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NY Post: Imposing Conditions on Comcast-Time Warner Cable Merger Would Be Useless

comcast cartoonIf regulators believe they can turn Comcast and Time Warner Cable’s mega-merger into a consumer-friendly deal in the public interest, they are ignoring history.

No matter what conditions regulators place on Comcast to approve its merger with Time Warner Cable, they will be toothless, television industry insiders told the New York Post.

Insiders suggest the Federal Communications Commission has been largely impotent enforcing conditions it required in earlier merger deals, including those Comcast promised to fulfill in its earlier merger with NBC Universal.

Among Comcast’s broken promises cited by The Post:

  • Comcast failed to live up to its promise to market its low-cost broadband service, Sen. Al Franken (D-Minn.), an outspoken critic of the NBCU deal, told the FCC earlier this year;
  • Comcast paid a fine for not marketing A standalone $50 broadband service widely enough;
  • The giant cable provider’s hollow commitment to Net Neutrality didn’t stop it from excluding certain XFINITY video content from its data caps;
  • They discriminate against non-Comcast owned cable channels, especially those that compete with network Comcast owns or controls. Examples include The Tennis Channel and Bloomberg TV.

Industry insiders claim the larger Comcast gets, the more the company spends on clever lawyering and lobbying to keep itself out of legal hot water with Congress and regulators. That has begun to worry programmers like Discovery Communications, who filed objections to the merger deal.

Discovery officials warned the FCC Comcast’s takeover of Time Warner Cable would deliver an NSA-like treasure trove of viewer data to the nation’s biggest cable company. Comcast already monitors its customers’ viewing habits with tracking software installed inside set-top boxes that monitors what customers are watching at any given time. Comcast has refused to share that data with outsiders, and uses it primarily to pitch potential advertisers.

Comcast’s size already gives the company unprecedented power over cable programming rates during negotiations. Making the company even larger worries Discovery, which expressed concern that:

  • Comcast’s use of its bigger muscle to impose prices, terms and conditions that are overly favorable (for instance, preventing programmers from selling over-the-top rights or refusing to give competitors to its own services wide distribution);
  • The possibility that the cable giant could impose broader “most favored nation” clauses in agreements;
  • That Comcast could exercise control over national and local ad sales markets to the detriment of programers who also compete there.
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Great Britain Pound Shop Launches 24Mbps Unlimited Internet Access At 99p a Week

Phillip Dampier September 9, 2014 Broadband Speed, Competition, Consumer News 1 Comment

99pDollar store broadband? It has arrived in the United Kingdom with this week’s introduction of bargain broadband access charged at just 99p a week – $1.60US or £4.29 ($6.90) per month for the first six months.

99p Stores and Home Telecom have teamed up to offer unlimited 24Mbps broadband with local UK phone calls charged at 4¢ each and calls to mobile numbers billed at 16¢ apiece. Unlike many other offers, there are no connection charges or setup fees, making it one of the least expensive broadband/telephone deals in the United Kingdom.

After the first six months, the price increases to a still-affordable $13.67 a month.

99p Stores hope its broadband offer will differentiate it from rivals Poundland and Poundworld as the three chains battle for customers in ongoing “pound shop wars.”

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Canada Declares War on Paper Statement Charges; Some Want $5.95/Month Just to Mail Your Bill

Phillip Dampier September 4, 2014 Canada, Consumer News, Public Policy & Gov't, Video 1 Comment

One_Bill_ENCanadians pay between $495-734 million a year in extra charges just to receive a mailed copy of their monthly bill for cell phone, cable and broadband service. Now the Public Interest Advocacy Centre wants the government to ban charges for mailed invoices.

Jonathan Bishop, PIAC’s Research Analyst, said, “a majority of consumers have indicated their disapproval of being charged extra for a paper bill. Most Canadians believe supplying a paper bill in the mail without having to pay an extra fee is part of the company’s cost of doing business.”

If you ask most cable, phone and satellite companies about their paper billing policies, they will claim the fees are designed to encourage people to adopt more ecofriendly online billing. But the poor and elderly, who often lack Internet access, are forced to pay extra monthly fees just to find out how much they owe their providers.

