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Republican FCC Commissions Itching to Move on Charter-Time Warner-Bright House Cable Merger

Pai

Pai

Republican FCC Commissioners Ajit Pai and Michael O’Rielly are in a hurry to start the merger review clock on Charter Communications’ acquisition of Time Warner Cable while the agency contemplates how to handle access to submitted documents the two companies insist should be confidential.

“We are deeply dismayed that the FCC’s leadership seems unwilling to begin the formal review of the Charter Communications/Time Warner Cable/Bright House Networks transaction until Commissioners agree to change the FCC’s procedures for protecting confidential information,” the commissioners said. “We don’t plan to allow this maneuver to deter us from giving careful scrutiny to the important item in front of us, which if adopted, would apply not only to future transactions but all Commission proceedings. Among other things, we believe that the better course would be for the Commission to seek public input on these proposed procedures before moving ahead.”

The FCC has a responsibility to review merger proposals to decide if they are in “the public interest, convenience, and necessity.”

O'Rielly

O’Rielly

Part of that process is reviewing proprietary information sent by the applicants, usually with the understanding the information will be kept confidential or released to the public only in redacted form. Competitors can only get a limited view of the documents the FCC reviews in making its decision about a merger, but some have successfully requested limited access to unredacted documents, including contracts the companies have with third-party programmers.

The fact those documents might be shared with competitors like Dish Networks was not acceptable to CBS, Disney, 21st Century Fox, Scripps Networks, Time Warner Inc., and Univision, all fearing competitors would learn confidential pricing information and use it to their advantage during the next round of contract renewal negotiations. Those media companies sued the FCC in the D.C. Court of Appeals and largely won their case.

Now the FCC has to craft new rules to decide what information they can share with competitors and the public. That process has slowed the start of the 180 day clock the FCC uses to review merger deals, and the two minority Republicans serving as commissioners on the FCC are annoyed.

“The agency has access to the relevant documents at issue in this matter and can continue to evaluate the proposed merger….” So let’s start the ‘aspirational’ merger review shot clock and get on with the process,” said Pai and O’Rielly.

“On a Razor’s Edge:” Charter’s Deal With Time Warner Financed With Junk Bond Debt

Charter will be among America's top junk bond issuers. (Image: Bloomberg News)

Charter will be among America’s top junk bond issuers. (Image: Bloomberg News)

The attempted $55 billion acquisition of Time Warner Cable will saddle buyer Charter Communications with so much debt, it will make the cable operator one of the nation’s largest junk bond borrowers.

Bloomberg News reports investors are concerned about the size and scope of the financing packages Charter is working on to acquire the much-larger Time Warner Cable. Total debt financing this year has already reached $18.2 billion and one of Charter’s holding companies is signaling plans to add another $10.5 billion in unsecured debt. Bloomberg reports the total value of Charter’s combined debt from existing operations and its acquisition of Time Warner Cable and Bright House Networks may reach as high as $66 billion.

Ironically, Time Warner Cable CEO Robert Marcus used Charter’s penchant for heavily debt-financed acquisitions as one of the reasons he opposed Charter’s first attempted takeover of Time Warner in January 2014.

The New York Times suggested Marcus seemed to be looking out for shareholders when he called the offer “grossly inadequate” and demanded more cash and special protections, known as “collars,” to protect stockholders against any swings in the value of Charter stock used to cover part of the deal.

charter twc bhThe Marcus-led opposition campaign against Charter gave Comcast just the time it needed to mount a competing bid — all in Comcast stock, then worth around $159 a share. Comcast also offered Marcus an $80 million golden parachute if the deal succeeded.

Marcus’ concerns for shareholders suddenly seemed less robust. Gone was any demand for cash to go with an all-stock deal — Comcast stock was good enough for him. Most blockbuster mergers of this size and complexity also contain provisions for a breakup fee payable by the buyer if a deal falls apart. Marcus never asked for one, a decision the newspaper called “foolish,” considering regulators eventually killed the deal, leaving Time Warner Cable with nothing except bills from their lobbyists and lawyers.

After the Comcast deal failed to impress regulators, Charter returned to bid for Time Warner Cable once again. This time, Charter offered nearly $196 a share — nine times earnings before interest, taxes, depreciation, and amortization. (They offered about seven times earnings in 2014.) Marcus will now get the $100 a share in cash he wanted from Charter the first time, but shareholders are realizing that cash will be a lower proportion of the overall higher amount of the second offer.

