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The Stage Is Set to Kill Telco ADSL: Cable Operators Prepare for DOCSIS 3.1 Competitive Assault

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Next year’s upgrade to DOCSIS 3.1 will support cable broadband speeds up to one gigabit shortly after introduction.

Telephone companies relying on traditional ADSL service to power their broadband offering will likely face a renewed competitive assault in 2016 that will further reduce their already-challenged market share in areas where cable companies compete.

Cable operators are hungry for profitable broadband customers and the best place to find new prospects is at the phone company, where DSL is still a common technology to deliver Internet access. But while cable Internet speeds have risen, significant DSL speed hikes have proven more modest in the residential market.

In 2016, the cable industry intends to poach some of the remaining price-sensitive holdouts still clinging to DSL with revised broadband offers promising more speed for the dollar.

Cable broadband has already proven itself a runaway success when matched against telephone company DSL service. Over the last year, Strategy Analytics found Comcast and Time Warner Cable alone signed up a combined 71 percent of the three million new broadband customers in the U.S.

“Cable operators continue to increase market share in U.S. broadband,” said Jason Blackwell, a director at Strategy Analytics. “Over the past twelve months, Comcast has accounted for 42 percent of new subscribers among the operators that we track.  Fiber growth is still strong, but the telco operators haven’t been able to shake off the losses of DSL subscribers.  In 2016, we expect to see a real battle in broadband, as cable operators begin to roll out DOCSIS 3.1 for even higher speed offers, placing additional pressure on telcos.”

That battle will come in the form of upgraded economy broadband plans, many arriving shortly after providers upgrade to the DOCSIS 3.1 cable broadband platform. Currently those plans offer speeds ranging from 2-6Mbps. Starting next year, customers can expect economy plan prices to stay generally comparable to DSL, with promises of faster and more consistent speeds. A source tells Stop the Cap! at least two significant cable operators are considering 10Mbps to be an appropriate entry-level broadband speed for 2016, in keeping with FCC chairman Thomas Wheeler’s dislike of Internet speeds below 10Mbps.

slowJust a few years earlier, most providers wouldn’t think of offering discounted 10Mbps service, fearing it would cannibalize revenue as customers downgraded to get lower priced service. Increasing demands on bandwidth from online video and multiple in-home users have gradually raised consumer expectations, and their need for speed.

Unfortunately for many phone companies that have neglected significant investment in their aging wireline networks, the costs to keep up with cable will become unmanageable unless investors are willing to tolerate significant growth in capital expenses to pay for network upgrades. Frontier Communications still claims most of their customers are satisfied with 6Mbps DSL, neglecting to mention many of those customers live in areas where cable competition (or faster service from Frontier) is not available.

Where competition does exist, it’s especially bad news for phone companies that still rely on DSL. Earlier this year, Frontier’s former CEO Maggie Wilderotter admitted Frontier’s share of the residential broadband market had dropped to less than 25% in 26 of the 27 states where it provides service. In Connecticut, the one state where Frontier was doing better, its acquired AT&T U-verse system has enabled the phone company to deliver broadband speeds up to 100Mbps. But even those speeds do not satisfy state officials who are seeking proposals from providers to build a gigabit fiber network in a public-private partnership.

DSL speed upgrades have been spotty and more modest.

DSL speed upgrades have been spotty and more modest.

Frontier’s recent experiments with fiber to the home service in a small part of Durham, N.C., and the unintentional revelation of a gigabit broadband inquiry page on Frontier’s website suggests the company may be exploring at least a limited rollout of gigabit fiber service in the state. But company officials have also repeatedly stressed in quarterly results conference calls there were no significant plans to embark on a major spending program to deliver major upgrades across their service areas.

Some phone companies may have little choice except to offer upgrades where cable operators are continuing to rob them of customers. In the northeast, where Frontier has a substantial presence, cable operators including Charter, Comcast and Time Warner Cable are committing to additional speed upgrades. Time Warner Cable’s current standard speed of 15Mbps will rise to 50-60Mbps in 2016, up to ten times faster than Frontier’s most popular “up to” 6Mbps DSL plan.

Most of the broadband customer gains won by Comcast and Time Warner Cable come as a result of DSL disconnects. AT&T said goodbye to 106,000 customers during the third quarter. Verizon managed to pick up 2,000 new subscribers overall, almost all signing up for FiOS fiber to the home service. No cable operator lost broadband market share, reported analyst firm Evercore. Leichtman Research offered additional insight, finding AT&T and Verizon were successful adding 305,000 U-verse and FiOS broadband customers, while losing 432,000 DSL customers during the same quarter.

The message to phone companies couldn’t be clearer: upgrade your networks or else.

Comcast Launches Online Video Service It Exempts from Its Own Data Caps

xfinitylogoComcast is inviting controversy launching a new live streaming TV service targeting cord-cutters while exempting it from its own data caps.

Comcast’s Stream TV is comparable to Comcast’s Limited Basic lineup, only instead of using a set-top box, Stream TV delivers online video over the Internet to Comcast’s broadband customers in Massachusetts, New Hampshire, Maine and the Greater Chicago area. For $15 a month, Stream TV offers a large package of local over the air stations, broadcast networks, and HBO, along with thousands of on-demand titles and cloud DVR storage. In Boston, the lineup includes:

WGBH (PBS), HSN. WBZ (CBS), NECN, WHDH (NBC), Community Programming, BNN-Public Access, WWDP-Evine Live, WLVI (CW), WSBK (MyTV), WGBX (PBS), WBIN (Ind.), WBPX (Ion), WMFP (Ind.), The Municipal Channel, Government Access, WFXT (FOX), WCEA (MasTV), WUNI (Univision), EWTN, C-SPAN, CatholicTV, POP, QVC, WYDN (Daystar), WUTF (UniMas), WNEU (Telemundo), Jewelry TV, XFINITY Latino, WGBH World, WGBH Kids, Trinity Broadcasting Network, WGBH Create, Leased Access, WBIN-Antenna TV, WBIN-GRIT TV, WNEU-Exitos, WLVI-BUZZR, WCVB (Me-TV), WFXT-MOVIES!, WHDH-This TV, WFXZ-CA, WUNI-LATV, WFXZ (Mundo Fox), WBZ-Decades, and WFXT-Laff TV + HBO. The package also qualifies the customer as an authenticated cable TV subscriber, making them eligible to view TV Everywhere services from many cable networks.

stream tv

Comcast is offering the first month of Stream TV for free with no commitment to its broadband customers subscribed to at least XFINITY Performance Internet (or above). Up to two simultaneous streams are allowed per account and some channels may not be available for viewing outside of the home. Comcast claims it will expand Stream TV to Comcast customers nationwide in 2016. Comcast will not be selling the service to customers of other cable or phone companies, limiting its potential competitive impact.