Some providers have also been quietly increasing those paper bill fees, which now reach as high as $5.95 a month.

Trying to avoid a more formal regulatory proceeding, the Canadian Radio-television and Telecommunications Commission asked 11 major telecommunications companies to attend an informal meeting last week to negotiate curtailing the fees. The meeting fell apart with providers only willing to exempt certain customers from the billing fees, which have become a lucrative new source of revenue for many.

As of last November, 36 companies said they do not charge for paper bills, while 27 others charged between 99 cents – $5.95 a month. Among those with customer-friendly free paper bills: Shaw Communications, Manitoba Telecom, SaskTel and Bell Aliant. Those charging $2 a month for a paper bill include Rogers Communications, Telus, and Bell/BCE.  Rogers and Bell charge the fee for home phone, wireless, Internet and television services while Telus only charges for wireless and Internet bills.

Quebecor Inc.-owned Vidéotron Ltée wants $3 a month for wireless customers seeking a detailed paper bill listing all calls, texts and data used, but a less comprehensive standard bill can be obtained free of charge.

Wind Mobile, one of Canada’s new wireless competitors, charges $4 a month for a paper bill and one of their affiliated companies OneConnect, serving businesses with VoIP service, charges $5.95 a month.

The 11 largely intransigent companies: Bell Aliant, Bell Canada, Cogeco Cable, Eastlink, Globalive, MTS Allstream, Québecor, Rogers, SaskTel, Shaw, Telus only came to unanimous agreement that customers with “no personal or home broadband connection, persons with disabilities who need a paper bill, seniors aged 65 and over and veterans of the Canadian Armed Forces” will be able to avoid a paper bill fee, if charged. The exemptions take effect Jan. 1, 2015.

“While the companies agreed to adopt consistent exemptions to such fees, they were unable to reach a consensus to eliminate them entirely,” said CRTC chairman Jean-Pierre Blais. “Many Canadians who will not benefit from the exemptions will be disappointed with the outcome so far.”

The CRTC is going to further survey Canadians before deciding what actions to take next.

http://www.phillipdampier.com/video/CTV Telecoms Will Exempt Some from Paper Bill Fees 9-1-14.flv

CTV reports consumers are frustrated about rising paper bill fees. The CRTC’s efforts to end the fees ran into profit motives — Canadian companies earn up to $700 million annually from bill printing. (1:48)

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Chicago Mayor Rahm Emanuel’s Love for Comcast’s Merger Fueled By $100,000+ in Contributions

Emanuel

Emanuel

Chicago Mayor Rahm Emanuel has been prominently cited by Comcast as an example of a U.S. mayor that has the insight to support the company’s $45 billion buyout of Time Warner Cable.

But Comcast also had the insight to avoid mentioning it had paid Emanuel and a political slush fund controlled by him more than $100,000 before Emanuel took pen to paper in support of the merger.

The International Business Times notes the mayor of the Windy City has deposited giant campaign contributions from Comcast and its top executives for years, including two signed by the author of Comcast’s press release thanking Emanuel for his support himself — executive vice president David Cohen. In addition to a $5,000 personal donation to Emanuel, Cohen also signed a check for $10,000 payable to the notorious Chicago Committee, a political slush fund Emanuel controls and uses to keep other local politicians in line with his agenda.

Since Emanuel first ran for mayor in 2010, Comcast and its executives have spent $50,000 on his campaign. When Emanuel was a congressman, Comcast was one of his top donors — spending $46,000 total from 2003 until 2o08. Other executives gave another $25,000 to the Democratic Congressional Campaign Committee that Emanuel chaired at the time.

With that kind of generosity, Emanuel had no trouble signing one of Comcast’s “template” letters in support of the merger, telling the FCC it was great for Chicago and would enhance Comcast’s “generous presence” in the area. While generous to Emanuel and other politicians, Comcast has pounded Chicago residents with relentless rate increases and perennially receives dismal customer approval ratings from locals.