Marcus has also said little about the enormous amount of borrowing Charter will undertake to seal its deal with Time Warner Cable. Nor has he said much about a revisited and newly revised golden parachute package offered to him by Charter, expected to be worth north of $100 million.

Marcus

Marcus

But others did notice Charter raised $15.5 billion selling bonds on July 9, many winning the lowest possible investment grade rating from independent ratings services. Standard & Poor’s and Fitch Ratings bottom-rated part of Charter’s debt offering and Moody’s classified that portion as Ba1 — junk grade.

Charter traveled down a similar road six years ago, overwhelmed with more than $21 billion in debt to cover its aggressive acquisitions. Charter declared bankruptcy in 2009. The cable company has survived this time, so far, because of the Federal Reserve’s low-interest rates and very low corporate borrowing costs.

“Charter is walking on a razor’s edge,” warned Chris Ucko, a New York-based analyst at CreditSights.

Not so fast, responds Charter.

“The combined company will” reduce debt quickly, Francois Claude, a spokesman for Stamford, Conn.-based Charter said in a statement to Bloomberg News.

One likely source of funds to help pay down that debt will come from customers as the company seeks to drive higher-cost products and services into subscriber homes. Some of that revenue may come from selling higher speed broadband, a service customers are unlikely to cancel and may find difficult to get from telephone companies that have not kept up with the speed race. If cord cutting continues, and online video competition increases, that could result in customers dropping cable television packages at a growing rate, negatively impacting Charter’s revenue.

Time Warner Cable’s bondholders are already counting their losses. Their “investment grade” securities have already lost 9.3 percent of their value this year, compared with 0.58% losses in the broader high-grade debt market, according to Bank of America/Merrill Lynch. If increased competition does arrive or the FCC continues its pro-consumer advocacy policies, there is a big risk Charter’s revenue expectations may never materialize.

N.Y. Public Service Commission to Charter/Time Warner Cable: Hope You Are Not in a Hurry

dpsThe New York State Public Service Commission today notified Charter Communications its merger application with Time Warner Cable will require a “more detailed review of the petition,” which means a final decision is unlikely before the end of this year or more likely 2016:

We have received the petition of Time Warner Cable Inc. and Charter Communications, Inc. dated July 2, 2015 seeking authority, pursuant to Public Service Law Sections 100, 101, and 222, to transfer a controlling interest in certain Time Warner Cable telephone systems, cable systems, franchises and assets to Charter and to issue debt. On July 10, 2015, a Supplement was received seeking further approval under PSL § 99(2) for a transfer of Time Warner Cable’s telephone franchises.

According to Sections 99 and 100 of the Public Service Law, such an application is deemed approved after ninety (90) days of filing unless the Commission or its designee notifies the petitioner in writing, within the time period, that the public interest requires the Commission’s review and its written order.

[…] A preliminary review indicates that the public interest requires a more detailed review of the petition. Therefore, pursuant to Public Service Law Sections 99,100, and 101 we are informing you that the Commission will review your petition and will issue a written response in this proceeding.

charter twc bhThe PSC has set a deadline for comments on the merger of Sept. 16 with reply comments due two weeks after that. But on-the-record regional forums will also be held across the state to gather more comments from consumers and stakeholders. Locations of the forums have not yet been announced.

As with Comcast’s merger proposal, a significant review period is expected as the merger of Charter Communications and Time Warner Cable will have profound implications on the entire state. Outside of Long Island and a few boroughs in New York City, Time Warner Cable is by far the most dominant provider serving every major population center in New York.

Two letters have already been added to the record about the merger.

The Rochester Business Alliance filed this letter in “strong support” of the proposed deal, quoting almost entirely from press releases and merger advocacy documents issued by Charter Communications. Time Warner Cable is a “partner member” of the group, better known as the Regional Chamber of Commerce.

RBAlogo“The Rochester Business Alliance advocates for an environment that will promote the success of its members and the local economy,” the group writes on its website. “We help our member companies and their employees stay connected to the issues as well as to the people who can make a difference.”

Michael Kaplan is the first consumer to weigh in on the merger, and he is opposed.

“Just like the Comcast we now have to write to you to ask that you reject this merger,” Kaplan writes. “The only people who benefit from this are the three or four people who will get very rich from it. The rest of the people you are supposed to be protecting? We get much higher cable/Internet rates because they are taking on so much debt that it’s obvious they will have to raise rates significantly. How does this help New York State?”

