Home » Search Results for "missouri":

Hometown Newspaper of Charter Communications Warns Time Warner Deal Not in the Public Interest

Editor’s Note: This editorial in the St. Louis Post-Dispatch is reprinted in its entirety. It comes from a newspaper that has covered Charter Communications since its inception. The Post-Dispatch reporters are also some of Charter’s subscribers — the cable company serves all of metropolitan St. Louis. Charter has never been received particularly well in St. Louis and in other cities where it provides generally mediocre service. Communities across Missouri that have endured poor cable and broadband service have recently taken a serious look at doing something about this by building their own public broadband networks as an alternative. But big money telecom interests, especially AT&T, have found it considerably less expensive to lobby to ban these networks from ever getting off the ground than spending the money to upgrade networks to compete.

charter twc bhOn May 15, the last day of this year’s session of the Missouri Legislature, House Bill 437 finally was assigned to a committee, where it promptly died. Given the power of the American Legislative Exchange Council, it may well be back next year.

HB 437, sponsored by Rep. Rocky Miller, R-Lake Ozark, was full of gobbledygook about “municipal competitive services,” but its effect would have been to condemn Missourians to ever-higher prices for broadband Internet service. Cities would have been forbidden from establishing their own broadband services to compete with private operators, thus holding down prices.

ALEC, which wines and dines state lawmakers and then gets them to pass pro-business “model legislation” in their states, had succeeded in getting restrictions on public Internet providers in 20 states. But in February, the Federal Communications Commission struck down North Carolina’s ALEC-inspired law, so the future of other such laws is uncertain.

About 22 percent of Missourians are still regarded as “underserved,” having no reliable access to broadband service of at least 25 megabits per second — what’s needed to stream video without lags. About 1 in 6 Missourians have only one wired access provider to choose from. More than 400,000 Missourians have no wired broadband at all.

Missouri is ranked 38th “most connected” in the nation by the federal-state Broadband Now initiative. In the 21st century, this is like being underserved by railroads in the 19th century or power lines in the early 20th. In parts of rural Missouri, it’s hard to do business, which helps explain why HB 437 died in committee.

Rep. Rocky Miller (R-Lake Ozark)

Rep. Rocky Miller (R-Lake Ozark)

The basic question is whether companies that invest in high-speed Internet infrastructure should be able to charge whatever they can get away with, or whether broadband service should be treated as a public utility. If it’s the latter, as the FCC determined in February, then government must make sure it’s affordable.

Which brings us to Charter Communications proposed $56 billion takeover of Time Warner Cable and its $10.4 billion acquisition of Bright House Networks. Both deals were announced May 26; both will need approval from the FCC and the Justice Department’s antitrust regulators.

In St. Louis, we have a love-hate relationship with Charter, a homegrown company built atop what was once Cencom Cable. It has dominated the cable TV market here almost as long as there’s been a cable market.

Charter customers endured years of poor service, its bankruptcy, its legal challenges, its ownership and management changes. Just when it got itself together, in 2012, the headquarters was moved from Des Peres to Stamford, Conn., though it retains a significant presence here.

Today our little Charter is a big fish; the Time Warner and Bright House deals would make it the nation’s second-largest cable company, with 24 million customers, behind only Philadelphia-based Comcast, with 27 million.

But cable TV no longer drives cable TV. Internet-based video services, like YouTube and Netflix, have revolutionized the way people, particularly younger people, watch TV. When cable companies first started connecting customers to the Internet through the same cables that delivered TV programming, it was regarded as a nice add-on business. Now broadband delivery is seen as a far bigger part of the future than providing TV programs.

missouriIndeed, when Comcast tried to acquire Time Warner last year, the dominance (nearly 60 percent of the market) that the combined company would have had over broadband service caused federal regulators to look askance. Comcast abandoned its bid in April.

By contrast, a Charter-Time Warner-Bright House combination (it will do business as Spectrum) will control 30 percent of the broadband market. Charter Spectrum will have 20 million broadband subscribers, compared with 22 million for Comcast.

So what can customers expect? Charter’s CEO Tom Rutledge has promised “faster Internet speeds, state-of-the-art video experiences and fully featured voice products, at highly competitive prices.”

This begs the question, competitive with whom? Comcast? Mom-and-pop operations that can’t afford the infrastructure? Municipal service providers who are being ALEC’d out of business?

Neither Charter nor Time Warner has particularly good customer service ratings (though to be fair, Charter is miles ahead of where it used to be, at least in St. Louis). Still, Charter will take on lots of debt to finance the deal, much of it in high-yield junk bonds. The broadband business provides leverage. As analyst Craig Moffett of MoffettNathanson told the Wall Street Journal: “Broadband pricing is almost an insurance policy for cable operators, in that if all else fails, you’ve always got the option to raise broadband rates.”

America wouldn’t let a private operator own 30 percent of its roads and highways. It wouldn’t allow two of them to control half the electricity. If broadband Internet service is a public utility, it must be regulated strictly.

The lesson is old as the hills: The free-marketeers who talk most passionately about competition are generally in the business of trying to eliminate it. Charter and Time Warner are both members of ALEC.

The Charter-Time Warner deal clearly is not in the public interest. The upside for shareholders is huge. The upside for Charter executives is even bigger. But it’s hard to see how Charter’s customers would see much benefit at all.

More Than 2,000 AT&T Workers Getting $1,000 Bonus and Termination Notice

Phillip Dampier December 27, 2017 AT&T, Consumer News, Public Policy & Gov't 1 Comment

AT&T’s promised more jobs as a result of a large corporate tax cut, but is now reneging on the deal.

More than 2,000 AT&T employees will be given a one-time bonus of $1,000 as a consequence of the passage of the Republican tax cut legislation signed into law late last week by President Donald Trump and then will see their jobs terminated as AT&T begins sweeping job cuts across several of its divisions.

In the midwest, at least 600 employees working to maintain AT&T’s wireline network have been notified their jobs will be lost by early 2018. Additional layoffs include more than 700 DirecTV home installers whose jobs will be eliminated or outsourced to third-party contractors, 215 “high skilled technicians in nine southern states” whose jobs will not be replaced, and almost 700 workers in Texas and Missouri will see their jobs disappear beginning in February.

“Technology improvements are driving higher efficiencies, and there are some areas where demand for our legacy services continues to decline, and we’re adjusting our workforce in some of those areas as we continue to align our workforce with the changing needs of the business,” AT&T explained in a statement. “Many of the affected employees have a job offer guarantee that ensures they’ll be offered another job with the company, and we’ll work to find other jobs for as many of them as possible.”

Workers report AT&T’s promises do not tell the whole story. Most offered replacement jobs will have to move to other states and accept compensation reductions and a loss of seniority.

“How can you lay people off and then give them $1,000 and say that there’s going to be more jobs available? I wish someone could tell me how that’s possible because I have to explain that to my members, and right now at this time of year, this is a difficult pill to swallow,” Joseph Blanco, president of Local 6360 Communication Workers of America Union in Kansas City, told Fox 4 on Thursday.

Randall Stephenson, CEO of AT&T, joined with Republicans in a press statement that claimed the new tax bill would improve the U.S. economy and the company’s standing.

In the spring of 2017, Stephenson promised an additional 7,000 jobs for every $1 billion in investment:

“The arithmetic for us is simple: For every billion dollars of additional investment we make is 7,000 additional jobs we have to put on to put that capital into the ground or on cell towers and so forth,” he said, adding that those jobs would likely be “hard hat” jobs that pay well.

“Congress, working closely with the president, took a monumental step to bring taxes paid by U.S. businesses in line with the rest of the industrialized world. This tax reform will drive economic growth and create good-paying jobs,” Stephenson said, according to CNBC. Except those “good-paying jobs” likely won’t be with AT&T. In statements to investors, Stephenson reiterated his plans for sweeping job cuts in the form of “cost savings.”

Last year, senior executives at AT&T told The New York Times that “shrinking the [company’s] workforce by 30 percent is not out of the question.”

Victim of Explosion Fighting With Time Warner Cable’s Lawyers Over Bottles of Wine

Phillip Dampier August 11, 2015 Consumer News, TWC (see Charter) Comments Off on Victim of Explosion Fighting With Time Warner Cable’s Lawyers Over Bottles of Wine
Jurors are into their second month hearing testimony about who has responsibility to pay damages over a fiber cable installation gone bad. Now the lawyers are debating the value of the wines stored inside the restaurant.

Jurors are into their second month of testimony about who has responsibility to pay damages over a fiber cable installation that breached a gas line. Now the lawyers are debating the value of the vintage wines stored inside the destroyed restaurant.

On Feb. 19, 2013, a contractor hired by Time Warner Cable to install a fiber optic line instead pierced a two-inch gas line next to the Country Club Plaza and JJ’s Restaurant in Kansas City, Mo. The resulting explosion demolished the restaurant, leaving one worker dead, and another 15 injured.

But the impact of that day still lingers more than two years later as the owner of JJ’s fights Time Warner Cable’s attorneys in court over his damage claim, right down to the value of individual wine bottles stored at the restaurant.

Jimme Frantze, the owner of JJ’s Restaurant, is seeking more than $9.3 million in damages to cover the loss of the building, his net lost income, and the costs involved in starting a new restaurant. Time Warner Cable said no.

Jurors are now into the second month of the trial, which has spent much of its time dwelling on the actions of three companies involved in the explosion and its aftermath: Time Warner Cable, which hired the contractor for the project, Heartland Midwest LLC, the Olathe-based excavating contractor hired to do the work, and Missouri Gas Energy, the company that responded to the initial reports of a natural gas leak.

But these days Time Warner Cable’s attorney is questioning Frantze about how he valued the wine bottles stored at the restaurant.

The Kansas City Star reports Frantze has told jurors it has been difficult to prove the fair value of many of the wines because they are no longer available for retail sale. Frantze lost most of his business records in the explosion and fire that followed, so he has attempted to find comparable bottles online for sale to establish a replacement value.

Time Warner Cable Attorney Ken Snow drilled down on the specific value of several bottles formerly a part of Frantze’s collection.

timewarner twcOne 1929 bottle initially valued at $15,000 was re-estimated downwards by Frantze to $5,000 after he found an appraiser who valued it at a lower amount.

“I just acquiesced,” he said, adding, “There’s a lot of emotion on my part with some of the older vintages.” That 1929 bottle, he added, “was in pristine condition. I probably had it for 30 years.”

Snow also questioned Frantze about his assigned value of $2,600 to a bottle of 2000 wine appraised elsewhere at $1,100. One other bottle was appraised at $575, not the $1,900 Frantze estimated.

Snow also argued JJ’s was not the success story Frantze might suggest. Snow asserted the restaurant was struggling at the time of the explosion, a suggestion contested by Frantze.

On Monday, Frantze appeared in court accompanied by oxygen tanks, two weeks after a liver transplant. The same year of the explosion, Frantze was diagnosed with liver cancer.

Gigabit Fiber Coming to Frontenac, Kansas for $70 a Month

Phillip Dampier June 16, 2015 Broadband Speed, Community Networks, Competition, Consumer News, Public Policy & Gov't, Rural Broadband Comments Off on Gigabit Fiber Coming to Frontenac, Kansas for $70 a Month

craw-kan_logoOne of Kansas’ fastest and most innovative gigabit fiber broadband projects will be built in a community originally bypassed by AT&T.

Earlier this month the Frontenac City Council approved Craw-Kan Telephone Cooperative’s plan to build a fiber optic network in the city that will sell 1,000Mbps service for $70 a month.

frontenac“It’s just superior to anything out there,” said Craig Wilbert, general manager of Craw-Kan. “We’ve been doing fiber for several years. We have well over 2,000 customers, and I think we just finally asked ourselves why are we restricting the use of this fiber optic cable when it can do so much more than what most people are receiving?”

Craw-Kan Telephone Cooperative Association, Inc., began in March 1954 serving 14 subscribers in southeastern Kansas, very close to the borders of both Missouri and Oklahoma. After a series of acquisitions, the cooperative grew to more than 24 community exchanges, all bringing direct dialing to customers starting in the mid-1950s with plans to bring gigabit fiber to customers in the mid-2015s.

Construction of the network starts this summer with a completion date of next year.

Cable One Raking It In With Rate Hikes: 47% Margin Highest in the Cable Industry

Cable One, the Phoenix-based mid-sized cable operator serving some of the poorest communities in the country is charging some of the nation’s highest prices for broadband service, raking in an unprecedented 47% margin in the fourth quarter of 2017, the highest in the cable industry.

That growth has come courtesy of CEO Julie Laulis, who has doubled down on data caps — automatically enrolling customers in higher priced plans if they exceed data caps three times in any 12-month period, raised prices, and ended most new customer and customer retention promotions in favor of ‘take it or leave it‘ pricing, especially on broadband service. Laulis has also decided to devote most of Cable One’s marketing efforts on selling broadband service, while de-emphasizing cable television. As a result, customers dissatisfied with Cable One’s lineup are encouraged to leave quietly.

Because video programming is costly to provide and broadband is relatively cheap to offer, the more the company can extract from its internet customers, the higher the profits earned. In 2011, cable television represented 49.1% of Cable One’s $779 million in revenue, with residential and commercial broadband comprising 34%. Today, 57% of Cable One’s $960 million in revenue comes from selling internet service. Cable One not only de-emphasized its video business, it also raised prices on internet service to further enhance earnings.

New customers coming to Cable One can subscribe to an entry-level broadband plan of 100 Mbps with a 300 GB monthly data cap for $55 a month. There are no discounts or promotions on this plan. But Cable One also requires customers to lease ($10.50/mo.) or buy an added-cost cable modem, raising the price higher. To prevent customers from taking advantage of promotions on higher speed products, Cable One requires customers to disconnect from service for a full year before being considered a new customer once again.

Laulis

Cable One has been able to raise prices and attach stingy usage caps to customers primarily because there are no good alternatives in the rural markets it prefers. One analyst said 77% of Cable One’s customers are in largely rural areas of Arizona, Idaho, Illinois, Missouri, Montana and Oklahoma. But prices are clearly getting too high for some, because the company lost more video and phone customers that it gained in new broadband subscriptions during the fourth quarter of 2017.

The fact Cable One broadband is now considered by many subscribers to be “too expensive” is also reflected by the extremely anemic broadband growth at Cable One. In 2017, the company added just 1.5% to its residential broadband customer base, despite very limited competition from phone companies.

MoffettNathanson’s Craig Moffett has complained all winter that Cable One is sacrificing broadband subscriber growth in favor of profits from price increases.

“[Cable One has] the most limited broadband competition of any publicly traded operator, and they have the lowest starting penetration,” Moffett told his investors. “Should they not be growing broadband the fastest of anyone? If price elasticity is greater than anyone thinks, how long is the runway, not just for Cable One, but for any operator choosing a strategy of price increases rather than unit growth?”

Cable One is also squeezing its newest customers at its latest acquisition – NewWave, which now features pricing very similar to Cable One. It recently started to turn over past due NewWave customers to collections after going 40 days past due. Previously, it was 90 days before account holders were threatened with cancellation and collections.

For now, NewWave’s introductory offer remains: 100 Mbps High-Speed Internet is $39 for the first three months before these rates kick in:

100Mbps 150Mbps 200Mpbs 200Mpbs 200Mpbs
Monthly Price* $55 $80 $105 $130 $155
Download Speed Up To 100 150 200 200 200
Upload Speed Up To 3 5 10 10 10
Best for # of Household Devices 5 8 10 10 10
Data Plan 300GB 600GB 900GB 1200GB 1500GB
Household Needs Download files/music
Power surfing
Occasional gaming
Mulitple surfers
Serious gaming
Mulitple devices & users
Serious gaming
Mulitple devices & users
Serious gaming
Mulitple devices & users
Home Wifi Included* Included* Included* Included* Included*
Streaming Video HD Video Multiple HD Video Multiple HD Video Multiple HD Video
iTunes Downloads of 45 minute show 15.6 seconds 10.8 seconds 7.8 seconds 7.8 seconds 7.8 seconds

*Plans & pricing for new customers. Rates do not include optional modem fees of $10.50 per month. Rates subject to change. Taxes and fees not included.

 

Search This Site:

Contributions:

Recent Comments:

  • LG: I've been trying and in several cases getting friends and family to dump those bundle services and cut that cord. The only real problem is that these...
  • jelabarre: Ironically enough, I'm finding I'm even watching Netflix less than even when we dropped CableTV some 18 months ago. These days it's all Crunchyroll (...
  • LG: I left Massachusetts 4 years ago for Florida. Hearing about corruption in my home state is nothing new. Recently, a letter showed up at a family memb...
  • L. Nova: Charter bribed this guy Larkin....
  • Keith: I concur...First, the programs available are junk and riddled with ads. Most subscribers might find 1-3 channels that they would watch but for most, G...
  • BobInIllinois: Did you ever consider that your ideas are great, but some companies just don't have the people, the skills, and $$ to make it all happen?...
  • L. Nova: I work for an I.T. hardware server and desktop company and even I could run Frontier better than these boneheads. What is Dan McCarthy doing? Fire AL...
  • LG: Poor, poor them. I guess they need to pay 45c instead of 36c....
  • Phillip Dampier: You are considered a current Time Warner Cable/Spectrum customer so new customer promotional rates like the one you quoted are not available to you......
  • BobInIllinois: Prediction---Many will be angry at this, because they will think that ESPN+ is to be a streaming of ESPN's normal stuff....
  • 16Candles: I signed up for twc at the tailend of the buyout from spectrum and I'm on the l-twc extreme 60/5. My price just went up to $49.99 and I was wondering...
  • Savanna Harness ( Vanna): I agree with all of this. Windstream and direct tv are known for getting over on ppl. I think mentally disabled ppl and low income are what they ta...

Your Account:

:)