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Newly Independent Cable One Plans Broadband Makeover With Speed Upgrades

cable oneNewly independent Cable One will reduce its emphasis on cable television and turn its time, attention, and capital towards improving broadband service for its 690,000 largely rural customers in 19 states.

Cable One was spun off from Graham Holdings on July 1 and is not likely to stay independent for long before it is acquired by another cable operator, most likely Patrick Drahi’s Altice, S.A. — which recently acquired Suddenlink. But in the meantime, Cable One is attempting to persuade investors it is remaking itself into a broadband company, de-emphasizing the traditional cable television package in favor of dedicating more bandwidth for faster broadband speeds.

“Our standard broadband offering for our residential customers since 2011 has been a download speed of 50Mbps, which is at the high-end of the range of standard residential offerings even today in our markets,” the company reported in a statement. “Our enhanced broadband offering for our residential customers is currently a download speed of 75Mbps, which we expect to raise to 100Mbps by the end of 2015.”

Cable One primarily serves small cities and towns in the central and northwestern United States.

Cable One primarily serves small cities and towns in the central and northwestern United States.

In several markets, 100Mbps speed is already available and regular pricing has been simplified to $1 per megabit of service: 50Mbps for $50, 75Mbps for $75, or 100Mbps for $100 a month.

To protect its broadband business model, which carries prices traditionally higher than larger operators, Cable One will stay focused on largely uncompetitive markets where it faces token DSL broadband competition from companies like Frontier Communications, CenturyLink, and Windstream. More than 75 percent of its customers are located in Mississippi, Idaho, Oklahoma, Texas and Arizona, many served by these three telephone companies.

Cable One signaled it will hold the line on cable programming costs as well. In April 2014, the company dropped 15 Viacom networks, including MTV, VH1, Comedy Central, Nickelodeon and others over contract renewal prices it claimed were too high. The cable TV package has continued without the Viacom networks for more than a year, resulting in the loss of more than 20% of its cable TV customers. More than 100,000 homes have dropped Cable One video service for another provider, but ironically that actually helped Cable One increase its cash flow by more than 11%, because it no longer has to pay programming fees on behalf of the lost customers.

On the bright side, Cable One executives discovered many of its former TV customers have stayed with Cable One for Internet service because the competition either does not offer broadband or generally provides DSL at speeds under 10Mbps. Company officials have emphasized this point to investors, suggesting broadband is a true money-maker and television can safely take second chair without sabotaging profits.

“We certainly have some sympathy for the notion that a broadband-only cable operator might be more profitable,” wrote analyst Craig Moffett in an investor note this month. “But there are some critical holes in the Cable One story. Does the company truly believe that all costs are variable such that cutting video will bring endless margin expansion? Are Cable One’s new shareholders really better off for having played hardball with Viacom?”

Moffett does not believe so because he is convinced Cable One’s independence will be short-lived.

“We all know the consensus opinion is that someone will buy Cable One,” Moffett wrote. “But the above questions still matter. Any potential acquirer would still place value on a video business, or pay less for the fact that Cable One has less of one.”

But as long as rural telephone companies barely compete for broadband customers, Cable One’s broadband performance will deliver them a de facto broadband monopoly in their largely rural service areas. That gives the cable company, or its next owner, plenty of room for rate hikes.

Vidéotron Will Offer 1Gbps Broadband Speed in Montréal

videotron_coul_anglais_webMontréal cable subscribers will soon be able to buy gigabit broadband speeds from Vidéotron after a successful pilot project demonstrated the cable company’s existing DOCSIS 3.0 network was up to the task.

“It is with great pride that we announce today that we have passed another milestone in the history of Videotron Internet service,” said Manon Brouillette, president and CEO of Vidéotron. “We have always been a trailblazer in this area. Over the past 10 years, we have introduced a series of high-speed Internet access services, each faster than the last, in order to meet consumers’ steadily expanding needs.”

Testing gigabit speeds began in a few Montréal homes and businesses earlier this year and the results have helped the cable operator optimize its network architecture and choose the correct cable modems to reliably support the service across its service area. Availability is expected sometime this year.

In 2016, Vidéotron will upgrade its network to DOCSIS 3.1 technology, which should support even faster speeds and require less network configuration to support the fastest Internet speeds.

Vidéotron has been aggressively pushing speed upgrades to its customers, largely in Québec. Fibre Hybrid 120 and Fibre Hybrid 200 Internet services are available to nearly 2.9 million households and businesses.

