Home » Editorial & Site News » Recent Articles:

FCC Chairman Announces Compromise Set-Top Box Reform; Free ‘Apps’ for One and All

explorer 8000[Editor’s Note: Federal Communications Commission chairman Thomas Wheeler today released a compromise proposal hoping to get the cost of set-top box equipment down for millions of Americans forced to lease equipment to watch cable television.

Wheeler originally proposed requiring an open standard for set-top box equipment that would open the market to competition by allowing manufacturers to directly sell equipment to consumers and compete for their business. Cable operators, programmers, and various special interest groups that depend on financial contributions from those operators immediately launched an unprecedented pushback claiming set-top box reform was racist, anti-minority, promoted copyright theft, and was illegal and unconstitutional. Small cable operators claimed they might be driven out of business, and programmers claimed companies like Google might fundamentally change the channel lineup on new equipment that would leave them in a disadvantaged position.

In fact, the hundreds of millions of dollars in annual revenue earned by cable operators charging the same price for equipment fresh out of the box or handed down in beat up condition to the fifth customer in eight years was more likely the driving factor.

Mr. Wheeler capitulated and released a more modest proposal promising cable operators would be forced to offer free “apps” for devices like Roku and Apple TV. But cable operators will likely own and manage those apps and have direct control of authentication methods and anti-piracy measures that are likely to be proprietary. Still, apps like TWC TV which covers Time Warner Cable’s lineup on devices like Roku have allowed consumers to ditch expensive set-top equipment and irritating Digital Adapters that don’t function well and have almost tripled in price since their introduction. Making sure these apps provide comparable functionality with set-top boxes and are released to a variety of devices will be key to whether Wheeler’s proposal, delivered in full below courtesy of the Los Angeles Times, has a measurable impact on cable bills.]

FCC chairman: Here are the new proposed rules for set-top boxes

There’s never been a better time to watch television in America. We have more options than ever, and, with so much competition for eyeballs, studios and artists keep raising the bar for quality content. But when it comes to the set-top-box that delivers our pay-TV subscriptions, we have essentially no options, creating headaches and costing us serious money in rental fees. That makes no sense, which is why I’m sharing a proposal with my fellow commissioners at the Federal Communications Commission to change the system.

Wheeler's compromise

Wheeler’s compromise

Ninety-nine percent of pay-TV subscribers currently lease set-top boxes from their cable, satellite or telecommunications provider, paying an average of $231 a year for the privilege, according to a recent analysis. The collective tab is $20 billion annually in rental fees. In a recent study, 84% of consumers felt their cable bill was too high. What they may not realize is that every bill includes an add-on fee for their set-top boxes. We keep paying these charges even after the cost of the box has been recovered because we have no meaningful alternative.

Pay-TV providers will be required to provide apps — free of charge — that consumers can download to the device of their choosing.
Earlier this year, the FCC launched a process to unlock the set-top-box marketplace. We were motivated by the desire to give consumers relief, but we were also mandated to take action by Congress and the law, which says that consumers should be able to choose their preferred device to access pay-TV programming.
Over the past seven months, the Commission conducted an open proceeding where we heard from pay-TV providers, programmers, device and software manufacturers, consumers groups, and, most important, the American people. We listened.

Now, I am proposing rules that would end the set-top-box stranglehold. If adopted, consumers will no longer have to rent a set-top box, month after month. Instead, pay-TV providers will be required to provide apps – free of charge– that consumers can download to the device of their choosing to access all the programming and features they already paid for.

appletvIf you want to watch Comcast’s content through your Apple TV or Roku, you can. If you want to watch DirectTV’s offerings through your Xbox, you can. If you want to pipe Verizon’s service directly to your smart TV, you can. And if you want to watch your current pay-TV package on your current set-top box, you can do that, too. The choice is yours. No longer will you be forced to rent set-top boxes from your pay-TV provider.

One of the biggest benefits consumers will see is integrated search. The rules would require all pay-TV providers to enable the ability for consumers to search for pay-TV content alongside other sources of content. Just type in the name of a movie, and a list will come up with all the places it is scheduled for broadcast and where it can be streamed (like Amazon Prime or Hulu).

Integrated search also means expanded access to programming created by independent and diverse voices on the same platform as your pay-TV providers. Consumers will more easily find content even if it’s not on the pay-TV service to which they subscribe.

These rules will open the door for innovation, spurring new apps and devices, giving consumers even more choice and user control.

While our primary focus during this proceeding was to promote consumer choice and fulfill our congressional mandate, we recognize that protecting the legitimate copyright interests of content creators is also key to serving the public interest. To ensure that all copyright and licensing agreements will remain intact, the delivery of pay-TV programming will continue to be overseen by pay-TV providers from end-to-end. The proposed rules also maintain important protections regarding emergency alerting, accessibility and privacy.

Large pay-TV providers, which serve more than 90% of subscribers, will have two years to fully implement the new requirements.  Medium-sized providers will have an additional two years to comply, and the smallest providers would be exempt.

This is a golden era for watching television and video. By empowering consumers to access their content on their terms, it’s about to get cheaper — and even better.

