KJRH’s newsroom has been spending a lot of time this spring dealing with viewers ripped off by their telecommunications providers.  When Tulsa residents can’t get satisfaction from the local cable or satellite company, they often call Channel 2′s Problem Solvers for help.

DirecTV’s Phantom Gift Cards: The Promised Rebate That You Qualify For, Until You Don’t

Satellite TV companies are increasingly aggressive pitching discounts and rebates to win customers away from traditional cable TV or the phone company’s new IPTV service.  In addition to cheap teaser rates, many providers also sweeten the deal with high value rebate cards for customers signing multi-year service contracts.

Local resident Michael was attracted to DirecTV’s $200 Visa card rebate offer and signed up for satellite service.  Weeks later, with no rebate card in hand, he called the company to find out why, only to be told he did not qualify.  When Michael tried to cancel service because the company didn’t deliver what it promised, the customer service representative informed him he would owe $480 in early cancellation penalties.

DirecTV's fine print: Emphasis ours.

DirecTV initially stonewalled KJRH when they called on Michael’s behalf, eventually claiming he was told he did not qualify for a rebate a week after signing up for service.  But when KJRH asked to hear a recording of the call DirecTV routinely makes when customers sign up for service, they changed their tune.

“The next day, we were told Michael had been given the wrong information about the promotion and he could cancel without that $480 penalty,” the Problem Solvers’ team reports.

Michael says it is important to get everything in writing — including the names of representatives you speak with — because that can make all the difference when a company tries to squeeze out of its own promotional promises.  He’s now an ex-DirecTV customer for free, and decided to watch his favorite shows over local broadcast TV.

KJRH got called by Michael when DirecTV reneged on a $200 rebate offer that locked him into a contract that could cost him $480 to escape.  (2 minutes)

Suddenlink: Suddenly Owe $400 in April for Service You Canceled In January

Tulsa resident Lucille got the shock of her life this month when she opened a bill from Suddenlink charging her $400 for cable service she canceled in early January.

The past due bill came without warning and Lucille says she never received any phone call, bill, or letter notifying her charges were still accumulating on her account.

When she called Suddenlink, they told her that service was never discontinued, and she owed the money.

Lucille may have been born at night, but not last night.

Angered by Suddenlink’s intransigence, she called KJRH for help.  The station went to the top — calling Suddenlink’s corporate headquarters.

In short order, a company representative researching the dispute found Lucille’s cancellation request, as well as the customer service representative who never processed it.

That representative will be attending Customer Service 101 re-training classes, and a company executive called Lucille directly to apologize.

Not only that, a local Tulsa Suddenlink worker arrived with a $100 refund check — the credit balance owed her for service she paid one month ahead to receive.

While both Lucille and Michael benefited from the threat of both companies being portrayed in a bad light on the evening news, an unknown, uncounted number of customers may not win similar satisfaction.

Many customers simply give up pursuing unpaid rebate promotions (or forget about them altogether), and DirecTV’s nearly $500 early termination fee is a strong incentive to grudgingly stay with the satellite provider until your contract runs out.  Lucille, 88 years old, was not going to be intimidated by Suddenlink’s insistence she owed the money (or the implications of being called a past due deadbeat — an especially scandalous notion for older Americans).

Both consumers did something else: they wrote down names, times, and dates of their communications with the companies.  That can go a long way to winning satisfaction. So can filing complaints with the Better Business Bureau, which can usually prompt a contact from a higher-level customer service representative more willing to give a complaining customer the benefit of the doubt.

KJRH got a call from Lucille about an unexpected $400 Suddenlink cable bill for April… for service she canceled in January.  (2 minutes)

With no progress in sight, stalled contract negotiations between a popular sports cable network and New York’s dominant cable TV company continues to test the patience of customers and sports fans across the state.

