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Stop the Cap! Declares War on Cox’s Usage Cap Ripoff in Cleveland; It’s About the Money, Not Fairness

Stopping the money party from getting started, if we can help it.

Stopping Cox’s money party from getting started, if we can help it.

Stop the Cap! today formally declares war on Cox’s usage cap experiment in Cleveland, Ohio and will coordinate several protest actions to educate consumers about the true nature of usage-based billing and how they can effectively fight back against these types of Internet Overcharging schemes.

Time Warner Cable quickly learned it was deeply mistaken telling customers that a 40GB monthly usage allowance was more than 95% of customers would ever need when introducing a similar concept April 1, 2009 in test markets including Rochester, N.Y., Austin and San Antonio, Tex., and Greensboro, N.C. The company repeatedly suggested only about five percent of customers would ever exceed that cap.

Six years later, it is likely 95% of customers would be paying a higher broadband bill to cover applicable overlimit fees or be forced to upgrade to a more expensive plan to avoid them. Before Time Warner realized the errors of its way, it claimed with a straight face it was acceptable to charge customers $150 a month for the same unlimited broadband experience that used to cost $50.

Cox’s talking points for customers and the media frames usage caps as a fairness enforcement tool. It is a tired argument and lacks merit because nobody ever pays less for usage-capped broadband service. At best, you pay at least the same and risk new overlimit charges for exceeding an arbitrary usage allowance created out of thin air. At worst, you are forced by cost issues to downgrade service to a cheaper plan that comes with an even lower allowance and an even bigger risk of facing overlimit fees.

Industry trade journal Multichannel News, which covers the cable industry for the cable industry does not frame usage caps in the context of fairness. It’s all about the money.

“If you’re a cable operator, you might want to strike [with new usage caps] while the iron is hot,” said MoffettNathanson principal and senior analyst Craig Moffett, a Wall Street analyst and major proponent of investing in cable industry stocks.

Multichannel News warned operators they “must tread carefully in how they deliver the usage-based message.” Instead of getting away with punitive caps, Time Warner Cable had to “rethink” its definition of fairness, keeping prices the same for heavy users of bandwidth but offering discounts to customers whose usage was lighter. No money party for them.

So how did Cox frame its message in the pages of an industry trade journal to fellow members of the cable industry? Was it about fairness or collecting more of your money. You decide:

Customers will be notified of their data usage and any potential overages beginning in mid- June but won’t have to pay for overages until the October billing cycle, a Cox spokesman said. That gives customers the chance either to alter their usage or step up to a more data-intensive plan.   The additional charges serve as a temporary step-up plan for certain consumers, the spokesman said — they can keep their current level of service and pay the additional fee during months when usage spikes, like when their kids come home from college.

cox say noThe Government Accounting Office, charged with studying the issue of data caps, found plenty to be concerned about. Consumers rightfully expressed fears about price increases and confusion over data consumption issues. In short, customers hate the kind of usage-based pricing proposed by Cox. It’s a rate hike wrapped in uncertainty and an important tool to discourage consumers from cutting their cable television package.

It’s also nakedly anti-competitive because Cox has conveniently exempted its television, home phone, and home security products from its usage cap. Subscribe to Cox home phone service? The cap does not apply. Use Ooma or Vonage? The cap does apply so talk fast. If a customer wants to use Cox’s Home Security service to monitor their home while away, they won’t eat away their usage cap. If they use ADT to do the same, Cox steals a portion of your usage allowance. Watch a favorite television show on Cox cable television and your usage allowance is unaffected. Watch it on Netflix and look out, another chunk is gone.

While Cox starts rationing your Internet usage, it isn’t lowering your price. A truly fair usage plan would offer customers a discount if they voluntarily agreed to limit their usage. But nothing about Cox’s rationing plan is fair. It’s compulsory, so customers looking for a worry-free unlimited plan are out of luck. It’s punitive, punishing customers for using a broadband connection they already paid good money to buy. It’s arbitrary — nobody asked customers what they wanted. It doesn’t even make sense. But it will make a lot of dollars for Cox.

Cox claims it only wants usage caps to help customers choose the “right plan.”

The right plan for Cox.

To escape Cox’s $10 overlimit fees, a customer will have to pay at least $10 more to buy a higher allowance plan — turning a service that costs less to offer than ever into an ever-more expensive necessity, with few competitive alternatives. Will Cox ever recommend customers downgrade to a cheaper plan? We don’t think so. Customers could easily pay $78-100+ for broadband service that used to cost $52-66.