Time Warner Cable/Bright House Customers: Here is Charter/Spectrum’s Promotional Price List

charter-twc-bhThanks to one of our readers who also happens to be a TWC employee, here is the latest update to Charter/Spectrum’s list of first year promotions, taking effect in California and Texas (9/20) this month.

We expect it will be rolling out to other TWC and BH regions over the next few months. Unless you are compelled to change packages, if you are on a current Time Warner Cable or Bright House promotion or retention deal, we recommend you keep it until it expires. You can then enroll in one of these promotions, almost certainly at these prices, extending the length of your savings.

We expect Charter’s retention department to deliver a tougher line on retention packages and promotions than Time Warner Cable gave customers. Once these promotional prices expire, your rates will step up each year for two years thereafter until you reach the “rack rate” — Charter’s regular pricing. Your ability to secure new customer pricing again will probably require you to bounce between providers or cancel/come back as a new customer. I am told by long-time Charter customers that Charter’s retention prices are usually not as good as new customer pricing.

We have some corrections to our earlier coverage on this last month: broadband-only customers will pay a promotional rate of $39.99 a month for the first year for 60Mbps service, $79.99 a month for 100Mbps service (100Mbps or 300Mbps in existing TWC Maxx territories), not the $60/99 rack rate. We have received word Earthlink will continue to be another option for customers to consider for broadband service, which can be a good way to secure extended promotional pricing. Another change: phone service is now an extra $10 a month, not $20, as part of a triple play package. We notice Charter only lists free calling to U.S. numbers on this sheet. Time Warner Cable includes free calls to Canada, Mexico, China, Hong Kong, India, The EU, Norway and U.S. territories. We are unsure if this represents an omission or a downgrade. Also, the Wi-Fi fee is waived for Spectrum Ultra, which corrects our earlier piece where we thought this fee would apply to both broadband packages. Multi-DVR service pricing is still confusing on this chart. We’ve heard Charter intends to ditch TWC’s Whole House DVR service and give subscribers the option of multiple standalone DVR units instead. DVR pricing is: $4.99 for each DVR box + an $11.99 DVR service fee (if you have only one DVR). If you want multiple DVRs, they are each $4.99 a month with an all-inclusive monthly service fee of $19.99, regardless of how many extra DVR boxes you rent.

Obviously, we will be looking for money-saving opportunities for our readers once we get a better handle on Charter’s way of doing business.

spectrum-promo

AT&T to Urban Poor: No Discounted Internet Access if We Already Deliver Lousy Service

access att logoAT&T is adding insult to injury by telling tens of thousands of eligible urban households they do not qualify for the company’s new low-cost internet access program because the company cannot deliver at least 3Mbps DSL in their service-neglected neighborhood.

In one of the worst cases of redlining we have ever seen, AT&T is doubling down on making sure urban neighborhoods cannot get online with affordable internet access, first by refusing to upgrade large sections of income-challenged neighborhoods and then by refusing requests from those seeking the low-cost internet service the government required AT&T to provide as a condition of its merger with DirecTV.

The National Digital Inclusion Alliance reports their affiliates have run into serious problems helping AT&T customers sign up for Access from AT&T, the company’s new discounted internet access program open to users of the Federal Supplemental Nutrition Assistance Program (SNAP) — the modern-day equivalent of food stamps. Participants are supposed to receive 3Mbps DSL for $5 a month or 5-10Mbps for $10 a month (speed dependent on line quality).

“As some NDIA affiliates in AT&T’s service area geared up to help SNAP participants apply for Access in May and June, they found that a significant number were being told the program was unavailable at their addresses,” NDIA reported. “Some of those households had recent histories of AT&T internet service or had next door neighbors with current accounts. So, why were they being told AT&T did not serve their addresses?”

It turns out AT&T established an arbitrary threshold that requires participating households to receive a minimum of 3Mbps at their current address. But AT&T’s urban neighborhood infrastructure is so poor, a significant percentage of customers cannot receive DSL service faster than 1.5Mbps from AT&T. In fact, data from the FCC showed about 21% of Census blocks in the cities of Detroit and Cleveland — mostly in inner-city, income-challenged neighborhoods — still cannot manage better than 1.5Mbps DSL.

Remarkably, although these residents cannot qualify for discounted internet service, AT&T will still sell them 1.5Mbps DSL service… for full price. AT&T even admits this on their website:

access att

“If none of the above speeds are technically available at your address, unfortunately you won’t be able to participate in the Access program from AT&T at this time. However, other AT&T internet services may be available at your address.”

“About two months ago, NDIA contacted senior management at AT&T and proposed a change in the program to allow SNAP participants living at addresses with 1.5 Mbps to qualify for Access service at $5/mo,” NDIA wrote. “Yes, we know we were asking for the minimum speed to be lower than it should be, but paying $5/mo is better than paying full price and in many neighborhoods, both urban and rural, Access is the only low-cost broadband service option. I’m sorry to report that, after considering NDIA’s proposal for over a month, AT&T said no.”

