Home » Broadband Speed » Recent Articles:

Comcast Giveth and Taketh Away: Raising Download Speed, Cutting Upload Speed in Midwest

Phillip Dampier June 26, 2018 Broadband Speed, Comcast/Xfinity, Consumer News 5 Comments

Customers in several midwestern states around Chicago have today reported to Stop the Cap! Comcast has provisioned a speed change on their internet accounts with no advance warning or notice, raising download speeds from 100 Mbps to 150 Mbps but cutting upload speeds in half — from 10 Mbps before to 5 Mbps.

The changes seem to impact customers on the midwestern region Blast plan, which was sold in many areas around Chicago with speeds of 100/10 Mbps. Some customers logging into their accounts today see a unilateral plan change there as well — one they never asked for, reflecting the changed speeds:

Comcast has yet to respond to our inquiry about the confusion. Some customers are being told the plan change is in error, at least with respect to upload speeds. It would be unprecedented for Comcast to reduce customer speeds when making speed adjustments. If you are in the midwest and subscribe to this tier, what speeds are you getting today and what does your account profile show with respect to your current internet plan?

Updated 9:01pm EDT — Comcast has responded: “We plan to increase speeds in our central division next month and will share more details soon. It’s important to note that upload speeds will not change as part of that announcement.”

We remain uncertain why current speeds seem to have declined in some areas, which was not addressed.

Updated 9:15pm EDT — Some of the speed changes appear to be related to soft-launched speed upgrades in the Central U.S. division (Alabama, Arkansas, Florida, Georgia, Indiana, Illinois, Kentucky, Louisiana, Michigan, Mississippi, South Carolina, and Tennessee). The Performance tier that used to be 100/10 Mbps is increasing to 150/10 Mbps and the Extreme tier which was 150/20 Mbps previously is upgraded to 250/20 Mbps. You may need to briefly unplug your modem/gateway to receive the new speeds.

Updated June 27 11:10am EDT — Comcast has officially confirmed the upload speed reductions were in error. Customers that still find their upload speeds reduced should reset their modem, and upload speeds of at least 10 Mbps should be restored. The company’s forthcoming speed increases will maintain current upload speeds.

N.Y. Regulator Hammers Spectrum for Fake Ads, Intentionally Deceptive and Misleading Conduct

New York’s top telecommunications regulator has called Charter Communications a purveyor of fake ads, deception, and broken promises and has again called into question how much longer the company should be allowed to do business in New York State.

The New York State Department of Public Service/Public Service Commission today sent a letter to Charter Communications CEO Thomas Rutledge condemning Spectrum’s false and misleading advertising campaigns and the ongoing deception of New York consumers about its expansion efforts. The letter warned Rutledge Charter must immediately cease and desist airing fake ads about the company’s efforts to expand critical broadband service across the state. The letter also warns that if the misrepresentations and unacceptable way Spectrum conducts its business in New York does not stop, the company could find itself out of business in New York State.

“The situation regarding Charter/Spectrum is getting more serious with each passing day,” Department CEO John B. Rhodes said. “Not only has the company failed to meet its obligations to build out its cable system as required, it is now making patently false and misleading claims to consumers that it has met those obligations without in any way acknowledging the findings of the Public Service Commission to the contrary. Access to broadband is essential for economic development and social equity. Charter/Spectrum’s intentional deception of New Yorkers must end now.”

So far, Charter has ignored the Public Service Commission’s June 14 order demanding Charter indicate full and unconditional acceptance of the 2016 merger agreement and the terms it contained. The deadline for Charter or its attorneys to respond is this Thursday, June 28, 2018. If the deadline passes with no response, the Commission warned it may rescind, modify, or amend the approval order granting the merger, file a lawsuit in the Supreme Court of New York to potentially cancel the merger, and fine Charter for being out of compliance with state law.

Letter from New York regulators to Charter Communications (click image to download or view complete letter).

Charter’s Fake Ads

Rhodes

The letter accuses Rutledge of knowingly misleading New York customers in its advertising and printed materials that claim Charter has fully complied with — and exceeded — its commitments to New York under a merger agreement with the state allowing Charter to acquire Time Warner Cable systems. The letter emphatically states these representations are demonstrably and materially false.

State regulators pointed to Charter’s historic and systematic pattern of false advertising, noting a 2017 lawsuit filed by New York’s Attorney General over the company’s inability to provide advertised speeds has survived several company challenges in court and is moving forward.