Fiber to the Press Release: Comcast’s 2Gbps Service Arrives – In One 993-Acre Houston Development

the grovesAfter months of issuing nationwide press releases promoting Comcast’s new, blazing fast 2Gbps fiber to the home broadband, the cable company has finally announced it will be available (so far) … in one single 993-acre unfinished planned community in a northeastern suburb outside of Houston: Humble, Tex.

The Groves, designed to eventually contain 2,200 single-family homes on 993 acres west of West Lake Houston Parkway and south of Kingwood, currently resembles a crop circle because much of the community has yet to be built.

Crescent Communities, the North Carolina-based developer, calls The Groves a “refuge” from the rest of Houston, with amenities close at hand. Residents may not instinctively balk at Comcast’s expensive super-fast service requiring a $1,000 installation fee and a multi-year commitment to get the special promotional price of $159/mo. Housing at The Groves starts in the upper $200,000s and extends into the $500,000 range.

The Houston Business Journal reports Comcast will directly connect homes in the development to fiber optics, not the usual coaxial cable used elsewhere. Every home in the development will have access to the all-fiber network, which will offer 250Mbps and higher speeds, according to Comcast spokesman Michael Bybee.

Comcast will officially launch the 2Gbps service next week.

The Groves crop

The Groves (center) is a master-planned upscale residential community that will eventually contain over 2,000 homes. But in this photograph, provided by the developer, it looks more like a crop circle.

Unfinished Business: Comcast will not face much of a challenge wiring an incomplete planned community for fiber optics. Much of The Groves has yet to be built.

Unfinished Business: Comcast will not face much of a challenge wiring an incomplete planned community for fiber optics. Much of The Groves has yet to be built. (Dark Green: Unfinished/Tan: Complete)

Comcast’s Poor Service Doesn’t Discriminate: Former Comcast VP Complains About Slow Speeds

chong

Rachelle Chong, a former commissioner of the Federal Communications Commission during the Clinton Administration, member of the California Broadband Task Force (2006-2008), commissioner of the California Public Utilities Commission (2006-2009), and Comcast’s vice president for government affairs for the California region (2011-2013) also happens to be a Comcast broadband customer.

She took to Twitter this morning to complain the company she used to work for was giving her a fraction of the speed she was paying for.

At least Comcast’s poor service doesn’t discriminate. Less prominent customers are experiencing the same issues:

One customer isn’t too sure fast speeds matter much. He lives in one of Comcast’s usage cap test markets, where Comcast enforces a usage allowance on their Internet service, with a bill-shocking overlimit fee if you dare exceed it.

Microsoft Windows 10 Update: 4-6GB Per Computer Helps Blow Through Your Allowance

Windows-10If you find your Internet connection a bit slower and your usage meter spiking, it could be courtesy of Microsoft, which began quietly sending Windows 10 installation software this morning to those reserving a copy for their home computer(s) and laptop(s).

Though not officially available until July 29, some users report Windows 10’s software installation files are already arriving in a new, usually hidden, folder on your operating system partition. If you disable hidden files and folders, you may see this new directory: $windows.~BT

If you do, that is Windows 10 winding its way to your computer. Microsoft is not mass blasting the update to every computer all at once, so there is an excellent chance you may not have the new OS just yet, but it is on the way.

Unfortunately, it is huge, with some users reporting file sizes ranging from 4-6GB per computer, so if you are subject to usage caps or an allowance, Microsoft may help push you over the limit. For now, the only way to stop the upgrade is by canceling the invitation:

How can I cancel my reservation? I don’t want to upgrade to Windows 10 at all.

Open the Reservation app in the notification area (double click it)

Click the Hamburger (three horizontal lines) menu in the upper left corner, then select View Confirmation.

In the lower left, click Cancel reservation and then confirm (twice).

Do not try to launch the installation before you receive a prompt to do so. Those who tried to jump the gun reported the installation files were deleted as a result, and would need to be downloaded again.

Myanmar (Burma) Will Get Fiber-to-the-Home Broadband Service, Courtesy of Thai Consortium

myanmarResidents of one of the world’s most isolated countries will soon have the option of getting fiber-to-the-home service that will offer faster Internet access than most Americans get with traditional DSL from their phone company.

Thailand’s Benchachinda Holding Company has partnered with four other technology companies to launch Myanmar Information Highway Limited (MIH), with the goal of wiring fiber-to-the-home service to every home and business that wants service in Yangon and other major economic cities. It’s a remarkable investment for a country that had until recently been run by a military dictatorship for more than 50 years and is still liberalizing its economy and implementing democratic reforms.