“AT&T is not prepared to expand the low-income offer to additional speed tiers beyond those established as a condition of the merger approval,” is the official response of AT&T, leaving tens of thousands of AT&T customers unlucky enough to be victims of AT&T’s network neglect and underinvestment out in the cold.

Slowsville: These Cleveland neighborhoods marked in red cannot get anything faster than 1.5MBps DSL from AT&T.

Slowsville: These Cleveland neighborhoods marked in red cannot get anything faster than 1.5MBps DSL from AT&T.

Internet access is not just a problem in rural America. Urban neighborhoods are frequently bypassed for network upgrades because there is a sense residents cannot afford to pay for the deluxe services those upgraded networks might offer. Similar issues affected city residents that waited years for cable television to finally arrive in their neighborhoods. Some providers evidently felt they would not get a good return on their investment. Yet data consistently shows cash-strapped urban residents are among the most loyal subscribers to cable television, because it is less costly than many other forms of entertainment. This year, urban content viewers were among the most loyal cable TV subscribers, even millennials notorious for cord-cutting.

Regulators should review AT&T’s compliance with its DirecTV merger conditions. Access from AT&T should be available to every qualified home, particularly those AT&T will happily furnish with appallingly slow 1.5Mbps DSL, if customers agree to AT&T’s regular prices.

Our Take: Frontier to Bring Vantage TV to Metro Rochester, N.Y.

frontier new logoWith more than one million people in its footprint across western New York, Frontier Communications has the potential of picking up a significant number of new customers and keeping others from leaving with the introduction of its Vantage IPTV service (see our coverage from this spring to learn more about Vantage TV), set to arrive in the Greater Rochester area by the end of this year.

Rochester is Frontier’s largest legacy copper service area by population, encompassing the majority of the 585 area code. Yet for all that history and Rochester’s significant population base, over the last 15 years Frontier has owned the former Rochester Telephone, upgrades to its copper wire infrastructure have been modest. Significant segments of Frontier’s service area in Rochester still cannot support greater than 3-6Mbps DSL because the company has proportionally underinvested in network upgrades.

That underinvestment has allowed Time Warner Cable (now Charter) to amass a large majority of the residential broadband, phone, and television market in the region. Winning those customers back may be tough without considerable investment in ridding the Rochester area of large segments of copper wiring in place since the 1960s and 1970s. Frontier will be competing against a company that offers broadband speeds starting at 60Mbps and will be discounting its plans, packages and equipment fees for the next few years.

opinionVantage TV is powered by Frontier’s broadband service and will need more bandwidth than the company can now supply across parts of the three dozen communities it plans to market IPTV in the Greater Rochester area. CEO Dan McCarthy promised to upgrade much of Frontier’s copper network to support speeds of 50Mbps or higher, but that isn’t likely to happen this year in large parts of western New York.

Historically, Frontier has preferred acquiring other companies’ already-built fiber and fiber/copper networks instead of spending the money to build comparable networks from scratch. That is why there is a wide disparity between Frontier’s performance in its acquired FiOS and U-verse territories (Indiana, Pacific Northwest, and Connecticut) and its legacy network (Rochester) and acquired dilapidated copper communities (non-FiOS Verizon acquisition areas, most of West Virginia, etc.)

The Vantage TV announcement underwhelmed local media, with only one television station bothering to cover it. That may be a result of skepticism among area reporters who have had direct past experience using Frontier’s DSL service and share our attitude about Frontier’s press releases: only believe it when you actually see it.

Roku Preparing 5 New Models for Late 2016

Phillip Dampier August 30, 2016 Consumer News, Editorial & Site News, Online Video 1 Comment
HBO NO GO on Time Warner Cable & Bright House Networks

New models for 2016

Roku is preparing to completely overhaul its current lineup of streaming video set-top boxes with five new models designed to support higher quality video and more features.

Dave Zatz from ZatzNotFunny was able to correlate a redacted filing with the Federal Communications Commission and a not-so-redacted heads-up given to Canadian electronics suppliers preparing to inventory the newest models to analyze what Roku plans to offer this holiday season.

The biggest change is the end of Roku’s numerical designations for its units. No more confusing Roku 2 or 3, supplemented with the exact model year to account for production changes along the way. Instead, Roku is naming its newest units similar to a multi-level rewards program. With units ranging from Roku Express to Roku Premiere, to the top of the line Ultra, there should be something for everyone.

Both the “Express” and “Premiere” series have “Plus” models as well, which seems to include additional connection options.

roku-premiere-1

(Image courtesy of Dave Zatz)

Basic Lineup: Roku Express/Express Plus

The new entry-level Roku model will likely replace the Roku 1. A processor upgrade is likely because some applications and services have historically stopped supporting older model Roku units. Introducing a more robust basic product will protect its usefulness to owners in the years to come. We’re not certain what the Plus features will include on this model.

Mainstream: Roku Premiere/Premiere Plus

This will likely be the best value for money option for a lot of Roku users. Both models will include support for 4K video. The Plus version is suspected of including support for High Dynamic Range (HDR), a big improvement over the 2015 model. Other Plus features are expected to be an Ethernet port for direct wired connection and a microSD slot.