The Merger Itself is in Peril

Charter will face the possibility of additional legal troubles as the PSC refers Spectrum’s latest conduct to the Attorney General’s office for possible further legal action. State regulators also suggested Charter was materially deceiving investors in violation of federal securities laws by not disclosing the company’s failure to honor its commitments to New York and warning investors the merger itself was now in significant peril if it is revoked in New York.

Regulators have also put Charter executives on notice that in advance of a possible penalty action by the Commission against the company directly, it further demanded that Spectrum produce records regarding its false representations and preserve all documents, including email, text messages, voice mail, recordings, and other documentation relating to its advertising claims.

A Record of Failure in New York

According to a PSC investigation and a Public Service Commission order, Spectrum missed its required December 16, 2017 build-out commitment to extend its network to pass additional residences and businesses by 12,245 passings. Spectrum also failed to cure, as required, its earlier failure by March 16, 2018. For these two failures, Spectrum was ordered by the Public Service Commission to forfeit $2 million. These failures came on top of earlier failures by Spectrum to meet its commitments. The PSC argues Spectrum has not met a single build-out deadline since the approval of its acquisition of Time Warner Cable in 2016.

The PSC stated that, instead of working to meet its commitments to New York, Charter executives have ignored state regulators as Spectrum knowingly continued to advertise and publish false claims that the company is exceeding its mid-December 2017 commitment made to New York by more than 6,000 locations and is on track to extend the reach of advanced broadband network to 145,000 unserved or underserved locations by May 2020. Both claims are patently false, claims the PSC.

“Spectrum’s failure to meet its build-out commitments hurts unserved and underserved New Yorkers, leaving them without a key public utility service crucial to their future success and well-being,” the regulator wrote.

“Spectrum’s publication of claims that it knows are false harm all consumers who rely on honest and accurate information in choosing suppliers from among competitors,” the PSC wrote. “And when Spectrum continues to advertise and publish false claims even after being directed not to by its governmental regulator, it demonstrates deliberate disregard and lack of respect for the Public Service  Commission, the rule of law, and regulation in New York State. Accordingly, in the name of customers and potential customers, the Department called on Spectrum to set the record straight by advertising and publishing the truth that the company has been found by the Public Service Commission to have failed to keep its buildout commitment to New York State.”

Charter Communications produced this video incorporating similar elements used in its advertising targeting New York consumers. Charter does not mention its investment in rural broadband in New York is not altruistic. It was a core condition the company agreed to as part of a settlement with the New York Public Service Commission to approve the acquisition of Time Warner Cable in 2016. (1:36)

Spectrum’s “Summer of Gig”: Company Says Gigabit Service Available to More Than Half its Subscribers

The newest cities getting Charter/Spectrum’s gigabit service.

With the latest additions to the list of Charter Communications’ gigabit-capable cities last week, Spectrum’s gigabit internet service is now available to more than 27 million homes, more than half of its 41-state footprint.

The latest cities to receive gigabit upgrades include Charleston, S.C., Bowling Green, Ky., Cleveland and Toledo, Ohio, Erie, Pa., Orlando, Fla. Hartford, Conn., and Springfield, Mass.

Spectrum is calling the occasion “the summer of gig,” with the promise of another wave of newly upgraded cities by Labor Day.

In addition to the availability of gigabit service, which in reality offers speeds up to 940/35 Mbps, customers should see Standard speeds in many of these locations increased to 200/10 Mbps and the introduction of an improved Ultra speed tier of 400/20 Mbps. Some cities have not yet received a free upgrade to 200 Mbps service, but are expected to sometime over the summer.

Gigabit pricing varies, depending on market, with new Spectrum customers paying $104.99/month for the first year. If you already subscribe to Spectrum service, the rate is $114.99 for Spectrum TV customers and $124.99 a month for non-Spectrum TV customers. There is also a mandatory $199 installation fee which cannot be waived.

This company-supplied video celebrates the arrival of gigabit internet for more than four million additional Spectrum customers. (1:10)

 

 

 

Telcos Pile Up Debt From Mergers & Acquisitions While Stalling Fiber Upgrades

Spending priorities: mergers & acquisitions, not upgrades.

Since 2012, two of the country’s largest phone companies spent enough money — $281.4 billion — to wire at least three-quarters of the  nation with fiber-to-the-home service and deliver vastly improved rural internet access to the rest of the country. Instead of doing that, AT&T and Verizon used the money to buy their competitors and content creators including AOL and Yahoo.

A 2017 Deloitte Consulting analysis estimates the United States will need between $130 and $150 billion in investment over the next 5–7 years to upgrade at least 75% of homes and businesses to fiber to the home service, with the remaining 25% serviced by technologies including 5G that are capable of delivering broadband speeds greater than the federal minimum standard of 25/3 Mbps.