Scores of Buffalo-area sports bars have canceled their commercial cable service with Time Warner Cable, generating plenty of business for DirecTV, which still has MSG on the lineup.  Customers across New York have also started to demand a refund of the estimated $4.50 a month Time Warner Cable no longer pays MSG, but still collects from cable subscribers.

http://www.phillipdampier.com/video/WGRZ Buffalo Time Warner and MSG Network plan meeting this week 1-8-12.flv

Time Warner Cable and MSG’s dispute is ticking off Buffalo sports fans.  WGRZ visits area sports bars and talks with both sides in the dispute to learn the latest.  (4 minutes)

Now New York Attorney General Eric Schneiderman is brokering discussions between the two sides, in an effort to restore coverage of the Sabres, Rangers, and Knicks games all displaced from the Time Warner Cable dial.

“We have had constructive discussions with Time Warner and MSG Networks as part of an ongoing effort to facilitate progress in their talks,” said Schneiderman. “We are hopeful that the two parties will come to an agreement in short order.”

Schneiderman

So far, those negotiations seem to be going nowhere, and Time Warner released a statement stating they have not had any further discussions with the network.  The cable company has also hardened its position with respect to refunding customers for the lost networks.  While early attempts to win credit were successful, Time Warner representatives are now refusing to compensate customers for the loss of MSG.  Instead, they are offering a free month of their mini-pay sports programming tier, which must be requested to access.  After the first month, the cable company will bill customers $5.95 a month for the channels.

“That’s no help,” says Stop the Cap! reader Jean, a Sabres fan in Amherst, N.Y.  “Not only don’t we get our $4.50 back, they want to set us up to pay an extra $6 a month after the 30-day trial of their ‘compensation’ is up.”

Many of her friends who live in suburban Buffalo are dumping Time Warner in favor of Verizon FiOS.  Area sports bars are following.  At least a dozen have canceled their commercial service contracts with Time Warner Cable, many switching to satellite provider DirecTV.  Buffalo’s love affair with hockey is so intense, 5,000 people showed up last week at the First Niagara Center stadium to watch the Buffalo Sabres away game on large screen televisions hung above the rink.

Cashing in

Sports bars depend on lucrative sales during major sports events, so being without the Sabres proved unacceptable, a point driven home by MSG itself which continues to host free viewing parties at local establishments.  Buffalo wings were included for free.

Stop the Cap! reader Ruth Grunberg, who lives in Cortland, N.Y., has started a petition to demand the cable company refund subscribers the $4.50 a month effectively paid for channels they no longer receive.

“They recently raised rates 7% for the second time in a year and they no longer are sending this money to MSG,” Grunberg says. “They have no right to keep it and pay their bloated executives even more money. It is fraud and bait and switch to promise one thing and deliver another. They should offer a la carte service to solve a multitude of problems.”

The city of New York apparently agrees and continues efforts to pressure the cable company into compensating subscribers for the network loss.

WIVB in Buffalo reports area sports bars are canceling Time Warner Cable in droves as its programming dispute with MSG drags on with no end in sight.  (2 minutes)

Customers of some of the largest cable, phone, and satellite companies will pay an average of 3-6 percent more for service in a series of rate increases taking effect between now and the end of February.

AT&T U-verse

If your introductory offer has expired, expect to pay more for just about everything as of Feb. 9.

Cable TV:

• U-family will increase from $54 to $57,
• U100 will increase for some from $54 to $59 and for others from $59 to $64,
• U200 will increase from $69 to $72/U200 Latino will increase from $79 to $82,
• U300 will increase from $84 to $87/U300 Latino will increase from $94 to $97,
• U400 will increase from $109 to $114,
• U450 will increase from $117 to $119/U450 Latino will increase from $127 to $129.

For high speed Internet customers who ordered their current speed before June 12, 2011, effective with the February 2012 billing statement, the monthly price for Basic will increase from $19.95 to $25, Express will increase from $30 to $33, Pro will increase from $35 to $38, Elite will increase from $40 to $43, and Max will increase from $45 to $48. If you are paying a monthly high speed Internet equipment fee for the Residential Gateway, the amount will increase from $4 to $6.