Kaplan also doesn’t believe Charter’s promise not to usage cap its broadband customers because the commitment expires after three years:

They also promised not to cap or throttle broadband users for three years. Is that a joke?

Time Warner has (due to public backlash) never capped or throttled their Internet. They have not placed data caps on their service which everyone knows is a cash grab.

If you are politically forced into doing this than at the very least Charter MUST keep the current arrangement Time Warner Cable has forever. FOREVER. No data caps, no overage fees, no throttling. Never.

Robert Marcus stands to make over 90 million dollars from the sale of Time Warner. Since his inception as CEO his mission has been to sell the company so he can cash out. He should improve service, equipment, work for us.

We the people are getting sick and tired of it and we are especially of a CEO who is only thinking of his end. What he will personally make. He doesn’t care on how every single person in NY State will get screwed.

Windstream Tells Its DSL Customer in South Carolina to Consider Satellite Internet Instead

windstream

On the outside looking in.

Windstream’s DSL service in parts of Inman, S.C. is so bad, the company has recommended some DSL customers consider signing up for a competitor’s satellite-based Internet service instead.

In a remarkable response to a complaint filed with the Federal Communications Commission by a Windstream customer, Mollie Chewning, an executive customer relations representative for Windstream, suggested no broadband upgrades were likely before 2016 and beyond a $10 monthly discount for a year, customers in Inman will just have to live with DSL speeds that are often less than 1Mbps or consider switching to satellite-delivered Internet from another company.

“Windstream acknowledges some Iman [sic], SC have been experiencing high-speed Internet issues,” Chewning wrote Sharon Bowers, the department division chief of the FCC’s Consumer Information Bureau. “This is a result of the tremendous growth in Internet usage over the past few years as well as the challenging economics of serving rural and remote areas with broadband. Unfortunately, our records indicate Mr. [redacted] service address will likely not benefit from any of our scheduled upgrades in 2015. It is possible some upgrades may be explored in 2016 could assist some customers in Inman via Connect America funding, but Windstream is still finalizing upgrade plans for next year.”

Speed test results

Speed test results

James Corley, the victim of Windstream’s poor-performing DSL, launched a blog to get Windstream moving on upgrades or entice area cable operator Charter Communications to wire his neighborhood for service.

Inman, S.C.

Inman, S.C.

“I am a resident of a small subdivision […] and for nearly a decade, we have been forced to rely on Windstream Communications’ disgraceful DSL internet and telephone services,” Corley writes. “The company’s representatives have been promising us for years that we would be upgraded to faster speeds but the promised upgrades have repeatedly failed to materialize and even though I cannot say for sure where Windstream’s priorities lie, it certainly isn’t with their customers.”

Corley is not asking for much. He’s subscribed to a basic 3Mbps service plan. Windstream does not come close to delivering even those speeds, however, with speed test results showing performance ranging usually below 1Mbps all the way down to 40kbps — less than dial-up.

“Given existing high-speed Internet issues, Mr. [redacted] will receive a $10 discount, which will appear on his account monthly through July 2016,” Chewning wrote. “If Mr. [redacted] finds this information unacceptable, he may want to explore alternate service options such as Internet via satellite.”

Corley has elected to pursue Charter Communications instead. It can offer considerably faster speeds than Windstream or satellite providers at a much lower cost. But Charter has thus far refused to wire Corley’s neighborhood for free. Charter wants at least $7,000 to extend service to the subdivision, after which it will start construction and deliver service within 45 days. Charter has no problem spending $55 billion to acquire Time Warner Cable but is unwilling to spend $7,000 to attract most, if not all 16 residents on the customer’s street.

Windstream appears to be more interested waiting for telephone ratepayers across the country to subsidize incremental improvements in its slow speed DSL service through the Connect America Fund, which has a poor record subsidizing cable operators to bring far superior broadband service to customers like those in Inman.

Until the Windstream customer and his neighbors manage to scrape together $7,000, or Charter extends service at no charge in the name of good public relations, residents of Inman (and beyond) are stuck with Windstream broadband that does not come close to broadband.windstream-fcc-response-1

Time Warner Cable Announces TWC Maxx Upgrades for Greensboro and Wilmington, N.C.

twc maxxTime Warner Cable continues to focus most of its attention this year on North Carolina for Maxx upgrades, today announcing the cities of Greensboro and Wilmington will be the next upgraded to get up to 300Mbps broadband service.