Competitors like Sling TV offer their own alternatives to bloated cable TV subscriptions at a similar lower price, and they will sell to anyone with a broadband connection. Sling alone is partly responsible for Comcast’s loss of hundreds of thousands of cable TV customers who don’t want to pay for hundreds of channels many never watch. That Comcast might want to launch its own alternative online video package to retain customers is not a surprise. But Comcast’s decision to exempt Stream TV from the company’s data caps while leaving them in place for competitors is sure to spark a firestorm of controversy.

comcast_remoteComcast claims it is reasonable to exempt Stream TV from its 300GB data cap being tested in a growing number of markets.

“Stream TV is a cable streaming service delivered over Comcast’s cable system, not over the Internet,” wrote Comcast in its FAQ. “Therefore, Stream TV data usage will not be counted towards your Xfinity Internet monthly data usage.”

More precisely, Comcast claims it relies on its own internal IP network to distribute Stream TV, not the external Internet competitors use to reach ex-Comcast cable TV subscribers. Comcast’s premise is it is less costly to deliver content over its own network while Internet traffic comes at a premium. Critics will argue Comcast has found an end run around Net Neutrality by relying on usage caps to influence customer behavior.

For the moment, Netflix is reserving comment after being contacted by Ars Technica. But Sling TV and other services that depend on Comcast’s broadband to reach customers will likely not remain silent for long.

Comcast could effectively deter consumers from using competing online video services with the threat of overlimit fees if customers exceed their usage allowance. The cable company could even use the fact its services don’t count against that allowance as a marketing strategy.

Stop the Cap! has warned our members about that prospect for years. Preferential treatment of certain content over others by playing games with usage caps and overlimit fees could have a major impact on emerging online video competition. Since Comcast owns both the broadband lines and the online video service, it can engage in anti-competitive price discrimination. Competitors will also argue that Comcast’s internal IP network is off-limits to them, making it impossible to deliver content on equal terms over a level playing field.

stream simple

The next move will likely come from the FCC in response to complaints from Comcast’s competitors. As Ars Technica notes, the Federal Communications Commission’s Net Neutrality rules allow for complaints against so-called zero-rating schemes, with the commission judging on a case-by-case basis whether a practice “unreasonably interferes” with the ability of consumers to reach content or the ability of content providers to reach consumers.

With Comcast’s usage caps and overlimit fees, the only reaching will be for your wallet. Consumers need not wait for Sling TV and others to complain to the FCC. You can also share your own views about Comcast’s usage caps by filing a complaint with the FCC here.

Four Red States Launch Coordinated Attack on Municipal/Public Broadband in Advance of FCC Hearing

Gov. Haslam

Gov. Haslam

Top officials of four southern states are coordinating efforts with Republican House members to oppose the Federal Communications Commission’s preemption of state laws that restrict or prohibit municipal/public broadband competition.

South Carolina Governor Nikki Haley, Tennessee Governor Bill Haslam, Alabama Attorney General Luther Strange, and Tennessee Attorney General Herbert Slattery have all backed efforts by House Republicans to curtail the regulatory powers of the FCC, claiming states’ rights should have precedence over the federal regulator. All four have sent letters to the House Energy & Commerce Committee putting their opposition on paper.

In 2014, FCC chairman Thomas Wheeler announced the FCC would seek to preempt state laws in North Carolina and Tennessee that severely restrict the development of broadband networks owned or controlled by municipalities and public utilities. The laws typically allow existing municipal networks to continue operating, but prohibit expansion beyond a pre-defined service area. Networks planning to launch after the laws took effect usually face onerous conditions and disclosure requirements that make many untenable. Large incumbent cable and phone companies were exempted from the law.

Wheeler’s efforts came in response to requests from community broadband providers seeking to deliver service to expanded service areas. The debate has put several local governments and utilities in an uncomfortable position of opposing their colleagues in state government.

In North Carolina, Attorney General Roy Cooper has taken the FCC to court in a petition to the U.S. Court of Appeals for the Fourth Circuit.

“Despite recognition that the State of North Carolina creates and retains control over municipal governments, the FCC unlawfully inserted itself between the State and the State’s political subdivisions,” Cooper wrote to the court. Cooper says the FCC’s actions are unconstitutional and exceeds the commission’s authority; “is arbitrary, capricious, and an abuse of discretion within the meaning of the Administrative Procedure Act; and is otherwise contrary to law.”

comcast attMuch of the opposition to municipal broadband comes from Republican politicians on the state and federal level. Most claim municipal providers represent unfair competition to the private sector. The American Legislative Exchange Council (ALEC) considers municipal broadband a significant issue. The corporate-funded group offers state legislators the opportunity to meet with telecom company lobbyists. Legislators are also provided already-written sample legislation restricting municipal broadband developed by ALEC’s telecom company members, including AT&T, Comcast, and Time Warner Cable. In states where Republicans hold the majority in the state legislature, such bills often become law.

The FCC represents a serious threat to the telecom company-sponsored broadband legislation. Instead of debating the impact of the law on unpopular phone and cable companies, the four state officeholders claim the dispute is a battle pitting states’ rights against the powers of the federal government.

Haslam, who also serves as the national chairman of the Republican Governors Association, formally asked Congress to intervene against the FCC to protect state sovereignty. In a separate appeal to the FCC, Tennessee officials argued the FCC violated the country’s founding concept of separation of state and federal power, citing the 10th Amendment to the Constitution reserving power not delegated to the United States for the states respectively, or to the people.

Haslam’s critics contend the governor has delegated his own power to protect the interests of large telecommunications corporations operating in his state — companies the critics claimed wrote and lobbied for a state law that established anticompetitive broadband corporate protectionism in Tennessee. Among Haslam’s top campaign contributors are AT&T and Comcast — Tennessee’s two largest telecommunications companies.

Gov. Haley

Gov. Haley

Slattery, appointed by the Tennessee Supreme Court, argued in his letter to Congress the FCC lacked any authority to circumvent Tennessee state law.

The FCC has consistently claimed it is not overturning any state laws. Instead, it is performing its duties under its mandate.

The FCC cites Section 706 authority to regulate when broadband is not being deployed in a reasonable and timely manner, something that cannot happen if a state law impedes new competitors and entrants.

Alabama’s attorney general joined the fight in a brief to the Sixth Circuit opposing preemption, with a copy sent to the House Subcommittee on Communications and Technology, which is planning to hold a hearing on the matter. Alabama has several municipal and public utility networks operating in the state. AT&T and Comcast also serve large parts of Alabama. AT&T gave $11,000 to Strange’s campaign, Comcast sent $8,500. The Koch Brothers, fierce opponents of community broadband, also donated $10,000 to Strange through Koch Industries.