For Voice Unlimited, effective on February 1, 2012, the monthly price will increase from $33 to $35.

AT&T blames increased programming costs and “the cost of doing business” for the rate increases.  AT&T is increasing broadband pricing despite enjoying further cost reductions from their Internet Overcharging scheme implemented in 2011.

Comcast

Comcast implements rate increases at different times of the year throughout its national service area.  But a preview of what is forthcoming can be seen in south Florida and Minnesota, where Comcast’s new rates for 2012 have increased an average of 5.8 percent.  That comes after a 2 percent rate hike last year.  It’s a bitter pill for many customers to swallow, because Comcast has also been moving popular cable channels like Turner Classic Movies into the more expensive Digital Preferred package.  The price of that full basic package will now run just short of $85 a month. Customers in Minneapolis are staring down these new rates:

• Basic 1: no change in most franchise areas.
• Digital Economy: increases from $29.95 a month to $34.95 a month, or 16.7 percent.
• Digital Starter: increases from $62.99 a month to $66.49 a month, or 5.6 percent.
• Digital Preferred: increases from $80.99 a month to $84.49 a month, or 4.3 percent.

Comcast blames increased programming costs and upgrade expenses associated with its now completed DOCSIS 3 project.  Comcast also has converted many of its service areas to all-digital service, which has opened up additional room to sell more expensive broadband packages, add additional HD channels, and make room for new product lines relating to home automation and security.

Cox Cable

Broadband Reports readers are sharing anecdotal evidence Cox has begun its own 2012 rate increase campaign.  In Florida, cable TV rates are up yet again:

Prices for Cox TV and Cox Advanced TV will be as follows:

• Cox TV Starter will change from $19.55 to $22.85/mo.
• Advanced TV will change from $5.50 to $4.20/mo.
• Advanced TV Standard Definition receivers will change from $5.55 to $6.99/mo.
• Advanced TV High Definition, High Definition/DVR & DVR receivers will change from $7.45 to $7.99/mo.

Advanced TV Paks will change:

• Any 1 Pak (excluding Variety Pak) from $4.00 to $4.25/mo.
• Any 2 Paks (excluding Variety Pak) from $8.05 to $8.50/mo.
• Any 3 Paks from $12.00 to $12.50/mo.
• Variety Pak will be $4.00/mo.

Premium pricing will change:

• 1 premium channel from $13.99 to $14.99/mo;
• 2 premium channels from $23.99 to $24.99/mo;
• 3 premium channels from $30.99 to $34.99/mo;
• 4 premium channels from $36.99 to $44.99/mo.
• (Pricing for the 3rd and 4th Premium channels will be grandfathered at the current price for existing customers.)

Cox’s Preferred Internet tier is increasing from $49.99 to $53.99 a month.  Basic phone service increases from $11.75 to $13.18, and popular calling features like Caller ID are also increasing (from $5.95 to $9.00 per month).

Rates vary in different franchise areas.

DirecTV

The satellite TV provider will raise rates on Feb. 9 by 4 percent on average. Its costs are going up by more than that, the company said on its website: “The programming costs we pay to owners of TV channels will increase by about 10 percent.”

DirecTV defends its rate increase, noting it will introduce new features in 2012 that include more than 170 HD channels and the most 3D viewing options of any television provider.  The full breakdown is provided from DirecTV:

Consumer Tips

1. Customers who subscribe to bundled services will see the fewest rate increases.  The more services you bundle, the lower the typical cost of each component within the bundle.  It rarely pays to have one company as a TV provider and another delivering your broadband because standalone service pricing is increasingly the most expensive option.
2. Ask for an extension of your introductory or promotional rate.  Request pricing from the competition and be prepared to summarize it with your current provider when arguing for a lower rate.  If your current provider thinks you are serious about jumping to another provider, they may lower your rates to keep your business.
3. Be prepared to switch.  Cable companies base their retention offers on several factors: what the competition offers, how long you have been a customer (2+ years guarantees a better retention deal) and how you pay your bill.  If you are a late payer, expect a much more difficult time negotiating a lower rate.  You may encounter a brick wall if you are labeled a “flipper” that jumps between providers’ introductory pricing offers.  But even these customers will be welcomed back, with lower rates, when they inevitably return.  They just won’t get their promotional offer renewed.
4. Some companies reserve their most aggressive pricing for customers who actually schedule a disconnect or turn in their equipment.  Cable companies have gotten wise to empty threats from negotiating customers.  If you schedule a complete service disconnection two weeks in advance, some companies will take you seriously and call you with the most aggressive “win back” offers available, especially if you turned in your cable equipment.
5. Dump extras overboard.  Premium channel pricing has skyrocketed recently after remaining relatively stable for nearly two decades.  HBO is now at or above $15 a month in many areas.  As customers try to economize, premium movie channels are usually the first to go, and many cable operators are starting to lose preferred wholesale volume pricing discounts.  They are passing along new, higher prices to the dwindling number of premium customers left.  Scrutinize your cable bill carefully for potential savings.  Look for mini-pay tiers of HD channels you never watch, consider downgrading your “digital phone” package to local-only calling if you rarely make long distance calls, and consider tossing “Turbo” broadband speed packages that only incrementally increase download speed.  Many customers originally signed up to obtain higher upload speeds, but as cable companies boost speeds for all of their customers, the extra boost may no longer be worth the money.

Cable, satellite and telco-TV subscribers around the country can now watch most of the hit shows on Turner’s TBS and TNT Networks for free, assuming two things are true:

1. You pay for a package of television channels from Comcast, DirecTV, Dish Network, Cox Communications, Cablevision Systems, Suddenlink Communications, Verizon FiOS, or AT&T U-verse.
2. You are not a Time Warner Cable subscriber.

The new TV Everywhere app, available for phones and tablets, comes free of charge.  Once authenticated as a legitimate pay television subscriber, users can watch hit series and some older shows from both networks.

Once again, Time Warner customers are on the outside, looking in.  The nation’s second biggest cable operator has not been a TV Everywhere team player, preferring to launch its own live streaming iPad application and steering clear, so far, from on-demand, online viewing from most of its partner networks, including HBO.  Time Warner Cable executives have, in the past, alluded to licensing fees and user authentication complications for not launching TV Everywhere on-demand viewing for its customers, but the company has not explained why it has not signed on for Turner’s app.

TV Everywhere, a concept on the drawing board for almost two years, is an attempt by the pay television industry to lock down online video programming for paying customers, in an effort to slow down “cord cutting” by consumers trying to save money on their cable TV bill.  The concept delivers unlimited access to popular cable programming, but only to those who already pay to subscribe.

Many TV Everywhere projects have been soft-launched without much publicity, but that is not true for Turner’s app.  The network has commissioned several clever advertisements featuring various network stars promoting the app, and now Turner wants to educate consumers about how to use it to watch shows online.

The most complicated part of the process is getting “authenticated” by the application for authorized viewing.  Some cable companies like Time Warner want customers to launch access to TV Everywhere programming from the cable company’s website, where customers have already been authenticated when they sign up for an online account.  Other companies are using customer account numbers, PIN codes, or passwords printed on monthly bills to let customers register directly for access.  When the application matches a customer account number or PIN code, the content becomes accessible.  It is typically a one-time-only hassle, but there have been cases where customers have had to grab a recent bill more than once to re-authenticate themselves.

Not every show will be made available for online viewing.  Many rerun off-network shows shown on TNT and TBS don’t currently include streaming rights.  So while users can watch past episodes of Conan O’Brien, they’re out of luck if they want to watch Friends.

Watch a selection of spots from the new advertising campaign for Turner’s ‘TV Everywhere’ app.  (4 minutes)