Back in 2009, the same arguments against usage caps applied as they do today. Industry expert Dave Burstein made it clear usage caps were about one thing:

“Anybody who thinks that’s not an attempt to raise prices and keep competitive video off the network — I have a bridge to sell them, and it goes to Brooklyn,” Burstein said.

Cable Stock Fluffer Craig Moffett Encourages Cable Operators to Add Usage Caps Before Title II Takes Effect

"More Caps" Moffett

“More Caps” Moffett

If you are a cable executive looking to further gouge customers captive to your “only game in town” broadband speeds, now is the time to slap around customers with usage caps and overlimit fees, because your company may no longer be able to do that after June 12, when the FCC’s new Title II regulations officially take effect.

“If you’re a cable operator, you might want to strike while the iron is hot,” said MoffettNathanson principal and senior analyst Craig Moffett, who has shared his love for all-things-cable with investors for years.

Moffett regularly asks cable industry executives about when they plan to introduce usage limits or usage-based billing for customers who often have no other choice for 25Mbps service, the lowest speed that now qualifies as broadband.

But tricking customers into accepting industry arguments about “fair pricing” must be handled carefully, because making a mistake with customers could cost your executives their summer bonuses if the pocket-picking policies cause a revolt.

Multichannel News reminds its cable industry readers Time Warner Cable failed to start their usage cap experiment in 2009 due to a “furor” by customers (often led by us). Instead of filling their coffers with the proceeds of overlimit fees, “the cable giant [was forced] to rethink its pricing strategy, keeping prices the same for heavy users of bandwidth but offering discounts to customers whose usage was lighter.”

Image: schvdenfreude

Image: schvdenfreude

Unable to get its definition of “fairness” across to customers, Time Warner Cable never had to look back, raking in greater and greater unlimited broadband profits quarter after quarter, even as their costs to deliver service continued to drop.

Faced with the prospect of a newly empowered FCC to keep cable industry abuses in check, Multichannel News tells cable executives the money party may be over before it begins if they wait too long:

Title II regulations, which reclassify broadband as a common- carrier service, are about to take effect June 12, and the Federal Communications Commission has said it would look closely at any usage-based pricing plans to determine if they discriminate against online video providers. That could force some Internet service providers to move to implement their version of usage-based pricing before the deadline.

To “soften the blow,” the trade journal reported Cox significantly increased usage caps and are setting the overlimit fee at $10 for each 50GB of excessive usage, much lower than wireless plan overlimit fees. Multichannel News suggests this will help customers “get accustomed to overage charges.”

But Cox customers in the Cleveland area may be able to turn the table on Cox.

“Let them get accustomed to the fact I am dumping them for WOW! the moment I receive official notification about the caps,” said Stop the Cap! reader Dave, who has a choice between Cox, AT&T, and WOW! — a competing cable operator without usage caps. “AT&T isn’t enforcing its cap around here either, so I am definitely canceling my service and have two other choices. People have to be willing to send a clear message usage caps are an absolute deal-breaker.”

Although usage caps are not affected by Net Neutrality regulations, the fact the cable industry faces added regulator scrutiny under Title II allows the FCC to put an end to practices it considers to be anti-competitive. Introducing usage caps for customers trying to find an alternative to Cox’s cable television package by watching online video instead may qualify.

Cox Cracking Down on Internet Customers With Hard Usage Caps and Overlimit Fees: Let the Gouging Begin!

cox say noCox Communications will begin testing overlimit fees this summer starting in its Cleveland, Ohio service area with plans to introduce hard usage allowances and excess usage violation charges nationwide if customers tolerate the market test in Cleveland.

DSL Reports learned that Cox will formally notify customers beginning May 19 it has increased broadband usage allowances and will introduce an overlimit fee of $10 for each 50GB allotment a customer exceeds their limit starting this fall.

Cox’s marketing machine is attempting to justify its usage based pricing scheme with a pre-written script to appease anticipated customer complaints:

A draft customer support script obtained exclusively by DSLReports states that this lead-in period will “give customers the opportunity to familiarize themselves with their typical data usage and take action, such as secure their WiFi network or change service plans, if they exceed their limit.”

The script also notes that customers will be notified via e-mail and a browser popup when they’ve reached 85% and 100% of their monthly data allotments. Cox services like Cox TV Connect, Cox Digital Telephone and Cox Home Security will not count toward the usage cap, a Cox insider claims.