South Carolina Governor Nikki Haley told legislators she strongly opposes external entities like the FCC overreaching into her state’s business. She did not mention AT&T is her fifth largest contributor, donating more than $16,000 to her last campaign. South Carolina’s largest cable operator is Time Warner Cable. It donated $9,900 to the governor’s campaign fund.

Comcast Steamrolls Arkansas, Louisiana, Tenn. and Virginia With More Usage Caps Starting 12/1

comcast gunComcast is accelerating its rollout of compulsory usage caps, adding new markets in the southern U.S. to its three-year old “trial” of what it calls its “data usage plan.” DSL Reports received a tip Comcast is now sending e-mail to affected customers.

Little Rock, Ark., Houma, LaPlace, and Shreveport, La., as well as Galax, Va., will be treated to Comcast’s 300GB usage cap with a $10 per 50GB overlimit fee beginning Dec. 1. These three states join Florida, Alabama, Kentucky, Georgia, Maine, Mississippi, South Carolina and Arizona, which now face Comcast’s form of usage rationing.

In Tennessee, Comcast is introducing its 300GB cap in Johnson City, Gray, and Greenville. The cable operator is also risking customers by introducing caps in Chattanooga, where it already faces serious competition from gigabit provider EPB, which has no usage limits, and AT&T U-verse, which doesn’t dare enforce its own 250GB cap.

Comcast began rapidly expanding its usage cap trial this fall, with new markets being announced for usage limits about once a month.

Chattanooga resident Ron Rogers called to cancel his Comcast service this afternoon. He’s giving up a good promotional discount Comcast offered to keep him a customer back in January and is headed to EPB Fiber.

“This was the last straw for Comcast,” Rogers tells Stop the Cap! “I am tired of being abused by these people. They must be crazy to think anyone who seriously uses the Internet is going to tolerate this when there are two other providers smart enough to realize usage caps are ridiculous in this day and age. Comcast can shove it.”

data trialsComcast’s spreading usage caps are not popular with customers. Within hours of the news Comcast would be expanding its cap “trial,” more than 900 negative comments appeared on Reddit slamming the company.

“It is just staggering that despite all the bad press, publicity and truly awful service, Comcast is actually taking calculated measures to make things worse,” wrote one Reddit commenter.

Comcast’s frequent defense of its usage plan is that the majority of its customers will never be affected by it, consuming less than 40GB a month. But those with experience living under Comcast’s cap tell Stop the Cap! anyone playing downloadable video games or using online video are at serious risk of being charged penalty overlimit fees.

“It is very easy to hit 100GB just downloading game updates and if you watch your shows online, you will come uncomfortably close to the cap,” said Pat Kershaw in Kentucky. “Leaving a live video stream running overnight one night by mistake after I fell asleep meant a Netflix-free weekend for me last month, because it would have put me past my allowance. Hulu’s autoplay feature is also very dangerous.”

courtesy-noticeHans says any household with kids will quickly learn Comcast isn’t being honest claiming usage caps only affect a “few customers” after they start getting warning messages injected into their web browser.

“What is worse is every time I call support about the messages that I am getting on the 18th of the month because I have already burned through my limit with my kids watching all their online content, support keeps putting me back on the queue for the next person or dropping the line,” Hans writes. “No one wants to deal with it!”

Those web warning messages also become intrusive for many customers, because some claim they never go away until the end of the billing cycle.

“I made sure to go over the 300GB cap this month to see what would happen and I received a phone call telling me I’ve went over and now I receive a popup from Comcast on my computer about every 30 seconds telling me I’ve went over as well,” writes Gldoorii. “The popups never stop. I have to deal with them until the end of the month as they keep interrupting my work.”

Other Comcast customers have grown suspicious about the company’s usage measurement tool, which in some cases reported spikes in usage only after the cap began to be enforced.

comcastdatausagemeter“I checked my data usage on Oct. 21 and it said I only used 162GB,” writes Sharon. “I even have [a screenshot] and saved it as I had a feeling Comcast would pull something. [On] Oct. 23, I had a pop-up on my computer that says ‘you have used 292 of 300GB’ and I went to the data usage and it shows that. Nobody in my house downloaded any huge files the past two days. So, is Comcast artificially pumping up our usage to make us go over or what? It is impossible that I only used 162GB for 21 days and then used 130GB the past two days.”

Sharon is lucky her usage meter is working. Other customers report Comcast’s meter often stops working for weeks.

“My data usage meter still does not work and it has been 19 days,” says Gldoorii. “No chat or support person has been able to figure out why it doesn’t work and that I need to call or chat whenever I want to ask what my usage is.”

Customers who want out also get the Comcast treatment as they head for the exit.

“We were charged a $150 early termination fee because Comcast does not consider imposing a usage cap to be a material change to our contract, which is unbelievable,” writes Anna Lu in Ft. Lauderdale. “These guys are nothing less than crooks and they only forgave it after my roommate complained to the Better Business Bureau. They said they were doing us a favor forgiving the charge. No wonder everyone hates Comcast.”

But not everyone is unhappy about Comcast’s usage caps.

“Our call center volumes are way up ever since Comcast brought caps to Atlanta and Florida,” reports an AT&T sales representative who agreed to talk to Stop the Cap! if we kept his identity private. “It’s common knowledge we do not enforce any caps on U-verse although we cannot tell customers that officially, but most never even ask. We’re signing up ex-Comcast customers right and left. They are not happy we cannot give them the same speeds Comcast does, but they won’t have to worry about a cap from us, at least for now.”

Other customers are waiting impatiently for Google Fiber or other competitors.

“In Atlanta Comcast now offers an unlimited data option add on to your plan for additional $35,” writes a customer on Comcast’s support forum. “So now we get to pay over $100 for 25Mbps service whereas Google Fiber [in] Atlanta [charges] $70 for one gigabit service and no data cap.”

In July, Comcast CEO Brian Roberts downplayed the impact of the company’s usage caps with investors, suggesting some customers actually supported the usage plans.

“We do have a few trials going on in different markets,” Roberts said. “The responses have been neutral to slightly positive. We don’t have any plans on expanding that to other market/bases anytime soon.”

Corporate Puppets on Parade: Mercatus Center Writer’s Ridiculous Ranting for Usage Caps Debunked

att string puppetOnce again, a writer from the corporate-funded Mercatus Center is back to shill for the telecom industry.

Eli Dourado landed space in Slate to write a ridiculous defense of Comcast’s expanding trials of usage caps. When we first read it, we assumed a Comcast press release somehow managed to find its way into the original article. It quickly became impossible to discern the difference.

Before we take apart Mr. Dourado’s nonsensical arguments, let’s consider the source.