Although Emanuel’s letter told the FCC the merger would not reduce choice, elevate prices, or otherwise harm consumers, piles of Comcast’s cash may have obscured Emanuel’s vision of what ordinary Comcast customers endure. WLS-TV in Chicago reports Comcast’s customer service borders on “abusive.” (1:38)

 

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Comcast-TWC Merger Now Issue in N.Y. Governor’s Race: Secret Meetings, New Questions

Gov. Cuomo

Gov. Cuomo

Does N.Y. Gov. Andrew Cuomo support or reject the merger of Comcast and Time Warner Cable and why has an administration official been meeting behind closed doors with the companies involved?

If the merger is successful, more than 95 percent of upstate New York will be served by a single cable operator – Comcast, with little chance Verizon will mount a major challenge for video, broadband, and phone service customers outside of the areas where FiOS fiber upgrades have been announced. Although the Cuomo Administration promised an in-depth investigation into the merger, the governor has kept his own views close to the vest and has not publicly supported or opposed the transaction. But an administration official has met privately with executives of both cable companies and state regulators behind closed doors according to a new report.

According to public schedules obtained by Capital, Comcast representatives met at least three times in August with PSC members or staff in what one former commissioner called unusual circumstances.

James Larocca, a N.Y. PSC commissioner from 2008-2013, said it is not typical for officials from the governor’s office to meet with state regulators and cable executives in the same closed-door meeting.

“I did not meet with the second floor on pending matters and I’m not aware that other commissioners ever did,” Larocca said.

It is not unusual for companies with business before the Commission to meet with its staff or commissioners in ex parte conversations to set the parameters of hearings, filings, and other regulatory proceedings. All such meetings appear to have been properly disclosed by the PSC staff and the companies involved. But the fact some were held behind closed doors with a Cuomo Administration official and without public disclosure of the subjects discussed bothers some.

corporate-welfare-piggy-bankSusan Lerner, executive director of Common Cause New York, said what was discussed behind closed doors should be disclosed so the public can see what top state officials are saying to the cable executives.

“There are questions as to whether the PSC is a strong enough advocate for the people or the industry,” Lerner told Capital. “The agency has lost sight of its initial mission, which is to serve the public in regulating these absolutely essential services.”

Gerald Norlander at the Public Utility Law Project ponders what would happen if there were two negotiating tables discussing the merger, one public and the other secret.

“If there is a second table where views are exchange and negotiations are occurring, it doesn’t do well for transparency,” he said.

Public statements from both Comcast and the Cuomo Administration did little to clear the air.

“It was an initial meeting to discuss the public interest benefits of the transaction for New York,” a Comcast representative said in a one-sentence statement in response to questions about the meeting.

Not exactly, says the Cuomo Administration.

“The meeting was to explain the new law, the PSC’s new powers and its expanded oversight,” Cuomo spokesman Richard Azzopardi said.

As has been the case during much of the merger debate, Time Warner Cable has remained silent and has refused to comment.

Comcast oregonThe governor himself has avoided taking sides, claiming he will abide by the recommendations made by the PSC. But if true, why involve the governor’s office in the merger or meet privately with either the PSC or the companies involved?

“The state is taking a hands-on review of this merger to ensure that New Yorkers benefit,” Cuomo said in May. “The Public Service Commission’s actions will help protect consumers by demanding company commitments to strong service quality, affordability, and availability.”

Cuomo himself has received at least $200,000 in campaign contributions from Comcast and Time Warner Cable. With customer satisfaction scores for both Comcast and Time Warner Cable in the basement, lobbying has been a necessity and Time Warner Cable is one of the state’s top lobbying forces, spending $500,000 of its subscribers’ money in New York in 2013 alone. Comcast spent $60,000, despite only serving a small sliver of customers in downstate New York.

The two companies also donated a combined $500,000 to a secretive state Democratic party account which Cuomo controls. Ironically, some of that money was used to run ads celebrating Gov. Cuomo’s efforts to get money out of politics.

New York Democratic candidate Zephyr Teachout is seeking to oust Gov. Andrew Cuomo in the fall election. One of the issues she is campaigning on is Cuomo’s significant contributions from Comcast and Time Warner Cable and his apparent lack of interest in stopping the merger. At a campaign stop in Syracuse, Teachout claims Comcast will raise your rates and offer no significant benefits to New Yorkers. She’d strongly oppose the merger and media consolidation in general, if elected. WRVO Radio reports. Aug. 29, 2014 (1:26)
You must remain on this page to hear the clip, or you can download the clip and listen later.