To make the idea of potential bill shock more palatable to their customer base, Cox generously increased usage allowances last week:

  • Starter: 150 GB/month
  • Essential 250 GB/month
  • Preferred 350 GB/month (the most popular plan)
  • Premier 700 GB/month
  • Ultimate 2 TB/month

Exceed those limits and the company will slap penalty fees on your bill as a matter of “fairness.” Customers will get a preview of any specific overlimit fees they would incur starting in June, but the company will not begin to actually charge them until October.

price-gouging-cake“Data usage plans promote fairness by asking the high-capacity Internet users to pay a greater share of network costs,” argues Cox. “Some critics of data usage plans push a flat fee pricing model, meaning that users would pay a flat fee whether they simply use the Internet to surf the web and check email or if they are a ‘super user’ and consume copious amounts of bandwidth. Data usage plans are a far more fair approach, giving consumers a choice based on their personal needs rather than forcing all customers to absorb the network costs incurred by the 5% of customers who exceed their allowance.”

Stop the Cap! would point out we’ve heard those same talking points since 2009 and they were not credible then and are even less so today.

First, we’d note Cox is attacking the business plans of some of the most successful broadband providers in the United States. Time Warner Cable, Cablevision, Google, and a myriad of other phone and cable operators not only deliver on their commitment to offer unlimited use Internet, they actually market it as a good reason to buy Internet access from them.

Cox’s concerns for fairness might be a bit less hypocritical had Cox not sold customers unlimited use plans for years. Were they being unfair to their customers then, now, or both?

Second, the company’s claimed noble intentions for keeping the cost of broadband down might be more believable if it didn’t charge its base customers a whopping $34.99 a month for “up to 5Mbps” Internet that it now wants to limit. Five years ago it charged customers just $21.99 a month for that service. By 2015, it had raised the price more than 59%.

In comparison, Time Warner Cable charges less than half that for unlimited “$14.99 Everyday Low Price Internet” – a tier that has not increased in price since its introduction. Time Warner has also offered its light users an optional plan to win a discount if they keep their usage down. As a reflection of customer interest in plans that place limits (even optional) on broadband service, out of some 11 million Time Warner Cable customers, only a few thousand have shown any interest in plans that introduce a usage allowance component.

coxThird, Cox’s excuses are very similar to those given by Time Warner Cable when it tried (and failed spectacularly) to impose usage allowances on its broadband customers in 2009. Time Warner officials promised it would represent greater fairness and would help pay for network improvements, while only a small percentage of customers would face higher charges. In fact, none of those claims were true. Customers seeking to keep unlimited access faced a tripling of the cost of broadband, Time Warner Cable only committed to network improvements in their most-populous service areas (which were excluded from the usage cap market trials and had significant competition), and at the usage caps Time Warner proposed in 2009 – 5, 10, 20, and 40GB, more than half of today’s Time Warner customers would be subject to overlimit fees. At the time, Time Warner claimed their proposed usage allowances were generous and fewer than 5% of customers would exceed them. That is eerily familiar to the “5% of customers” Cox refers to today.

The real money is to be made selling broadband, already amazingly profitable.

The real money is to be made selling broadband, already amazingly profitable.

Cox’s need for strict usage allowances comes at a time when other Internet Service Providers in competitive markets are either abandoning or not strictly enforcing them. Alienating customers has proven bad for business, and there is still plenty of money to be made selling unlimited access. Both broadband and telephone service is declining in cost for the operator to offer, particularly when examining bandwidth expenses.

Cox Communications is a privately held company and does not disclose specific financial data to the public, but similarly sized Charter Communications is publicly held and revealed in 2014 it had revenue of $9.1 billion and Adjusted EBITDA of $3.2 billion – each rising 8.2% on a pro forma basis, year over year. In plain English, broadband is already a real moneymaker for the cable industry, with revenue boosts recorded across the board. In comparison, cable television expenses have taken a toll on the profitability of offering television service. Charter is making so much money on broadband it dropped its usage caps recently.

Because the cable industry relies almost exclusively on existing hybrid fiber-coax networks to deliver products and services, the capital costs of providing Internet access have continued to drop for years. The industry’s decision to invest in and adopt DOCSIS 3 was considered a “no brainer” because it did not need major upgrades to network infrastructure and could recoup its cost by allowing companies to market higher-profit, higher-speed tiers.

