Recent Articles:

FCC’s Ajit Pai on Mission to Sabotage Charter-Bright House-Time Warner Cable Deal Conditions

Pai

As a result of the multibillion dollar cable merger between Charter Communications, Bright House Networks, and Time Warner Cable, the three companies involved freely admitted: your cable bill was unlikely to decrease, you won’t have any new competitive options, there was no guarantee your service would improve, or that you would get faster broadband service than what Time Warner Cable Maxx was already delivering to about half its customer base.

While shareholders and Wall Street bankers made substantial gains, top Time Warner Cable executives walked away with multimillion dollar golden parachute packages, and Charter took control of what is now the country’s supersized, second most powerful cable operator, regulators also required the dealmakers share at least a tiny portion of the spoils with customers.

Then President Donald Trump’s FCC chairman — Ajit Pai — took leadership of the telecom regulator. Now all bets are off.

Pai is reconsidering the settled deal conditions imposed by the FCC under the last administration, and wants to give Charter Communications a free pass to let them out of their commitment to compete. Last week, Pai circulated a petition among his fellow commissioners to roll back the commitment Charter acknowledged to expand its service area to at least one million new homes that already get broadband service from another cable or telephone company.

Former FCC chairman Thomas Wheeler sought the competition requirement to prove that cable operators can successfully run their businesses in direct competition with each other, potentially inspiring other cable companies to face off with incumbent operators outside of their own territories. A paradigm shift worked for Google, which inspired ISPs to boost speeds in light of its gigabit Google Fiber service, which reset customer expectations.

The FCC order approving the merger deal was hardly onerous, requiring Charter to compete head-to-head for customers in places the company can choose itself. Lawmakers eliminated exclusive cable franchise agreements years ago, but established major cable operators like Charter have gone out of their way to avoid competing in areas that already receive cable service. While Wheeler may have hoped some of that competition would be directed against fellow cable companies, Charter CEO Thomas Rutledge quickly made clear to investors and the FCC Charter would continue to avoid direct cable competition, instead promising to expand service into non-cable areas that already get DSL service from the phone company or no broadband at all.

“When I talked to the FCC, I said I can’t overbuild another cable company, because then I could never buy it, because you always block those,” Rutledge said. “It’s really about overbuilding telephone companies.”

Charter’s CEO believes most phone companies are not competing on the same level as cable operators and are unwilling to make the necessary investments to upgrade their aging wired infrastructure to offer faster internet speeds. That makes competing with telephone companies like Windstream, Frontier, and Verizon’s DSL-only service areas a much better proposition than trying to compete head-to-head with Comcast, Cox, or Cablevision.

Rutledge’s clear views about Charter’s expansion plans apparently never made it to the American Cable Association, a cable industry lobbying group that defends the interests of independent and smaller cable operators. Despite Rutledge’s public statements, the ACA and its members are afraid Charter could expand on their turf anyway, potentially forcing small cable operators to compete with the same level of service Charter offers. The horror.

The ACA’s arguments found a sympathetic audience in Mr. Pai and now he wants to let Charter off the hook, at the expense of competition and better service for consumers.

Under the proposal circulated by Pai, Charter would still be required to expand its cable broadband service by at least one million new homes, but those homes would no longer have to be in areas outside of Charter’s existing service footprint. In practical terms, this would mean Charter would focus on wiring areas not far from where it provides service today — ‘DSL or nothing’-country. Charter would also be able to fritter away the number of expansions required by counting newly constructed neighborhood developments it would have likely wired anyway, as well as upgrading its remaining shoddy legacy cable systems — some still incapable of offering broadband or phone service.

The ACA’s talking points prefer to emphasize the David vs. Goliath scenario of a big bully of a cable company like Charter being forced to compete (and likely obliterate) existing small cable operators:

“The overbuild condition imposed by the FCC on Charter is stunningly bad and inexplicable government policy,” said ACA president and CEO Matthew Polka, in a statement. “On the one hand, the FCC found that Charter will be too big and therefore it imposed a series of conditions to ensure it does not exercise any additional market power. At the same time, the FCC, out of the blue, is forcing Charter to get even bigger.”