Benchachinda’s president, Vichai Bencharongkul, said the group’s investment in international businesses in Myanmar is the first of a few foreign investments in other nations. Bencharongkul told the Thai press fiber broadband sells itself and investment in Myanmar would make good business sense.

vichai

Bencharongkul

He can point to the fact MIH was able to quickly get permission to lay fiber-optic cable from Yangon Electricity Supply Corporation, the country’s dominant electric utility. Myanmar’s bureaucracy can prove daunting to doing business in the country, but the promise of faster broadband overcame those concerns.

Internet access in Myanmar, better known internationally as Burma, has traditionally been a frustrating experience. Despite some fiber Internet rollouts by state-owned Myanma Posts & Telecommunications (MPT), offering up to 100Mbps, the average upper income Myanmar household still relies on DSL service and gets only up to 6Mbps speed. The country is ranked 159 out of 198 by Net Index for consumer download speed, averaging just 5Mbps. Fiber optic broadband will change that.

In a cost-saving measure, MIH will launch service with speeds averaging 20Mbps — four times faster than the current average speed in the country — and raise speeds and capacity going forward. They intend to deliver stiff competition to both Yatanarpon Teleport (YTP) and the state telephone company, which charges almost $65 a month for a basic DSL line. MPT charges $1,200 a month for 20Mbps fiber broadband and focuses on business customers. MIH is expected to charge lower prices for service and will rely on its own network instead of the one owned and controlled by the state-owned telephone company.

HBO NOW Available Today for Verizon Broadband Customers; Coming Soon to Mobile Video

hbonow_largeHome Box Office and Verizon today announced an agreement that allows Verizon to distribute HBO NOW — a service targeting Internet-only customers, across all of Verizon’s wired broadband networks, with the right to extend the service to Verizon Mobile customers in the near future.

Beginning today, HBO NOW is immediately available to all Verizon FiOS and High Speed Internet customers, starting with a 30-day free trial.

After signing up, Verizon customers can access the service by downloading the HBO NOW app on their Android phone or tablet, Amazon Fire Tablet, iPhone, iPad or Apple TV and selecting “Verizon” from the drop down menu of providers. Upon initial registration, customers sign in to watch their favorite HBO programming on their mobile device or on their computer at HBONOW.com. HBO NOW is currently available through Verizon to non-FiOS TV customers for a monthly subscription of $14.99 following the introductory free offer. FiOS TV customers can continue to purchase HBO, which includes access to the award-winning HBO GO app and access to HBO content on an anywhere, anytime basis on FIOS Mobile, through existing sales channels, including by using their FiOS TV remote control.

The agreement will allow Verizon to sell HBO NOW on its forthcoming mobile video platform, potentially under the umbrella of its Go90 service, expected to enter beta testing soon. No word on if Verizon’s mobile video platform will chew through your data usage allowance.

N.Y. Public Service Commission Reminds Verizon of Its FiOS Obligation in NYC, Requests Documents

Zibelman

Zibelman

After the N.Y. Public Service Commission heard an earful about Verizon’s broken promise to deliver FiOS service to every resident in New York City, the head of the PSC has sent a letter to Verizon reminding them of their obligation and requesting an explanation:

At a recently conducted July 15, 2015 Public Statement Hearing held in the City of New York in the matter of the Study on the State of Telecommunications in New York State […] citizens of the City expressed concern over the pace of Verizon New York Inc.’s (Verizon) Fiber-to-the Premises (FTTP) build-out. Some of the commenters stated that they called Verizon to find out when FiOS would be available in their building and the Company could not provide a specific date or time. Others asked why some buildings had been wired for FiOS while others were still being served over the copper network.

Among the Commission’s minimum requirements and terms included in the approval of Verizon’s cable franchise agreement with the City, is the requirement to complete upgrading its wire centers to video serving offices (VSO) and have its FTTP network “pass all households served by [Verizon’s] wire centers within the Franchise Area” 1 by no later than June 30, 2014.

Audrey Zibelman, chair of the PSC, acknowledged Verizon’s repeated explanation that building owners have often been reluctant to let Verizon engineers into their buildings to initiate the FiOS upgrade, noting Verizon has filed more than 45 petitions for Order of Entry with the PSC over the past two years, identifying over 3,000 buildings with “access” issues of one type or another. Approximately 50% of the building access problems have been identified in Manhattan; about 20% each in Bronx and Queens; 13% in Brooklyn, and the rest in Staten Island and Long Island.

dpsBut Zibelman assumes at least some of those disputes have since been settled and now wants details about where Verizon is still unable to offer FiOS in New York City and why. She also wanted to make sure Verizon was not favoring certain areas over others for fiber service:

The agreement also provides that Verizon will conduct the build-out in a way that will prevent redlining, or discrimination based on income, by requiring Verizon to build-out simultaneously to all boroughs and in a manner relatively proportionate to household income. Specifically, the median household income of all homes passed shall not be greater than the average household income of all the households in the City.

fios“Indicate whether Verizon has achieved its six-year build-out in the cable franchise agreement,” Zibelman asked. “If Verizon has not achieved that build-out, please provide all documentation that Verizon provided to the City to justify the basis for any delay. In addition, please provide a current status of the FTTP build-out, by Borough, indicating the percentage and number of buildings served, and the remainder of buildings yet to be served. Provide a status update of the buildings identified in previous Verizon petitions for Orders of Entry.”