Sourcewatch calls Mercatus one of the best-funded think tanks in the United States. And why not. Its indefatigable advocacy of pro-corporate policies is legendary. The Center itself was initially funded by the Koch Brothers to advocate against consumer protection and oversight and for deregulation.

With that kind of mission and money, it’s no surprise the authors coming out of Mercatus are in rigid lock-step with the corporate agendas of Comcast, AT&T, and other large telecom companies. The Center is also a friend of the American Legislative Exchange Council (ALEC), a group that counts Comcast and AT&T as dues-paying members. ALEC’s corporate members ghostwrite legislation that ends up introduced in state legislatures across the country.

We have never seen a Mercatus-affiliated author ever write a piece that runs contrary to the interests of Big Telecom companies. They oppose community broadband competition, Net Neutrality, and have defended wireless mergers that would have killed T-Mobile, turn Time Warner customers into Comcast customers, and believed AT&T’s buyout of DirecTV was just dandy and Charter’s buyout of Time Warner Cable is even more consumer-y.

They favor usage caps/usage pricing, defend higher bills, and laughingly claim Americans are probably underpaying for broadband compared to the rest of the world.

Life must be good on Broadband Fantasy Island, where those in favor of Comcast’s usage pricing experiments live. In a style that eerily resembles a Comcast corporate blog post, Dourado unconvincingly tells readers, “metered data is good for most consumers and for the Internet.”

Dourado’s defense of Comcast’s idea of reasonable pricing only had one slip-up, when he accidentally told the truth. He effectively derailed Comcast’s usual talking point that “it is only fair for heavy users to pay more” when he correctly noted, “broadband networks are composed almost entirely of fixed costs—costs that don’t vary very much with usage.”

two peas

(Image: Jacki Gallagher)

That ripping sound you hear is a corporate executive starting to tear up their contribution check to Mercatus Center for being off message. But hang on, Mr. Corporate Guy, Mercatus Center has always had your back before, let’s see if Dourado can pull his feet out of the fire.

“But when users pay for data use, cable companies have an incentive to make it easier than ever to use a lot of data—that is, to invest in speed upgrades. They want you to blow right by your habitual usage amounts, which you will probably do only if you are on a superfast connection. In this way, metered data encourages broadband network upgrades,” Dourado claims, back on message.

Dourado’s core argument is one we’ve heard from telecom companies for years: heavy users are responsible for the allegedly high fixed costs of delivering broadband to America. Because networks must be built to accommodate all users, those ‘data hogs’ force providers to charge top dollar to everyone to assure access to promised speeds, unfairly penalizing light users like grandma along the way just to satiate someone else’s desire for more downloading.

comcast money pileIf that were true, broadband costs everywhere would be around the same and Frontier’s DSL service wouldn’t be so universally awful. Unfortunately for Dourado’s argument, we have the ability to look at broadband pricing and service quality beyond the monopoly/duopoly marketplace we have in North America. Fixed costs to deliver broadband service here are comparable in western Europe and Asia and somehow they manage to do a lot more for a lot less.

Closer to home, newly emerging competitors like Google Fiber, municipal/community broadband, and private overbuilders like Grande Communications and WOW! also manage to deliver more service for less money, without any need to gouge and abuse their customers. The fact Time Warner Cable, Verizon, Charter and Bright House have seen no need to impose compulsory usage caps or usage pricing (AT&T does not enforce their cap on U-verse service either) and also do business in the same states where Comcast is imposing caps is just the first of many threads that unravel Dourado’s poorly woven argument.

Let’s break Dourado’s other arguments down:

Phillip Dampier

Phillip Dampier

Dourado’s Claim: “Broadband networks are composed almost entirely of fixed costs—costs that don’t vary very much with usage. Cable companies have to spend many billions of dollars to build and maintain their networks whether or not we use them. One way or another, users of the network have to collectively pay those billions of dollars.”

Stop the Cap!: This is true, but Mr. Dourado forgets to mention most of the costs to construct those networks were paid off years ago. DSL and fiber to the neighborhood services avoided incurring the most costly part of network construction — wiring the last mile to the customer’s home. Phone company broadband, excepting Verizon’s complete fiber-to-the-home service network overhaul, benefits from the use of an existing copper-based network built and paid for long ago to deliver basic telephone service.

The cable industry did even better. It used the same fiber-coax network last rebuilt in the early/mid-1990s to deliver more television channels to also deliver broadband, which initially took up about as much space as just one or two TV channels. The cable industry introduced broadband experimentally, spending comparatively little on network upgrades. This was important to help overcome skepticism by corporate executives who initially doubted selling Internet access over cable would ever attract much interest. It shows how much they know.

So while it is true to say the telecommunications industry spent billions to develop their infrastructure, for most it was primarily to sell different services — voice grade telephone service and cable-TV, for which it received a healthy return. Selling broadband turned out to be added gravy. For a service the cable industry spent relatively little to offer, it collected an average of $30 a month in unregulated revenue. That price has since doubled (or more) for many consumers. Cost recovery has never been a problem for companies like Comcast.

In 2014, Techdirt showed broadband investment wasn't increasing at the rate the cable industry claimed. It has been flat, and not because of broadband usage or pricing.

In 2014, Techdirt showed broadband investment wasn’t increasing at the rate the cable industry claimed. It has been largely flat, and not because of broadband usage or pricing.

It is easy for providers to show eye-popping dollar amounts invested in broadband improvements. Most providers routinely quote these numbers to justify just about everything from rate increases to further deregulation. When the numbers alone don’t sufficiently sell their latest argument, they lie about them. Adopting any pro-consumer policy like Net Neutrality or a ban on usage pricing would, in their view, “harm investment.” Only it didn’t and it won’t.

What these same providers never include on those press releases are their revenue numbers. Placed side by side with capital expenses/infrastructure upgrades, the clarity that emerges from showing how much providers are putting in the bank takes the wind right out of their sails. It turns out most providers are already earning a windfall selling unlimited broadband at ever-rising prices, while network upgrade expenses remain largely flat or are in decline. In short, your phone or cable company is earning a growing percentage of their overall profits from the sale of broadband, because they are raising prices while also enjoying an ongoing decline in the cost of providing the service. Despite that, they are now back for more of your money.

Dourado’s basic argument is the same one providers have tried for years — attempting to pit one customer against another over who is responsible for the high cost of Internet access. They prefer to frame the argument as “heavy users” vs. “light users.” Hence, it is isn’t fair to expect grandma to pay for the teen gamer down the street who also enjoys BitTorrent file sharing. Their hope is that the time-tested meme “someone is getting a free ride while you pay for it” will act like shiny keys to distract people from fingering the real perpetrator of high pricing — the same phone and cable companies laughing all the way to the bank.

