carriers potentially could offer an affordable product with a much larger data cap. They fact that they are choosing to not do so says more about their greed than anything else.
I hope the FCC is paying attention to this. A copy of this web site need to be attached to any filing that the cellular carriers make at the FCC asking to tear down rural copper and replace it with cellular data. If the FCC supports such an idea, even in the slightest – this is what they are agreeing to.