In contrast, new entrants like Google Fiber are constructing new all-fiber network infrastructure at an enormous cost, but remain comfortable marketing broadband service with no usage allowances. So do many community-owned providers, including EPB in Chattanooga, GreenLight and Fibrant in North Carolina, among many dozens of others. Even Comcast has committed to not imposing usage caps for its premium 2Gbps fiber service, on which residential customers will be capable of racking up enormous amounts of usage.

In short, Cox’s usage cap regime is completely unjustifiable under current marketplace conditions and represents little more than an effort to raise prices and block online video competition, which Cox customers may decide will eat too much into their usage allowance.

Time Warner Cable goes out of its way to advertise "No Data Caps."

Time Warner Cable goes out of its way to advertise “No Data Caps.”

There are a number of questions Cox customers should ask:

  1. Why did nobody ask us whether we thought usage allowances and overlimit fees were fair?
  2. Why not offer optional discounts for low-usage customers and see how many actually enroll in such a program?
  3. Why has Cox removed the option of an unlimited use tier for customers that want unlimited service?
  4. Why won’t Cox commit to a price freeze on its broadband service if usage caps are really about controlling costs?
  5. How is it fair to offer a more generous allowance to a customer sold a higher speed tier that can easily chew through more data than customers on lower speed tiers?
  6. Why do low-speed customers get a smaller usage allowance when they cannot effectively use the highest bandwidth web applications?
  7. Why can’t customers roll unused portions of their usage allowance over to future months?
  8. How many customers, if any, actually asked for this type of pricing?
  9. Why can Google, Time Warner and other operators provide unlimited access for the same or less than Cox charges and your company can’t?

Fiber to the Press Release: Cox G1GABLAST Gigabit Internet – More Theory Than Reality for Most Cox Customers

Phillip Dampier May 4, 2015 Broadband Speed, Competition, Consumer News, Cox 4 Comments

Despite a significant advertising campaign, Cox’s gigabit Internet service is more a public relations stunt than reality, with only a tiny number of new housing and apartment/condo complexes wired for the fiber to home service.

The high exposure ad campaign doesn't make sense considering Cox's new service is available to less than 1% of its customers.

The high exposure ad campaign doesn’t make sense considering Cox’s new service is available to less than 1% of its customers.

A comprehensive search of addresses actually qualified for Cox’s G1GABLAST tier of service found less than 1% of Cox customers are able to get the gigabit service.

In Irvine, Calif., G1GABLAST is so rare, the Park Place apartments claim exclusivity of the service in the area. A 578-square foot studio apartment with one bedroom and bathroom starts at $1,705 a month, if interested.

Cox has staged press events at the rare locations where the service has turned up in very high-end housing developments in Phoenix, Ariz., with press releases touting the service’s imminent availability in Las Vegas and Omaha, Neb.

The company claims it will make G1GABLAST available to more than 5,000 homes in Phoenix by the end of this year, and has committed to expand that to 150,000 homes by the end of 2015, but there are growing questions whether Cox will meet those targets.

In Phoenix, an Ahwatukee Foothills homeowner was the company’s first residential gigabit subscriber in Arizona. Cox began rolling the service out in new housing developments where installing fiber is less costly than burying service lines in existing neighborhoods. Now it is focusing on other multi-dwelling units and complexes, and a limited number of existing homes in-between those developments.

In Irvine, Calif., Cox gigabit Internet is available exclusively at one complex - Park Place.

In Irvine, Calif., Cox gigabit Internet is available exclusively at one complex – Park Place.

In Scottsdale, the only confirmed site where Cox offers gigabit service is the barely finished 440-unit San Travesia Luxury Apartment Complex (rent starts at $1,275 a month for an 815 square foot studio apartment).

G1GABLAST was also confirmed to be available in one extremely wealthy enclave in northwestern Las Vegas, where property values range from $6-50 million. Those who can’t afford that real estate can choose one of a handful of more affordable new housing developments in the area featuring properties valued at $500,000 and up.

The most affordable housing where customers will eventually find G1GABLAST later this spring will be high-end apartment complexes and condos in Omaha, Neb.

Further east, Cox will also be installing gigabit service in the Viridian Reserve at Hickory in Chesapeake, Va. Several hundred homes (starting at $373,000) will be the first in Virginia to qualify for the service sometime this year.

A high-priced publicity campaign for the extremely limited rollout of gigabit service would seem counter-intuitive, unless Cox was seeking an improved image of cable speed competitiveness as new entrants promise and deliver gigabit Internet service around the country. Claiming your company offers 1,000Mbps Internet costs a lot less than actually delivering it.