High End: Ultra

For the person who wants it all, the Roku Ultra will replace the Roku 4. In addition to all the features found on lesser models, the Ultra is expected to include a remote control finder, optical out, and a USB port.

The anticipated price points of the different models seem to be similar to current Roku pricing: Roku 1/Express: $50, Roku Premiere/Roku 2: $70, Roku Premiere Plus/Roku 3: $100, Roku Ultra/Roku 4: $130.

Dave Zatz offers additional insight if you’re interested in more technical details on his website.

AT&T’s Latest Sneaky Wireless Rate Hike

Always looking for a new angle.

Always looking for a new angle.

While T-Mobile and Sprint are preparing to battle it out offering dueling unlimited data plans, Verizon Wireless and AT&T are continuing to raise prices for many customers while pushing upgrades on customers some do not need.

This week, AT&T officially introduced its Mobile Share Advantage plan, with most of the advantages going to AT&T.

Per device fees have shot up by as much as 33% if you have more than two smartphones on your account. AT&T used to charge $15 per smartphone as a device fee. Now it is $20, offset in many cases by some reductions in data plan costs. But once you add a third device, you are paying a $5 rate increase per device.

The company is also trying to clean up its reputation by eliminating the scourge of data-related overlimit fee bill shock. Before the change, AT&T customers faced an overlimit fee of $5 for each 300MB used on its 300MB data plan and $15 per gigabyte on other plans. Instead of billing overlimit fees, AT&T is adopting punishing speed throttles for customers over their allowance. Once customers exceed their plan limit, speeds are reduced to 2G levels, up to 128kbps. While that is just painful for web pages, it makes watching video and uploading photos next to impossible without experiencing frustrating network timeout error messages.

Gone are the 2, 5, and 15GB plans. Customers can now choose from 12 different usage plans ranging from 1-100GB.

data plans att

But AT&T’s most conservative users of data are going to pay more under the new plan. Customers enrolled in the old 2GB $30 data plan, suitable for those who use their phones to check e-mail and view web pages, will find that same $30 will only buy them 1GB if they switch to the new plan. To avoid the likelihood of hitting the speed throttle, these customers will have to upgrade to a 3GB plan for $40 — a $10 increase.

For everyone else who happens to slightly exceed their data allowance, many may end up preferring the old $15 overlimit fee system. Under the new plan, customers have to live with speed throttles that make their devices almost unusable until the billing cycle refreshes. We predict many customers won’t wait and will upgrade their data plan to restore functionality. But upgrades from the 3GB and 6GB plans come in $20 increments — $5 more than the overlimit fee charged for slightly going over. Even worse, if the overage was a one-time issue, many customers will spend $20 more on a data allowance many probably won’t use.

Customers are free to keep their existing plan, for now. But if they change plans, they won’t be able to switch back.

Christmas in August: Calif. Allows AT&T to Fine Itself and Keep the Money

att400California’s Public Utilities Commission (CPUC) couldn’t get cozier with AT&T if they moved regulators into the phone company’s plush executive suites.

In a 3-2 decision, the CPUC has given California phone companies that cannot manage to keep their wireline networks in good order an early Christmas, allowing the companies to effectively fine themselves for bad performance and keep the money.

Although the CPUC adopted a series of “automatic fines” for companies with chronic service problems (AT&T is by far the largest offender), it completely negated any sting by allowing companies to skip the fine by demonstrating they’ve invested at least twice the amount of the penalty in their networks. That is an expense AT&T’s bookkeepers can manage to document in minutes just by highlighting AT&T’s investments in other parts of the state. AT&T can argue investments in gigabit fiber in southern California or wiring fiber to business parks and cell sites improves service reliability for at least some customers.

CPUC president Michael Picker isn’t in any hurry either, helpfully offering AT&T and other phone companies two years to complete the investments that will cancel their fines:

In support of a request to suspend the fine, carriers may propose, in their annual fine filing, to invest no less than twice the amount of their annual fine in a project (s) which improves service quality in a measurable way within 2 years. The proposal must demonstrate that 1) twice the amount of the fine is being spent, 2) the project (s) is an incremental expenditure with supporting financials (e.g. expenditure is in excess of the existing construction budget and/or staffing base), 3) the project (s) is designed to address a service quality deficiency and, 4) upon the project (s) completion, the carrier shall demonstrate the results for the purpose proposed. Carriers are encouraged to review their service quality results to find appropriate target projects to invest funds.

Consumer advocates have accused AT&T of underinvesting in their wireline facilities for years. Because the CPUC does not require the investment be specifically targeted to correcting problems that prompted the fine, phone companies can continue to allow high cost/low profit rural infrastructure to deteriorate while targeting service-improving investments in more profitable or competitive service areas.

Steve Blum from Tellus Venture Associates, who has closely tracked telecom public policy matters in California for years, called it the most cynical decision he’s ever seen from the CPUC:

Fines, it seems, are just another cost of doing business for telecoms companies and don’t matter anyway. So why not let them keep the money?

