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As Irma Heads Towards Florida, FCC Commish Wants Improved Telecom Reliability

Phillip Dampier September 5, 2017 Cable One, Consumer News, Public Policy & Gov't No Comments

Rosenworcel

Significant, days-long outages of wireless cell, wireline, and 911 service in the aftermath of Hurricane Harvey are prompting a FCC commissioner to ask how things could go better the next time, even as Category 5 Irma is expected to head for Florida this week.

Democratic Commissioner Jessica Rosenworcel believes the FCC should look closely at the impact of Harvey on telecommunications networks in southeastern Texas and Louisiana and see what improvements can be made.

“As we begin to assess Harvey’s horrible toll on human life and property, we will need to take stock of what worked, what didn’t, and how we can improve when it comes to our communications infrastructure,” Rosenworcel said. “As we have done in disasters in the past, the Commission will need to study this hurricane and issue a report. That report must include a full plan for fixing the vulnerabilities that we are finding, from overloading 911 systems to out-of-service cell sites.”

Rosenworcel is also urging the Commission to insist that providers replace damaged telecommunications networks with better, more capable networks.

“[The study] should also include a framework for rebuilding so that the communities that have been impacted are not permanently relegated to the wrong side of the digital divide,” Rosenworcel urged. “Above all, we need to get started. We don’t have time to waste, because we know that weather emergencies can occur anywhere at any time, and learning from what happened with Harvey can help strengthen our communications networks and save lives.”

A week after the storm, telecommunications networks in the area affected by Harvey are still experiencing problems, although most cell service has been restored. The worst affected areas are in Aransas, Tex., where four of 19 cell towers are out of service and Orange, Tex., where 13 out of 85 cell towers are not working as of this morning.

Category 5 Irma projected to affect Florida.

There are at least 153,850 subscribers (down from at least 158,086 yesterday) out of service in the affected area. This includes users who get service from cable system or wireline providers.

Cable ONE announced last week that it will be waiving billing for its Texas Coast customers impacted by Hurricane Harvey for the duration of the storm until services are restored. The company also will not be charging customers for equipment damaged during the hurricane.

“Our thoughts and prayers are with the Texas and Louisiana communities that have been ravaged by Hurricane Harvey,” said Julie Laulis, president and CEO of Cable ONE.  “We urge all of our customers to stay safe and continue following the directives of local public safety officials as response and recovery efforts begin.”

Cable ONE’s disaster recovery plan is underway as teams review and map fiber breaks, assess damage to impacted plant and equipment, and assist and coordinate with other organizations to begin the process of repairing and rebuilding.

“We will do everything we can to restore service to every one of our affected customers as quickly as possible, including deploying additional technicians and resources,” Laulis said. “Our priority, after first ensuring the safety of our associates, is to continue to serve our residential and business customers during and after the hurricane.”

There are 5 (2 down from yesterday) radio stations out of service. Those are all in Texas – KFNC, KTXB, KKWV, KRVT, and KAYK.

Two television stations went off the air over the weekend but have now been restored as of this morning. KBTV is back at reduced power and KFDM is operating from a backup transmitter.

Emergency 911 service is back up and working normally in most parts of the region with these exceptions:

  • 911 Calls Rerouted With No Automatic Location Information (ALI): Refugio County SO, Tex.
  • 911 Calls Rerouted With ALI: Harris County Neutral SO, Tex.; Houston EC Training, Tex.; Port Aransas PD, Tex.; and West Columbia PD, Tex.

 

Wall Street Hissyfit: Raise Broadband Prices to $90/Month Immediately! (Or Else)

If the average customer isn’t paying $90 a month for broadband service, they are paying too little and that needs to stop.

That is the view of persistent rate hike advocate Jonathan Chaplin, a Wall Street analyst with New Street Research, who has advocated for sweeping broadband rate increases for years.

“We have argued that broadband is underpriced, given that pricing has barely increased over the past decade while broadband utility has exploded,” Chaplin wrote in a note to investors. “Our analysis suggested a ‘utility-adjusted’ ARPU target of ~$90. Comcast recently increased standalone broadband to $90 with a modem, paving the way for faster ARPU growth as the mix shifts in favor of broadband-only households. Charter will likely follow, once they are through the integration of Time Warner Cable.”

Companies that fail to raise prices risk being downgraded by analysts with views like these, which can have a direct impact on a stock’s share price and the executive compensation and bonus packages that are often tied to the company’s performance.

But there is a dilemma and disagreement between some cable industry analysts about how much companies can charge their customers. Companies like Cable ONE have been aggressively raising broadband prices to unprecedented levels in some of the poorest communities in the country, which worries fellow Wall Street analyst Craig Moffett from MoffettNathanson LLC.

“Never mind that the per capita income in Cable ONE’s footprint is the lowest (by far) of the companies we [Moffett’s firm] cover, or that the percentage of customers living below the poverty line is the highest (also by far),” Moffett told his investor subscribers. “What matters is that there is very little competition in Cable ONE’s footprint. If you want high-speed broadband, where else are you going to go? The unspoken fear among their larger peers is that over-reliance on broadband pricing invites regulatory intervention, not just for Cable ONE, but for everyone.”