Teachout

Teachout

Cuomo’s Democratic primary opponent Zephyr Teachout and her running mate, Tim Wu (who coined the term “Net Neutrality”) are less murky on the issue. Both strongly oppose the merger and cable industry consolidation generally and have expressed serious concern about the governor’s acceptance of hundreds of thousands of dollars in campaign contributions from both Time Warner Cable and Comcast.

Andrew Letson’s Politics Blog considers the differences between the two campaigns striking.

“It’s a sharp contrast – between the hypocritical man in office taking money from corporate interests and the candidates with integrity who are funding their campaign through largely individual donors,” Letson writes.

“[Both Wu and Teachout] have said that they would work to block the frightening Comcast-Time Warner merger, something that’s certainly on the minds of many New Yorkers,” says Letson. “What’s nice about that is that New York actually has a lot of power when it comes to this merger, so opposition from both the governor and lieutenant governor would go a long way.”

Letson is a Teachout campaign volunteer, so it is no surprise which candidate he supports.

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Bell’s Efforts to Take Bell Aliant Private Will Divert $160 Million in Expansion Funds to Shareholders

Bell-Aliant-FibreOP

Bell Aliant’s FibreOp fiber to the home service may suffer as Bell/BCE redirects upgrade investments into shareholder dividend payouts.

Bell Aliant customers in Atlantic Canada won’t benefit from Bell Canada’s (BCE) efforts to take subsidiary Bell Aliant, Inc. private unless they happen to be shareholders.

In July, Bell Canada Enterprises announced its intention to privatize Bell Aliant, which serves customers in Nova Scotia, Prince Edward Island, New Brunswick, Newfoundland and Labrador, expecting at least $100 million a year in savings from reduced operating costs and capital investments.

Bell Aliant has operated largely independent of Bell Canada from its headquarters in Halifax, N.S. Bell Aliant customers have received FibreOp fiber to the home upgrades in several Atlantic provinces in recent years, providing more advanced services than Bell’s fiber to the neighborhood platform Fibe in Ontario and Quebec. Bell Aliant customers have also avoided usage caps and usage-based billing, getting access to unlimited use broadband at speeds up to 400/350Mbps.

Politicians in Nova Scotia immediately raised the alarm about the possibility of job cuts. Both Tory and NDP opposition leaders complain the Liberal premier has not done enough to protect jobs.

Bell Canada Enterprises

Bell Canada Enterprises

NDP MLA Dave Wilson said all three parties agreed to work on economic issues for the province. Wilson said he fears if the government isn’t vocal about its support for the jobs, Bell might look to move them elsewhere.

The news is better for those holding stock in the company. Existing public minority shareholders are being offered cash or shares of BCE stock (or a combination of both) in return for selling their Bell Aliant stock.

Bell wants to take Bell Aliant private to get access to its consistent $1 billion in cash revenue earned annually, mostly to satisfy BCE shareholders with a more reliable and consistent dividend payout.

Although Bell promises it will continue to invest in Atlantic Canada, its own financial disclosures show customers in the region will see spending on upgrades and other service improvements cut as a result of Bell’s actions.

Bell has committed to spending an average of $420 million a year across Atlantic Canada, but as an independent, Bell Aliant was investing $578 million annually, primarily on fiber upgrades. Over the next few years $160 million of the investment budget will be diverted to maintain a healthy divided payout for BCE stockholders. As of May 2014, BCE was paying a dividend of $0.6175 per quarter with common shares outstanding of 777.3 million, for a quarterly dividend payout of about $480 million per quarter, or $1.92 billion per year. As Bell Aliant shareholders cash out their holdings or convert them to BCE shares, the growing number of BCE shareholders will require Bell to spend more to satisfy dividend payouts. In fact, BCE may transfer enough money out of Bell Aliant’s operations to raise its dividend for all BCE shareholders to attract new investors.