The real goal here is to minimize direct competition at all costs. The FCC’s deal conditions already included the need for more rural broadband expansion. Wheeler’s second goal was to introduce a new model — cable company competing against cable company — fighting for new customers by offering consumers better service and pricing. The existence of such competition would belie the industry’s claim that cable overbuilds and head-to-head competition is uneconomical. Wildly profitable, perhaps not, but certainly possible. Historically, the traditional way cable operators dealt with the few instances of direct cable competition was to buy them out to put them out of business. Rutledge was certainly thinking along those lines when he complained that the FCC’s order to compete did not include permission to eventually devour its competitor, effectively making competition go away.

Had Charter chosen to compete with cable companies not afraid to spend money to upgrade service above and beyond the anemic broadband speeds Charter offers, it would likely find few takers for its maximum 300Mbps broadband service that comes with a $200 install fee.

“Why would we go where we could get killed?” Rutledge admitted.

Industry claims that the cable business is already fiercely competitive are also countered by Rutledge’s own statements making clear direct competition with brethren cable companies on the cusp of speed-boosting DOCSIS 3.1 upgrades was bad for business. Instead, he would focus on competing with inferior phone companies, which he characterized as mired in debt, still skeptical about the financial wisdom of fiber optic upgrades, and the only competitor where dismal 3-10Mbps DSL service presented a ripe opportunity to steal customers away.

Clyburn – A likely “no” vote.

Charter’s merger approval and its conditions are a sealed deal that was acceptable to Charter and its shareholders and at least offered small token treats to ordinary consumers. Mr. Pai’s willingness to reopen and undo those commitments is just one reason we’ve referred to his regulatory philosophy as irresponsible, nakedly anti-consumer, and anti-competitive. Mr. Pai’s willingness to embrace things as they are comes at the same time most consumers are paying the highest broadband bills ever while also facing an epidemic of usage caps, usage billing, and increasing service and equipment fees. Mr. Pai’s other actions, including ending an effort to introduce competition into the set-top box market, curtailing customer privacy, ending inquiries on usage caps/zero rating, threatening to eliminate Net Neutrality, and reducing the FCC’s already anemic focus on consumer protection makes it clear Mr. Pai is a company man, on a mission to defend the interests of Big Telecom companies and their lobbyists (that also have a history of hiring friendly regulators for high-paying positions once their government job ends.)

That conclusion seems apt considering what Mr. Pai said about Chairman Wheeler’s vision of improving broadband: “one more step down the path of micromanaging where, when, and how ISPs deploy infrastructure.” Missing from his statement are consumers who have spent the last 20 years watching ISPs govern themselves while waiting… waiting… waiting for broadband service that never comes.

Mr. Pai’s proposal needs just one additional vote to win passage. That extra vote is unlikely until President Trump appoints another Republican commissioner. Pai’s proposal isn’t likely to win support from the sole remaining Democrat commissioner still at the FCC — Mignon Clyburn.

11 Cities Getting Verizon 5G Beta Test; No Details on Speed or Pricing Yet

Verizon will invite several thousand customers in 11 cities to participate in a “pre-commercial” beta test of its newly built 5G wireless network during the first half of 2017.

The fixed wireless, home broadband replacement will be provided over a limited coverage area in these cities: Ann Arbor, Atlanta, Bernardsville, N.J., Brockton, Mass., Dallas, Denver, Houston, Miami, Sacramento, Seattle and Washington, D.C.

Verizon’s announcement only generally promotes the future potential of 5G service without being too specific about what it intends to offer. We expect the service will be marketed as a wireless home broadband service, not for those on the go. There is no finalized standard for 5G service yet, so Verizon’s adaptation isn’t necessarily going to be the final standard and could change before the wireless provider expands the service to other customers.

“The 5G systems we are deploying will soon provide wireless broadband service to homes, enabling customers to experience cost-competitive, gigabit speeds that were previously only deliverable via fiber,” said Woojune Kim, vice president, Next Generation Business Team, Samsung Electronics.

Verizon’s ability to offer gigabit speeds will depend on several factors:

  • Backhaul connectivity: Verizon will likely choose areas where fiber connectivity is already installed, either as part of its FiOS project or through its fiber connections to cell towers. Because of the very high frequencies involved, 5G connectivity will be line-of-sight and the coverage area will be very limited, within a mile or less of the tower or small cell infrastructure Verizon will depend on to provide service to each neighborhood.
  • Distance and signal quality: 5G service will be distance sensitive and fixed wireless will require the installation of an antenna either pointed out a window or installed externally on a building. The further away, the slower the speed.
  • Shared network: Total available bandwidth on a 5G tower or small cell is shared among all users connected to it. During the initial beta test, speeds are likely to be very high. That may not stay the case as Verizon adds customers to its service.

Verizon has avoided mentioning specific speed tiers, pricing, whether service is unlimited or usage capped, equipment costs, and contract terms. We are also not aware if the service will be marketed by Verizon Communications, the wireline company that also markets FiOS or Verizon Wireless, the mobile operator side of Verizon.

Several of the test cities represent Verizon’s first home broadband invasion on other providers’ turf. Frontier Communications is likely unhappy to learn it faces direct competition from Verizon in Dallas. Verizon sold its landline and FiOS network in Texas to Frontier. Most of the other test cities seem to avoid direct competition with Charter Communications, as almost all are serviced by Comcast. The new 5G service will also compete directly with AT&T in Michigan, Georgia, Texas, Florida, and California.

CBS Rakes in $1 Billion in 2016 from Cable, Satellite TV Customers

Phillip Dampier February 20, 2017 Consumer News 3 Comments

CBS earned $1 billion from cable and satellite TV customers in 2016, collected from providers in return for permission to carry CBS stations on their lineups.

“Annual revenue from retransmission consent and reverse compensation has already exceeded $1 billion, a full year ahead of schedule, and continues to grow rapidly,” said CBS CEO Les Moonves in a statement.

Most cable and satellite providers pass along those fees directly to consumers either in the price charged for service or through so-called “Broadcast TV surcharges” that are broken out separately on the bill. CBS has plans to more than double those fees, with a target of collecting $2.5 billion annually by the year 2020. One-third of CBS’ national coverage area will face contract renewal discussions in the next 24 months, leading to higher priced renewals.

Other networks are also expecting similar compensation boosts, and SNL Kagan projected operators would be passing on $10.6 billion in broadcast TV retransmission consent fees within the next three years. That could raise the Broadcast TV surcharge to $10-15 a month in some areas, just to cover fees charged by local ABC, CBS, CW, FOX, MyNetworkTV and NBC stations.

Some of the windfall profits CBS are collecting from retransmission agreements could be spent acquiring more TV stations, if FCC Chairman Ajit Pai loosens TV station ownership limits.

“If the cap is lifted we’d strategically look to buy more stations,” Moonves said.

Charter CEO Admits You May Be Sharing Your Internet Connection With 499 Neighbors

The average Charter/Spectrum customer shares their internet connection with up to 499 of their neighbors, according to an admission made today by Charter Communications CEO Thomas Rutledge.

“Our average node size is around 500 homes,” Rutledge told investors on a morning conference call.

According to a lawsuit filed by the New York State Attorney General Eric Schneiderman, from about 2012, Spectrum-TWC’s network across New York typically provided about 304Mbps (8 x 38Mbps channels) of bandwidth to be shared among all the subscribers in a service group. In some areas, this would mean that 300 customers in a node would have around 1Mbps of bandwidth to use if all 300 subscribers used the internet at the same time. Time Warner Cable had begun expanding bandwidth on DOCSIS nodes to 16 channels at the time Charter Communications acquired the company, giving customers shared bandwidth of about 608Mbps.

Remarkably, Rutledge’s admission suggests some Charter customers may be serviced by DOCSIS nodes even more populated than the ones in New York State that regularly failed to deliver advertised internet speeds and prompted the Attorney General to file a lawsuit against Charter.

New York’s lawsuit claimed as of February 2016, the average Time Warner Cable customer in the state shared their connection with about 340 other customers. Information obtained from Time Warner Cable found some nodes with as few as 32 subscribers while the most overcongested had as many as 621 subscribers.

Rutledge’s comments this morning suggest Charter/Spectrum customers may be sharing their connection with up to 499 of their neighbors, making them more likely to experience congestion potentially worse than experienced with Time Warner Cable. Standard internet service from Charter is also much faster than Time Warner Cable’s corresponding Standard plan — 60Mbps vs. 15Mbps, which has the potential to lead to even worse slowdowns if customers use their internet connections at the same time.

Rutledge defended the average node size by claiming Charter has a lot of fiber in its network.