The conversion to all-digital cable television in both communities will begin this fall followed by free broadband speed upgrades anticipated by early 2016.

Although Time Warner Cable claims 45 percent of its customers will have access to TWC Maxx Internet speeds by the end of this year, the cable company has continued to completely ignore its northeastern and midwestern service areas, except New York City. No upgrades have been announced in Massachusetts, Maine, Upstate New York, Ohio, Wisconsin, Kentucky, or South Carolina. Time Warner also operates smaller systems in several other states not scheduled for upgrades either.

Most of Time Warner’s attention this year is focused on Texas and North Carolina, where it is upgrading customers in Austin, Dallas, San Antonio, Charlotte, and Raleigh. San Diego and Hawaii are also getting upgrades.

Time Warner Cable has suggested it may continue announcing new cities scheduled for upgrades, but if Charter successfully acquires the company, Charter officials have only committed to completing Maxx upgrades in cities already announced by Time Warner before the acquisition is approved. If the acquisition is rejected by regulators, Time Warner Cable will continue its Maxx upgrade program, likely reaching all of its service areas within the next two or three years.

Stop the Cap! Will Participate in New York State’s Review of Charter-Time Warner Merger

stop-the-capStop the Cap! will formally participate in New York State’s regulator review of the proposed merger of Charter Communications and Time Warner Cable.

“We will be submitting documents and testimony to the New York State Department of Public Service on behalf of consumers across the state that need a better deal from their cable company,” said Phillip Dampier, the group’s president. “A review of the current proposal from Charter is inadequate for New York ratepayers and most of Charter’s commitments for better service and lower prices expire after just three short years.”

Stop the Cap! will urge regulators to insist on significant changes to Charter’s proposal that will permanently guarantee a broadband future with no compulsory usage caps/usage-based billing, Net Neutrality adherence, affordable broadband to combat the digital divide, and upgrades that deliver faster broadband than what Charter currently proposes outside of New York City.

Dampier

Dampier

“Upstate New York is at serious risk of falling dramatically behind other areas where Google Fiber and other providers are moving towards a gigabit broadband future,” Dampier said. “In most of Buffalo, Rochester, Syracuse, Binghamton, and Albany buying the FCC’s definition of broadband means calling a cable company that now delivers no better than 50Mbps to residential customers. Verizon FiOS expansion is dead and obsolete/slow DSL from Frontier and Verizon should have been scrapped years ago.”

Stop the Cap! worries that with limited prospects for a major new competitor like Google in Upstate New York, broadband speeds and service will not keep up with other states. Verizon has devoted most of its financial resources to expanding its wireless mobile network, which is too expensive to use as a home broadband replacement. Frontier claims to be investing millions in its networks, but has delivered only incremental improvements to their DSL service, which in most areas is still too slow to qualify as broadband.

“Frontier is more interested in acquisitions these days, not upgrades,” Dampier argued.

“Although we have some entrepreneurs managing to deliver competitive fiber service in limited areas, it will likely take years before they will reach most customers,” Dampier added. “Upstate New York cannot wait that long.”

Frontier Runs America’s Worst Website: Dead Last in 2015 Web Experience Ratings

frontier frankFrontier Communications scored dead last in a nationwide survey of websites run by 262 companies — ranked for their usability, helpfulness, and competence.

The “2015 Web Experience Ratings,” conducted by the Temkin Group, a customer experience research and consulting firm, looked at how customers feel about companies based on experiences visiting their websites. The firm wanted to know whether customers would forgive a company if its website proved less than satisfactory. The answer appears to be no, and phone and cable companies were the most likely to experience the wrath of dissatisfied customers.

“It’s ironic that many of the cable companies that provide Internet service earned such poor ratings,” Bruce Temkin, managing partner of Temkin Group, said.

Most household name cable companies did especially poor in the survey. Time Warner Cable, Comcast and CenturyLink all tied at 252nd place (out of 262 firms). But special hatred was reserved for the website run by Frontier Communications, repeatedly called “incompetent” by consumers, especially after the phone company disabled most of the website’s self-service functions in late April. A well-placed source inside Frontier told Stop the Cap! the company could not manage to get its website ordering functions working properly and simply decided to give up, forcing customers to call instead.

Only 29% of consumers were willing to forgive a telecommunications company for a lousy web experience, according to the findings. Other website disasters were run by: Cox Communications, Charter Communications, Spirit Airlines, Blue Shield of CA, and Haier.