Reduced spending will mean reduced upgrades for Bell Aliant customers. Bell is not promising significant cost savings from merger-related synergy, so capital spending will likely suffer the most as a result. So will customers.

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52 Mayors Pledge Allegiance to Comcast’s Merger Deal; Is Yours on the List?

mayorsMore than 50 mayors of towns and cities large and small regurgitated Comcast-provided talking points in a joint letter submitted to the FCC in support of the Comcast-Time Warner Cable merger:

The combination of these two American companies will bring benefits to every affected city. Cities joining the Comcast service area will benefit from increased network investment, faster Internet speeds, improved video options and leading community development programs to help us tackle important community challenges like the digital divide. Existing Comcast markets will enjoy the benefits of a company with the scale and scope to invest in innovation and deliver products and services on a regional basis.

For us, the most significant aspect of the proposed transaction is its capacity to propel new investment in infrastructure in Time Warner markets that will enhance video and Internet service in our communities. Comcast has pledged to invest hundreds of millions of dollars a year speeding up and improving the combined company’s networks.

We also view positively the apparent response to this development from other companies that provide similar services. Since the Comcast Time Warner Cable transaction was proposed, Google has announced plans to expand its high-speed Fiber service to 34 new communities, AT&T has announced plans to expand its 1 gigabit U-Verse service to 100 new municipalities including 21 large cities, and Sprint’s corporate parent has proposed to build a 200 Mbps wireless network for the US.

In addition to being terribly misleading, parts of the letter are factually inaccurate. The letter’s text was taken almost entirely from Comcast’s own talking points released to the media and disclosed to the Securities and Exchange Commission.

Buffalo Mayor Byron Brown 2012: Time Warner Cable is naughty. 2014: Time Warner Cable is nice.

Buffalo Mayor Byron Brown
2012: Time Warner Cable is naughty.
2014: Time Warner Cable is nice.

Remarkably, Buffalo Mayor Byron Brown managed a complete flip-flop on his views of Time Warner Cable. In 2012, he co-signed a letter accusing Comcast and Time Warner Cable of anticompetitive behavior, runaway rate increases, and a growing digital divide. He was speaking about Comcast and Time Warner Cable’s  decision to partner with Verizon Wireless to jointly market products to their customers:

“We are deeply worried that the anti-competitive partnership between Verizon Wireless, the nation’s largest wireless provider, and four of the leading cable companies will have a negative impact on economic development and job creation in our cities, leading to higher prices, fewer service options, and a growing digital divide, “ the letter reads. “As you review the Verizon Wireless/cable transaction, we strongly urge you to examine the impact of this transaction on competition and consumer choice, and ensure that our communities are not left behind.”

This year, despite the fact both Comcast and Time Warner Cable still have their cross-marketing agreement with Verizon and both cable operators have raised prices, Brown joined the other mayors heaping praise on both cable companies:

Time Warner Cable has been a responsible corporate citizen whose efforts will only be enhanced by joining forces with Comcast’s community investment programs. Comcast has established itself as an industry leader and exemplary community partner who invests in its local communities and works hand in hand with local governments on critical social challenges like the digital divide.

Except when it is not.

Matthew Keys, who comments on journalism and social media, notes the Comcast merger has little to do with broadband expansion at other companies:

But the mayors failed to note that Sprint’s pledge of a faster wireless data network was predicated on a merger with rival T-Mobile, which fell through earlier this month. In addition, AT&T’s 1-Gigabit Internet service is likely being offered as an incentive for the FCC to approve its own proposed merger with Comcast competitor DirecTV; the Internet service is offered to residents in a handful of cities at a whopping $100 a month, nearly triple what the company sells it’s basic broadband Internet service for. And while the mayors assert that Google is expanding its Fiber service to more than 30 areas, they fail to note that Google is in preliminary talks with those communities and that the rollout may never happen.

If any providers inspired a broadband speed Renaissance, it was Google Fiber and a handful of gigabit community-owned fiber networks like EPB in Chattanooga, all demonstrating fast speeds and affordable pricing can go hand in hand when your primary interest is serving customers, not shoveling money at shareholders.