AT&T could almost deliver the country a major broadband upgrade all by itself, having spent $138 billion on mergers and acquisitions in the past six years. Verizon could have easily handled the entire cost, but instead spent its $143.4 billion on business deals, including $130 billion to buy out former Verizon Wireless partner Vodafone. Among independent phone companies, things look equally bad. Frontier Communications is saddled with so much debt after acquiring former AT&T customers in Connecticut and Verizon customers in more than a dozen states, it has been forced to suspend its shareholder dividend and has been only able to make token investments in network upgrades for its mostly copper wire infrastructure in its original “legacy” service areas and a mixture of copper and fiber in acquired service areas. Both CenturyLink and Windstream have refocused many of their business activities on the commercial services marketplace, including the sale of hosting, business IT services, and cloud server networks.

More recently, both AT&T and Verizon have raced into content company acquisitions, buying up AOL, Yahoo, and Time Warner to offer their respective customers additional content. The phone companies are diversifying their business interests away from simply offering phone lines and internet access. At the same time, many of these acquisitions are depleting resources that could be spent on critical network upgrades.

The article in Light Reading claims the telecom industry’s traditional financial model of borrowing money to build networks and upgrade others is broken, because telecom companies now prefer to spend money acquiring other companies instead. Although AT&T has, in recent years, been more aggressive than Verizon in deploying fiber to home service, both companies have resisted committing large amounts of capital to a territory-wide fiber buildout, preferring to spend smaller sums to incrementally upgrade their networks in selected areas over the next decade. But the merger and acquisition teams at both companies are far less cautious, given the go ahead to pay handsomely for companies that often have little to do with providing telephone or internet service.

Light Reading reports AT&T’s debt climbed from $59 billion in 2010 to $126 billion at the end of 2017. Verizon’s debt increased from $45 billion to $114 billion. But those acquisitions have done little to attract new customers. Both companies’ operating cash flows have barely budged — $39 billion annually at AT&T (up from $35 billion) and Verizon’s actually declined from $33 billion in 2010 to $25 billion in 2017.

Mergers and Acquisitions (2011-2018)

AT&T

  • 2012: AT&T buys $1.93 billion worth of spectrum from Qualcomm.
  • 2013: AT&T buys Leap Wireless (Cricket) for $1.2 billion.
  • 2014: AT&T pays $49 billion for the DirectTV, issuing $17.5 billion in debt in April.
  • 2015: AT&T buys out assets from bankrupt Mexican wireless business of NII Holdings for around $1.875 billion.
  • 2018: AT&T pays $207 million to acquire FiberTower.
  • 2018: AT&T is cleared to merge with Time Warner in a deal valued at more than $84 billion.

Verizon

  • 2011: Verizon acquires Terremark for $1.4 billion.
  • 2014: Verizon buys out Vodafone’s 45 percent stake in Verizon Wireless, valued at $130 billion, with a mixture of stock and debt.
  • 2015: Verizon buys AOL for a deal valued around $4.4 billion.
  • 2017: Verizon acquires Yahoo Internet assets for $4.5 billion.
  • 2017: Verizon buys spectrum holder Straight Path Communications for $3.1 billion roughly double rival AT&T’s offer, to build up 5G spectrum and footprint.

The more debt (and debt payments) that pile up at the two companies, the less money will be available to spend on fiber upgrades. In fact, there is evidence these companies are hoping to further cut costs in their core landline network operations. Some regulators have noticed. Verizon was forced to make a deal with New York regulators requiring the company to spend millions replacing failing copper-based facilities and upgrade them to fiber and remove or replace tens of thousands of deteriorated utility poles. Verizon faced similar action in Pennsylvania.

AT&T has spent millions lobbying the federal government to permanently decommission rural America’s landline network and replace it with a wireless alternative, while also working to replace the current regulated telephone network with deregulated alternatives like internet and Voice over IP phone service.

Wall Street analysts have occasionally questioned or at least expressed surprise over some of the phone companies’ odd acquisitions:

  • Verizon acquired Terremark to beef up its cloud-based and server-hosting businesses. But shortly after acquiring the company, Verizon began replacing top management, sometimes repeatedly, and ultimately divested itself of its data center portfolio, including Terremark, just five years later.
  • AT&T bought DirecTV to help it reduce wholesale TV programming expenses for its U-verse TV subscribers. But DirecTV has lost more than one million satellite TV customers since AT&T acquired it in 2014, despite new marketing efforts to convince would-be U-verse TV customers to choose DirecTV instead.
  • Verizon saw value in web brands that were major players more than 18 years ago but are mostly afterthoughts today. The company spent almost $9 billion to acquire Yahoo and AOL, and their low quality content portfolios, which rely heavily on clickbait headlines, advertiser-sponsored content, and articles designed to maximize mouse clicks to boost the number of ads you see.

“The telcos are trying to diversify into content when they should instead be focused on their core business — building networks and charging for value-added technology,” said Scott Raynovich, founder and principal analyst at Futuriom. “It’s clear they see content as part of the value-add but customers so far don’t seem to be reacting that way. It’s clear they are allergic to paying higher prices for bundled content.”

AT&T and Verizon’s customers are not clamoring for more content deals. When surveyed, most want better internet service at more affordable prices.

Sprint Offering $15/Mo Unlimited Call/Text/Data Plan to New Customers… Until Friday

Sprint debuted its new $15/month Unlimited Kickstart plan on June 7th, and will stop taking new orders for it tomorrow evening, making it one of Sprint’s shortest-lived plans ever.

The plan, intended to steal customers from competitors, offers those bringing a qualified device (or buying one) the opportunity of paying just $15 a month for unlimited talk, texting, and data, with some caveats:

  • Video streams are throttled to support up to 480p, music streams are limited to 500 kbps, and gaming streams don’t exceed 2 Mbps.
  • Customers on this plan are subject to speed throttles, known at Sprint as “data deprioritization” when towers are congested, regardless of usage.
  • Customers must enroll and maintain autopay.
  • Requires customers to sign up for a new line, port an existing number, and either bring your own device or buy one from Sprint.

Unlimited Kickstart gives Sprint a chance to report a big boost in new customer signups during its next quarterly report to Wall Street. But the company claims the plan also allows customers of other carriers the opportunity of sampling Sprint’s upgraded network, or return to Sprint as an ex-customer to see how the network has improved. There are no contracts, and the offer also extends to other family members — each line up to four will cost just $15/month.

Sprint will attempt to upsell customers to its Unlimited Freedom plan, which offers more features at a higher price.

“At Sprint, we’ve worked incredibly hard to improve our network,” the company claimed in a press release. “In fact, Sprint’s national average download speed increased 34.5 percent year-over-year, more than any other national carrier. Plus, we’ve increased our investment to make our coverage, reliability and speed even better as Sprint prepares to launch the first mobile 5G network in the U.S. in the first half of 2019.”

The company claims interest in the offer is extremely heavy, but the press release announcing it also mentioned an expiration date for enrollees of Friday night (June 15) at 11:59pm EDT, which means time is running out. Customers have to sign up for the offer online, which isn’t particularly intuitive. A Live Chat button is located on the web page which may offer some help to those trying to enroll. If you own a qualified phone already, or acquire a new one, you will need to acquire a Sprint SIM card to activate the plan no later than June 22, 2018.

Search This Site:

Contributions:

Recent Comments:

  • Bill Callahan: Buffalo? Syracuse?...
  • Fred Hall: Haha.....someone at Sinclair didn't provide enough "grease" for Ajit's palm...
  • Joseph Lindberg: I pay $93.45 for just TV select $6.00 or so for two TV boxes each the cheap ones not dvrs and $14.99 or something in tax and $64.99 for the TV select ...
  • Norm Mueller: Do not even consider this company for your service provider, or you will forever regret it like I do. This started because Comcast's promotional rate...
  • Katherine. Voss: I sent all my contract buyout forms. Got no credible response. This is a scheme. I am sending information to proper agencies....
  • Noemi Romero: i have been waiting for 3 month and 2 weeks now for my refund and every time i call is like no one knows what the hell i am talking about. like seriou...
  • Josh: Sounds risky....40 million subscribers is insanely high, and clearly that guy running it since ‘92 knows what he’s doing. I forgot AT&T owns hbo ...
  • alan: i stopped pissing $ away on paying to see commercials 20 years ago did the direct tv , dishnet card programing my own cards ..then that became a sma...
  • Denis Cartledge: I live in a small (Australian) New England regional town, population ~3,500. The main north south New England Fibre Trunk runs up our main street, wh...
  • James Thompsen: You pay more you get mor.... hey wait an Effin minute!...
  • Joshi: Honestly, I'm glad Comcast did not win the bid. If they won, things would have gotten a lot worse since they bought out NBC Universal and Dreamworks s...
  • Stephen Collins: The modem increase is the most unconscionable of the bunch....

Your Account: