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Charter: We Won’t Screw Up Southern California Like Frontier Did With Verizon

Phillip Dampier July 13, 2016 Broadband Speed, Charter, Consumer News, Frontier 3 Comments

frontier frankCharter Communications is promising its Southern California customers it won’t bungle the transition from Time Warner Cable to Charter Communications like Frontier Communications did with former Verizon customers.

“We purchased all of Time Warner Cable and Bright House Networks. With this transaction we acquired everything,” company spokesman Justin Venech said. “We’re able to take more time in the integration process and not rush to make changes.”

Charter will take up to 18 months to make its presence fully known in areas formerly served by Time Warner Cable, and then primarily under its brand name known as Spectrum.

Time Warner Cable customers will be able to keep their current service and packages even after the transition, at least for a while.

charter twcBut not all customers are happy about Charter’s slow transition plans. Customers waiting for Time Warner Cable Maxx upgrades, some already in progress, may be out of luck. Charter’s new management team put an indefinite hold on Time Warner’s more aggressive upgrade plans in favor of Charter’s much more modest commitment to offer customers two broadband speed tiers – 60 and 100Mbps over the next 18 months. Customers in the northeast and midwest have been told there are no longer any definitive dates for the introduction of Maxx, which offers free speed upgrades up to 300Mbps.

Almost all of Time Warner Cable’s executive management has been escorted out of the company’s Manhattan headquarters, severance pay and benefits in hand. In fact, Charter plans to abandon Time Warner Cable’s Manhattan headquarters altogether and shift top management to its plush Connecticut office. Most workers will be reassigned to other locations yet to be announced, some possibly upstate.

Charter has already begun repricing service and packages that will resemble Spectrum offerings, at least for new customers across Time Warner Cable and Bright House territories. The packages will not carry the Spectrum brand just yet, however.

 

 

New Charter Gets Tough With Time Warner/Bright House Employees: Happy Fun Time is Over

Here’s the corporate memo the folks at Charter just sent employees at Time Warner Cable and Bright House Networks. If you’ve seen the movie 9 to 5 with Jane Fonda, Lily Tomlin, and Dolly Parton, let’s just say this is what the sequel would look like if Franklin Hart, Jr. escaped from the Amazon River natives that kidnapped him in Brazil and he reasserted his brand of autocracy in the office.

To summarize:

  • Get back to the office. Your job is being relocated to a “designated Charter office location” wherever that is. Work-at-home is a thing of the past unless you can find an executive vice president to sign off (good luck with that).
  • Wear your jeans at home, not around here. In fact, if you have any doubts about your ensemble, don’t show up at the office wearing it to find out.
  • Summer Hours are so yesterday. Get over it. It’s Monday through Friday, not Friday when you decide to leave.

Charter_logo

Sent to all employees at corporate office locations in Charlotte, St. Louis, Denver, Herndon, NYC and Stamford.

Charter will harmonize various work policies in the coming months, but I wanted to address specific employee questions regarding Charter’s practices at corporate locations. Here you will find immediate guidance on three areas:

Work Location:
9_to_5_moviepRemote work locations:
 All Charter employees will be co-located with their work group at a designated Charter office location. We will work with you and your departmental leadership on potential relocation if necessary. In the interim, anyone who manages people should travel and be onsite where the majority of their employees report for work, for the duration of the work week.

Work from home: Charter does not have a work from home policy. If you have been or sometimes work from home and you are assigned to work functions in these corporate buildings you should immediately begin to report to your work location every day. If you have a concern regarding this you should speak to your manager. In the interim, anyone who manages people should travel and be onsite where the majority of their employees report for work, for the duration of the work week. Any formal work from home arrangement must be approved by an EVP and must have time bound criteria.

Workplace Dress Policy:
Whether we service internal or external customers, employees in Charter’s corporate functions are all professionals by trade and the expectation is we look the part. We will provide a harmonized workplace dress policy in the coming months, however unless approved by an EVP for a specific department and location, jeans are not deemed professional attire. In advance of the policy, if you are in doubt as to whether your attire is appropriate, better to not wear it. If you are still in doubt as to what is appropriate, please see your immediate manager.

“Summer Hours”:
We recognize that this practice at Legacy TWC was in exchange for working additional hours, earlier in the week. However, this is a benefit that is not extended to employees whom our departments serve, the same employees who generate our revenue and provide service to our customers. Perception matters, and a different standard for “Corporate” employees is not consistent with the values we want to project to the much larger employee base who work regular shifts during the day, nights and weekends. We will continue to be flexible with our employees as needs or special situations arise, but a broadly applied Summer Hours policy will not be in place within Charter.

If you should have any questions or concerns please discuss with your manager or let me know.

Paul Marchand
Executive Vice President and Chief Human Resources Officer

Cable Industry Frets Over FCC’s “Artificial Competition” Requirement in Charter Merger

loophole_breakfast_of_lawyers_smallA condition imposed by the Federal Communications Commission requiring newly merged Charter-Time Warner Cable-Bright House to expand service into at least two million new homes already served by another cable or phone company already offering High Speed Internet is causing heartburn for smaller cable and phone companies that fear government-mandated competition in their service areas.

FCC chairman Thomas Wheeler has long believed that cable operators could compete against one another for customers, driving down prices for consumers while forcing service improvements. One of the conditions approving the Charter deal could have put Wheeler’s theory to the test, but not if Charter can help it.

Charter CEO Thomas Rutledge implied that he will continue to shield fellow cable operators from unwanted competition.

“When I talked to the FCC, I said I can’t overbuild another cable company, because then I could never buy it, because you always block those,” Rutledge said at last month’s MoffettNathanson Media & Communications Summit. “It’s really about overbuilding telephone companies.”

It seems unlikely Charter will ever directly overbuild one of its friends in the cable industry, especially important ones like Comcast, Cox, and Cablevision. Smaller independent cable companies don’t feel as secure, which is why the trade group that represents many of them, the American Cable Association, has tried to get the FCC to back off.

charter twc bh“The overbuild condition imposed by the FCC on Charter is stunningly bad and inexplicable government policy,” ACA president Matthew Polka said in a statement. “On the one hand, the FCC found that Charter will be too big and therefore it imposed a series of conditions to ensure it does not exercise any additional market power. At the same time, the FCC, out of the blue, is forcing Charter to get even bigger.”

The FCC probably crafted the deal conditions to force Charter to compete with other cable operators, because one million of those new customer locations must be where at least 25Mbps broadband service is already available. That protects many phone companies still offering DSL as an afterthought, because most don’t offer speeds anywhere close to 25Mbps. But the FCC left several counter-intuitive loopholes in the language that Republican FCC commissioner Ajit Pai says lends credibility to the ACA’s argument.

“Unless Charter chooses to exclusively overbuild areas served by Comcast, which I find highly unlikely, Charter’s increased broadband market share will come at the expense of smaller competitors,” Pai wrote in comments about the proposal.

unitelNotably, Charter is allowed to buy up other small telecom companies and count up to 250,000 of their customers towards the one million new homes served requirement. If those are small rural cable companies, that means the FCC is allowing Charter to grow even larger instead of providing more competition. Charter could also choose to overbuild municipal broadband providers and co-ops, especially in areas next to existing Charter/TWC/Bright House systems. That would harm the FCC’s current interest in removing roadblocks to publicly owned broadband networks. Enthusiasm for such networks could be dampened if Charter is willing to wire the area at their own expense.

Rutledge’s announcement is sure to make life uncomfortable for a number of rural phone companies that have invested in fiber network upgrades and now face the potential of Charter taking away customers that are helping to pay off those upgrades.

An unintended consequence of the FCC’s various loopholes could place a heavy burden on independent telephone companies that invested in network upgrades for faster broadband even as wealthier and larger phone companies are protected from that competition by delivering frustratingly slow DSL.

One potential target for a Charter overbuild could be UniTel, headquartered in Unity, Maine. UniTel offers residential customers in Albion, Dixmont, Newburgh, Thorndike, Troy, and Unity broadband speeds up to 1 gigabit. Unity is located between Bangor and Portland — both served by Time Warner Cable (now Charter).

Phone companies like UniTel call the FCC’s mandate “artificial competition” that could put it and other rural independent phone companies into financial distress. UniTel has a speed edge over anything Charter plans to offer customers in the immediate future as it deploys fiber to the home service, but television is another matter. One of the benefits of being a large cable company is volume-discounted pricing for cable television networks. Smaller independent operators cannot compete when wholesale television programming discounts are calculated in, allowing larger companies to undercut smaller ones with lower pricing.

UniTel officials criticized the FCC for creating deal conditions that Charter will exploit to the detriment of improving rural broadband service.

“Rather than allow New Charter to unilaterally narrow the scope of the buildout condition to meet its own business objectives, UniTel respectfully urges that the Commission should act to narrow the scope of any buildout condition, not to meet the private business objectives of New Charter, but rather to meet the public policy objectives of universal service in rural areas,” the company argued in its filing with the FCC.

A handful of rural telecom associations generally agree with UniTel and want the FCC to retarget Charter’s buildout requirements to fixing the rural broadband problem by expanding into unserved service areas instead.

Some of America’s Largest Telecom Companies Are Overbilling You

bill errorAs part of its investigation of cable and satellite television companies, the U.S. Senate Permanent Subcommittee on Investigations found large discrepancies in how five of America’s largest cable and satellite companies—Charter Communications, Comcast, Time Warner Cable, DirecTV, and Dish—identify and correct overcharges caused by company billing errors.

The subcommittee released its report to coincide with today’s hearings on customer service and billing practices in the cable and satellite television industry. The Senate subcommittee focused its attention primarily on billing errors associated with rented set-top boxes and receivers, not programming packages or add-on services. The bipartisan report found satellite TV company Dish was probably the least prone to billing errors associated with satellite equipment and Time Warner Cable was the worst at identifying equipment billing discrepancies. Even when it did find instances of overbilling, the company refused to give customers automatic full refunds as a matter of “efficiency.”

That “efficiency” is expected to be very profitable for Time Warner Cable, which is likely to collect $1,919,844 from overbilling this year alone. Time Warner Cable estimates that, in 2015, it overbilled 40,193 Ohio customers a total of $430,393 and 4,232 Missouri customers a total of $44,152. Time Warner Cable also told the subcommittee that, during the first five months of 2016, it overbilled customers in Ohio for 11,049 pieces of equipment, totaling $108,221.

Charter Communications only did marginally better, mostly because it is a much smaller cable company. Charter estimates that it has overcharged approximately 5,897 Missouri customers a total of $494,000. Charter, along with Time Warner Cable, made no effort to trace equipment overcharges to their origin unless customers specifically asked them to and did not provide notice or refunds to customers.

Let’s review how the five companies compare:

Time Warner Cable

time-warner-cable-sucksTime Warner Cable is notorious for its “no refunds unless asked” policy, which often leaves customers uncompensated for service outages and other problems. That policy also extends to equipment-related billing errors. During the 6.5 year time period covered by the subcommittee investigation, Time Warner Cable never automatically refunded or credited customer for equipment overcharges discovered by the company. Instead, Time Warner’s “Revenue Assurance” team quietly identified and corrected billing errors without any notification or explanation to customers, which may explain why your Time Warner Cable bill can change even when you are locked in with a promotion.

The subcommittee discovered Time Warner Cable still relies on two entirely different billing systems. One, “Integrated Communications Operations Management System”, otherwise known as ICOMS, is especially troublesome to navigate at Time Warner because the company does not use standardized coding across the entire company. Placing an order for Internet service in the Northeast Division of Time Warner Cable is completely different from ordering the same product in a city like Kansas City or the west coast. Employees have complained about ICOMS for years, noting it can take up to 30 separate codes entered correctly in the system to add just one product, like High-Speed Internet. A simple data entry error can mess up an order and generate a billing error (or a lost order or service request that is never processed). But Time Warner Cable also relies on a different platform developed by CSG to manage some of its billing. Some of Time Warner Cable’s acquisitions, like Insight Communications, have operated under the Time Warner Cable brand for several years, but still use some of the billing platforms that were in place before Time Warner took over.

The subcommittee found strong evidence ICOMS is a big problem for Time Warner Cable. Attempts to audit the platform often crash, as it did in May of this year, preventing Time Warner Cable from identifying billing issues. At best, the company only aims for an 80% correction rate using its auditing tools.

One audit uncovered 18,000 customers in the Carolinas, Midwest, and Northeast that were being overbilled for modem and CableCARD equipment. Although Time Warner Cable was going to remove the erroneous charges going forward, it had no plans to automatically refund customers it identified as overcharged unless customers somehow realized that themselves and called in to request retroactive credit.

icoms error

Time Warner Cable erroneously billed one of its own employees for three Internet accounts.

Time Warner Cable once erroneously billed one of its own employees for three Internet accounts.

The subcommittee found if an audit showed that a customer had not been billed for equipment or services that the customer had received, the company treats those inconsistencies as undercharges and adds the charge to the customer’s bill going forward. Time Warner Cable does not attempt to retroactively charge the customer for previous months where that customer was undercharged.

If the audit shows that a customer has been billed for equipment or services that he or she does not have, the story is more complicated. In some cases, customers agree to pay for equipment they do not actually have so that they can receive a cheaper package price—for example, a consumer who wants only Internet service might decide the cheapest option is a promotional package including both Internet and cable television. By participating in the promotion, the customer agrees to pay a monthly rental fee for a set-top box but may instruct the company not to provide a set-top box. In such a case, the customer’s billing records will show a charge for a set-top box, but the customer’s equipment records will show that he or she does not physically have a set-top box. In April 2016, for example, Time Warner Cable identified 49,132 pieces of equipment associated with overcharges; of those 37,653 (approximately 77 percent) were not “correctable” overcharges because they were associated with accounts participating in promotional offers.

Time Warner Cable does not attempt to trace billing errors to their origin. Instead, it only provides a partial credit for the month during which the error was discovered. The company will not notify you of the error or for how long it has been on your bill. Unless you call and demand full credit for the overbilling, you will not receive it.

The cable company defends its policy on the ground that it is “efficient.” Going through months of customer bills to identify overcharges would be costly and time consuming, the company argues. The company also claims that the customer is best positioned to notice an overcharge and bring it to Time Warner Cable’s attention.

After reviewing policies at several different companies, the subcommittee cast doubt on Time Warner’s assertions, noting other companies had no problems returning overbilled amounts to customers without a request to do so.

Charter Communications

Unfortunately for customers, not included on the list of companies willing and able to automatically refund overbilling is Charter Communications, which recently acquired Time Warner Cable and Bright House Networks.

therealcharterbundleThe subcommittee called Charter’s process of identifying and correct overbilling “substandard.”

According to Charter, prior to August 2015, the company did not run any systematic audits to reconcile its billing records with equipment records. Charter’s failure to perform regular audits means that overcharged customers could not receive a prospective correction of their bill unless they noticed the problem themselves and contacted Charter. Beginning in August 2015, however, Charter began taking steps to identify equipment overcharges now on its system. Charter will complete that process in June 2016.

Charter recently upgraded some of its systems to make sure that when an employee adds or deletes services and/or equipment, an update to the customer’s billing record occurs automatically. Charter has 21 employees working for its Billing Quality Assurance department. The employees randomly sample bills to check their accuracy and when Charter changes its bill format or presentation, the team is supposed to review the bills to make certain any billing changes do not introduce mass errors. The subcommittee found these auditing methods were unlikely to discover common “one-off” errors, such as when customers are overbilled for equipment or programming on their specific account.

Charter’s alternate methods of identifying discrepancies quickly become more convoluted and less useful after that.

For example, beginning in August 2015, Charter undertook what it called a “controller reconciliation,” in which the company began to reconcile its billing records with equipment data from its 35 “controllers” throughout the country. These “controllers” are designed to manage box authorizations and “from the office” service connection and disconnection so that a truck roll is unnecessary. These systems can also be useful in identifying unauthorized equipment installed at locations where they were never registered or if the box was authorized for channels a customer was not paying to receive. A controller reconciliation allowed Charter to identify anomalies like in Missouri, where almost 6,000 customers were being billed for set-top boxes they were not using.

The subcommittee was unhappy neither Time Warner Cable or Charter seem willing to use “brute manpower to identify how long a customer has been overcharged and automatically grant a refund or credit,” as well as do more to minimize equipment and programming mismatches with billing records.

Comcast has bigger problems than overbilling.

Comcast has bigger problems than overbilling.

Comcast

Comcast relies on a very similar auditing process in use at Time Warner Cable to identify billing discrepancies, except once Comcast finds one it identifies how long a customer was overcharged, notifies the customer and automatically credits the customer’s account. Starting late last year, Comcast began running audits weekly to improve billing accuracy. Comcast claims just a 0.3% error rate.

Comcast has more than 60 employees nationwide on the east and west coasts examining billing issues and, when needed, individually investigates each case to identify applicable refunds.

DirecTV

DirecTV doesn’t do regular audits, instead relying on a program called SAS Enterprise Miner to search for billing errors before bills are generated. It can also use the same tools to identify and correct past billing errors. The satellite provider goes as far back as necessary to correct past mistakes, and pointed to instances where credits of thousands of dollars were issued to affected customers. DirecTV’s Revenue Assurance department can also reach out and communicate with employees at all levels of the company to investigate billing issues and prevent future ones. What will change as a result of AT&T’s ownership of the company isn’t known.

Dish Network

dishDish was cited by the subcommittee report as having the billing system least likely to generate billing errors. Dish links its equipment and billing systems together, which means any change on one system automatically updates the other.

According to Dish, it is impossible to add or remove equipment without altering the customer’s billing records. Dish provides each customer with one free “receiver”—Dish’s term for the equivalent of a set-top box—and charges $7.00 to $15.00 per month for each additional receiver a customer has. That is the only equipment charge. Dish’s system will only send a television signal to receivers that have been “activated,” which happens as part of the installation process. Once a receiver has been activated, the customer’s billing information is automatically updated to reflect that addition. That system ensures that no receiver is added to a customer’s account unless it has been activated.

Dish customers return their receivers by mail. Dish provides a packaging label so that it can track the receiver once it has been mailed. When the receiver returns to the Dish warehouse, an employee scans the barcode on the receiver, which removes the receiver from the customer’s provisioning records and, in turn, from the customer’s bill.

Hearing: Customer Service and Billing Practices in the Cable and Satellite Television Industry

Permanent Subcommittee on Investigations, June 23, 2016 10:00AM ET

(Video starts at 19:55) (2:18:54)

Stop the Cap! to N.Y. Public Service Commission: Time Warner Cable Stalls Upgrades

stc

June 16, 2016

Hon. Kathleen H. Burgess
Secretary, Public Service Commission
Three Empire State Plaza
Albany, NY 12223-1350

Dear Ms. Burgess,

Today, we confirmed that Charter Communications has ordered an indefinite suspension of the Time Warner Cable Maxx broadband upgrade program pending a review that seems to carry no specific timeline for completion.[1]

We are deeply concerned about the implications of this decision, particularly as Time Warner Cable has been performing broadband upgrades this spring and summer in the Hudson Valley[2] and Syracuse/Central New York[3] regions that deliver important speed upgrades to customers in New York State. We have good information that Rochester was the next city scheduled for these upgrades, followed by Buffalo. These upgrades would have provided customers with up to 300Mbps broadband service as soon as late this year across a significant section of upstate New York, with the western New York/Buffalo region upgraded in 2017.

It is clear the only reason these upgrades have been suspended relates to the recent ownership change of Time Warner Cable, approved by the N.Y. Public Service Commission.

As you know, Stop the Cap! argued our concerns about approving the merger transaction between Charter Communications and Time Warner Cable, in part because Time Warner Cable’s Maxx upgrade program offered more compelling broadband upgrades, at a lower price, and introduced faster than Charter’s own offer.[4]

The alarming development of an indefinite nationwide suspension of the Maxx upgrade program has profound implications on large sections of upstate New York waiting for urgently needed broadband speed upgrades. The announcement also suggests large sections of New York will be waiting much longer to reach speed parity with cities, mostly downstate, that already enjoy up to 300Mbps service on an upgraded, less trouble-prone network.

Once again, New Yorkers are being divided into those with reasonably fast speeds, and those without. Should Charter adopt the slowest possible upgrade schedule permitted by the Commission, several upstate cities will be waiting until the end of 2018 – almost two years, to receive 100Mbps broadband.[5] I’d remind the Commission other major cable companies are offering residential customers speeds up to 2Gbps today[6], and many already offer tiers that well exceed Charter’s promised maximum speed.

Charter’s corporate decisions also impact New Yorkers more profoundly than other states because of the absence of significant competition. Outside of limited deployments of Verizon FiOS, DSL continues to predominate from New York telephone companies, including Verizon, Frontier, TDS, Windstream, and others. In most cases, these speeds do not come close to achieving the minimum 25Mbps speed that the FCC defines as “broadband.”

In states to our west, AT&T is already offering gigabit Internet service to residential customers, and Google Fiber (which has bypassed the entire northeastern U.S. for fiber deployment) continues its own expansion.

We urge the Commission to obtain definitive information about the current Maxx upgrade delay, the reasons for it, the timetable to resume upgrades (if ever), and an assurance that Charter Communications will resume a comparably rapid Maxx-equivalent upgrade for New Yorkers that Time Warner Cable was well on its way to complete within the next two years. We also hope the Commission will share its findings with the general public.

Yours very truly,

 

Phillip M. Dampier
Director

[1] Text of a company memo obtained by Stop the Cap! originally sent to Time Warner Cable’s engineering/customer support team: “The Maxx Internet Speed Increase Program is currently undergoing review by our leadership team. As a result, all speed increases and customer communications were placed on a temporary hold beginning Thursday, May 26. Once the updated launch schedule is determined, updated hub schedules will be posted to KEY and area management will be notified. Customers will continue to receive notification when the new speeds are available in their hubs.” (http://stopthecap.com/2016/06/16/charter-indefinitely-suspends-time-warner-cable-maxx-upgrades-pending-review/)

[2] http://www.timewarnercable.com/en/about-us/press/twc-increases-internet-speed-hudson-valley.html

[3] http://www.timewarnercable.com/en/about-us/press/twc-to-transform-tv-internet-experience-central-northern-ny.html

[4] http://documents.dps.ny.gov/public/Common/ViewDoc.aspx?DocRefId={FCB40F67-B91F-4F65-8CCD-66D8C22AF6B1}

[5] http://documents.dps.ny.gov/public/Common/ViewDoc.aspx?DocRefId={DEE1823A-AADD-48D4-94BD-B96BAC096DAA}

[6] http://www.xfinity.com/multi-gig-offers.html

Charter Considering Pulling the Plug on Time Warner’s IntelligentHome Security Service

intelligenthome

Perhaps not for long.

Time Warner Cable customers who spent hundreds or thousands of dollars in security equipment and add-ons may be left with nothing but their 18-month contract as Charter Communications considers pulling the plug on Time Warner’s IntelligentHome security service.

DSL Reports appears to have the exclusive story this morning that insiders familiar with the company’s business operations are claiming IntelligentHome may be one of the first casualties of the giant merger between Charter, Time Warner Cable, and Bright House.

As Stop the Cap! reported earlier this morning, Charter executives are performing a top-to-bottom analysis looking to wring cost savings out of the merger deal. The result will likely be the elimination of anything seen as duplicating Charter Spectrum’s own suite of products and services or going beyond Charter’s philosophy of focusing on “core services.” That could be bad news for Time Warner Cable employees managing or supporting non-conforming services as well, and at least some could be headed for the unemployment office.

A strong clue the days of IntelligentHome may be numbered is word employees are now supposed to keep it a secret:

While the source states that no formal shutdown of the service has been announced, sales and service employees are being told to no longer mention the service in call conversations or presentations with customers. The source also states that “rumblings by managers” suggests the service may not be long for this world.

Should Time Warner Cable shutter the service, the insider states that could be trouble for the customers that recently shelled out significant amounts of money for IntelligentHome hardware.

“What is particularly concerning is that many customers are in 18 month contracts and have purchased hundreds or even thousands of dollars in equipment,” states the insider.

baseIf Time Warner does shutter the service, customers will likely be released from their contracts penalty-free, but they may also be stuck with useless equipment they can’t use with another alarm system.

Cable operators have dabbled in the home security business since the 1970s, but many early attempts were scrapped after waves of consolidation orphaned a variety of incompatible technologies with new owners that had little interest in maintaining the service. The insatiable quest for higher Average Revenue Per User (ARPU) has pushed the cable industry to find more ancillary services that could boost cable bills and keep Wall Street happy. They tried music services like Music Choice and DMX, home video game services, broadband for telecommuters, and eventually returned to home security.

Time Warner Cable first launched IntelligentHome in 2011. It immediately threatened traditional home security services from companies like ADT because IntelligentHome could manage easy remote access to control home security settings, lighting, and thermostats from a computer, tablet, or smartphone. Customers upgrading to a video-capable system could even stream camera video over the Internet through a live feed. A tablet-like touchscreen control enhanced the experience with access to current weather, news, and traffic.

icontrol

Icontrol manages the software platform that powers Time Warner’s IntelligentHome, along with home security services offered by a number of other cable operators.

Time Warner Cable did not develop IntelligentHome exclusively in-house. Most large cable operators rely on connected home security system software solutions powered by a platform developed by Icontrol.

extrasCharter Communications is one of only a few cable companies that have shown no interest in selling home security services (Cablevision is another). In 2013, it dismissed any interest in getting into the business, telling Reuters it preferred to concentrate on its “core business.” Nothing seems to have changed. As of this year, the only security protection Charter offers customers is antivirus software for their computers.

An exit from IntelligentHome could also have a major impact on Time Warner Cable’s owned-and-operated CSAA 5-Diamond Rated Emergency Response Center, which answers when it detects a break-in or when a customer hits a panic button.

Most estimates put the number of customers paying for IntelligentHome at less than 100,000 nationwide, but that select group is likely to have a substantial buy-in to the service and would definitely feel its loss.

Although Time Warner Cable advertises IntelligentHome at prices starting between $35-40 a month, that doesn’t afford much protection. Customer can choose between packages of different equipment bundles that range from $99.99 to $199.99. A la carte equipment is also available. A very basic entry-level system packages a tablet-like controller with protection for only two doors or windows and one motion detector. That might be suitable for an apartment, but homeowners often upgrade to cover more potential entry points. As a result, IntelligentHome has proven a tough sell for customers already confronted by cable bills that often approach or exceed $200 a month, before the alarm service is added.

Time Warner has attempted to change the marketing of IntelligentHome to emphasize more of its home automation and monitoring features, and routinely offers a $200 gift card to entice new customers. But it may not have worked enough to interest Charter, which shows every sign it wants to simplify the cable bundle, not clutter it up with extras. The insider told DSL Reports he hoped Charter would find a way to manage existing customers and not abandon them should the service be discontinued. If not, tens of thousands of Charter customers will have bought a lot of equipment with nothing to show for it.

DSL Reports stresses no final decision has been made.

Charter Indefinitely Suspends Time Warner Cable Maxx Upgrades Pending “Review”

charter twcTime Warner Cable customers getting inundated with ads promising great things from Charter’s buyout of Time Warner Cable have their first broken promise from “Spectrum” to contend with instead.

Charter Communications has quietly informed Time Warner technicians and network engineers — but not customers — it has indefinitely suspended the Time Warner Cable Maxx upgrade program until further notice until the new leadership team “reviews” the program.

“The Maxx Internet Speed Increase Program is currently undergoing review by our leadership team. As a result, all speed increases and customer communications were placed on a temporary hold beginning Thursday, May 26. Once the updated launch schedule is determined, updated hub schedules will be posted to KEY and area management will be notified. Customers will continue to receive notification when the new speeds are available in their hubs.”

charter sucksThe internal Time Warner Cable memo, now confirmed as genuine by Time Warner, suggests the hold is temporary, but sources tell us Charter executives are reviewing expenses across the board to find cost saving opportunities. Most states approving the transaction gave Charter plenty of room to maneuver while approving its merger deal because of Charter’s considerably less aggressive upgrade schedule, in comparison to Time Warner Cable. Few states asked Charter for anything more than what Charter volunteered itself.

Charter has formally committed to offering two broadband speed tiers: 60 and 100Mbps by 2019. Except in New York, where regulators insisted on more aggressive upgrades that match Maxx speeds, Charter is within its rights as the new owner to discard or ignore any earlier commitments or public statements previously made by Time Warner Cable management.

Stop the Cap! filed comments last year opposing Charter’s merger in New York, California, and with the Federal Communications Commission, arguing Charter’s claimed merger deal benefits offered to regulators represented a step backwards for Time Warner Cable customers. Time Warner Cable had previously committed to move forward on its Maxx upgrade program, which offers Internet speeds three times faster than what Charter is promising, on a schedule that would have likely finished upgrades by the end of next year or early 2018. Charter has only committed to complete its less compelling speed upgrade to a maximum 100Mbps by the end of 2019 — three years from now.

We will continue to notify regulators about Charter’s performance to compel action and raise public awareness of any gaps between Charter’s glowing promises of better things to come in their letters and TV spots and what actually happens on the ground. It is not a good start for “Spectrum” with consumers, just days after customers received a welcome letter in the mail signed by Charter CEO Tom Rutledge. Less than two weeks later, some customers already feel like they’ve been lied to.

twc

Opponent of EPB Fiber Expansion: Get ‘Innovative’ Satellite Internet Instead

Cleveland's monument in the downtown district. (Image: City of Cleveland)

Cleveland’s monument in the downtown district. (Image: City of Cleveland)

AT&T, Comcast, and Charter have surrounded the city of Cleveland, Tenn., (population 42,774) for more than 20 years, yet after all that time, there are still many homes in the area that have no better than dial-up Internet access..

An effort to extend municipal utility EPB’s fiber to the home service into the community just northeast of Chattanooga on Interstate 75, has run into organized political opposition campaign, part-sponsored by two of the three communications companies serving the area.

Tennessee state Reps. Dan Howell and Kevin Brooks, both Cleveland-area Republicans, understand the implications. With AT&T, Comcast, and Charter resolute about not expanding their coverage areas anytime soon, the only chance Cleveland has of winning world-class broadband anytime in the reasonable future is through EPB, which has already offered to extend service to at least 1,000 customers in rural Bradley County in as little as three months. Most of those customers now rely on dial-up Internet services, because no broadband is available. Reps. Howell and Brooks are trying to get the the red tape out of the way so EPB can proceed, but the Tennessee legislature hasn’t budged.

EPB provides municipal power, broadband, television, and telephone service for residents in Chattanooga, Tennessee

EPB provides municipal power, broadband, television, and telephone service for residents in Chattanooga, Tennessee

There is a substantial difference between 30kbps dial-up and 100Mbps — one of the “budget” Internet tiers available from EPB. But some Tennessee lawmakers and corporate-backed special interest groups don’t care. To them, stopping public broadband expansion is a bigger priority, and they have attempted to stall, block, or prohibit municipal broadband, just to protect the current phone and cable companies that are among their generous contributors.

In 2010, Chattanooga became the first in America to enjoy gigabit residential broadband speed not because of AT&T, Comcast, or Charter, but because of the publicly owned electric company, EPB. So what’s the problem with that? The fact EPB spent $320 million on the fiber optic network — about $100 million of that coming from a federal grant — keeps some conservatives, corporate executives, and telecom shareholders up at night. They object to the public funding of broadband, calling it unfair competition for the two incumbent cable companies and one phone company, which have their own “privately funded” networks.

Republican Rep. Mike Carter, who serves Ooltewah, thinks that’s a lot of nonsense. He notes AT&T and other providers already receive government funding to service outlying areas that no other providers dare to tread for a lack of return on their investment.

cleveland_tn“[What] convinces me to back expansion of the EPB of Chattanooga is the fact that they received $111 million in stimulus funds, and in the next five years AT&T alone will receive $156 million of your money [in government funding] assessed every month on your bill to provide 10/4-gigabit service in those areas,” Carter explained to the Chattanooga Times-Free Press. “If the EPB’s $111 million matching grant somehow disqualifies those benefits going to my constituents, how do I explain to them that AT&T is receiving non-matching funds?”

“The issue then became, if it is necessary to create the world’s fastest Internet system, why would EPB not offer that for economic growth in its service area?” Carter continued. ” After I heard the story of the [gig’s] creation and realized that the money had already been spent, I asked myself if I would allow a firmly held principle of no competition with private enterprise by government to deny my constituents and neighbors the incredible benefits.”

Justin Owen, president and CEO of the Beacon Center of Tennessee, is dismissive of Carter’s willingness to bend his principles. In his view, those without Internet access have other options instead of getting EPB Fiber on the public dime.

Owen

Owen

“You can get satellite Internet,” said Owen, who added that governments that invest in fiber technology could be “left behind by disruptive innovation,” which in his mind could be satellite Internet. Satellite customers would disagree.

“Horrible, horrible, horrible, and more horrible,” wrote Trey from another Cleveland — this time in Texas. “Speeds are consistently less than 2Mbps and they advertise up to 12. Try a cell phone booster and use that before resorting to satellite Internet.”

Hundreds of customers shared similar stories about their experience with satellite Internet, and they don’t believe it will be disruptive to anything except their bank account.

Owen and his group have not revealed many details about where its funding comes from, but the group is a member of the State Policy Network, which receives financial support from AT&T, Time Warner Cable, Verizon and Comcast. The group’s former leader, Drew Johnson, was also a former opinion page columnist at the Times-Free Press and used column space to criticize EPB and other issues that ran contrary to AT&T’s agenda in Tennessee.

Despite support from the Chattanooga area’s Republican delegation, many legislators from outside the area remain firmly in support of the telecom companies and their wish to limit or destroy community broadband projects like EPB, claiming they are redundant or are based on faulty business plans likely to fail. But while Comcast used to dismiss EPB’s gigabit service as unnecessary and AT&T considered gigabit speeds overkill, both companies are now racing to deploy their own gigabit networks in Chattanooga to compete.

The residents of Cleveland without broadband today probably won’t have it tomorrow or anytime soon. Many are hoping the Tennessee legislature will relent and let EPB solve their broadband issues once and for all. Cleveland resident Aaron Alldaffer is trying to help gin up interest in a renewed legislative push for EPB Fiber expansion with a Change.org petition.

The BBC World Service Global Business program visited Chattanooga in May 2016 to explore EPB Fiber and discuss its implications. (29 minutes)

You must remain on this page to hear the clip, or you can download the clip and listen later.

Charter Running Ads Welcoming Time Warner, Bright House Customers to “Spectrum”

spectrumIf your reputation precedes you, a virtual makeover with a quick name change may be all a company can do to help smooth customers’ ennui about the news one cable company they heard wasn’t very good was taking over for the one they hate with a passion. After all, joining a new family isn’t necessarily good news if their last name happens to be Frankenstein, bin Laden, or Manson.

Charter Communications began running commercials this week on Time Warner Cable and Bright House Networks cable systems “welcoming” customers to the Charter family. Except the Charter logo was nowhere to be found. Like Comcast’s virtual image makeover effort/attempt with its XFINITY brand, Charter is hoping for a “reset” with customers who have heard bad things about Charter from their relatives by using its “Spectrum” brand instead. That logo is expected to appear on cable trucks, billboards, billing statements, and television spots.

Charter Communications has completed the transactions with Time Warner Cable and Bright House Networks, and soon you’ll get to know us by the name, Spectrum. We are proud to be the fastest growing TV, Internet, and Voice provider in the United States and are committed to bringing you the most advanced products and services for your home and business.

Exciting changes are in the works, but for now, Time Warner Cable, Bright House Networks and Charter Spectrum will continue offering their current suite of services to customers in their markets. In the coming months you’ll hear more from us as it relates to network, product and service improvements. Whether it is new ways to enjoy more shows with unrivaled picture quality, better service, or faster internet speeds, we cannot wait to show you what’s next. (1:04)

opinionWe offer three facts to ponder:

Charter’s Internet speeds are not any faster than what a Time Warner Cable Maxx customer can buy today — up to 300Mbps. Charter “Spectrum” tops out at 100Mbps in most of its markets.

Charter may consider its service “unrivaled,” but customers don’t, rating it only a mouse whisker better than Time Warner Cable.

Many customers of both Time Warner and Bright House are indeed concerned with what Charter has in store for them, particularly after conditions preserving cap-free Internet expire.

Charter Completes Time Warner Cable/Bright House Merger Today

charter twc bhAmerica has a new second largest cable conglomerate with 17 million customers and a new name.

Charter Communications formally completed their $55 billion acquisition of Time Warner Cable and Bright House Networks today, creating a new cable giant that more closely rivals number one Comcast in size and scope.

The approval came despite warnings from a team at the FCC assigned to review the impact of the merger.

The Deal is Likely to Trigger an Abusive Money Party at the Expense of Customers… Merger Approved

“We conclude that the transaction will materially alter [Charter’s] incentives and abilities in ways that are potentially harmful to the public interest,” an FCC report about the impact of the merger states.

The FCC concluded the deal could become an enormous money-maker for Charter and its investors through the eventual metering of online usage. There are strong incentives, according to the FCC, for Charter “to impose data caps and usage-based prices in order to make watching online video more expensive, and in particular more expensive than subscribing to a traditional pay-TV bundle” after its voluntary commitment not to impose data caps expires.

Existing Charter customers warn this isn't the cable company you are looking for.

Existing Charter customers warn this isn’t the cable company you are looking for.

The FCC is also certain Charter will enjoy considerable pricing power with its near broadband monopoly at speeds of 25Mbps or higher. That means one thing: substantial rate increases unchecked by competition.

Despite the gloomy prospects, FCC commissioners found a “compromise” that will impose consumer-friendly conditions on the merger, but will expire between 5-7 years from today. After that, in the absence of robust competition from a player like Google Fiber, it will be open season on broadband customers.

Consumer advocates were less than pleased.

“There’s nothing about this massive merger that serves the public interest. There’s nothing about it that helps make the market for cable TV and Internet services more affordable and competitive for Americans,” said Free Press president and CEO Craig Aaron. “Customers of the newly merged entity will be socked with higher prices as Charter attempts to pay off the nearly $27 billion debt load it took on to finance this deal. The wasted expense of this merger is staggering. For the money Charter spent to make this happen it could have built new competitive broadband options for tens of millions of people. Now these billions of dollars will do little more than line the pockets of Time Warner Cable’s shareholders and executives. CEO Rob Marcus will walk away with a $100 million golden parachute.”

[Image: WSJ.com]

In fact, the golden parachutes will extend far beyond retiring Time Warner Cable CEO Rob Marcus. According to a regulatory filing, Marcus’ contract was written to allow him to sell the company and effectively be “terminated without cause,” which activates the equivalent of a Powerball Powerplay. Marcus will automatically qualify to receive several years’ worth of his original salary, expected bonuses, and compensation in stock for showing himself to the exit. That alone is expected to exceed $100 million. Marcus’ ancillary benefits also add up, and will be eventually disclosed in future filings with the Securities & Exchange Commission.

Marcus’ colleagues won’t leave empty-handed either. The chief operating officer and chief financial officer of Time Warner Cable could each get $32 million in compensation. The general counsel of Time Warner will retire with around $22 million and some mid-level executives could leave with around $18 million each.

Familar names on Wall Street will also enjoy proceeds worthy of Donald Trump Lotto. Everyone’s favorite financial casino Goldman Sachs is sitting pretty with millions in fees advising Charter on both its acquisitions of Bright House and Time Warner Cable. UBS helped lead the financing of the whopping $55 billion deal on behalf of Charter and is the sole financial adviser to Advance/Newhouse, which owns Bright House. That means big bucks for the Swiss bank.

fishThe Small Swallow the Big

Charter was a much smaller, and not well-regarded cable company before it financed the acquisition of two of its non-competing rivals. In fact, Time Warner Cable was already the country’s second largest cable operator before the acquisition, and Charter will have to contend with managing a cable operator much larger than itself. Charter executives have hinted it will take many months to manage that transition, with the eventual retirement of both the Time Warner Cable and Bright House brands, in favor of Charter and its Spectrum product suite.

Those not already Charter customers will be subjected to a publicity campaign to manage the introduction of Charter in the best possible light, despite the fact current Charter customers rate the cable operator as mediocre in consumer surveys. Its reputation is well-known, especially in the middle of the country where many Charter systems operate.

Charter will continue to be led by CEO Thomas Rutledge, who will also hold the titles of president and chairman of the board. But the man behind-the-scenes expected to have a substantial amount of influence in how Charter is run in the future is ex-Tele-Communications, Inc. (TCI) CEO Dr. John Malone through his entity Liberty Broadband, which will control three seats on Charter’s board of directors, including one for Malone himself. Malone advocated for Rutledge to become CEO of Charter after the cable company emerged from bankruptcy reorganization in 2009.

makeoverHow to Remake Your Image: Change the Name

Renaming Time Warner Cable isn’t likely to fix the scandalously low regard its customers hold the company. But it couldn’t hurt either.

“It’s not surprising Charter wants to rebrand Time Warner Cable,” said David VanAmburg, managing director of the American Customer Satisfaction Index, which regularly rates Time Warner Cable (and often Comcast trading places) the worst companies in the country. “Charter has scored better than Time Warner Cable in recent years, so it could bode well for Time Warner Cable customers. But the data suggests leaps-and-bounds improvement could be difficult.”

ACSI graded Charter 57 in 2015. Time Warner Cable managed a 58 — both effectively failing grades on a scale of 0-100.

What kinds of services Charter is now compelled to offer is dependent on the state of the cable system serving each area and if regulators extracted concessions on the state level to guarantee better service. The state that worked the hardest to compel upgrades and insist on a more customer-friendly transition is New York, where the Public Service Commission forced concessions to upgrade all of the state and allow customers to keep their current Time Warner Cable plans if they wished.

“On Day One, customers of (Time Warner) won’t really see any changes,” Charter spokesman Justin Venech told the Albany Times Union. “Time Warner Cable and Charter Spectrum will continue offering their current suite of advanced products and services to customers in their markets.”

“As we go all digital market by market, we will launch the Spectrum brand product, pricing and packaging, and Charter will also launch Spectrum in those markets in which (Time Warner has) already gone all digital,” Venech said. “We will be communicating directly with customers, letting them know when they will start seeing the Spectrum brand. In addition, when our Spectrum packages launch, if a customer likes the package they are currently in, they will be able to stay in that package.”

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