Chaplin thinks the risk from gouging broadband customers is next to zero. With cable TV becoming less profitable every day, all the big profits that can be made will be made from broadband, where cable operators often enjoy a monopoly on high-speed service.

According to Chaplin, if customers value internet access, they will pay the higher prices cable companies charge. So what are companies waiting for? Raise those prices!

Viacom, Booted Off Some Basic TV Tiers, Plans Own $10-20 Non-Sports TV Package

Viacom, which owns cable networks including Comedy Central, Nickelodeon, MTV, BET, and TV Land, will launch a cheap non-sports bundle of entertainment cable networks viewable online for $10-20 a month this year.

Viacom has lost basic cable viewers at an accelerating rate as cable operators drop their networks or repackage them in more expensive basic tiers as Viacom raises wholesale rates cable companies pay to carry the channels.

Viacom CEO Bob Bakish talked about the new service this morning at the J.P. Morgan Global Technology, Media and Telecom Conference in Boston. Bakish said most of the current “skinny cable TV” bundles were priced at around $40 a month, which is too expensive to attract “cord-never millennials” that frequently don’t subscribe to cable television.

“The transformational opportunity is to bring in a new entry segment at a much lower price point,” Bakish said. The cable industry needs “a path to bring in someone who wants high-quality entertainment” but has no interest in expensive sports networks.

That is why Bakish wants to create a cheap entertainment-oriented bundle of networks that omits sports-related channels. But Bakish has also repeatedly stressed he has no intention of giving consumers a comprehensive online alternative to traditional cable TV, telling investors Viacom is “not creating inexpensive opportunities to serve as an alternative.”

Bloomberg News reported Viacom was talking to Discovery and AMC Networks about participating in the new service. The only complication may be a backlash from sports programmers like Walt Disney’s ESPN and 21st Century Fox, Inc., which have contracts requiring providers to include the sports networks in their most popular bundles. Some contracts even limit how many customers are permitted to sign up for a sports-free TV package, according to Michael Nathanson, an analyst at MoffettNathanson LLC.

“It’s meant to dissuade distributors from doing something like this,” Nathanson told Bloomberg. “The issue is how many subscribers they can have before the legal questions appear.”

Bakish may also be trying to remind cable and satellite companies that Viacom can always go direct-to-consumers if operators banish Viacom’s networks off the cable dial or move them to a more expensive tier, although there is no guarantee the new service will bundle all of Viacom’s networks.

Viacom has seen its relationships with cable and satellite providers deteriorate over the last few years under prior management. Some smaller cable companies including Cable One dropped Viacom channels from their cable systems over cost issues in 2014, and many more subscribers have seen Viacom networks temporarily dropped as a result of contract renewal disputes. Bakish has made repairing relations with cable and satellite customers a priority since taking over as CEO in December, but he still has a way to go.

Recently, Charter Communications moved Viacom networks out of its Select basic cable TV package and moved them to its most expensive Gold package for new customers. With only a minority of customers signed up for Gold service, Viacom networks could eventually lose millions of viewers as Time Warner Cable and Bright House customers adopt Spectrum packages in the next few years. If those customers do not subscribe to Gold or refuse to pay extra for a “digipak” of Gold’s basic channels without the premium networks, they will lose access to Viacom channels when they change TV plans.

That issue also concerns Wall Street analysts who believe it could eventually erode Viacom’s viewer base. Bakish made certain to tell investors Viacom was not surrendering to Charter’s “re-tiering.”

“We firmly don’t believe they have the rights to do that,” Bakish said. “We’ve been in discussions with them. We’ve got to get that resolved.”

If it is resolved, those networks may again be available to Select TV customers.

Viacom, AMC, and Discovery are partnering up to offer a $10-20 entertainment-only package on streaming basic cable networks for consumers, as this Bloomberg News story reports. (2:58)

Fido Cable Leases Access from Current Cable Providers, Charges More Than They Do

(PRNewsFoto/Fido Cable)

(PRNewsFoto/Fido Cable)

You may soon have a choice of cable companies, but don’t expect any savings doing business with the competition.

South Carolina-based Sky Play, LLC has launched a new cable service it claims is available across the U.S., offering competitive broadband and later phone and television service.

The service, known as Fido Cable, is dependent on leasing access from cable companies including Cablevision-Altice, Charter-Bright House-Time Warner Cable, Cable One, Comcast, and Cox as well as telephone company AT&T.

“We believe that people deserve to select which internet company they would like to utilize as opposed to being stuck with one or two options of service from companies who constantly raise their rates and offer no thought of the customer they service,” said David Wheeler, vice president of Sky Play. “Fido Cable is available to everyone in every major city and surrounding cities throughout the U.S.”

The company’s claims about the aspirations of American cable subscribers may be true but after Stop the Cap! called the company and obtained price quotes, it is clear any savings doing business with Fido Cable are illusory at best. Fido has a single page website that needs work, including correcting “Cable Vision,” when it actually meant “Cablevision.” Details about service and pricing was scant, so we called the company to get prices for two large cable operators: Time Warner Cable and Charter.

The company claims it offers internet access today and will be offering voice services across its national footprint and television in “select cities.” For purposes of obtaining pricing information, we quickly learned our home city of Rochester, N.Y., is not select enough for Fido Cable.

charter twcFido Cable (which has no relationship with the Canadian prepaid mobile provider “Fido,” owned by Rogers Communications), says internet and voice plans start at $39.99 a month, but not for TWC or Charter customers.

In fact, Fido does not seem to offer any new customer promotional pricing. Their quoted rates were consistently higher than their cable company hosts charge their own customers. No wonder cable operators allowing Fido to compete using their systems are not breaking any sweat over the “competition.”

For instance, Fido charges a $120 installation and $15 modem fee for both Time Warner Cable and Charter customers. The representative claimed the modem fee was a one-time charge and customers were allowed to supply their own equipment. In comparison, both Charter and Time Warner Cable agreed to waive any installation fees for new customers. Time Warner Cable charges a $10 monthly modem rental fee and Charter includes the modem in the price of its service.

Fido Cable charges $65 a month for 15/1Mbps service. Time Warner Cable’s equivalent plan costs $59.99 a month for the service and modem rental (deduct $10 a month from TWC’s price if you buy your own modem). A 50Mbps plan from Fido costs $120 a month, but it’s $119 a month from Time Warner Cable (again, deduct $10 if you supply your own modem).

For Charter customers, a 60/4Mbps plan is priced $59.99 direct from Charter, but if you choose Fido Cable you will pay $5 more a month: $65. A 100/7Mbps plan from Charter is priced at $99.99, or you can pay Fido $105.

Here are more details about Fido internet plans we obtained today:

Time Warner Cable Service Areas

  • 10/1Mbps: $55
  • 15/1Mbps: $65
  • 50/5Mbps: $120

Charter Cable Service Areas

  • 60/4Mbps: $65
  • 80/5Mbps: $99
  • 100/7Mbps: $105

A 2-year price guarantee applies to all pricing.

Cable One: Your Price and Customer Service Depend on Your Credit Worthiness

Phillip Dampier June 29, 2016 Cable One, Consumer News, Public Policy & Gov't 8 Comments

no-thanksFirst credit cards were tied to your credit score, then auto insurance, and now how much you pay for cable television and what kind of support you receive from customer service may also depend on your creditworthiness, at least at Cable One.

CEO Thomas Might ignited controversy over his remarks at a recent J.P. Morgan Global Technology, Media and Telecom Conference when he told Wall Street analysts the company was working hard to reduce the “hollow profitability” of its cable TV business. Fierce Cable caught the transcript. One of the biggest reasons to blame for low profits may be Cable One’s deadbeat customers who don’t pay their bills. Starting in 2013, Might ordered a “very rigorous FICI credit scoring process” on all video customers to weed out the good from the bad.

Might suggested Cable One discovered those with low credit scores were among the company’s low value customers, and they deserve much less from the cable company in return.

“We don’t turn people away,” Might said, but the cable company’s technicians aren’t going to “spend 15 minutes setting up an iPhone app” for a customer who has a low FICO score. “What we found is that through lifestyle and billing analysis, we could start to pinpoint where churn and bad debt was coming from, and credit scoring started to be a really good test.”

cable oneCable One has even stopped direct marketing its cable service, even though it was winning nine percent of new customer sign-ups. The customers Cable One attracted were so low quality, Might claims the company didn’t make a penny from the marketing effort.

“It was the worst of the lifetime value segments we had,” Might said.

Cable One’s unwelcome credit challenged customers returned the favor and canceled their service in droves. Although bad debt is down 70 percent under the new credit check policy, Cable One has lost about half of their cable TV customers, most leaving for AT&T U-verse or satellite television.

Might

Might

Might’s intemperate remarks evidently triggered the company’s recent decision to contact the FCC to “clarify” the situation. Chief operating officer Julie Laulis tried to quell any controversy Cable One treats its customers differently based on how they handle their credit.

“Cable One runs a consumer credit pre-qualification, with the applicant’s consent, solely during the new customer sign-up process,” Laulis said. “The pre-qualification results are used to determine the size of the deposit and the installation charge, if any, that would be appropriate for the particular customer to offset the customer to offset the non-payment of bills or the non-return of equipment, as well as any introductory offers the customer may be eligible to receive.”

But once signed up, Laulis admitted the company still treats customers differently based on an internal scoring system it calls Lifetime Value (LTV), which determines what perks and special deals each customer is qualified to receive.

“Importantly, the LTV program has nothing at all to do with the use of credit scores,” Laulis added. “Any Cable One customer can, through a good payment history, achieve the highest LTV level and achieve additional levels of customer service and other benefits. This LTV level is independent of a credit score, and a credit score is not used to determine levels of service or loyalty rewards.”

Laulis claimed “the media” confused Might’s positions on credit scoring inside Cable One, although the cable company never asked for any corrections. Laulis also doesn’t deny the amount of customer service assistance available to customers may still depend on their creditworthiness.

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