Customers who happen to live in the cities below might want to fill the email boxes and melt down the phone lines of these mayors who have demonstrated a willingness to throw their constituents under the bus (Matthew Keys did an exceptional job collecting their contact information).

Feel free to share our fact-based testimony with the mayors and let them know you don’t appreciate the fact they are spending taxpayer time and money advocating for a multi-billion dollar cable merger the majority of Americans oppose. Then remind them if this merger succeeds, you will think of them every time you have a problem with your cable service, when your bill increases, and when you discover Comcast has rationed your use of the Internet with a compulsory usage allowance. Because these problems always come fast and furious with Comcast, let them know you will have no trouble recalling their role in bringing Comcast to town when you go and vote.

Mayor Name
City
State
E-mail
Phone Number
William Bell Birmingham Alabama [email protected] (205) 254-2283
Tom Tait Anaheim California [email protected] (714) 765-5247
Kathleen DeRosa Cathedral City California [email protected] (760) 770-0340
Harry Price Fairfield California [email protected] (707) 428-7400
Acquanetta Warren Fontana California [email protected] (909) 350-7600
Jeffrey Gee Redwood City California [email protected] (650) 780-7597
Steve Hogan Aurora Colorado [email protected] (303) 739-7015
Marc Williams Arvada Colorado [email protected] (303) 424-4486
Richard McLean Brighton Colorado [email protected] (303) 655-2266
Michael Hancock Denver Colorado [email protected] (303) 331-3872
Pedro Segarra Hartford Connecticut [email protected] (860) 757-9500
Cindy Lerner Pinecrest Florida [email protected] (305) 234-2121
Joy Cooper Hallandale Beach Florida [email protected] (954) 457-1318
Alvin Brown Jacksonville Florida [email protected] (904) 630-1776
George Vallejo N. Miami Beach Florida [email protected] (305) 948-2986
John Marks Tallahassee Florida [email protected] (850) 891-2000
Tomas Regalado Miami Florida [email protected] (305) 250-5300
Lori Moseley Miramar Florida [email protected] (954) 602-3142
Buddy Dyer Orlando Florida [email protected] (407) 246-2221
Frank Ortis Pembroke Pines Florida [email protected] (954) 435-6505
Michael Boehm Lenexa Kansas [email protected] (913) 477-7550
Michael Copeland Olathe Kansas [email protected] (913) 971-8500
Kevin Dumas Attleboro Massachusetts [email protected] (508) 223-2222
Gary Christenson Malden Massachusetts [email protected] (781) 397-7000
Michael McGlynn Medford Massachusetts [email protected] (781) 393-2409
Daniel Rizzo Revere Massachusetts [email protected] (781) 286-8111
Albert Kelly Bridgeton New Jersey [email protected] (856)-455-3230
Dana Redd Camden New Jersey [email protected] (856) 757-7200
Frank Nolan Highlands New Jersey [email protected] (732) 872-1224
David DelVecchio Lambert New Jersey [email protected] (609) 397-0110
Gary Passanante Somerdale New Jersey [email protected] (856) 783-6320
Thomas Kelaher Toms River New Jersey [email protected] (732) 341-1000
Eric Jackson Trenton New Jersey [email protected] (609) 989-3030
Richard Berry Albuquerque New Mexico [email protected] (505) 768-3000
Ken Miyagishima Las Cruces New Mexico [email protected] (575) 541-2067
Byron Brown Buffalo New York [email protected] (716) 851-4890
Ernest D. Davis Mount Vernon New York [email protected] (914) 665-2300
Lou Odgen Tualatin Oregon [email protected] (503) 691-3011
Joseph DiGirolamo Bensalem Pennsylvania [email protected] (215) 633-3603
Eric Papenfuse Harrisburg Pennsylvania [email protected] (717) 255-3040
Rick Gray Lancaster Pennsylvania [email protected] (717) 291-4701
Robert A. McMahon Media Pennsylvania [email protected] (610) 566-5210
Michael Nutter Philadelphia Pennsylvania [email protected] (215) 686-2181
C. Kim Bracey York Pennsylvania [email protected] (717) 849-2221
Joseph Riley Charleston South Carolina [email protected] (843) 577-6970
Stephen Benjamin Columbia South Carolina [email protected] (803) 545-3075
Lee Leffingwell Austin Texas [email protected] (512) 974-2250
Beth Van Duyne Irving Texas [email protected] (972) 721-2410
Allen Owen Missouri City Texas [email protected] (281) 403-8500
Leonard Scarcella Stafford Texas [email protected] (281) 261-3900
Matthew Doyle Texas City Texas [email protected] (409) 643-5902