Zibelman reminded Verizon it has an absolute obligation under 16 NYCRR §895.5 to “provide service to any customer upon request.” To verify that, Zibelman wants Verizon to accept and record all requests for service and respond to all of her concerns within 14 days.

http://www.phillipdampier.com/video/WNBC NY Verizon FiOS Not Installing High-Speed Internet for 25 Percent of NYers Who Want It Audit 7-15-15.flv

WNBC in New York reports a quarter of New Yorkers still cannot sign up for Verizon FiOS, despite a commitment from the company to wire the entire city. (2:01)

Verizon Wireline Workers Prepare to Strike Aug. 1; “Negotiations Are Going Poorly”

Phillip Dampier July 28, 2015 Consumer News, Verizon No Comments
Verizon workers attend a mass rally at Verizon headquarters on July 25, 2015. (Image: CWA)

Verizon workers attend a mass rally at Verizon headquarters on July 25, 2015. (Image: CWA)

If Verizon management and its unionized workforce cannot come to terms on a new contract by this Saturday, up to 39,000 Verizon landline workers from Massachusetts to Virginia will begin a strike industry observers predict could last for weeks.

Verizon Communications has increasingly shifted attention and investment away from its wireline networks, which include copper landline service and its FiOS fiber to the home network. The workforce of line technicians, installers, and engineers that are trying to keep Verizon’s wired networks running well are under pressure to accept concessions the company says reflect the reality of a dwindling number of landline customers and competition for its FiOS network.

As of Monday, representatives for the Communications Workers of America District 1, the International Brotherhood of Electrical Workers (IBEW) Local 2213 and IBEW New England Regional committees continued to call out Verizon for insisting on a list of benefit and job security reductions:

  • Eliminating protections against layoffs and mandatory transfers/temporary reassignment to different Verizon service areas, including those in other states;
  • No Cost of Living increases;
  • Adding Sunday as part of the basic work week;
  • Possible elimination of corporate profit-sharing;
  • Eliminating caps on overtime and limiting payouts to 1.5x regular pay;
  • Reduce the notice given to workers if Verizon has plans for any major technological change (ie. getting rid of rural landlines, selling FiOS, moving customers to wireless, etc.);
  • Reductions in medical benefits including higher deductibles, co-pays, premiums, and co-insurance;
  • Eliminating the union’s ability to negotiate retiree health care benefits, often at risk in other companies;
  • Eliminate the lump sum pension option and introducing new restrictions on pensions and new fees on 401K plans;
  • Eliminate accidental disability coverage;
  • Eliminate family care leave.

cwa_logoVerizon spokesman Rick Young countered that Verizon has offered workers a straight 4% wage increase but admitted many existing contract provisions are decades old and no longer reflect current business reality. Young added Verizon union network technicians are paid $160,000 a year on average in total compensation, including salary, pension and health care. But Verizon management is insistent on cutting back the company’s health care costs, noting Verizon successfully reduced the cost of covering nonunionized workers to about $16,700 per family while union workers still receive coverage worth $20,000-24,000 a year per family.

Union officials counter Verizon was able to manage that by slashing non-union employee benefits and forcing workers into high deductible medical plans that offer lower levels of coverage. In 2011, Verizon fought its unions over the same issues, including a company demand workers accept health care plans with a $5000 out-of-pocket deductible before medical coverage kicked in. That led to a contentious two-week strike.

“Negotiations are going poorly,” Communication Workers of America’s Bob Master told CBS News this week. “We are far apart.”

Verizon-logoWith 86 percent of union members voting to strike if negotiations fail, it seems an almost certainty workers will be on the picket lines by next week if negotiations remain unsuccessful. Workers believe Verizon’s profits have been shared mostly at the top through executive bonuses and ever-increasing compensation packages while ordinary workers are asked to forego benefits and job security.

In solidarity with Verizon customers, the unions are also fighting to force Verizon to further build out its FiOS fiber network to more customers and stop allowing its copper network to deteriorate to the point of unusability.

“On the one hand, Verizon refuses to build its high-speed FiOS network in lower-income areas and on the other, they are systemically ignoring maintenance needs on their landline network,” said Ed Mooney, vice president for CWA District 2-13, which covers Pennsylvania to Virginia.  “This leaves customers at the mercy of a cable monopoly or stuck with deteriorating service while Verizon executives and shareholders rake in billions.”

Trainor

Trainor

A highly critical audit of Verizon’s FiOS rollout in New York City found that Verizon failed to meet its promise to deliver high-speed fiber optic Internet and television to everyone in the city who wanted it, claims the union.  During its negotiations for a city franchise, Verizon promised the entire city would be wired with fiber optic cables by June 2014 and everyone who wanted FiOS would get it within six months to a year.  The audit found that despite claiming it had wired the city by November 2014, Verizon systematically continues to refuse orders for service.  The audit also found Verizon stonewalled the audit process.

The CWA also contends rates for basic telephone service have increased in recent years, even as Verizon has refused to expand their broadband services into many cities and rural communities, and service quality has greatly deteriorated. Verizon’s declining service quality especially impacts customers who cannot afford more advanced cable services, or who live in areas with few options for cable or wireless services.

But the company is not hurting for money, argues union officials.

“Verizon made $9.6 billion in profits in 2014 and reported $4.4 billion in profits just in the 2015 second quarter alone,” said Dennis Trainer, vice president of CWA District One in a statement.

“In 2012, during a time of great economic stress, the company came to the union and after 15 months of bargaining, including mediation, reached an agreement that the company said they had to have to survive,” wrote an official updating workers represented by CWA District 2-13 (Mid-Atlantic region) in a bargaining update. “Since then, every year they have made billions of dollars in profits and not one executive officer at Verizon has made a single sacrifice like they told us they needed us to do. The latest insult being [Verizon CEO] Lowell McAdam getting a 16% raise in one year while we have paid more in healthcare, lost pensions for new hires, froze pensions for current members, made significant changes in incidental absence payments and made other changes to our contract that have resulted in stressful working conditions and excessive discipline to our members.”

CWA officials in District 1, representing New York and New England workers, were more blunt in responding to an unsolicited email sent to every worker signed by Marc Reed, Verizon’s executive vice president and chief administrative officer.

“Reed suggests in his e-mail that he has a concern for you and your family,” wrote one official. “Ask yourself, if he really gave a shit about you and your family why is he proposing to gut the contract that provides for you and your family.”

Public-Private Partnership: Did Miss. AG Staff Conspire With Hollywood to Launch Attack on Google?

quid pro quoGoogle is seeking documents from three network television conglomerates that could prove the Mississippi Attorney General’s office conspired with executives of 21st Century Fox, Comcast/NBC, and Viacom to launch a coordinated lobbying campaign against the search engine giant over its business practices.

A court filing reported by Variety alleges that staffers of Mississippi Attorney General Jim Hood (D) conspired to launch an anti-Google media and lobbying blitz to pressure the company over its search practices, notably the “autocomplete feature” that some believe promotes illegal activities.

Copies of email from Meredith Aldridge, one of Hood’s staff members, addressed to Brian Cohen at the Motion Picture Assn. of America (MPAA) allegedly lays out a proposed media/public relations campaign to plant negative Google stories in newspapers and on television shows with the assistance of executives inside the media companies. The examples included:

Hood

Hood

  • A custom-written editorial for placement in the Wall Street Journal, owned by News Corp., former owner of 21st Century Fox, suggesting Google stock would lose value if it faced a sustained probe by Attorney General offices across the country;
  • An appearance arranged by a Comcast/NBCU government relations executive on the Comcast/NBC-owned Today show that would perpetuate “an attack on Google;”
  • A suggestion that a PR firm engineer a regulatory filing with the Securities and Exchange Commission on behalf of a stockholder to complain about Google.

Hood’s office appeared to be ready for a lengthy, all-out assault on Google, at least based on an outline ready for the summer meeting of the National Association of Attorneys General in Boston in 2013. The document suggests Hood was prepared to discuss how Google may have perpetuated the illegal online purchases of counterfeit goods, weapons, and prescription painkillers through its search engine.

Google argues the pattern of behavior from Hood’s office suggests the three media companies are withholding documents connecting “contributions to AG Hood’s cause and the quid quo pro they expected to receive.”

Hood’s case did not go over well in the courtroom of U.S. District Judge Henry Wingate, who ruled there was a “substantial likelihood” Google will prevail on its claim that Hood violated its First Amendment rights.

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