Which websites do consumers love the most? Temkin says USAA (a bank) and Amazon.com have traded the #1 and #2 spots for the last five years.

Charter Asks FCC to Approve Time Warner Cable/Bright House Merger; Stop the Cap! Urges Changes

charter twc bhCharter Communications last week filed its 362 page redacted Public Interest Statement laying out its case to win approval of its acquisition of Time Warner Cable and Bright House Networks, to be run under the Charter banner.

“Charter may not be a household name for all Americans, but it has developed into an industry leader by implementing customer and Internet-friendly business practices,” its statement reads.

The sprawling document is effectively a sales pitch to federal regulators to accept Charter’s contention the merger is in the public interest, and the company promises a range of voluntary and committed service upgrades it says will improve the customer experience for those becoming a part of what will be America’s second largest cable operator.

Charter’s proposed upgrades fall under several categories of direct interest to consumers:

Broadband: Charter will commit to upgrade customers to 60Mbps broadband within 30 months (about 2.5 years) after the deal is approved. That could mean some Time Warner Cable customers will still be serviced with standard speeds of 15Mbps as late as 2018. Time Warner Cable’s Maxx upgrade program will be effectively frozen in place and will continue in only those areas “consistent with Time Warner Cable’s existing deployment plans.” That will leave out a large sections of the country not on the upgrade list. Charter has committed to impose no data caps, usage-based pricing or modem fees, but only for three years, after which it will be free to change those policies at will.

Wi-Fi: Charter promises to build on Time Warner’s 100,000 Wi-Fi hotspots, most in just a few cities, and Bright House’s denser network of 45,000 hotspots with a commitment to build at least 300,000 new hotspots across Charter’s expanded service area within four years. Charter will also evaluate deploying cable modems that also act as public Wi-Fi hotspots. Comcast already offers over 500,000 hotspots with plans for many more, making Charter’s wireless commitment less ambitious than what Comcast today offers customers.

Cable-TV: Charter has committed to moving all Time Warner and Bright House systems to all-digital service within 30 months. Customers will need to lease set-top boxes designed to handle Charter’s encryption system for all cable connected televisions. Among those boxes includes Charter’s new, IP-capable Worldbox CPE and cloud-based Spectrum Guide user interface system.

Video on the Go: Charter will adopt Time Warner Cable’s streaming platform and apps to provide 300 streaming television channels to customers watching from inside their homes (a small fraction of those channels are available while outside of the home). Customers will not be able to watch on-demand recorded DVR shows from portable devices, but can program their DVRs from apps or the website.

Discount Internet for the Poor: Charter references the fact its minimum entry-level broadband speed is 60Mbps so that does not bode well for Time Warner Cable’s Everyday Low Priced Internet $14.99 slow-speed Internet plan. Instead Charter will build upon Bright House Networks’ mysterious broadband program for low-income consumers.

Based on Charter’s initial proposal, Stop the Cap! will urge state and federal regulators to require changes of these terms before approving any merger. Among them:

  1. All existing Time Warner Cable and Bright House service areas should be upgraded to meet or exceed the levels of service offered by Time Warner Cable’s Maxx program within 30 months. It is not acceptable to upgrade some customers while others are left with a much more modest upgrade program proposed by Charter;
  2. Charter must commit to Net Neutrality principles without an expiration date;
  3. Regardless of any usage-cap or usage-based pricing plans Charter may introduce after its three-year “no caps” commitment expires, Charter must permanently continue to offer unlimited, flat rate Internet service at a reasonable price as an alternative to usage-priced plans;
  4. Customers must be given the option of opting out of any leased/provided-modem Wi-Fi hotspot plan that offers a wireless connection to outside users without the customer’s consent;
  5. Charter must commit to a more specific Wi-Fi hotspot program that details towns and cities to be serviced and proposed pricing for non-customers;
  6. Charter must allow customers to use their own set-top equipment (eg. Roku, Apple TV, etc.) to receive cable television service without compulsory equipment/rental fees. The company must also commit to offering discount alternatives such as DTAs for secondary televisions and provide an option for income-challenged customers compelled to accept new equipment to continue receiving cable television service;
  7. Charter must retain Time Warner Cable’s Everyday Low Priced $14.99 Internet plan regardless of any other low-income discount program it offers. If it chooses to adopt Bright House’s program, it must broaden it to accept applications year-round, simplify the application process and eliminate any waiting periods;
  8. Charter must commit to independent verification of customer quality and service standards and adhere to any regulatory guidelines imposed by state or federal regulators as a condition of approval.
  9. Charter must commit to expansion of its cable network into a reasonable number of adjacent, unserved areas by committing a significant percentage (to be determined) of measurable financial benefits of the merger to the company or its executives towards this effort.