Time Warner Cable Goes Shopping: Approached Cox for Deal, Told to Take a Hike

Phillip Dampier April 27, 2015 Competition, Consumer News, Cox, Time Warner Cable No Comments

coxA week after its deal with Comcast collapsed, Time Warner Cable may be in the buying mood.

The Wall Street Journal reports the cable giant approached privately held Cox Communications about a deal. Cox told them they weren’t interested.

“We’ve been clear we’re not for sale and we’ll continue to explore any potential growth opportunities that align with our business objectives,” said a Cox spokesperson.

Time Warner Cable’s apparent interest in cutting a quick deal with another operator may be a sign they are not going to lie down for another expected offer from Charter Communications that could come within days or weeks. The groundwork for such a deal is already being laid.

Cox, like Cablevision, have been perennially rumored takeover targets, but both have proved elusive. In 2004, Cox went private for a second time and a second generation of the Dolan family, which holds a controlling interest in Cablevision, continues to be integrally involved in Cablevision’s operations.

Time Warner Cable still has several options to pursue acquisitions. Suddenlink customers are in open revolt over that company’s decision to enforce usage caps on its broadband service. Both Charter and Mediacom are routinely rated poor by customers and could be swayed into a deal. Bright House Networks already relies on Time Warner Cable for programming deals and technical services.

Updated 4:22pm — Reuters is reporting Time Warner’s denials that it approached Cox for a deal. “It’s simply not true. We have not engaged in any discussions with Cox,” Time Warner Cable’s spokeswoman Susan Leepson told Reuters.

Cox Boosting Its Economy Class Broadband Speeds in Arizona: 5Mbps is Now the Minimum

COX_RES_RGBCox Communications has raised Internet speeds for its economy class customers in Arizona as it continues network enhancements across the state.

One-third of Cox customers in Arizona subscribe to the company’s two cheapest tiers — Internet Starter and Internet Essential. Both packages are getting free speed upgrades that began in late March. Now all Cox customers in the state should have the higher speeds:

  • Cox High Speed Internet Starter was 1Mbps and is now 5Mbps;
  • Cox High Speed Internet Essential was 5Mbps and is now 15Mbps.

Speed increases in one state often eventually turn up in other states where Cox provides service.

Last July, Cox doubled speeds for its Preferred tier (increased from 25 to 50Mbps) and Premiere tier (increased from 50 to 100Mbps).

Usage caps are still in place on Cox broadband packages, but they are widely ignored by most customers because Cox rarely cracks down on offenders, and usually backs off if a customer threatens to cancel service over the issue.

Source: Cox Preparing to Expand Gigabit Service in Phoenix/Omaha, Boost Budget Broadband Speeds

COX_RES_RGBCox Communications is planning to expand its gigabit residential broadband service in Phoenix and Omaha and will be increasing the speeds of its cheapest Internet tiers to stay competitive with CenturyLink’s discounted DSL.

A source inside Cox told Broadband Reports the speed changes will begin later this month and will take about six weeks to reach all of Cox’s service areas across the country.

  • Starter Internet ($34.99 – 50GB usage cap), now offering 1Mbps/384kbps will increase to 5/1Mbps;
  • Essential Internet ($48.99 – 100GB usage cap), now 5/1Mbps will be increased to 15/2Mbps.

Cox also offers Internet Preferred ($66.99 – 250GB usage cap) offering 50/5Mbps and Internet Premier ($77.99 – 300GB usage cap) with 100/10Mbps. Some markets also offer Internet Ultimate ($99.95 – 400GB usage cap) with 150/20Mbps service.

The company’s gigabit plan, Gigablast, is being sold for $99 a month ($70 if bundled with cable television). It has a 1TB usage cap. For now, the service is delivered to a very limited number of homes (about 5,000) over special fiber connections serving primarily wealthy enclaves and new housing developments. The bulk of Cox’s gigabit service expansion this year is expected to cover about 150,000 homes where additional fiber service will be deployed. But most Cox customers will only see the fastest speeds made available in 2016 when DOCSIS 3.1 will allow Cox to use its existing coaxial cable infrastructure to deliver super fast speeds.

Cox customers who exceed their usage allowance are usually warned by letter and asked to upgrade to a higher tier of service. But Stop the Cap! readers who subscribe to Cox tell us the company usually backs off if you threaten to cancel service over the matter.

Stop Paying Regular Price for HBO and Cinemax; Cancel and Rebuy for $10/Month

2000px-HBO_logo.svgAre you still paying $15+ for HBO and $13+ for Cinemax? Stop.

Most major cable television providers are slashing the price for both premium movie channels to protect subscriber numbers from the April introduction of HBO’s standalone video streaming service, likely to be called HBO Go.

Most analysts expect the on-demand service will cost $15 a month for one or both co-owned networks. With Time Warner Cable recently raising the price of HBO to $16.99 a month, the company may have priced itself out of the market.

“Why would I waste my time with HBO from Time Warner Cable when I will be able to get HBO Go for $2 less a month and won’t have to buy their larded-up cable television package,” asks Watertown, N.Y. resident Jeff Kates. “Their greed will cost them when they lose more subscribers than they gain in revenue from the rate hike.”

Comcast has already seen the writing on the wall and this year cut its regular pricing for HBO from $18.95 to $15 — matching the likely price of standalone HBO Go.

In an effort to lock in customer loyalty and avoid accelerating cord-cutting, many major pay television providers are putting one or both Time Warner (Entertainment)-owned networks on sale for much of 2015. These prices are available to any new premium cable subscriber. If your provider will not switch your current subscription to the new promotional rate, cancel one or both channels for a few days (or threaten to cancel service altogether) and then resubscribe at the discounted price.

Here are the current offers:

  • AT&T U-verse: Bundles HBO and a year of Amazon Prime service with a package of mostly local over the air channels for around $40-50 a month depending on the promotion;
  • Charter Cable: Charter’s Triple Play Silver package bundles HBO, Cinemax, Showtime/Movie Channel premium channels into the television package at no extra charge;
  • Comcast: Offers HBO for online sign ups at $10 a month for a year. Comcast attempts to limit the offer to customers who have not subscribed to HBO for the last 120 days, but this condition is usually waived if you threaten to cancel service and switch to a phone or satellite company;
  • Cox: Stingier than others, Cox is offering discounts for just six months, but gives you quantity discounts. Buy 1 premium channel at $10/mo, two channels for $15, three for $20 or four networks for $25 a month. Your choices include HBO, Cinemax, Showtime, and Starz;
  • Time Warner Cable: Now has a sale running for $9.99/mo HBO and the same rate for Cinemax, Showtime, and Starz when ordered online. Current non-premium customers can upgrade from the My Account portal. Current premium channel customers will have to call Time Warner and argue for the discount or cancel HBO and quickly resubscribe;
  • Verizon: Also offers HBO and others at $9.99/mo for the first year.

Satellite services are expected to change their pricing on premium channels sometime this month.

The Menace of the Unburied Line: Cable & Phone Companies Create Hazards for Homeowners

One Alabama customer found her fence the home of not one, but two artistically-managed Charter Cable lines serving her neighbors.

One Alabama customer found her fence the home of not one, but two artistically-Amanaged Charter Cable lines serving her neighbors.

All across the country, people are encountering communications wiring that belongs underground or on a utility pole, but is instead scattered on the ground or left dangling on fences or in the street. Isolated incidents or a consequence of deregulation that has left community leaders’ hands tied? Stop the Cap! investigates.

A Louisiana woman eight months pregnant is suing Cox Communications Louisiana and its contractor after tripping over an exposed cable wire in her mother’s backyard the company didn’t bother to bury.

In Fort Myers, Comcast connected a neighbor’s cable service in a senior living community by scattering a cable across lawns and sidewalks for nearly a year before finally burying it.

In Alabama, Charter Cable turned cable wiring into an art form, attaching multiple homeowners’ cable TV wires in artistic designs to a neighbor’s fence, and he wasn’t even a customer.

Welcome to the scourge of the unburied, exposed cable wire. Typically called a “drop” by cable installers, these lines are common in communities where a cable or phone company uses a third-party contractor to manage buried lines. Some manage them better than others.

In the northern United States, replacement drops installed during the winter months often stay on the ground until spring because the ground in frozen, but in warmer climates in the southeast, cable companies are notorious for “forgetting” about orphaned cable lines that can take weeks or months to bury, often only after intervention by a local media outlet or politician.

Chardae Nickae Melancon’s complaint claims Cox installed cable service in June, 2013 and left the cable wire exposed in the backyard. In late August, Melancon claims she tripped and fell over the wire injuring her arm, right side, and other unspecified injuries. Her suit alleges Cox was warned the wire was installed improperly and only after her injury did Cox return to finish the job.

In Fort Myers, it took more than 11 months for Comcast to return and bury its line, snaked across lawns and sidewalks connecting several buildings in the retirement community.

Comcast left this cable lying across a sidewalk in a retirement community in Fort Myers, Fla. for 11 months.

Comcast left this cable lying across a sidewalk in a retirement community in Fort Myers, Fla. for 11 months.

“You know this [community] is 55 and older. We have got people in here that are 90 years old,” Bonnie Haines, a resident in the Pine Ridge Condo retirement community told WFTX-TV. “Could you imagine them walking or walking around that sidewalk and tripping over this, what would happen? They couldn’t see it at night. Fortunately for me I know it’s there. I’ve lived with it all this time but if somebody would come to visit an older person or something, they don’t know it’s there.”

Across the street lies another unburied Comcast cable.

“We’ve called multiple times. we’ve reported it multiple times,” said Eric Ray, the manager of the Pine Ridge Homeowners Association. “In fact, every time I see a Comcast truck in here I personally grab the driver, take him over to the spot, and he puts in a work order and takes pictures right in front of me and still no response.”

Comcast’s last reply before making the evening news:  “We’ll get to it soon.”

Twenty four hours after being a featured story on the station’s newscast, the cables were finally buried.

In Montgomery, Ala., an artistic cable installer has used one resident’s fence as the adopted home of Charter Cable’s lines. Jamie Newton, who isn’t a Charter customer, noticed an orange Charter Cable line attached to her fence one day after returning home. That was two years ago. Suddenly, an extra cable appeared, draped like Christmas tree garland.

http://www.phillipdampier.com/video/WFTX Ft Myers Residents worried about exposed cable tv wire 1-15-14.mp4

Residents of a Ft. Myers, Fla. retirement community worry residents as old as 93 could be seriously injured if they trip over this Comcast Cable left on the sidewalk for at least 11 months. (3:00)

“At first I was surprised, and then it turned into a little bit of anger and frustration,” Newton told WSFA. “I have small children, I have friends’ children over, and the neighborhood kids come and play in my backyard. It’s not safe.”

Charter Cable is not interested because Newton is not a customer. Charter in fact recorded just one complaint from a Charter customer six months earlier, and they claimed a “glitch” was responsible for the cable not being buried.

(Image: WEWS-TV Cleveland)

(Image: WEWS-TV Cleveland)

While some customers have been encouraged to remove offending lines that cross property lines themselves, some have gotten into trouble doing so, charged with destruction of private property. The most common mistake homeowners make is cutting or displacing cables placed on or in a utility easement, which can be difficult to identify.

Some of the worst problems occur with cables that served now ex-customers. Residents complain AT&T, Comcast and Charter are not responsive to requests from non-customers to deal with abandoned wiring in disrepair. An outside line supervisor in San Francisco tells Stop the Cap! AT&T has few provisions to manage cabling no longer in service for a paying customers.

The city of Cleveland, Ohio is a prime example of how AT&T deals with unused cables. Residents reports dozens of abandoned lines snipped at head level and allowed to dangle off utility poles, eventually to fall to street level where children can handle them. Time Warner Cable was also accused of allowing cables to hang over Cleveland streets. Some are left over after demolishing vacant houses but the most frequent cause of hazardous cables is competition. When a customer cuts cable’s cord, drops a landline, or flips between providers, installation crews often cut and leave old lines swaying in the breeze or draped over sidewalks.

The problem grew so pervasive in Cleveland, city officials requested telecom companies coordinate an audit of their cable networks and remove dangerous wiring before someone gets hurt. But all they can do is ask. Ohio’s sweeping telecom deregulation law stripped local authority over AT&T and Time Warner Cable. The city’s leverage is now based on creative code enforcement and embarrassing the companies in the local media.

“We don’t have any regulation for phone and cable companies and hanging wires create a hazardous situation and it’s going to have to be regulated,” said Cleveland councilman Tony Brancatelli. “One of these times it’s going to be a hot line.”

Local media reported nearly the same problem four years earlier in Cleveland, and efforts to keep up with cables left in disrepair seem to wane after the media spotlight moves on.

http://www.phillipdampier.com/video/WEWS Cleveland Neighbors worry kids will get desensitized to seeing low wires 4-3-14.mp4

Kids are at risk if they begin to disrespect hanging utility wires. An epidemic of abandoned cable and telephone cables are dangling over Cleveland streets and deregulation means cities have to ask providers nicely to deal with the problem. (3:00)

Time Warner Cable and AT&T have also pointed fingers at each other, implying the other is more responsible for the cables left hanging:

AT&T: “We certainly welcome attention on the topic of safety and any telephone wires that look out of place. To that end, we encourage you to share with your viewers the number for our statewide repair information line: 800-572-4545. Please do call this line to report locations of telephone wires that look out of place.  While your story pointed out that many of the problem lines you saw may not have been telephone lines, we look forward to removing or repairing any that we find, that indeed belong to our company.”

Time Warner Cable: “Maintaining line clearance is something we act quickly to correct anytime we identify a potential issue. Though it is not clear who owns the wires you cite in your story, when our lines need to be adjusted, we take immediate action.  If someone comes across a line they feel maybe too low, please call us and we will respond.”

One important tip from Stop the Cap! for both your safety and avoiding legal entanglements — don’t take on the job yourself.

Municipal officials tell us readers should call a local code enforcement officer and have them investigate utility cable issues. Unresponsive companies or those creating dangerous conditions for the public can be fined and most will respond quickly to an officer’s request to manage the problem, even when deregulated.

Customers allowing the cable company to install a temporary line in their own yard should check if they are signing a total liability waiver as part of the process. Doing so can limit your leverage if the cable company doesn’t return to bury the line.

http://www.phillipdampier.com/video/WEWS City of Cleveland promises to address low hanging wires 4-7-14.mp4

WEWS-TV in Cleveland followed up on their earlier report after getting no response from cable and phone companies and finding even more hazardous, abandoned wiring littering Cleveland. (3:15)

http://www.phillipdampier.com/video/WEWS Cleveland Major utility and cable companies meet with City of Cleveland 4-17-14.mp4

Cleveland officials asked cable and phone companies to send representatives to coordinate action to fix the problem, but deregulation makes the effort voluntary. (2:47)

J.D. Power & Associates Tie Vote! Hemorrhagic Fever vs. Comcast vs. Time Warner Cable

jd powerLove can be a fickle thing.

Take Comcast’s affair with J.D. Power & Associates, for example. In Comcast’s filings with regulators, it is very proud that J.D. Power cited Comcast for the most improvement of any cable operator scored by the survey firm. Comcast touted the fact it had managed to increase its TV satisfaction score by a whopping 92 points and Internet satisfaction was up a respectable 77 points. (Comcast didn’t mention the fact J.D. Power rates companies on a 1,000 point scale or that it took the cable company four years to eke out those improvements.)

Last month, J.D. Power issued its latest ranking of telecommunications companies and… well, the love is gone.

If customer alienation was an Olympic event, J.D. Power awarded tie gold medals to both Comcast and Time Warner Cable for their Kafkaesque race to the bottom.

The survey of customer satisfaction largely found only dissatisfaction everywhere in the country J.D. Power looked. While Comcast likes to cite its “customer-oopsies-gone-viral” blunders as “isolated incidents,” J.D. Power finds them epidemic nationwide.

skunkThe highest rating across television and broadband categories achieved by either cable company was ‘Meh.’ J.D. Power diplomatically scored both cable companies on a scale that started with “among the best” as simply “the rest.” Customers in the west were the most charitable, those in the south and eastern U.S. indicated they were worked to their last nerve.

“The ability to provide a high-quality experience with all wireline services is paramount as performance and reliability is the most critical driver of overall satisfaction,” said Kirk Parsons, senior director of telecommunications, in a statement.

Having competition available from a high-scoring provider also demonstrates what is possible when a company actually tries to care about customer service. In the same regions Comcast fared about as popular as hemorrhagic fever, WOW! Cable and Verizon FiOS easily took top honors. Even AT&T U-verse scored far higher than either cable company, primarily because AT&T offers very aggressive promotional packages that include a lot for a comparatively low price.

Other cable and smaller phone companies didn’t do particularly well either. Frontier and CenturyLink both earned dismal scores and Charter Cable only managed modest improvement. The two satellite television companies did fine in customer satisfaction for television service, but it was the two biggest phone companies that managed the best scores for Internet service. Among cable operators, only independents like WOW! (and to a lesser extent Cox) did well in the survey.

If J.D. Power is the arbiter of good service Comcast seems to claim it to be, the ratings company just sent a very clear message that when it comes to merging Comcast and Time Warner Cable, anything multiplied by zero is still zero.

J.D. Power ranking (Image courtesy: Reviewed.com)

J.D. Power ranking (Image courtesy: Reviewed.com)

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