Boiled down, that’s CPUC president Michael Picker’s rationale for establishing new telephone voice service level requirements backed up by a swinging schedule of penalties and then saying but we’ll let you keep the money if you invest it in infrastructure or pay staff. Or something. Anything.

Picker

Picker

Commissioner Mike Florio called the Picker’s proposal “unenforceable.”

The CPUC’s own staff has documented the troubling condition of landline service in the state. A staff report published in September 2014 showed the largest phone companies in the state — AT&T and Verizon (later sold to Frontier Communications) — that control 88% of landlines in California never met the CPUC’s minimum standard of repairing 90% of “out of service” trouble tickets within 24 hours during 2010-2013.

In 2010 and 2011, AT&T and Verizon needed an average of 110 hours to repair 90% of outages. That is 4.5 days. In 2012 and 2013, repair time marginally improved to an average of 72 hours (3 days). That is three days without any phone service or the ability to call 911, something the CPUC staff said compromised public safety.

AT&T and Verizon have papered the CPUC’s walls with “corrective action reports” over the years explaining why they failed to meet CPUC standards and what actions they planned to take to improve compliance. The staff report found those reports never resulted in improved compliance.

Commissioner Catherine Sandoval submitted an alternative plan of simple fines and a reporting system that gives equal weight to outages occurring in areas served by independent phone companies like Citizens Telecommunications Company of California (d/b/a Frontier) and SureWest Telephone (d/b/a Consolidated Telephone). Picker didn’t bother to hold a vote on Sandoval’s proposal, instead bringing his own proposal to the commission that approved it on a 3-2 voice vote. Florio and Sandoval voted no.

Despite the easy out, the state’s phone companies are still complaining the fine system was unnecessary because the free market was best equipped to manage service outages. If customers don’t like their provider, they can switch, assuming there is another provider available in the large rural and mountainous parts of the state.

Updated: Charter’s Plans for Time Warner Cable, Bright House Customers Apparently Leaked

charter twc bhUpdated 9/7/2016: Please check our latest coverage on promotional packages for Bright House and Time Warner Cable customers that are being introduced in September 2016 by new parent company Charter Communications. Some of the prices reflected below are now out of date! 

Charter’s plans for Time Warner Cable and Bright House Networks customers are now potentially clearer thanks to the apparent leak of several informational slides from a presentation given to employees to familiarize them with Charter’s forthcoming service plans.

A reader of DSL Reports in California shared what purports to be informational slides from a company training course. Los Angeles is among the first markets to be offered the new Charter/Spectrum service plans, likely to arrive as early as mid-September.

We’ve condensed the information down into a more readable format to give you an idea (subject to change, of course) about Charter’s pricing and plans. Existing customers may not need to give up their current plans right away, and some customers may not want to. Charter has recognized Time Warner Cable Maxx’s network upgrades in its plans and pricing, which means customers already upgraded for Maxx service will get better value from Charter’s plans than those customers who never made the upgrade list before Time Warner Cable was sold.

Keep in mind Charter will start by offering all “New Charter” customers a “new customer” promotion, priced low the first year and then increasing incrementally in price during the second and third years. Year three pricing will be equivalent to Charter’s regular price, which will be substantially higher than customers on Time Warner Cable customer retention plans have paid. Charter’s service plans offer improved broadband speeds, but at a significantly higher price. Standalone broadband customers in particular will feel an immediate sting. Charter’s entry-level price for most customers is $59.99 for 60Mbps, about $25 more than Time Warner Cable’s promotional rate for Standard 15/1Mbps service, which has been selling for about $35/mo for the first year. Charter will point out that it includes a cable modem for free while Time Warner Cable charged $10 a month, but that offers no solace to customers who have purchased their own equipment.

Please note these plans and prices have not been officially confirmed by Charter. In fact, we would not be surprised to see some pricing changes before the plans are officially available.

TELEVISION

spectrum selectThere are big changes in store from Charter. First, the company will end distribution and support for Digital Transport Adapters (DTAs) — the small boxes designed for older analog-only TV sets. Charter expects you to have a traditional set-top box on every cable-equipped TV in the house. Second, it seems Whole House DVR service is being discontinued. Charter prefers the alternative of placing DVR boxes on each set where you want to record and watch TV shows. There is a significant cost for Time Warner Cable to install Whole House DVR service and it involves a technician coming to your home. Charter seems to want to cut truck roll expenses, and traditional DVR boxes are easy for customers to install themselves.

DVR pricing is still confusing for customers. A single DVR box is priced at $4.99 for the equipment + an $11.99 DVR service fee. DVR’s 2-4 cost $4.99 per box + a $19.99 DVR service fee. We are not sure if the $19.99 inclusively covers all DVR boxes in the home or if that is charged for each additional DVR. (Update: STC reader Ricardo reports the $19.99 fee is inclusive, so it is only charged once regardless of how many extra DVRs you have.)

For the first year, traditional set-top boxes for New Charter customers are a bargain at $4.99/mo. Legacy Charter customers pay $2 more, and we predict you will pay more as well after the first year, but the equipment fees are less than what Time Warner Cable charged.