“And we have the ability to take that fiber deeper,” Rutledge said. “We have the ability incrementally to take the network to a passive network and to do that at reasonably efficient capital cost through time and to do that in very targeted ways where we need the capacity. So we’re very comfortable with the extensibility of our network and the ability to put high capacity anywhere in our network.”

Rutledge said node expansions take place through a “market demand driven sort of process.”

“There are bunch of ways you can manage capacity on our network,” Rutledge explained. “We can do what are called virtual node splits. If you clear analog spectrum and go all-digital, [that can create] excess capacity in your network, and [if] you have demand to put more capacity in a node, there [are] two ways of doing it. One way is to physically split a node into a smaller node, which requires the placing of an electronic device in the field, and maybe the extension of some fiber. It depends on how the architecture of that is structured, but it’s relatively inexpensive on a grand scale capital perspective, but a lot more expensive than a digital or virtual node split. And you can do those if you have channel capacity by just recreating additional DOCSIS paths to create a virtual node essentially. And so we manage our network for the future based on the actual load on the network as opposed to some theoretical issue.”

AT&T Follows Verizon Back to Optional Unlimited Data Plans for All Starting Tomorrow: $100/Mo

Unlimited data is back.

AT&T has followed Verizon Wireless back the era of unlimited data plans, starting tomorrow.

The AT&T Unlimited plan will be available to all customers, not just those signed up with DirecTV, and will be expensive. A single line unlimited voice, text, and data plan will reportedly cost $100 a month. Customers switching four lines to unlimited data will pay $180 after a $40 bill credit kicks in 60 days after signing up. This means for the first two months, customers will pay $220 for the privilege of unlimited data.

The new plan is open to residential and business/corporate accounts and business customers will also get the benefit of any corporate discounts.

AT&T’s definition of “unlimited” actually means 22GB. If you exceed that amount, AT&T reserves the right to slow your data connection “during periods of network congestion.”

The plan includes:

  • unlimited calls from the U.S. to Canada and Mexico
  • unlimited texts to over 120 countries
  • talk, text and use data in Canada and Mexico with no roaming charges when adding the free Roam North America feature
  • the ability to switch off AT&T’s “Stream Saver” which limits online video playback to 480p

“We’re always listening to our customers and will continue to evolve to provide more choice, more convenience, and more value,” claims AT&T in a press release. But observers believe AT&T listens to the competitive realities of the marketplace more than its customers who never wanted to lose the option of unlimited data in the first place.

 

Search This Site:

Contributions:

Recent Comments:

  • directv: directv now is a pretty awesome service. i have tried dish sling and definitely prefer the layout of directv now much better. pricing is pretty good a...
  • Gluta Lachel di Malang: For hottest information you have to pay a visit internet and on internet I found this web site as a finest web site for hottest updates....
  • Cream Pemutih Wajah Bpom: Thanks for sharing your thoughts about Sabun Pemutih Kulit. Regards...
  • Cara Mengecilkan Perut: Can I just say what a relief to uncover somebody that really understands what they are talking about over the internet. You actually know how to brin...
  • Fiforlif Pelangsing Perut: I must thank you for the efforts you've put in writing this site. I really hope to check out the same high-grade blog posts by you in the future as...
  • debra Gruber: FRONTIER SAID they were giving me promotional credit. for 1 year. I have called them several times regarding this, there is no promotion showing on my...
  • Ryan: Better yet,dump ATSC and switch to DVB-T2. The FCC is considering this. DVB-T2 can recieve signals while moving. Some NC stations even tested DVB-T2 a...
  • Switeck: DSL is shared at the DSLAM level -- these are expensive devices often with limited backhaul, sometimes resulting in even worse contention ratios than ...
  • Lee: With the change in over the air from analog to digital, it is now possible to encrypt the signal and charge for over the air. I expect that to happen....
  • Josh: All the more reason to dump cable and do free ATSC over the air. Of course they want to take away even MORE of our bandwidth so Verizon or Comcas...
  • Lee: DSL lines are not shared. COAX and Fiber lines are shared. You will NOT get a coax or fiber line for home use that is not shared, and there is no reas...
  • kevin: Nope - just had my TWC bill increase over 170 without any premium channels. They say nothing they can do, all packages are more and if I switch now t...

Your Account: