dslreports logo
site
spacer

spacer
 
   
spc
story category
Deutsche Telekom Laughs in the Face of Net Neutrality in Germany
New Caps and Overages, Their Content Excluded
by Karl Bode 02:31PM Thursday Apr 25 2013
Germany's incumbent broadband provider Deutsche Telekom is taking immense heat this week for the announcement that they'll not only be capping and throttling its broadband subscribers, but that the company's own video content will not be hindered by the cap. The company announced on Monday announced that they'll be imposing caps as low a 75 GB per month on users starting May 1, and if exceeded, users will find themselves throttled back to a paltry 384 kbps unless they pony up an unspecified fee for additional bandwidth.

Click for full size
The justifications being provided by Deutsche Telekom for throttling DSL users are the same we've seen here in the States from companies like AT&T: it's necessary because otherwise the network will implode, DSL costs an incredible amount to deliver and we barely make any money as it is, and hey -- it's only fair.

Granted if you've been following this debate for any length of time with a modicum of critical thinking ability, you know none of these things are true. A well run DSL network shouldn't see much congestion, lines are often at such low speeds they cost very little to provide, and flat-rate broadband has long provided healthy earnings. Caps, especially on DSL lines, are imposed to gouge consumers while protecting a company's own TV revenues from Internet video.

The ISP assumption that all consumers are too stupid to realize this usually adds insult to injury.

While caps and overages are nothing new, Deutsche Telekom is taking particular heat from network neutrality groups in Germany because of the fact that the company's own Internet video content won't be impeded by the cap -- effectively the network neutrality equivalent of a hat trick. Even some of the more aggressive and anti-competitive companies here in the States **AT&T cough** haven't been quite willing to attempt that for fear of angering regulators.

And indeed, the moves appear to have caught the eye of German government watchdogs. Spiegel notes that German Federal Minister of Economics and Technology Philipp Rösler sent a letter to the company's CEO stating he was "concerned about the company's announced changes to its rate structures for Internet usage" and that regulators would be watching closely. It's not clear what's left to watch, given the aggressive anti-competitive plan goes into effect May 1.

German consumers meanwhile have launched a petition in an attempt to shut down the company's plans, and have taken to renaming Deutsche Telekom "Drosselkom" or "Throttle-kom."

view:
topics flat nest 
silbaco
Premium
join:2009-08-03
USA

Caps

They actually make At&t look pretty good. At&t's lowest cap is 150GB for DSL.

But we will always have providers in the US who are worse, they just don't get the publicity. Such as LISCO, with their 20GB cap on 100/100Mbps fiber service.

baineschile
2600 ways to live
Premium
join:2008-05-10
Sterling Heights, MI
We haven't had a good cap discussion in a while.

Caps. Good or bad?

ArrayList
netbus developer
Premium
join:2005-03-19
Brighton, MA

Re: Caps

there is nothing moral about data caps. With a well maintained network they are completely unnecessary.
InvalidError

join:2008-02-03
kudos:5

Re: Caps

said by ArrayList:

there is nothing moral about data caps. With a well maintained network they are completely unnecessary.

Maintaining a network implies having cash to actually afford to do so.

At a glance, DT's cash flow does not look too good... looks like they lost over 2 billion Euros last year.

If I read that right, they genuinely need new revenues and likely a major cost reduction restructuration.
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

Re: Caps

said by InvalidError:

said by ArrayList:

there is nothing moral about data caps. With a well maintained network they are completely unnecessary.

Maintaining a network implies having cash to actually afford to do so.

At a glance, DT's cash flow does not look too good... looks like they lost over 2 billion Euros last year.

If I read that right, they genuinely need new revenues and likely a major cost reduction restructuration.

Using their monopoly to gouge consumers and artificially limit their access to the greatest repository of data ever created is not the way to go about fixing their financial woes.
openbox9
Premium
join:2004-01-26
Germany
kudos:2

Re: Caps

Perhaps they should ask for an EU bailout? Or simply raise rates across the board, penalizing everyone instead of some subset of customers?

Jago

@verizon.net
And gouging they have. When I was stationed in Germany, Deutsch Telecrap were (and still are) notorious for price gouging its customers. This 75GB cap is something I would have expected to hit earlier than their announcement. Their internet service was pretty solid, but customer service was an outright, insulting joke. Unfortunately, I was stuck with them for several years before other providers finally came to the scene. While there are other wired providers available, DT still owns those landlines.

When my wife and I had enough with DT, we decided to switch to another provider: 1und1 (who have so far been solid for my wife - I'm in the states on assignment and hope to get back to Germany). What does DT do? Rather than keep the phone line active at the terminal that was located at the street, they switched it off. 1und1 didn't know what was wrong, so they requested a tech to look at it. Guess who the tech worked for? Yep, DT! The line was active again, and our service was working.

DT being monopolistic? You bet!
axus

join:2001-06-18
Washington, DC
Dudes wearing caps look stupid. Bad.
dfxmatt

join:2007-08-21
Evanston, IL
they're not caps, they're explicit double dipping on bandwidth already paid for.

PaulHikeS2

join:2003-03-06
Fitchburg, MA
I thought US broadband was the worst ever. Every other developed and semi developed country offers more bandwidth and better prices with less restrictions, right?
--
Jay: What the @#$% is the internet???
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

Re: But wait....

said by PaulHikeS2:

I thought US broadband was the worst ever. Every other developed and semi developed country offers more bandwidth and better prices with less restrictions, right?

I like straw men as much as the next guy, but there just ain't enough hay in the barn for that one.

jap
Premium
join:2003-08-10
038xx
Do basically Germany needs some smart, consumer oriented scrappy good guy to come in and threaten Deutsche Telekom's established turf. Similar to, say, the disruptive role T-mobile plays in the US telecom landscape keeping Verizon and AT&T on their toes.

elray

join:2000-12-16
Santa Monica, CA
Their content is not traversing the internet.
All Internet content is capped and throttled equally.

08034016
Hallo lisa Aus Amerika
Premium
join:2001-08-31
Byron, GA
I would never get Deutsche Telekom In Germany i have Kabel Deutschland Installed in the apartment over there!!!!!

Cobo

@t-ipconnect.de

Re: Never

Read your contract:
Kabel Deutschland will slow down any filesharing or torrentusing if you generate too much traffic a day.

08034016
Hallo lisa Aus Amerika
Premium
join:2001-08-31
Byron, GA

Re: Never

said by Cobo :

Read your contract:
Kabel Deutschland will slow down any filesharing or torrentusing if you generate too much traffic a day.

Yes but now they want to get rid of them and Put Fiber in the Building what next Optic?