Customers will choose from three plans: Select, Silver, or Gold:

  • Select: 125+ channels (HD included), Spectrum App (comparable to TWC TV app), 10,000+ On Demand Library ($64.99)
  • Silver: 175+ channels (HD included), Spectrum App, On Demand, HBO, Cinemax, Showtime, NFL Network ($84.99)
  • Gold: 200+ channels (HD included), Spectrum App, On Demand, premiums shown above + TMC, Starz, Encore, Epix, NFL Redzone ($104.99)

Charter’s pricing is built to encourage customers to bundle multiple services together, because substantial discounts are provided, especially when combining TV and internet service.

INTERNET

(Image courtesy of Tech_Guy 88/DSL Reports)

(All presentation slide images courtesy of Tech_Guy 88/DSL Reports)

Charter moves to just two tiers of service available to the public (except in New York where TWC’s $14.99 Everyday Low Price Internet continues to be an option for the next two years — although it has been removed from TWC’s website) and standalone broadband pricing is considerably more expensive with Charter than with Time Warner Cable.

Perhaps special promotional offers will bring standalone internet prices closer to the $34.95-39.95 most new customers have gotten for Time Warner’s Standard Service (15/1Mbps) for years. We expect most customers will be more sensitive to price vs. speed and standalone internet at these prices will be a shock. We are not certain if Earthlink will continue to be an alternative option.

Upload speeds in non-Maxx areas are conservative, if these slides are accurate, topping out at just 5Mbps. This still leaves Charter as one of the slower U.S. providers.

In TWC Non-Maxx Areas (maximum TWC speed now 50/5Mbps):

  • Spectrum Internet 60/5Mbps: Standalone $59.99/mo or $29.99 as part of a triple play package (first year promo price), $59.99 standalone or $53.99 as part of a bundle (regular price);
  • Spectrum Ultra 100/5Mbps: Standalone $119.99/mo or $99.99 as part of bundled package (first year promo price), $119.99 standalone or $113.99 as part of a bundle (regular price).

In TWC Maxx Territories (maximum speed now 300Mbps):

  • Spectrum Internet 100/10Mbps: Standalone $59.99/mo or $29.99 as part of a triple play package (first year promo price), $59.99 standalone or $53.99 as part of a bundle (regular price);
  • Spectrum Ultra 300/20Mbps: Standalone $119.99/mo or $99.99 as part of bundled package (first year promo price), $119.99 standalone or $113.99 as part of a bundle (regular price)

Spectrum Wi-Fi, for those without their own routers, can be added to any internet plan for a $9.99 setup charge and $5 a month.

spectrum assistCharter’s discount plan for the income-challenged carries the usual restrictions. The most unconscionable effectively forces current Charter customers to go without internet access for 60 days before they can enroll in Spectrum Internet Assist. They also must not owe any past due balance to Charter.

Assuming you qualify (eligible for the National School Lunch Program and senior citizens 65 years and older eligible for the federal Supplemental Security Income program), $14.99 will get you up to 30/4Mbps, plus an extra $5 a month if you want Charter to supply a Wi-Fi enabled router. The usual $9.99 activation fee is waived. Self-installation is free. If they have to send a truck to your home, the prevailing standard installation rate will apply. This is the only level of service Charter sells that will not require a credit check.

PHONE

Time Warner’s phone service had been promoted for years at $10 a month as part of a double-play or triple-play bundle. Charter’s triple play bundle pricing seems to show the price for phone service will now be effectively $20 a month.

Charter’s digital phone service has never seemed to be a marketing priority for Charter in its legacy service areas, and will likely be treated as an afterthought going forward. No further information about any service or calling area changes from what Time Warner Cable offered is available yet.

Unlimited Data is Back (With Fine Print): T-Mobile/Sprint Push Unlimited Data Plans for All

Tmo1LogoSeveral years after wireless unlimited data plans became grandfathered or riddled by speed throttling, America’s third and fourth largest carriers have decided the marketplace wants “unlimited everything” after all and is prepared to give customers what they want, at least until they read the fine print.

T-Mobile Announces “The Era of the Data Plan is Over”: T-Mobile ONE

T-Mobile CEO John Legere used a video blog to announce a major shakeup of T-Mobile’s wireless plans this morning, centered on the concept of “unlimited everything.”

“The era of the data plan is over,” said Legere. T-Mobile’s new plan — T-Mobile ONE — does away with usage caps and usage-based billing and offers unlimited calls, texting, and data on the company’s 4G LTE network. The plan becomes available Sept. 6 at T-Mobile stores nationwide and t-mobile.com for postpaid customers. Prepaid plans will be available later.

tmoone

“Only T-Mobile’s network can handle something as huge as destroying data limits,” said Legere. “Dumb and Dumber can’t do this. They’ve been running away from unlimited data for years now, because they built their networks for phone calls, not for how people use smartphones today. I hope AT&T and Verizon try to follow us. In fact, I challenge them to try.”

Legere

Legere

T-Mobile claims the savings with its unlimited plan are enormous compared to its bigger competitors AT&T and Verizon Wireless.