This article updated 8/28 to reflect that Pedro Segarra is the mayor of Hartford, Conn., not Hartford, Colo.

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Stop the Cap! Files Testimony in Opposition to Comcast-Time Warner Cable Merger With FCC

Stop the Cap! completed and today filed a formal submission with the Federal Communications Commission opposing the merger of Time Warner Cable and Comcast.

We joined tens of thousands of filers — mostly consumers — strongly opposed to the merger on the grounds it is not in the public interest.

Earlier today, Consumers Union filed its petition with more than 20,000 signatures of ordinary Americans across the United States who want nothing to do with Comcast.

Back here in New York, Comcast this afternoon filed a response with the Public Service Commission regarding our (and other) submissions opposed to the merger. We will be analyzing and rebutting their response straight away. Comcast went all-out name-dropping people and groups (many with direct, usually undisclosed financial ties to Comcast) to sell New York regulators the theory ‘the groups and people who matter’ are in favor of their merger while those opposed are mostly out-of-state rabble or unsubstantial individuals of few words.

“Given these many concrete benefits, and the lack of any harm to competition or consumers, it should come as no surprise that the overwhelming majority of the substantive comments (approximately 110 out of a total of about 140 substantive comments) filed in this proceeding support Commission approval of the transaction,” writes Comcast.

Comcast did not share their subjective standard of what constitutes “substantive” but a quick review of the groups cited in Comcast’s response show some substantive was involved – a check from Comcast either recently or in the past. Our view is that it doesn’t take more than a sentence to express extreme displeasure about Comcast taking over Time Warner Cable, and those views should matter just as much as a virtual Hallmark card from a group or politician that used a Comcast-provided “template” with a detachable check at the bottom.

Our favorite was Comcast’s highly defensive ‘hey New York PSC, it’s none of your business that Comcast is testing usage caps and you cannot use it against us':

The Writers Guild of America, West, Inc. (“WGAW”), Zephyr Teachout and Tim Wu, and Stop the Cap! argue that Comcast will extend data caps and usage-based pricing to New York to impose restraints on online content and drive up consumer costs.

This broadband-related claim is irrelevant to this proceeding and beyond the Commission’s jurisdiction. Indeed, the FCC expressly approved of usage-based billing in its 2010 Open Internet Order and is again examining the issue in the pending Open Internet rulemaking.

In other words, whether data caps are appropriate is a matter of federal regulatory concern, not one that relates to this proceeding or that is even transaction specific (since nothing precludes TWC from adopting caps at any time, as it has in the past).

So regardless of whether data caps are in the public interest or not, New York should not be allowed to weigh in because former FCC chairman Julius Genachowski said usage based billing could be an innovative way to bill for broadband.

In reality, New York can decide for itself what is in the best interests of its residents, and Time Warner Cable determined what was best after a two-week firestorm in 2009 that taught them compulsory usage caps were a really bad idea. But Comcast isn’t terribly interested in the views of the unsubstantive masses — which is comparable to their attitude toward customers, so no change there. It’s just a free preview weekend of what we all have in store if Comcast takes over.

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Time Warner Cable PlayStation Network Users Can Avoid Future Problems With a DNS Change

Phillip Dampier August 19, 2014 Consumer News, Time Warner Cable 3 Comments

sony-entertainment-networkLate last week, hundreds of thousands of PlayStation Network users subscribed to Time Warner Cable broadband found their game play interrupted by an “outage” that turned out to be a misconfigured domain name service (DNS) update. Whether Sony was responsible for sending bad data or Time Warner Cable had problems properly integrating the changes, gamers were out of luck for hours Friday until a corrected update could be distributed.