It’s easy to prove and we’ve done it here at Stop the Cap! since 2008.

bullWe have a BS detector that never fails to uncover the real motivation behind usage pricing. It’s simply this. If a provider is really in favor of usage billing, then let’s have a go at it. But it must be real usage pricing.

Here’s how it works. Just as with your electric utility, you will pay a monthly connection/facilities charge to cover the cost of the transport network and infrastructure, typically $15 or less per month (and it should be less because utilities have to maintain physical meters that cable and phone companies don’t). Next come usage charges, and because the industry seems to have adopted AT&T’s formula, we will use that.

Your broadband will now cost $15 a month for the connection charge and usage pricing will amount to $10 for each 50GB increment of usage. Because even Mr. Dourado admits there is no real cost difference supplying broadband at different speeds, you deserve the maximum. If you turn in average usage numbers, you will have consumed between 50-100GB each month. So your new broadband bill will be $25 if you consume 50 or fewer gigabytes, $35 if you consume between 50-100GB. Deal?

Considering what you are probably paying today for Internet access, you will fully understand that howling sound you hear is coming from telecom company executives screaming in opposition to fair usage pricing. That is why no provider in America is advocating for fair usage pricing. In reality, they want to charge current prices –and– impose an arbitrary usage allowance on you, above which they can begin to collect overlimit penalty fees. It’s just another rate hike.

Dourado is stuck with a bad hand trying to play the second part of the “usage pricing fairness” game. While claiming heavy users should be forced to pay more, he is unable to offer a real example of light users paying substantially less.

bshkAt this point, Dourado’s proverbial pants fall off, exposing the naked reality that few, if any customers actually pay less under usage pricing. That is because providers are terrified of the word “cannibalization.” In the broadband business, it refers to customers examining their options and downgrading their service to a cheaper-priced plan (shudder) that better reflects their actual usage. To make certain this happens rarely, if ever, Comcast offers customers scant savings of $5 from exactly one “Flexible Data Option” available only to those choosing the improbable Economy Plus plan, which offers just 3Mbps service. Customers agree to keep their usage at or below 5GB a month or they risk an overlimit fee of $1 per gigabyte. It’s like Russian Roulette for Bill Shock. Where can we sign up?

In fact, Time Warner Cable has already admitted a similar plan open to all of its broadband customers was a colossal flop, attracting only “a few thousand” customers nationwide out of 15 million qualified to choose it. We suspect the number of Comcast customers signed up to this “money-saving plan” is probably in the hundreds. Time Warner was smart enough to realize forcing customers into a massively unpopular compulsory usage plan would make them a pariah. For Comcast, “pariah” is a matter of “same story, different day.” Alienating customers is their specialty and despite growing customer dissatisfaction, executives have ordered all ahead full on usage pricing.

Dourado also can’t help himself, getting his own cheap shot in at government-mandated Lifeline-like discounts designed to make Internet access more affordable, calling it a “tax and spend program.” He omits the fact Comcast already offers its own affordable Internet plan voluntarily. But mentioning that would further undercut his already weak argument in favor of usage pricing.

Dourado: “If everyone paid equal prices for unlimited data plans, cable company revenues would be limited by the number of people willing to pay that equal rate.”

Stop the Cap!: Providers have already figured out they can charge higher prices for all sorts of things to increase revenue. General rate increases, modem fees, and charging higher prices for faster speeds are also proven ways companies are earning higher revenue from their existing customers.

Dourado: “But when users pay for data use, cable companies have an incentive to make it easier than ever to use a lot of data—that is, to invest in speed upgrades. They want you to blow right by your habitual usage amounts, which you will probably do only if you are on a superfast connection. In this way, metered data encourages broadband network upgrades.”

comcast whoppersStop the Cap!: Nice theory, but companies like Comcast have found an easier way to make money. They simply raise the price of service. Dourado should learn more about the concept of pricing elasticity. Comcast executives know all about it. It allows them, in the absence of significant competition, to raise broadband prices just because they can and not risk significant customer number defections as a result.

After they do that, the next trick in the book is to play games with usage allowances to expose more customers to overlimit fees or force them into more expensive usage plans. In Atlanta, Comcast even sells its own insurance plan to protect customers… from Comcast. For an extra $35 a month, customers can avoid being molested by Comcast’s arbitrary usage allowance and overlimit fees and get unlimited service back. As customers rightfully point out, this means they are paying $35 more a month for the same service they had just a few months earlier, with no improvements whatsoever. Is that innovative pricing or highway robbery?

What inspires companies to raise speeds and treat customers right is competition, something sorely lacking in this country. Just the vaguest threat of a new competitor, such as the arrival of Google Fiber was more than enough incentive for companies to begin investing in waves of speed upgrades, bringing some customers gigabit speeds. Usage pricing played no factor in these upgrades. The fact a new competitor threatened to sell faster Internet at a fair price (without caps) did.

Dourado: “The DOCSIS 3.1 cable modem standard, just now being finalized, will allow downloads over the existing cable network up to 10 Gbps (10 times faster than Google Fiber). Cable companies are now facing a choice as to how fast to roll out support for DOCSIS 3.1. As the theory predicts, Comcast, now experimenting with metering, is planning an aggressive rollout of the new multi-gigabit standard.”

Stop the Cap!: While Dourado celebrates Comcast’s achievements, he ignores the fact EPB Fiber in Chattanooga offers 10Gbps fiber broadband today, charging the same price Comcast wants for only 2Gbps service, and does not charge Comcast’s $1,000 installation and activation fee. EPB did not require the incentive of usage billing or caps to finance its upgrade. Dourado also conveniently ignores the fact almost every cable operator, many with no plans to add compulsory usage caps or usage pricing, are also aggressively moving forward on plans to rollout DOCSIS 3.1. It’s more efficient, allows for the sale of more profitable higher speed Internet tiers, and is cost-effective. Some companies want the right to gouge their customers, others want to do the right thing. Guess where Comcast fits.

Usage Cap Man

Usage Cap Man

Dourado: “It’s not fun to continually calculate how much you are spending. But we all gladly accept metering for water and electricity with no significant mental accounting costs—why should broadband be so different? Both Comcast and Cox make it easy to track usage. And even if we can’t just get over our mental accounting costs, are they really so significant that we should cite them as an excuse for keeping the poor and elderly offline and letting our broadband networks stagnate?”