Verizon’s largest LTE usage-capped data plan would cost a family of four $530/month. That’s $4,440 more than T-Mobile ONE will charge.

T-Mobile ONE costs $70 a month for the first line, $50 a month for the second, and additional lines are $20 a month, up to 8 lines with auto pay (add $5 per line if you don’t want autopay). Customers can add tablets for an extra $20 a month.

T-Mobile does offer some caveats in the fine print which are relevant to customers:

  • All video streaming on this plan is throttled to support a maximum of 480p picture quality. Higher video quality is available with an HD add-on plan for $25/mo per line;
  • Tethering is included with T-Mobile ONE, but it is painfully speed-limited to 2G speeds — around 70kbps, just a tad faster than dial-up. At that speed, a web page that will take less than five seconds to load on a 4G network will take 17-25 seconds. A 60 second YouTube video will take nearly five minutes to watch, and downloading apps or sharing images is often impossible because of timeouts. If you want 4G tethering, that will be $15 a month for 5GB, please;
  • Customers identified as among the top 3% of data users, typically those who use more than 26GB of 4G LTE data a month will find themselves in the same data doghouse T-Mobile’s Simple Choice customers are in. That means during peak usage periods on busy cell towers, heavier users are deprioritized on T-Mobile’s network, but we’re not sure if that results in slight speed reductions or the kind of drastic 2G-like experience these kinds of “fair usage” policies often deliver.

Our analysis:

bingeonWhile we’re happy to see unlimited data plans return to prominence, T-Mobile is continuing to punish high bandwidth applications, tethering, and usage outliers with frustrating speed throttles.

T-Mobile’s biggest source of increasing traffic is coming from online video. About a year ago, Legere introduced T-Mobile’s Binge On program, which offers streaming video from T-Mobile’s partners without it counting against your usage allowance. This program had the potential of causing problems with the Federal Communications Commission’s Net Neutrality rules.

Legere seemed to avoid trouble by revealing enough information about Binge On to make it clear why the program exists — to reduce video traffic’s impact on T-Mobile’s network. That might seem counterintuitive until one looks at what it takes to be a Binge On partner — allowing T-Mobile’s Binge On-related traffic to be “optimized” to Standard Definition video (around 480p). No money changes hands between T-Mobile and its Binge On partners.

T-Mobile makes it easy to be a BingeOn participant.

T-Mobile makes it easy to be a Binge On participant.

Binge On was an important factor in freeing up bandwidth on T-Mobile’s network. Some analysts suggest two-thirds of T-Mobile’s video traffic load disappeared after Binge On was introduced. Video is likely the single biggest bandwidth consuming application on wireless networks today. If a customer is watching on a smartphone or even a small tablet, 480p video is generally adequate and has a lower chance of stopping to buffer.

slowAnother clue about the impact of online video on T-Mobile’s network is the same video throttling strategy is built into T-Mobile ONE and applies to all online video, whether the provider partners with T-Mobile or not. Also consider the extraordinary cost of the optional HD Video add-on, which defeats video throttling: a whopping $25 per month per device. That kind of pricing clearly suggests 1080p or even 4K video is a major resource hog for T-Mobile, and customers looking for this level of video quality are going to pay substantially to get it.

T-Mobile is also clearly concerned about tethering, relegating hotspot and tethered device traffic to 2G speeds, which will quickly deter anyone from depending on it except in emergencies. Again, traffic is the issue. Some semi-rural customers unserved by cable but able to get a 4G signal from a T-Mobile tower may think of using T-Mobile as their exclusive source of internet access. At speeds just above dial-up, they won’t consider this an option.

We’re also disappointed to see 26GB of usage a month as the threshold for potential speed throttling. T-Mobile ONE is not cheap, and without more detailed information about how often those exceeding 26GB face speed slowdowns, how much of a slowdown, and how quickly those speed reductions disappear when the tower gets less congested would be very useful. Until then, customers are likely to interpret 26GB as a type of soft usage allowance they will not want to exceed.

T-Mobile ONE also delivers a powerful signal to Wall Street because it raises the lowest price a T-Mobile postpaid customer can pay to become a customer from $50 to $70 a month for a single line. That’s quite a burden for some customers who will have to look to prepaid plans or resellers to get cheaper service. Other carriers rushed to meet T-Mobile’s $50 2GB plan when it was introduced, which has served as an entry-level price range for occasional data dabblers. If those carriers don’t immediately raise prices as well, they will undercut T-Mobile. That could provoke an increase in cancellations among customers buying on price, not plan features. T-Mobile is banking consumers will appreciate unlimited data enough to pay extra for peace of mind.

Jackdaw Research found customers enrolled in 2GB and 6GB T-Mobile plans, T-Mobile ONE represents a price increase. Those signed up for 10GB or unlimited service will pay the same or slightly less with T-Mobile ONE.