Stop the Cap! will closely monitor the proceedings and intends to participate on both the state (New York) and federal level to guarantee any merger provides consumers with an equitable share of the benefits. We will also be examining the impact of the merger on existing Time Warner Cable and Bright House employees and will promote merger conditions that protect jobs and limit outsourcing, especially overseas.

Bright House’s Mysterious Internet Discount Program Charter Wants to Adopt Nationwide

If you can find it.

If you can find it.

A major concern about the merger between Charter and Time Warner Cable and Bright House Networks is the availability of affordable Internet access. That was a major issue for New York regulators contemplating the earlier failed merger attempt between Comcast and Time Warner Cable.

Time Warner Cable offers all subscribers a low-speed budget Internet option called Everyday Low Price Internet for $14.99 a month with no pre-qualifications, no paperwork, and no contract commitment. Although originally designed to appeal to price sensitive DSL customers, it has become Time Warner’s de-facto low-income Internet offering for those who cannot afford Standard Internet service.

According to Charter Communications’ Public Interest Statement filed today with the Federal Communications Commission — its case to win approval of its acquisition of Time Warner Cable and Bright House — the future is not looking too good for Time Warner’s $15 Internet program if the merger is approved. Charter makes a point of stating its entry-level Internet option is 60Mbps service at almost three times that price.

So what will “New Charter” offer more than 10 million cable customers going forward:

New Charter will build upon Bright House Networks’ broadband program for low-income consumers by making a broadband offering available with higher speeds and expanded eligibility while continuing to offer the service at a significant discount, and will begin making the offer available within six months after the transaction closes and offer it across the New Charter footprint within three years of closing.

If you were even aware Bright House offered a discount broadband program, congratulations!

An advocate of affordable Internet service claims Bright House has done an excellent job keeping any mention of the program off its website. In fact, it appears arranging for a visa to visit North Korea is probably slightly easier than getting cheap service from Bright House.

It turns out Bright House does have a modified version of its barely advertised “Lite Internet” plan offering 2Mbps downloads and 512kbps uploads. Anyone can buy that plan for about $20 (with a separate modem fee). Bright House’s Low-Income Internet plan offers the same service for $9.95 a month for up to 24 months.

To qualify, there is an Olympic-style playing field of hoops to jump through, according to Cheap Internet:

1) You must have at least one child qualified for the National School Lunch Program. They need not be enrolled now.

2) You cannot have been a Bright House broadband customer during the last three months. If you are a current customer, you must first cancel and go without Internet service for 90 days (or call the phone company and hope to get a month-to-month DSL plan in the interim.)

3) If you have an overdue bill older than 12 months, you are not eligible until you pay that bill in full.

But it gets crazier.

4) Bright House does not enroll customers in discounted Internet programs year-round. From a Bright House representative:

“We do participate in this particular program, however, it is only around September that we participate in it. This is a seasonal offer that we have which can only be requested from the middle of August to the middle of September, which is when most start up with school again for the year.”

That restriction gets heavy criticism from Cheap Internet.

“Families fall into poverty every day of the year, and poverty-stricken families move from one school district to another every day of the year,” the website writes. “So it’s horribly unfair to tell them they’d qualify for this program if only they had fallen into poverty sometime between the middle of August and the middle of September.”

Time Warner Cable offers $14.99 to anyone without paperwork.

Time Warner Cable offers $14.99 to anyone without paperwork.

But wait, there is more.

Bright House does not take orders for the Low-Income Internet plan over the Internet. That’s right. No Internet sign ups over the Internet. You have to enroll by phone: (205) 591-6880. We dialed it and experienced 30 seconds of… silence. No ringing, no busy signals, nothing. Then an automated attendant picked up looking for a pre-qualification phone number to decide if we are in a Bright House service area. That is as far as we could get. It hung up.

It turns out Bright House sometimes refers to its discount Internet program under another name: Connect2Compete. As both Cheap Internet and Stop the Cap! found, if you visit Bright House’s website and search for either term, you will find absolutely nothing.