Stop the Cap!: Assumes facts not in evidence. First, once again Mr. Dourado’s talking points come straight from the cable industry and are fatally flawed. While Dourado talks about usage pricing for water and electricity — resources that come with the added costs of being pumped, treated, or generated, he conveniently ignores the one service most closely related to broadband – the telephone. The costs to transport data, whether it is a phone call or a Netflix movie, have dropped so much, phone companies increasingly offer unlimited local -and- long distance calling plans to their customers. When is the last time anyone bothered to think about calling after 11pm to get the “night/weekend long distance rate?” For years, broadband customers have not had to worry how much a Netflix movie will chew through a broadband usage allowance either. But now they might, because the cable industry understands that Netflix viewer may have cut his cable television package, cutting the revenue the cable company now wants back.

Second, heavy Internet users are not the ones responsible for keeping the poor and elderly offline and allowing broadband infrastructure to stagnate. The blame for that lies squarely in the executive suites at Comcast, AT&T and other telecom companies that make a conscious business decision charging prices that guarantee better returns for their shareholders (and their fat executive salary and bonuses).

But it isn’t all bad news.

Comcast’s Internet Essentials already exists today and is priced at $9.95 a month. Only Comcast’s revenue-cannibalization protection scheme keep it out of the hands of more customers. It limits the program to customers with school age children on the federal student lunch program and is off-limits to existing Comcast broadband customers even if they otherwise qualify. Why? Because if the program was available to everyone, it would quickly cut their profits as customers downgraded their service.

Comcast’s abysmal performance is legendary, and that isn’t a result of heavy users either. That is entirely the fault of a company that puts its own greed ahead of its alienated customers, something plainly clear from forcing captive customers into usage trials they don’t want or need. Verizon FiOS uses technology far superior to what Comcast is using, offers better speeds and better service. Customers are happy and routinely rate FiOS among the nation’s top providers. They don’t need usage pricing or caps to manage this. Comcast sure doesn’t either.

Mr. Dourado’s arguments for usage pricing are so weak and provably false, it is almost embarrassing. But we understood he was given the impossible challenge trying to mount a defense for Comcast’s latest Internet Overcharging scheme. Nobody can defend the indefensible.

Municipal Provider EPB Introduces Chattanooga to 10Gbps Residential Broadband: $299 a Month

nextnetThe first provider in the country to offer community-wide gigabit fiber broadband to residential customers today announced it would far surpass the rest of the marketplace with a new 10 gigabit broadband package dubbed NextNet, available throughout the Chattanooga, Tenn. service area of municipal utility EPB for $299 a month.

“Five years ago, Chattanooga and Hamilton County became the first in the United States to offer up to 1 Gig Internet speeds,” said Harold DePriest, president and CEO of EPB. “Today, we become the first community in the world capable of delivering up to 10 Gigs to all 170,000 households and businesses in our service area.”

Its largest competitor — Comcast, charges $299 for up to 2Gbps service in limited service areas, if the customer can wait 6-8 weeks for installation, can afford up to $1,000 in activation and installation fees, and can commit to a two-year contract with a steep early termination fee. EPB will offer its five-times-faster-than-Comcast service to any customer with no lengthy waiting period, no contract, and free installation.

EPB will leverage Alcatel-Lucent’s TWDM-PON broadband technology to deliver scalable fiber broadband, and is also introducing 5 and 10Gbps plans for small businesses and 3, 5, and 10Gbps plans for larger commercial customers. Customers will receive an ONT unit installed by technicians about two weeks before installation is complete. The box, about the size of a DVD player, is required to support the new high speeds. It is usually mounted on a wall near the computer.

“Chattanooga’s 10 Gig fiber optic network is a world-class platform for innovation,” DePriest said. “In recent years, the need for faster Internet speeds has increased rapidly. Chattanooga is the perfect place for companies to enhance their productivity today and test the applications everyone in the country will want tomorrow.”

Despite detractors that claim municipal/public broadband services are economic failures waiting to happen, EPB has delivered tangible economic benefits across the Chattanooga region and is now recognized internationally as one of the country’s most successful public broadband projects.

A study recently released by University of Tennessee at Chattanooga Finance professor Bento Lobo shows “the Gig Network” helped the Chattanooga area generate at least 2,800 new jobs and at least $865.3 million in economic and social benefits. The study also found the EPB smart grid, which is the cornerstone application of the utility’s community-wide fiber optic network, has allowed customers to avoid an estimated 124.7 million minutes of electric service interruptions by automatically re-routing power (often in less than a second) to prevent an outage or dramatically reduce outage duration.

EPB has proven so successful, it has attracted visitors from around the world to study how community fiber broadband can transform a local economy.

Comcast Usage Cap Gouging Experiments Continue: New $35 Unlimited Option Add-on for Atlanta

The Don't Care Bears

The Don’t Care Bears

Comcast customers running into Comcast’s experimental 300GB usage cap in Atlanta can now buy their way out of overlimit fees, but it will cost you $35 a month — $5 more than what Comcast’s customers in Florida pay for the same reprieve.

Do You Want Unlimited Data?
Now You Can Get It.

We’re trialing a new Unlimited Data option for XFINITY Internet customers in your area. You can now get unlimited data for an additional fee of $35 per month, rather than paying $10 for each 50 GB provided over your current 300 GB monthly data plan. Enrolling in this option goes into effect on the first day of the next calendar month, so as early as November 1, 2015.

If you typically use more than your data plan, you can select our Unlimited Data option and never worry about unexpected data overages again. Take a look at your recent monthly usage with our usage meter, and see if the Unlimited Data option is right for you. Want more information about unlimited data such as how to sign up?
Click here to learn more.

Please note that this is a consumer trial. Comcast may modify or discontinue this trial at any time. However, we will notify you in advance of any such change.

Stop the Cap! reader Paul sent along a copy of the Comcast e-mail noted above.

Of course Comcast customers want unlimited data in return for the very substantial amount of money they pay the cable company each month for the service. But it is unlikely Comcast will find many customers satisfied with the prospect of paying $35 more to get back the same Internet service they used to receive before Comcast unilaterally imposed a usage cap on them.

Comcast is testing different usage caps and price points to determine which are the most palatable to customers, with the likely aim of imposing their caps on every Comcast customer in the country.

Customers can make it clear to Comcast the only acceptable option is NO USAGE CAPS and NO USAGE BILLING:

  1. Inform Comcast you are shopping for another provider and will switch companies over the issue of usage caps.
  2. Send a complaint to the FCC letting them know you strongly oppose Comcast’s usage caps.
  3. File a complaint with the Better Business Bureau, especially if you incurred overlimit fees on your bill.

Miami Vice: Florida Comcast Customers Furious About New Data Caps, $30 Fee to Avoid Them

comcastRicardo Bolán was not happy while reading his latest Comcast bill informing him he was about to be included in Comcast’s creeping trial of usage caps, which has slowly spread across the cable company’s service areas in the south and western U.S.

“Customer service said we were one of the communities ‘opting in’ to Comcast’s data usage plan, which is their way of saying Comcast forced it on us,” said Bolán, who lives in Hialeah, Fla.

Several South Florida customers are writing Stop the Cap! to complain about Comcast’s Oct. 1 imposition of a 300GB usage cap on its broadband service. Customers exceeding their allowance will now pay $10 in overlimit fees for each 50GB increment.

“Comcast’s usage meter hasn’t reliably worked down here for weeks, so you are flying blind over how much data you are using, and we’re talking about Comcast, so who can trust them?,” said Dave — a Stop the Cap! reader in Miami Beach. “I guess it’s back to AT&T.”

When the usage tool does work, some customers claim their reported usage levels suddenly doubled or tripled after Comcast’s usage cap started.

miami vice“Since this new data plan trial for Florida went into effect, I decided to check my usage,” Batchman27 wrote on Comcast’s support forum. “I am at 11GB in one day. I looked back at my usage for the past three months (July 1-Sept 30) and my average for those 92 days was 5.86GB per day. I find it very odd and extremely convenient that my usage [nearly doubled] on the day this ‘trial’ began.”

Over the next several days, his usage stayed consistently at or above 11GB a day.

“At this rate, I will exceed the 300GB before the end of the month and will be billed for the additional blocks of data (note: my highest usage during those three months was 202GB in August),” he added.

Another customer has had to banish Netflix, Hulu, and all other subscription video services from his home because they make all the difference whether or not his family of four will face overlimit bill charges and bill shock from Comcast.

“It’s no surprise what they are targeting with these caps,” said Austin Chilson. “If you watch Netflix or Hulu on a regular basis, 300GB is not enough. Netflix alone is responsible for about 17GB of video usage during the first three days of the month, and we were gone most of the day on Saturday the 3rd.”

Another customer echoes Chilson.

Comcast-Usage-Meter“I feel like we’re a pretty average family of four,” GuitarManJonny wrote Oct. 2 on Comcast’s support forum. “Of course we stream Netflix and we do a little downloading although nothing approaching what I’d consider excessive (no torrents, for example) and I have gone over the limit every month since July. I’m already at 13GB for this month, so it’s a pretty safe bet that I will go over again.”

Florida customers have an option other Comcast customers do not — a way back to unlimited usage by paying an extra $30 for an “unlimited use option.”

That seemed to only infuriate customers more.

“It’s amazing that a cap is being turned on and yet I’m asked to pay the same amount that I have been for unlimited and then being asked to pay MORE to continue the same plan I’m on now,” writes Gldoori. “It’s also ironic that I get the ‘We’re sorry. We can’t load your Internet usage meter right now’ [error message] when I try to monitor my usage on the website.”

“I’ll be cancelling my TV and home phone with them in a couple of months when my plan expires and then dropping my Internet speed to fit a “need” rather than a “want,” Gldoori wrote. “I’m not paying $30 more (for unlimited) just to have the same Internet plan I’ve been paying for already.”

A Comcast spokesperson tried to defend the implementation of usage caps in Miami-Dade, Broward and the Florida Keys by suggesting almost none of their customers will be impacted by it.

“To put things in perspective, 300 GB is an extremely large amount of data to use,” Comcast Florida spokeswoman Mindy Kramer told the Miami Herald. “The median data use for our customers is 40GB per month; about 70 percent of our customers use less than 100GB per month. About 92 percent of our customers will see absolutely no impact on their monthly bills.”

Kramer claims the new usage caps are about fairness.

reached 100“Our data plan trials are part of our ongoing effort to create a fair, technologically-sound policy in which customers who use more data pay more, and customers who use less pay less,” Kramer said.

Except no customers are paying less. Comcast’s broadband rates have not changed as a result of the market trials, only a usage cap was introduced.

In other cities living under Comcast’s usage caps, the first notice many customers take of the new caps comes in the form of a much higher bill. Clark Howard, a consumer reporter for WSB-TV in Atlanta, has heard from local residents reporting serious bill spikes if they ignored Comcast’s warning or failed to curtail their usage.

Another reader in South Florida reports Comcast does inform Floridians when their usage allowance runs out, including automated phone calls and a browser-injected warning message appearing on all non-https websites when a customer reaches 80 and 100% of their monthly allowance. Once that allowance is exceeded, your Internet will not stop working. Comcast will instead add $10 for each additional 50GB you use until the end of your billing cycle.

comcast cartoon“There is no way to opt out of accruing overlimit fees and when the usage tool is down, you have no idea what your bill will look like,” said Bolán. “To keep this in perspective, if you manage to use 500GB in a month, the overlimit fee will add $40 to your bill. If you cut your cable TV and watch Hulu and Netflix, that kind of usage is not surprising.”

Chilson’s parents have been impacted by Comcast’s usage caps in another way — they are having trouble selling their home because Comcast is the only service provider. AT&T isn’t providing U-verse service to several homes on the street, including theirs.

“The realtor reports would-be buyers are shying away because they don’t like the Internet options, which are Comcast, Comcast, or Comcast,” Chilson said. “My parents have offered to split closing costs and even tried lowering the price, but because everyone hates Comcast, they just don’t want to be stuck living in a home with Comcast as their only choice.”

Chilson suggested offering would-be buyers $720 — the cost of two years of Comcast’s $30 a month unlimited add-on plan. Still no takers, and several buyers cited Internet availability and Comcast as reasons for backing away.

Jerome Stokes of Palm Springs, Fla. has managed to collect almost 2,000 signatures on his Change.org petition demanding Comcast remove the usage caps from all of their Internet plans. He calls data caps “barbaric,” and thinks they should be illegal. Other customers are also complaining to the FCC.

Sean Miranda thinks they are just bad for business:

“If this doesn’t affect most people anyway, why bother implementing this change? All it does is make people like myself, less inclined to continue using your service, and instead switch to a different ISP that doesn’t put such silly restrictions on their customers. AT&T is starting to look better and better right about now, but where do I go once they start implementing this too, huh? I want no involvement in this “trial” and hope you discontinue this monopoly scheme immediately, or I will have no choice but to take my business elsewhere or to create new competition.”

Comcast, Frontier: It’s Too ‘Hilly and Woodsy’ to Bring Broadband to Rural Connecticut

no signalAn aversion of open, hilly landscapes and trees is apparently responsible for keeping residents of rural Connecticut from getting broadband service from the state’s two dominant providers — Comcast and Frontier Communications.

In the Litchfield Hills of northwestern Connecticut, you can visit some of the state’s finest antique shops and Revolutionary War-era inns, tour vineyards and even establish roots in the Upper Naugatuck Valley in towns like Barkhamsted, Colebrook, Goshen, Hartland, Harwinton, Litchfield, Morris, New Hartford, Norfolk, Torrington, and Winchester. Just leave your cellphone, tablet, and personal computer behind because chances are good you will find yourself in a wireless dead spot and Internet-free zone.

Obtaining even a smidgen of cell phone service often means leaning out a second story window or worse, climbing the nearest church steeple. The wealthiest residents, often second-homeowners from New York or California, can afford to spend several thousand dollars to entice the cable company to extend a coaxial cable their way or buy commercial broadband service at eye-popping prices from Frontier Communications, which acquired AT&T’s wireline network in the state. But for many, dial-up Internet remains the only affordable or available option.

Despite the area’s significant number of high income residents ready and willing to pay for service, Comcast and Frontier blame hilly terrain and dense woods for staying away. Those excuses get little regard from residents who suggest it is all about the money, not the landscape.

Northwest Connecticut region is shown in green and the Litchfield Hills region in blue.

Broadband-challenged areas in northwest Connecticut are shown in green and the often “No signal” and “No Internet” Litchfield Hills region is shown in blue.

Despite the need for service, deregulation largely allows cable and phone companies to decide where to offer broadband service, and arguments about fulfilling a public need and performing a community service don’t get far with Wall Street and shareholders that constantly pressure companies to deliver profits, not expensive investments that may never pay off.

State Rep. Roberta Willis (D-Salisbury) told the Register Citizen News the status quo is not acceptable — telecommunications companies are not doing enough to build out their networks.

“You just can’t say it’s the topography and walk away,” she told the newspaper. “If electricity companies were deregulated like this there would be no electricity in my district.”

Comcast spokeswoman Laura Brubaker Crisco claims the company extended cable service nearly 62 miles in northwest Connecticut since 2005 (ten years ago) and completed nearly 100 projects extending fiber more than 10 miles in the past two years. But many of those projects overhauled Comcast’s existing middle-mile network and extended cable service to profitable new markets serving commercial customers, especially office parks and commercial storefronts. Comcast’s other priority was to reach new high-income residential developments being built as the area continues to grow. Rural customers who could not meet Comcast’s Return On Investment formula in 2005 are still unlikely to have service in 2015 unless population density increases in their immediate area.

Connecticut's effort to extend gigabit fiber statewide is dismissed as a waste of money by incumbent cable operators.

Connecticut’s effort to extend gigabit fiber statewide is dismissed as a waste of money by incumbent cable operators.

Crisco admits Comcast does not wire low density areas and isn’t surprised other providers won’t either.

Frontier prefers to blame the area’s topography for keeping broadband out.

David Snyder, vice president for engineering for the east region of Frontier Communications, told the newspaper “it’s just natural the investment and the time become more challenging.”

Frontier does say it has expanded broadband to 40,000 additional households in Connecticut since taking over for AT&T a year ago. But nobody seems to know exactly who can get broadband in the state and who cannot. The have-nots are the most likely to complain, and those businesses that serve visitors are in peril of losing business without offering reasonable Wi-Fi or Internet access. Rural families with school-age children are also at risk from having their kids fall behind those that can get broadband.

Wireless Internet Service Providers, which offer long-range wireless broadband in rural areas, complain the federal government is wasting money on studies instead of helping to underwrite solutions that can quickly bring Internet access to the rural masses.

Others believe talking to Frontier and Comcast is futile. They prefer to follow the lead of western Massachusetts, where 24 small communities across the region have joined forces to build a public fiber to the home broadband network. One estimate suggests 22 Connecticut towns covering 200,000 residents could be reached with a bond-financed fiber network completed by 2018. That network would likely reach more unserved customers than Frontier or Comcast will elect to serve over the next three years combined.

A separate effort to establish gigabit fiber broadband across the state — the CT Gig Project — promptly ran into a buzzsaw of opposition, primarily from incumbent telecommunications companies that refuse to offer that service now. With a threat to current profitable business models, it was not unexpected to hear opposition from Paul Cianelli, CEO of the New England Cable & Telecom Association — a cable company lobbying group.

He called public broadband unnecessary and “potentially disastrous.” He wants assurances no government subsidies or loan guarantees are given to the project. He also said providing gigabit service was unnecessary and faster Internet speeds were not important to the majority of customers in the state. Public broadband proponents respond Cianelli should tell that to the residents of Litchfield Hills and other unserved and underserved communities.

California Company Will Help You Cancel Comcast Service for $5 Or We’ll Help You for Free

Phillip Dampier October 5, 2015 Comcast/Xfinity, Consumer News, Editorial & Site News 1 Comment
The Don't Care Bears

The Don’t Care Bears

Americans seem to hate dealing with their cable company so much, they are willing to pay someone else to do it for them.

AirPaper, a Bay Area company, is now offering to help rid you of Comcast for a one-time charge of $5.

You supply them with your name, e-mail, address, phone number and Comcast account number/any security verification information required to cancel your account and they will send Comcast a letter requesting your account be closed.

For now, media reports are vague about the duo’s success rate. Because the request to cancel will arrive in writing, nothing precludes Comcast from having a retention specialist contact you by phone and still attempt to save your business. Comcast is also notorious for not being especially responsive to written requests for anything and its Executive Customer Service department also draws complaints.

Of course, nothing precludes you from keeping the $5 in your wallet and using our recommended methods of dealing with Comcast, which come for free.

You can write your own letter to Comcast requesting a no-negotiation cancellation of your service by sending a letter with your name, address, phone number, account number and e-mail to:

Office of the President
Comcast Headquarters
Comcast Center
1701 JFK Blvd.
Philadelphia, PA 19103

(215) 286-1700
(215) 981-7790 (fax)

Even better, you can follow Comcast’s usual cancellation procedure using 1-800-XFINITY (1-800-934-6489) and tell the agent you are canceling service for any of these reasons, and you will be spared customer retention hardball:

  • You are moving in with an existing Comcast customer and do not need two accounts at the same address;
  • You are relocating to a senior care or assisted living facility that already has service for all residents;
  • Tell them you are moving to a non-Comcast service area. Need an address? Tell them an apartment on Elmwood Ave., Rochester, NY 14618. It’s well outside of Comcast’s service area and they won’t try and offer you Time Warner Cable service if you remind them the complex already provides service to every renter;
  • Tell them you are converting your home into a seasonal residence and you wish to disconnect service with no reconnect date available;
  • Inform them your home succumbed to a fire, flood, killer bees, or whatever other natural disaster will make your home uninhabitable indefinitely. What they will care about the most is if their equipment survived the calamity. When you tell them yes and you are returning it, they won’t bug you any further;
  • You are relocating overseas for a job, volunteer work, or military service with no known return date.

If you use any of these excuses, you will be off the phone 10 minutes after speaking to someone.

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