The service outage affected customers relying on Time Warner Cable’s own DNS servers. Customers that dropped Time Warner Cable and their DNS provider were back in business almost immediately.

Broadband customers need not rely on the domain name service offered by your provider. Both Google and OpenDNS offer more robust alternatives, and you can make the switch in seconds.

PlayStation Network users: change your PS3 or PS4 Internet connection setting to manual, changing only the DNS server information.

Everyone else: Check your router manual for the address of the configuration menu.

Choose any two out of these four DNS addresses for your primary and secondary entries:

  • Google: 8.8.8.8 and/or 8.8.4.4
  • OpenDNS: 208.67.222.222 and/or 208.67.220.220

 

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Approving Comcast-Time Warner Cable Merger Opens the Door for Massive Cable Consolidation

Liberty Global logo 2012Although Charter Communications did not succeed in its bid to assume control of Time Warner Cable, it isn’t crying about its loss to Comcast either.

Greg Maffei, president and CEO of Liberty Media Corp., which has very close ties to John Malone, former cable magnate, says if the merger between Comcast and Time Warner Cable is approved, it will start a race to merge the rest of the cable industry into just a handful of cable operators serving almost the entire country.

Comcast’s argument is that since it does not compete with Time Warner Cable, there are no antitrust or anti-competitive reasons why it should not be allowed to buy Time Warner Cable. If state and federal regulators believe that, nothing precludes a company like Charter (Liberty has an ownership interest in the cable company) snapping up every other cable operator in the country. In fact, Charter has signaled consolidation is precisely its intention, alerting investors it intends to play a very aggressive role in mergers and acquisitions once it sees what regulators feel about the Comcast-Time Warner deal.

Likely targets for Charter include:

  • Atlantic Broadband
  • CableONE
  • Cablevision
  • Mediacom
  • Midcontinent Communications

Cox remains privately held and Bright House Networks is tied up in contractual obligations with Time Warner Cable.

http://www.phillipdampier.com/video/Bloomberg Maffei Charter Is Logical Acquirer of Cable Assets 8-6-14.flv

Greg Maffei, president and chief executive officer of Liberty Media Corp., talks about the outlook for Charter Communications Inc. and the cable industry. Speaking with Betty Liu on Bloomberg Television’s “In the Loop,” Maffei also discusses the decision by Rupert Murdoch’s 21st Century Fox Inc. to withdraw its $75 billion takeover bid for Time Warner Inc. (5:40)

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  • tacitus: Phillip, as much as I admire your diligence and accuracy when it comes to reporting on the broadband and telecom industry in the USA, you have consist...
  • Dawn Melancon: I own a local business in Corpus Christi , I currently advertise my commercials with all the networks excluding AT&T , if it is available in this ...
  • Melissa: I just called Xfinity to get a quote on switching service. The Xfinity rep was mumbling, kept having to put me on hold to get prices and was unable t...
  • healthy teeth pictures: I am genuinel glad to glance at this web site posts which consists of plenty oof valuable facts, thanks for providing tuese information....
  • Paul Houle: This is one of the reasons why Google is trying to push everybody towards using SSL on web sites; it certainly prevents nonsense like this, even if ...
  • Colin Lord: Comcast is injecting actual ads into my wifi - not just a courtesy to remind me that I'm on Comcast like what Ryan Singel was getting. I've been seein...
  • Nicholas Dunn: I live in Arkansas and it is much the same. Rural area with no competitor and not enough Return on Investment to provide the proper solution in a tim...
  • Aaron: Wow, where do you live? Where I am I can get phone service from Frontier (for good ol' copper landline) or Time Warner Cable ("digital" phone over co...
  • Belinda: Is it against the law if I'm living in an apartment complex who offered free cable to me signing my lease.then a new company bought it and now I'm hav...
  • John Dorian: I disagree that satellite will always have it's downside. the only downside really is greed. I mean give me unlimited internet at 5mps as oppose to...
  • John Dorian: And i'd like to add on that the "fair access policy" the data for that was based on CELL PHONES not on COMPUTERS!...

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