Does it seem Bright House lacks enthusiasm selling this option to income-challenged consumers?

The most information available about the discount Internet program Charter wants to bring to Time Warner Cable customers is available on a pretty skimpy third-party website that has no connection to Charter, Time Warner or Bright House. Nothing to be concerned about there!

New Charter promises to improve the program, but Stop the Cap! believes there is a much simpler solution. For $5 more, Time Warner Cable already offers a fine discount option available to anyone, anywhere, for as long as they want it. No paperwork, no complications, no drama. The fact New Charter seems to prefer a different option — one that requires an archaeological dig to unearth needed information — makes us wonder whether they are interested in serving the needy at all.

Switzerland Moving Into World’s Top 10: Competition Forces Major Broadband Upgrades

upc_cablecom_logoJohn Malone’s cable systems in Europe share little in common with what Americans get from their local cable company. In Switzerland, Liberty-owned UPC Cablecom charges $95 a month for 250/15Mbps service — a speed Charter Communications customers cannot buy at any price. Liberty is Charter’s biggest investor/partner. Later this month, Swiss cable customers will be able to buy 500Mbps from UPC. When implemented, that is expected to push Switzerland’s broadband speed rankings into the global top-10. Currently Switzerland is rated #11. The United States is #28 and Canada is ranked #34.

UPC’s primary competitor  — telephone company Swisscom — is aggressively upgrading its facilities with its eye on offering G.fast, the latest version of DSL capable of delivering up to 500Mbps across 200-300 meters of old copper phone wiring, making it suitable for fiber to the neighborhood deployments similar to AT&T U-verse or Bell’s Fibe. Swisscom is also expanding fiber to the home service on a more limited basis, offering customers 1,000/1,000Mbps service on that network.

Tveter

Tveter

Why all the upgrades? Competition in the Swiss broadband marketplace.

If Swisscom can offer gigabit broadband speeds, then so can UPC Cablecom, claims its CEO Eric Tveter.

“We can offer every customer across the country the same speeds,” Tveter told the Schweiz am Sonntag newspaper. “At the end of June, we will introduce new Internet speeds of 500Mbps. Demand for [fiber’s] symmetrical speeds is still very low among residential customers, but if demand increases we will offer them.”

Customers looking for gigabit speed would likely have to sign up as a commercial customer of UPC for now. But the company is preparing to introduce DOCSIS 3.1 which will allow the existing cable network to easily deliver gigabit speeds to residential customers. In fact, Tveter is looking at introducing 10Gbps speeds in Switzerland in the coming years.

Tveter aggressively criticized some of his biggest competitors for using marketing-speak to promote “new” products UPC already offers.

swisscom_logo_detailSome providers have promoted “cloud-based” on-demand access to video that Tveter says has been available from the cable company for several years.

This year, UPC Swisscom has been reassuring customers it does not allow America’s National Security Agency to spy on its customers and has taken measures to keep Chinese intelligence agents and hackers out of its network. The Swiss courts have made it clear they want nothing to do with NSA spying and permit operators to take any and all steps to keep unauthorized American and Chinese agencies from penetrating Swiss telecommunications.

Tveter points out all Swiss networks use equipment manufactured by U.S. and Chinese companies, but there are no indications either government has forced manufacturers to give back-door access to that equipment for surveillance or espionage purposes.

UPC Cablecom also voluntarily adheres to Net Neutrality principles for its Swiss customers.

http://www.phillipdampier.com/video/Swisscom fibre optic network 2014.mp4

Swisscom shows the advantages of its fiber to the home network. (1:54)

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  • Scott: If you're going to keep advertising your services on Stopthecap you should contact Phillip about advertising or a donation to link it, not spamming th...
  • James R Curry: It's a shakedown, but at least it's a shakedown with an unlimited option....
  • BillXperts.com: Hello tacitus, Our team's mission is to help people lower their monthly bills. Therefore we are totally outraged when we see such practices from th...
  • tacitus: This issue has nothing to do with Net Neutrality. T-Mobile isn't creating a fast lane for certain web sites and they don't throttle or cap the data ba...
  • tacitus: If you're going to post your spam here, then the least you could do is tell people how much you charge for your service before they have to visit your...
  • Green8181: Stand up to Comcast and fight to eliminate data caps and 'unlimited usage' fees. Please sign/share our petition: https://petitions.whitehouse.go...

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