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Time Warner Cable Will Extend Maxx Upgrades to 75% of Its Markets by 2016, If Comcast Merger Dies

twc maxxTime Warner Cable plans to reach 75 percent of its customers with Maxx service upgrades offering broadband speed boosts up to 300/20Mbps for the same price it charges for 50Mbps by the end of 2016, assuming a merger with Comcast does not result in the plans being shelved.

Time Warner Cable customers will also escape Comcast’s ongoing experiments with usage caps and usage-based billing if the company remains independent, as Time Warner Cable executives continue to maintain that usage pricing should only be offered to customers that want it.

Company officials discussed the ongoing investments in Maxx upgrades during a quarterly results conference call with investors held earlier today.

CEO Rob Marcus indicated Time Warner Cable will choose markets for Maxx upgrades based on what kind of competition the cable company faces in each city.

“Our aim is to have 75% of our footprint enabled with Maxx […] by the end of [2016], and my guess is we’re continuing to roll it out beyond that,” said Marcus. “So the only question is prioritization, and obviously as we think about where to go first, competitive dynamics are a factor. So that includes Google, although it’s not explosively dictated by where Google decides to go. In fact I think we announced the Carolinas before Google did their announcement this week. So competitors are certainly relevant obviously.”

Time Warner Cable has targeted its Maxx upgrades in areas where its principal competitors — AT&T, Google, and Verizon — have made or announced service and speed improvements. Maxx upgrades are now complete in New York City and Los Angeles. Much of Austin, Tex., is also finished, where both AT&T GigaPower U-verse and Google Fiber plan to offer gigabit service.

This year, Time Warner will focus on bringing Maxx to Charlotte, Dallas, Hawaii, Kansas City, Raleigh, San Antonio and San Diego. Charlotte, Raleigh, and Kansas City will eventually see high-speed competition from both Google Fiber and AT&T U-verse. Time Warner is facing increasingly aggressive competition from Hawaiian Telcom, San Antonio is on Google’s short list and will also likely see faster U-verse, and San Diego is on AT&T’s list for GigaPower upgrades.

Time Warner spent $4.1 billion on capital expenses in 2014, up nearly $900 million above 2013 spending. Most of the money went to network upgrades in Maxx markets where new set-top boxes and cable modems are being provided to customers. Marcus refused to offer any guidance about how much the company intends to spend on upgrades in 2015, citing its looming merger with Comcast.

Marcus

Marcus

Not every city will benefit from network upgrades. Although 2/3rds of Time Warner Cable markets will get Maxx over the next two years, several will have to make do with the service they have now. The Time Warner Cable markets most at risk of being left off the upgrade list also have the weakest competition:

  • Yuma, Ariz.
  • Nebraska
  • Wisconsin
  • Eastern Ohio & Pennsylvania (except Cleveland)
  • Binghamton, Utica, Watertown, Elmira, and Rochester, N.Y.
  • Kentucky
  • West Virginia
  • South Carolina
  • Western Massachusetts
  • Maine

If the merger with Comcast is approved, the Maxx upgrade effort is likely to be shelved or modified by the new owners as customers are gradually shifted to Comcast’s traditional broadband plans.

Marcus also continued to shoot down compulsory usage-based billing and usage caps questions coming from Wall Street analysts. Marcus reminded the audience Time Warner Cable already offers optional usage-based pricing packages, and they have no intention of forcing customers to accept usage billing or caps.

“I think the ultimate success of usage based pricing will depend on customer uptake and customers’ interest in availing themselves of a usage based tier versus unlimited tier,” said Marcus. In earlier conference calls, Marcus admitted only a tiny fraction of Time Warner customers have shown any interest in usage allowances. The overwhelming majority prefer flat rate service.

In contrast, Comcast’s broadband customers in several southern cities continue to be unwilling participants in that cable company’s ongoing usage billing trials.

Tip for Reporters – Always Follow the Money: Comcast/Time Warner Cable Merger Supporters

Buy a vocal supporter for your merger deal.

Buy a vocal supporter for your merger deal.

The Los Angeles Times published a piece this week noting that the Comcast/Time Warner Cable merger does have its supporters:

To be sure, dozens of groups also support the proposed Comcast merger, including the Los Angeles Area Chamber of Commerce, Orange County Business Council, the L.A. County Economic Development Council and the National Urban League. Television networks including Ovation, Hallmark Channel and Starz also support the deal.

But the article never informs readers the groups in support of the transaction all have direct financial ties to Comcast, Time Warner Cable, or both cable companies. It would only be news if these groups opposed the merger.

Stop the Cap! has found almost no support for the merger deal among independent organizations that are not on the payroll of either merger partner. The myriad of civil rights organizations, trade associations, and non-profit groups penning letters to regulators supporting the deal are nearly all recipients of contributions from Comcast or Time Warner.

Comcast is notorious for capitalizing on their charitable corporate giving by mailing advocacy packages to donor recipients that urge support for the company’s public policy and corporate agendas. Comcast even includes sample letters a group can use to create their own letter of support, which explains why so many are nearly identical.

Although Comcast never threatens to cut off groups that don’t follow through, the company does know who sent letters and who did not, as they all become part of the public record.

In less than 30 minutes, Stop the Cap! was able to trace direct economic ties between Comcast and/or Time Warner Cable and the groups the LA Times story mentions. Readers deserve to know this information and it should have been included in the story.

comcast twcLet us review:

The LA Chamber of Commerce: Time Warner Cable is a “Diamond Club Member,” which the Chamber claims represents the “largest member investors.”

The Orange County Business Council includes a Time Warner Cable executive on its Board of Directors and is a major “investor” in the group.

Not only is Time Warner Cable on the executive committee of the LA Economic Development Council, it also serves on the group’s board of governors. Comcast is also a member.

The National Urban League advocates in favor of almost everything Comcast wants, no doubt because the organization that sold out to big corporate donors long ago is also on Comcast’s payroll. The group has received at least $12 million in in-kind contributions from Comcast, as well as receiving checks for more than 70 local chapter projects. Comcast’s executive vice president David Cohen has sat on the Urban League’s board of trustees since 2008. In addition, the Comcast Foundation, headed by Cohen, gave the National Urban League and some of its more than 100 affiliates almost $2 million from 2012 to 2013, according to an analysis of IRS tax filings by the Center for Public Integrity.

As for Ovation, Hallmark Channel and Starz — they are all cable networks dependent on carriage agreements with the nation’s first (Comcast) and second-largest (Time Warner Cable) cable operators for their economic survival.

Yes, N.Y. State Regulators Have Delayed Final Consideration of the Comcast-TWC Merger Yet Again

No approval for the Comcast-Time Warner Cable merger proposal in New York for yet another month as the state Public Service Commission has once again delayed making a final decision until the end of February.

“Pursuant to a request from Department of Public Service staff in the above-referenced matter, Comcast Corporation and Time Warner Cable Inc. agree to action by the Public Service Commission on the Joint Petition at a Commission Session held on or by February 26, 2015, with a final order being issued no later than March 3, 2015,” is the word from Comcast and Time Warner Cable’s law firm.

Conservative Group: “End Comcast’s Hegemony”; Accuses Company Of Working for the Obama Left

comcast smearA conservative group has launched an assault on the Comcast-Time Warner Cable merger, accusing the cable company of cozying up to the Obama Administration and the political left in its news coverage to win corporate favors.

“Comcast needs Obama administration approval to merge with Time Warner Cable, giving it access to two-thirds of American’s homes,” Conservative War Chest spokesman Mike Flynn said in a statement. “The last time Comcast needed a government favor we got Al Sharpton five nights a week. What will we get in exchange for a deal worth billions to Brian Roberts and other owners of Comcast?”

The group has bought airtime to run two-minute ads detailing its case that Comcast-owned NBC News has become a partisan supporter of the current administration and if its parent company’s merger deal is successful, it means Comcast’s power and value to the left-wing will grow even greater.

“Of course, Comcast’s proposed merger with Time Warner is an attempt to further not only its commercial hegemony, but its political agenda,” the group writes in a lengthy 68-page letter addressed to NBC affiliated local stations in at least five presidential swing states–Florida, Michigan, Nevada, Ohio, and Pennsylvania. “And to that end it spent $12 million on Washington lobbyists in 2014 alone, not including what Comcast spent in the final three months of the year. Conservatives should embrace this opportunity to show a commercial and political mega-giant that the truth and the support of the American people far outweigh entrenched power and massive amounts of money.”

comcast cons“We intend to demonstrate to Comcast/NBC/Universal that [conservatives] have not thrived for six decades – we have not come all this way – just to cede our national and, indeed, global victories for the cause of freedom to a group of grasping corporate operatives seeking commercial and political power. So, the focus of the conservative movement needs to be not on the politicized and partisan faces of NBC or the hired slanderers at MSNBC – criticizing them just makes them more important than they are – but on the corporate ‘suits in the suites’ who are the truly culpable parties.”

“Hence, we hope Mr. Roberts [CEO of Comcast] had a pleasant visit with the President of the United States when he stopped by his home. But he and his colleagues should also know that in the form of public messages, like this letter, they will be getting less pleasant coverage from the conservative movement.”

The group isn’t directly attacking the merger deal as a central focus of their campaign. Instead, they are seeking a restoration of “the traditional journalistic standards that have been squandered in recent years by NBC News and its corporate owners.”

“I hope the affiliates have a stiff drink ready when they read the report,” Flynn added. “Reviewing the trite liberal gruel that comes out of Brian Williams and Chuck Todd, for example, is not for
the faint of heart.”

No NBC station has yet acknowledged they have read the lengthy letter and it isn’t known if they will consent to airing the group’s advertisement that directly attacks the integrity of the network to which the station is affiliated.

http://www.phillipdampier.com/video/CWC_Save NBC News.mp4

The Conservative War Chest produced this two-minute ad it intends to run on NBC stations in at least five states condemning what they perceive as a politically motivated left-wing bias at Comcast-owned NBC News. The group fears approval of the Comcast-Time Warner Cable merger will only increase the damage of anti-conservative bias in the NBC newsroom. (2:00)

Time Warner Cable/Comcast Deal Approval Delayed (Again) in N.Y.

The New York State Public Service Commission has once again delayed final action on Comcast’s request to acquire Time Warner Cable systems operating in the state.

The further delay was accepted by Comcast and Time Warner Cable, citing a request from the staff of the PSC.

The next scheduled date for action is at the Commission Session scheduled for Jan. 22, with a final order issued no later than Jan. 27, 2015.

 

 

Shakedown Sharpton: Buy Quid Pro Quo Minority Support for Your Big Telecom Merger Deal

shakedown alLooking for civil rights groups to support your multi-billion dollar telecom merger and keep minority groups off your back?

You couldn’t do better than cutting a check to Rev. Al Sharpton, whose National Action Network (NAN) will generate form letters praising your killer deal before regulators or help garner support in Congress for more deregulation and less Net Neutrality. All it takes is a few donations and consulting fees, according to a special report published by the New York Post.

“Al Sharpton has enriched himself and NAN for years by threatening companies with bad publicity if they didn’t come to terms with him. Put simply, Sharpton specializes in shakedowns,” Ken Boehm, chairman of the National Legal & Policy Center told the Post.

“Once Sharpton’s on board, he plays the race card all the way through,” said a source who has worked with the Harlem preacher. “He just keeps asking for more and more money.”

Sharpton’s 60th birthday party bash last October at Manhattan’s Four Seasons restaurant departed from the usual friends and family oriented affair most of us would expect, as envelopes arrived from some of America’s largest corporations, including AT&T and Verizon, containing at least $1 million in donations for Sharpton’s civil rights group.

Coincidentally, that same month Sharpton co-signed a letter sent to the FCC urging the regulator to approve AT&T’s deal to buy DirecTV.

“We believe the evidence and the company’s record, as well as future impact and commitments post-merger, provide a clear and compelling basis for the FCC to determine that this merger is in the public’s best interest,” the letter said. “If approved, the combined AT&T-DirecTV will have greater incentive to deploy a state of the art Internet service and give millions of Americans a new way to access the Internet’s economic, social, and civic benefits.”

If approved, the deal would also eliminate one of AT&T’s chief competitors for pay television customers, making DirecTV part of the AT&T family.

Money-Stuffed-Into-PocketWhile the money keeps rolling in, Sharpton has left taxpayers footing his bills. Sharpton himself, his nonprofit NAN, and two for-profit firms controlled by him have racked up $4.7 million in outstanding debt and tax obligations according to federal and New York State records. He owes New York taxpayers $806,875 and after not bothering to pay his personal income taxes in full, he owes $2.6 million in federal liens. Sharpton’s NAN still owes more than $800,000 to the federal government and his two for-profit ventures separately owe New Yorkers nearly $450,000.

Raising money to repay debts appears to be a major priority for Sharpton these days, and companies like Comcast covet his support of their corporate agendas.

Shortly after Comcast announced its intention to acquire NBC-Universal in late 2009, Comcast’s chief executive, Brian L. Roberts, and the head of the company’s lobbying effort, David L. Cohen, met with Sharpton and other representatives of minority groups to talk about their bid. Comcast recognized that support from minority groups would be crucial to answering the inevitable charge that giant media mergers have a tendency to reduce diversity in programming, particularly from and for minorities.

Comcast turned on its money spigot, donating at least $140,000 to Sharpton’s National Action Network. In turn, Sharpton took a sudden interest in the merger, penning letters of strong support to the FCC. Between 2008 and 2010, Comcast’s corporate foundation donated more than $3 million to 39 minority groups that wrote letters to federal regulators in support of the NBC deal. Comcast and NBC Universal also worked out an agreement with advocacy groups guaranteeing increased “minority participation in news and public affairs programming”—so long as the deal went through.

Comcast supporter turned Comcast-owned MSNBC host.

Sharpton: Comcast supporter turned Comcast-owned MSNBC host.

Few expected that Sharpton himself would be a direct beneficiary of Comcast’s gratitude after the merger was approved. Sharpton was suddenly hired (for an undisclosed amount) as host of his own MSNBC weeknight show, still on the network today.

The New York Times noticed.

“Rarely, if ever, has a cable news channel employed a host who has previously campaigned for the business goals of the channel’s parent company,” the newspaper wrote.

Since the cable company began cutting checks to the NAN, Sharpton has towed the line on Comcast’s public policy agenda.

Last July, Sharpton’s group joined several other civil rights groups (most, if not all financially supported by Comcast) complaining that enforcing Net Neutrality would “harm communities of color.”

“The groups wrote to the FCC to tell them that ‘we do not believe that the door to Title II should be opened,'” said Lee Fang in a piece that was quickly censored by a Comcast-owned news outlet. “Simply put, these groups, many of which claim to carry the mantle of Martin Luther King Jr., are saying that Comcast and Verizon should be able to create Internet slow lanes and fast lanes, and such a change would magically improve the lives of non-white Americans.”

“Just as Martin Luther King Jr.’s children have embarrassingly descended into fighting bitterly over what’s left of his estate, the civil rights groups formed to advance Dr. King’s legacy seem willing to sell out their own members for a buck,” Fang concluded.

Comcast Announces 2015 Rate Hikes – Broadcast TV Surcharge More Than Doubles; New Regional Sports Fee

Phillip Dampier January 6, 2015 Comcast/Xfinity, Competition, Consumer News 2 Comments

comcast highwayComcast Internet-only customers looking for speeds up to 100Mbps will pay Comcast an unprecedented $88.95 a month for a package containing the company’s Blast! broadband service with a rented cable modem.

The company has begun informing subscribers of the first of its 2015 rate increases that took effect in some areas on Jan. 1.

“We have worked very hard to hold down price adjustments, and there are no price changes for our Limited Basic ($16.10), Digital Preferred ($85.90) or Internet Essentials ($9.95) services,” said Bob Grove, Comcast’s vice president of public relations. “While we continue making investments in our network and technology to give customers more for their money, including more video across platforms, better experiences like X1 and faster Internet service, we periodically need to adjust prices due to increases we incur in programming, business costs and new technology. On average, nationally, the customer bill will increase by 3.4 percent.”

Some will pay more than others. Here is a sample:

  • Customers with DVR service face a $2 rate hike for the monthly DVR service charge, which now stands at $10 a month;
  • Digital Premier, which includes an assortment of premium movie channels, is rising from $131.75 to $140.35;
  • The hourly service charge for service calls is increasing from $33.80 to $35.80;
  • Each extra cable outlet in your home will cost a one time service fee of $33.20, up from $32.75;
  • Any pre-existing outlet in your home will now be charged a one time activation fee of $22.95, up from $22.05;
  • Service upgrades that require an in-home visit will be charged $28.45, an increase from $26.30;
  • The in-home wiring service protection plan that covers you in case of an inside cable wiring or service deterioration problem will see a price increase of $1 to $4.95 a month. Customers without the plan will now pay $35.80 an hour for service calls.

Cable television customers face an increase of more than 100% for the company’s Broadcast TV surcharge introduced in 2013. In most areas, the fee is rising from $1.50 per month to $3.25. A previously announced $2 increase in modem rental charges will raise the cost of using Comcast-supplied equipment including Comcast’s Gateway to $10 a month.

Comcast is also introducing a new compulsory regional sports network surcharge of $1 a month for all XFINITY TV packages starting with Digital Starter and higher tiers and XFINITY 450 Latino.

Customers with analog-only televisions using a DTA converter box to handle digital cable television channels on these older sets face an even more dramatic price hike. Customers that used to pay as little as $0.50 for Digital Adapter Additional Outlet Service will now pay $2.99 a month.

Premium channels such as HBO have seen price reductions, possibly in response to declining subscriber numbers. HBO drops to $15 a month and all other premiums decrease to $12 a month.

Comcast customers looking for the biggest bang for their buck should consider bundled service packages which discount Internet, television, and telephone service. Current customers should also consider letting Comcast know they are shopping the competition for a better deal. Ask them to lower your rates if they want you to stay.

Comcast Displays Prominent “Data Usage Plan May Apply” Disclaimers On Its Website’s Sales Offers

Comcast has added a prominent warning to the Internet sales pitches on their website:

“An XFINITY Internet Data Usage Plan may apply,” appears when visitors click the “Learn More” button under each Internet offer.

comcast internet overcharging

In the past, Comcast notified affected customers on a regional level based on the locations where usage billing trials are underway. Now the disclaimer is prominently visible for every Comcast customer nationwide.

For now, these trials still apply only to XFINITY Internet customers in Huntsville and Mobile, Alabama; Tucson, Arizona; Atlanta, Augusta and Savannah, Georgia; Central Kentucky; Maine; Jackson, Mississippi; Knoxville, Nashville and Memphis, Tennessee; and Charleston, South Carolina.

In all trial markets except Tucson, the usage allowance included with all XFINITY Internet tiers is 300GB per month. The overlimit fee is $10 for each 50GB used above the usage cap.

In the Tucson, Arizona market, the usage allowance included with Economy Plus through Performance Internet tiers is 300GB. Those customers subscribed to the Blast! Internet tier have received an increase in their data usage plan to 350GB; Extreme 50 customers have received an increase to 450GB; Extreme 105 customers have received an increase to 600GB. The overlimit fee remains the same — $10 for each block of 50GB used above your allowance.

“Et tu, Brute?” – Comcast Joins Time Warner Cable Jacking Up Modem Rental Fees Nationwide

Phillip Dampier January 5, 2015 Comcast/Xfinity, Consumer News No Comments

comcast money pileComcast has announced a holiday cable modem rate increase that will raise the cost of renting a modem from $8 to $10 a month.

At least 90 percent of Comcast customers reportedly still lease cable modems from the company, delivering a staggering $275-300 million in extra revenue every quarter.

The average modem or gateway offered by Comcast reportedly costs the company an average of $40. At that price, Comcast will earn back its investment in just four months, after which Comcast can book the rest as almost pure profit.

“We continue to make investments in our network and technology to give customers more for their money,” said a statement provided by Comcast. “Last year, we made our 12th speed increase in 13 years, offered the fastest outdoor Wi-Fi hotspots as well as the fastest indoor Wi-Fi connection speeds on our latest and greatest advanced wireless gateways, plus we are at nearly 8 million total Xfinity Wi-Fi hotspots. As a result, we periodically need to adjust prices due to increases we incur in rolling out these new technologies.”

Most Comcast customers are unaware they can buy their own cable modem equipment and avoid the rental fees altogether. Comcast maintains a list of compatible modems on its website, but the overwhelming majority of its customers still pay to lease the equipment.

In December, Time Warner Cable announced a general cable modem rental fee increase from $6 to $8 a month, effective this month.

Comcast’s modem rate increase will be gradually introduced across its service footprint, starting in Boston, Salt Lake City and across Connecticut.

Time Warner Cable Using Tax Dollars to Expand Broadband for Benefit of Wealthy Rural New Yorkers

broadband yes

Broadband Yes

Time Warner Cable is spending taxpayer dollars received from New Yorkers to expand cable service in rural areas of the state, but primarily for the benefit of affluent residents — some that have sought cable and broadband service for their rural estates and vacation homes for years.

An analysis of publicly-available data by the New York Public Utility Law Project (PULP) from an earlier $5.3 million state rural broadband expansion grant paid to Time Warner Cable found that 73 percent of the money was spent extending cable service in zip codes where median incomes are significantly higher than surrounding areas that remain unserved. Time Warner Cable is relying on New York taxpayers to cover about 75% of the construction costs.

PULP’s Gerald Norlander has spent months seeking more information about how Time Warner Cable and its presumptive new owner Comcast collectively plan to address rural broadband issues in the state, but Time Warner Cable has fought to keep most of its plans secret, including projects funded in part by taxpayers.

Broadband No

Broadband No

Norlander’s current research included an analysis of 53 rural expansion projects that were included in the last round of broadband grant awards. He found Time Warner interested in expanding in affluent communities like Grafton in Rensselaer County. The part of the community targeted for expansion has a 10% higher median income than the rest of the county.

In a letter to the state’s Public Service Commission, Norlander argues Time Warner Cable’s desire to keep its rural broadband plans a secret may run contrary to New York’s universal broadband service goal to bring broadband to every customer that wants the service.

Targeting service on more affluent areas can result in higher revenue as wealthy customers are more likely to choose deluxe packages of services and are unlikely to fall behind paying their bills. But such decisions can also become politically untenable when a seasonal resident can access cable service for their six bedroom summer home while middle-income residents with school children up the road cannot.

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