Jackdaw Research found customers enrolled in 2GB and 6GB T-Mobile plans will see a price increase with T-Mobile ONE. Those signed up for 10GB or unlimited service will pay the same or slightly less.

sprintlogoSprint: Unlimited Freedom: Two Lines of Unlimited Talk, Text, and Data for $100/month

Not to be outdone by T-Mobile, Sprint CEO Marcelo Claure today announced his own company’s overhaul of wireless plans, featuring the all-new Sprint Unlimited Freedom plan, which offers two lines of unlimited talk, text and data for $100 a month, with no access charges or hidden fees.

Starting Friday, Aug. 19, Sprint customers can sign up for the new plan, which costs $60 for the first line, $100 for two lines, and $30 for each additional line, up to 10. Sprint pounced on the fact its Unlimited Freedom plan for two is $20 less than T-Mobile charges.

Otherwise the two plans are remarkably similar — too similar for the CEOs of both companies that spent part of today engaged in a Twitter war.

T-Mobile CEO John Legere and Sprint CEO Marcelo Claure traded tweet barbs this morning.

T-Mobile CEO John Legere and Sprint CEO Marcelo Claure traded tweet barbs this morning.

“Sprint’s new Unlimited Freedom beats T-Mobile and AT&T’s unlimited offer – only available to its DirecTV subscribers – while Verizon doesn’t even offer its customers an unlimited plan,” read Sprint’s press release.

unlimited freedom“Wireless customers want simple, worry-free and affordable wireless plans on a reliable network,” said Marcelo Claure, Sprint president and CEO. “There can be a lot of frustration and confusion around wireless offers, with too much focus on gigabytes and extra charges. Our answer is the simplicity of Unlimited Freedom. Now customers can watch their favorite movies and videos and stream an unlimited playlist at an amazing price.”

Sprint has also essentially joined the T-Mobile optimization bandwagon, limiting streaming video to 480p, but it goes further with optimization of games — limited to 2Mbps, and music — limited to 500kbps. There does not seem to be any option to pay more to avoid the “optimization” and Sprint is not offering a tethering option with this plan.

“While we initially questioned using mobile optimization for video, gaming and music, the decision was simpler when consumers said it ‘practically indistinguishable’ in our tests with actual consumers,” said Claure. “In fact, most individuals we showed could not see any difference between optimized and premium-resolution streaming videos when viewing on mobile phone screens. Both provide the mobile customer clear, vibrant videos and high-quality audio. Mobile optimization allows us to provide a great customer experience in a highly affordable unlimited package while increasing network efficiency.”

sprint

boostAlso, beginning Friday, Aug. 19, Sprint’s leading prepaid brand, Boost Mobile introduces its own unlimited offer, Unlimited Unhook’d:

  • Unlimited talk, text and optimized streaming videos, gaming and music
  • Unlimited nationwide 4G LTE data for most everything else
  • $50 a month for one line
  • $30 a month for a second line up to five total lines

In addition to the Unlimited Unhook’d plan, Boost Mobile will also unveil the $30 Unlimited Starter plan, which includes unlimited talk, text and slower network data (2G or 3G) with 1GB of 4G LTE data. Customers looking for more high-speed data can add 1 GB of 4G LTE data for $5 per month or 2 GB of 4G LTE data for $10 per month. Multi-line plans are also available for families looking to save some money for an additional $30 a month per line.

“There’s a lot of confusion and clutter in prepaid, but is doesn’t have to be that way. Boost Mobile is offering the simplest solution with plans that are easy to understand,” said Claure. “Boost has something for everyone, whether you need a truly unlimited plan with 4G LTE data or want to save extra money with a low-cost plan.”

Search This Site:

Contributions:

Recent Comments:

  • modal: I pay a visit each day some websites and websites to read content, however this blog offers quality based writing....
  • FredH: If your area is upgraded to be getting 300Mbps down and you aren't, there could be any number of factors preventing it that are your responsibility, n...
  • Ev: Why bother rearranging deck chairs on the titanic? Drop your cable TV service, put up an antenna for a bunch of channels, buy a DVR, and if you still...
  • Ev: People need to start recording ail their phone calls with company reps. They're recording it already, for their benefit. One little app on your phone...
  • beth: Called TWC today. They're the only cable provider in my area. I pay for internet and phone unfortunately still hooked to Direct for the football seaso...
  • Austin: "Responsible usage".... "limited resource"???? Give me a break! It's not like internet is mined out of a pocket in the ground. How can these idiots ke...
  • SendDavid: If you're in NY, you can also submit a claim for a refund with David, Inc. and they'll do all the work for you--50% of claims get refunded: http://bit...
  • SendDavid: If you're in NY, you can submit a claim for a refund with David, Inc.--50% of claims get refunded: http://bit.ly/2cSmmE9...
  • Seluryar: Its very hard for me to see many ISP's getting behind this since it seems many of them seem stingy on their upload speeds....
  • Justin Ayers: They have plans up to just 30 GB in our area, for crazy prices. The cellular Internet is also super-expensive. They charge $10 a month just for their ...
  • Justin Ayers: You think Time Warner is bad? Time Warner is a dream compared with Exede and cellular Internet. Our average data usage was 60 GB a month with Time War...
  • Mike: Lucky you! We got the screw job here in Rochester. We have a slow phone company so we don't have any other option....

Your Account: