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Charter Customers Warn: Don’t Be Suckered By Their Promises of Better Service – “Charter Blows”

Phillip Dampier May 27, 2015 Broadband Speed, Charter, Competition, Consumer News 2 Comments

charter sucks“I thought I was watching Comedy Central,” said Ralph Wilson, a longtime Charter customer in suburban Los Angeles. He was actually watching a Bloomberg News interview with the CEO of Charter Communications regarding yesterday’s formal merger announcement. “What cable company was Thomas Rutledge talking about when he said Charter would bring better service to Time Warner and Bright House? Charter blows.”

Wilson is just one of several unimpressed Charter customers responding to the news their cable company is about to grow more than four times larger with the acquisition of the larger Time Warner Cable and the smaller Bright House Networks.

“They promise you 60Mbps and you are lucky to see 40Mbps unless it is raining,” said Aaron Peters, a Charter customer in Texas. “Then you are lucky if you get anything. You sure won’t get anyone on their support line.”

“I’d rather have my fingernails pulled out than have to deal with Charter,” writes Betty, a 74-year old Stop the Cap! reader in Wyoming. “I’ve had cable out sometimes for five days and when the last time it was out, the slobs that showed up to fix it were shabbily dressed and one had his zipper down. It’s disgraceful.”

“Maybe it will go from F-minus to an F,” Terence Allen of Atlanta told the New York Times. Allen, among others, recited a litany of service problems familiar to many Charter customers around the country: Screen freeze and pixelation, unresponsive remote controls, uneven broadband speeds, slurring and skipping over dialogue, and problems getting a real person on the phone.

For Time Warner Cable customers in particular, it is unlikely that prayers for better service from a new owner are going to be answered.

“‘Not quite as bad’ may be about as good as they can get with this deal,” reflected the Times.

“Charter is not going to revolutionize Time Warner’s service quality, because Charter’s service quality is not that much better,” said Mark Cooper, director of research at the Consumer Federation of America.

Pay for 60Mbps, get 40ish instead.

Pay for 60Mbps, get 40ish instead.

One of the key arguments in favor of the merger is that long-suffering Time Warner Cable customers will finally get faster Internet speeds. Time Warner Cable Maxx upgrades, now likely to be shelved by Charter, were already outperforming several of Charter’s own speed commitments. Charter’s theme pushing faster speeds for one and all might appeal to the broad masses of Time Warner Cable customers yet to be upgraded.

“Except what Charter advertises is often not what they actually deliver,” complains Wilson. “They tell you it’s 60Mbps, but here in LA it is often closer to 40Mbps and when you complain, they claim they don’t guarantee speeds.”

Allen in Atlanta also signed up for faster speeds from Charter, but never got them.

“Their high end doesn’t seem to be very high-end,” Allen said.

He also called Charter to complain but never got to speak a customer service agent. Instead, an automated attendant instructed him to unplug his modem to reset it, to no avail.

“Getting a human on Charter’s customer service line to help you with a problem is a laugh,” said Sue Turner, a Charter customer in Montana. “They keep telling us Charter is better than the last three owners of our cable system because their repair service calls are way down. Well of course if you cannot actually reach anyone to schedule a service call, that works too.”

technical-difficulties2Turner has seen three cable companies come and go in her part of Montana since April 2002. Comcast sold many of its cable systems in the sparsely populated states of the Rockies to Bresnan Communications that year. Cablevision acquired Bresnan in 2010 and rebranded her cable system Optimum West. Just three years later, Cablevision sold all of its interests outside of the northeastern U.S. to Charter Communications, which runs things today.

“Badly,” Turner said. “The biggest problem is the weather which always affects our television and Internet service. Charter has been here six times in two years to try to fix things, but the only realistic way to get service is to go down to the cable office and demand they do something. You don’t get help on the phone.”

“I would say my impression overall of Charter is that they talk very well about their services and their breadth and depth, but quite honestly they don’t deliver very well,” Mr. Allen told the newspaper. “One of the things they push quite a bit is the bundle — telephone, Internet and cable. I would never even consider getting the telephone because their cable and Internet can be so dodgy.”

The Better Business Bureau in St. Louis, which tracks complaints about Charter, found at least 5,183 unsatisfied customers over the last three years willing to escalate matters to them. Most are about problems with Charter service, which would seem to show there is a problem.

Nonsense, counters Alex Dudley, one of Charter’s senior spokesmen.

“Charter takes our customer service very seriously,” Dudley said. “There are millions of Charter customers who are satisfied with our products.”

Shaneice Johnson in Connecticut isn’t one of them.

“Oh my God I thought Frontier was awful when they took over AT&T here,” she tells Stop the Cap! “But then when we switched to Charter my modem has dropped weekly and all I get is attitude from customer service about how they know how the Internet is supposed to be run and it must be my fault. Years of good service with AT&T with no problems but now it must be my fault because their service is off up and down the street? I don’t think so. We need to get some competition in here.”

On that point, many would agree.

“If Charter had Google Fiber here chasing them, I guarantee they would clean up their act, but when their only competition is AT&T DSL, they just don’t care,” said Wilson.

Charter Communications Starts Advertising Blitz: Its Internet Service Has “No Data Caps,” AT&T U-verse Does

No data caps.

No data caps.

Charter Communications is now heavily advertising the fact its Internet service “has no data caps,” in an attempt to leverage customers away from AT&T DSL (150GB cap) and AT&T U-verse (250GB cap).

Charter quietly shelved its softly enforced usage caps several months ago and is now using its cap-free experience as a marketing tool to convince customers to switch from AT&T and other phone company broadband options that often include usage limits.

“They used it with me to convince me to drop U-verse for Charter,” writes Stop the Cap! reader Jennifer in Tennessee. “I hate usage caps.”

Charter is also using its cap-free broadband as a key argument in favor of its merger deal with Time Warner Cable and Bright House (which have no usage caps either).

“Charter’s slowest speed tier (60Mbps downstream) is considerably faster and less expensive than TWC’s comparable tiers, with no data caps or usage based pricing,” Charter argued in its merger presentation this morning.

AT&T has unevenly enforced usage caps on its DSL and U-verse services. A standard overlimit fee of $10 for each 50GB applies, but only in some markets.

China to Invest $177 Billion Between 2015 and 2017 to Expand Fiber/4G Wireless Broadband Across the Country

China Mobile, China United Network Communications and China Telecom will invest $177 billion to expand fiber optic service and mobile telecommunications infrastructure in China between 2015 to 2017, according to China’s Ministry of Industry and Information Technology.

At least $70 billion will be spent this year alone to add another 80 million fiber to the home connections and expand the latest generation of LTE 4G wireless Internet to more than 1.3 million cell towers and small cells that will cover almost every city in China. In contrast, providers in the United States only spend an average of $30 billion annually on all broadband technologies, only a fraction of that for fiber optic Internet services for residential customers.

miit

By the end of 2017, every household in a significant-sized Chinese city will be equipped with a minimum of 10Mbps fiber to the home broadband for around $16/mo. First tier cities will get a minimum of 30Mbps Internet speed and second tier cities will receive broadband at a guaranteed speed of at least 20Mbps. Most customers served by China Telecom in Shanghai can already buy speeds up to 200Mbps for about $43 a month.

Chinese providers intend to upgrade their wireless networks to make sure that 4G networks completely cover every urban area as well as even the most rural communities.

Comcast Deletes Ogden, Ill., Local Government Website

delThe village of Ogden, Ill., no longer has an official website. Comcast deleted it without warning.

Like many of America’s smallest towns and villages, Ogden relies on web space from its Internet Service Provider to host the community government’s website.

Except, as Mayor Jack Reiner reports, Comcast no longer supports business or government websites hosted through a broadband account and it simply disappeared one day.

The village is now attempting to reconstruct the site and considering the cost of alternative providers.

Western Mass. Voters Stampede for Fiber Optic Broadband in Communities Big Telecom Ignored

WiredWestLogoFeb2015Bypassed in favor of richer opportunities to the east, western Massachusetts residents are empowering their communities to deliver 21st century broadband the big cable and phone companies have neglected to offer.

One of the largest public co-op broadband networks ever attempted is racking up huge wins so far in referendums being held in 32 towns across the region. The vote is needed to secure financing for construction of the last mile of the network in each community, delivering fiber optic service to individual homes and businesses.

Last summer the Massachusetts legislature passed the IT Bond Bill, which included $50 million to support critical last mile network construction efforts in unserved parts of the Commonwealth. But the rest of the money has to come from residents of each unserved community. A two-thirds vote is needed in each town to finance these construction expenses and at least 40% of residents must pre-register for service and pay a refundable deposit of $49, which will be applied to their first month’s bill. So far, more than 4,000 households have done exactly that, showing good faith in a project that won’t begin delivering service for an estimated 2-3 years.

As votes take place across the region, the response has been remarkable, with the warrant article passing overwhelmingly. In one town, it was even unanimous.

The excitement in western Massachusetts rivals a Google Fiber announcement. Reports indicate broadband-supporting crowds well exceeded the capacity of meeting rooms. In Cummington, the overflow left people in the hallways. In Plainfield, they gave up on their designated meeting room and moved everyone to the church across the street. In Shutesbury, even the gym and overflow areas weren’t enough. Some residents ended up on the preschool playground looking for an open spot. Nine communities for better broadband, zero opposed, with many more to go.

In small communities, signing up 40% of residents in advance can be a challenge. In Washington, it was achieved only hours before the approval meeting. In Middlefield, an additional 100 households are needed as that community is only at 14% of their signup goal. Montgomery needs 85 more backers as they sit at 39% of goal, and in Peru — 111 at 33% to goal.

For broadband in western Massachusetts, the vote is nothing less than a referendum on moving forward or getting left behind indefinitely.

ww-2015-1

Wired West’s co-op of communities in western Massachusetts.

But as is the case with every public broadband project we know, there are detractors who don’t like any form of government running anything. Others are frightened because of inflated scare stories about a project’s cost, often spread by interest groups funded by the same big cable and phone companies that are not now providing adequate service and don’t want the competition. Some others mean well, but are underinformed about the realities of delivering broadband in rural communities, always believing a better answer lies elsewhere and is just around the corner. Unfortunately, it always seems to be just out of reach.

Hussain Hamdan of Hawley, has launched a one-man war on public broadband, actively seeking signatures on a petition to pull his community of 347 out of the project, claiming it is too costly. Hamdan argues wireless broadband is a more suitable solution for the town. His petition, signed by at least 36 residents, wants no part of the WiredWest initiative, but he’d go further. Hamdan proposes to outlaw municipal utility services altogether, forbid selectmen or other town boards from appropriating a single penny for any WiredWest project, prohibit spending on postage for any mailings discussing public broadband, and even making sure town officials attending a function on municipal broadband are not reimbursed for their mileage expenses. Coincidentally, another Hamdan petition seeks the right to recall elected officials, ensuring any ousted politician cannot be re-elected to office for at least three years. (Hamdan denies his recall election proposal targets any town official specifically.)

Despite all this, Hamdan claims he is for bringing high-speed Internet access to town, just not through WiredWest. Unfortunately for the 300+ other residents of Hawley that did not sign the petition, Hamdan’s enthusiasm for alternative service has not been matched by a single interested provider seeking to fill Hawley’s broadband chasm.

Because Mr. Hamdan didn’t do his homework, we have, and here are the “alternatives” Hawley residents can actually consider:

Convincing Time Warner Cable to Come to Town

cable3Assuming Time Warner Cable was somehow persuaded to offer service, as they already do in parts of western Massachusetts, they will expect considerable compensation to extend their cable network to a community that fails to meet their Return on Investment requirements. It will be an uphill battle. Next door in upstate New York, Time Warner Cable needed $5.3 million in taxpayer incentives just to expand service to, at most, 5,320 homes or businesses around the state that were already close to existing Time Warner service areas, but had no access to cable before. Conclusion: Time Warner Cable already serves the areas they feel comfortable serving.

Mark Williams, who lives in Lee – Berkshire County, wanted Time Warner Cable service at his home. Lee has franchised Time Warner Cable to provide service throughout the community, so Williams didn’t think twice about ordering service. When the company arrived, it found his driveway was 100 feet too long.

Time Warner has a formula that determines who will pay to install necessary infrastructure. If a certain number of properties are located within a specific radius, they cover the costs. If a community isn’t presently served, if residents live too far apart, or have an unusual property, Time Warner expects the town or resident to cover part of their costs. In Williams’ case, $12,000 was initially quoted to wire his home back in 2010. Because Time Warner had already committed to provide service in the area, the bad publicity that resulted from that installation fee forced Time Warner to back down. But in unserved communities, the costs spiral even higher. Residents on the fringe of a cable coverage area are routinely quoted, $15,000, $20,000, even $35,000 just to get a cable line extended to a single home from a nearby street. We’re not sure how far away Hawley is from the nearest Time Warner Cable service area, but it is a safe bet the company would need enormous taxpayer-funded incentives from local residents to extend universal cable service in the community.

If both Time Warner and WiredWest were providing service side-by-side in Hawley today, residents would pay Time Warner Cable $911/yr for 20Mbps Turbo Internet broadband, including the $8/mo modem lease fee or $588/yr to WiredWest for 25Mbps broadband. WiredWest would save residents $323 a year — and help pay off its infrastructure costs while keeping the money in the community.

Assuming Time Warner Cable is never going to be an option, which we think is likely, the wireless alternatives suggested by Hamdan largely do not exist at this time, are unfeasible, or no longer meet the FCC’s minimum definition of broadband.

White Space Broadband: Can It Work in Western Mass.?

First, let’s consider “white space” broadband – high-speed wireless Internet access delivered over unused TV channels. At the moment, this service is still in the experimental stages in most areas, but as Stop the Cap! previously reported, it has promise for rural communities. Unfortunately, despite Hawley’s small size and rural location, the current database of available free channels to offer white space Internet access in the area is discouraging, based on the address of the community’s town office on Pudding Hollow Drive. There are just six open channels because of an abundance of TV signals in Connecticut, Vermont, Massachusetts, and New York that get precedence. Of these six, there are just four optimal choices – UHF channels 14-17. In our previous story highlighting Thurman, N.Y.’s white space project, there are 17 open channels in that area, none on VHF or reserved for radio astronomy. Feel free to use the database to see how many open channels are available in your local area.

Not much room at the Inn.

Not much room at the inn. White space broadband will be a challenge in signal-dense northeastern states.

But the news may be even worse. The FCC is currently preparing to “repack” the UHF dial around the country by consolidating existing stations on a smaller number of channels. The freed up bandwidth will be auctioned off to cell phone companies to boost their networks. This month, we learned the wireless industry’s largest lobbying group is pushing hard to force other users to vacate “their” spectrum the moment they begin testing on those frequencies. Interference concerns and the dense number of TV signals already operating in the northeastern U.S. means it is very likely communities like Hawley will have even less opportunity to explore white space broadband as an option.

What About Wireless ISPs?

Second, there are traditional Wireless ISPs (WISPs) which do a reasonably good job reaching very sparsely populated areas, as long as customers are willing to sacrifice speed and pay higher costs.

BlazeWIFI advertises service in the rural community of Warwick, Mass (zip code: 01378). But it is anything but a bargain. The least expensive plan is $99.99 a month and that offers the dismally slow speed of 1.5Mbps for downloading and only 512kbps for uploading. It also includes a data cap of 25GB a month. That is slowband and a last resort. It’s more expensive, it’s slower, and it is usage-capped.

Some WISPs offer faster service, but few are equipped to handle the FCC’s definition of 25Mbps as the minimum speed to qualify as broadband. In short, this technology may eventually be replaced by white space broadband where speeds and capacity are higher, as long as suitable unused channel space exists.

wireless neverlandWhat About Wireless Home Internet Plans from AT&T, Verizon Wireless?

Third, there are wireless broadband solutions from the cell phone providers. Only Hawley residents can decide for themselves whether AT&T and Verizon Wireless deliver robust reception inside the community. If they do, both companies offer wireless home Internet service.

The base charge for AT&T’s plan is $20 for unlimited nationwide phone calling + $60/mo for a 10GB Wireless Home Internet Plan. There is a 2-yr contract and a $150 early termination fee. Since the average household now uses between 15-50GB of Internet service per month (lower end for retired couples, 35GB median usage for AT&T DSL customers, but even more for young or large families), you have to upgrade the plan right from the start. A more suitable 20GB plan is $90/month. A 30GB plan runs $120 a month. The overlimit fee is $10/GB if you run over your plan’s limit. You will also be billed “taxes & federal & state universal service charges, Reg. Cost Recovery Charge (up to $1.25), gross receipts surcharge, Admin. Fee & other gov’t assessments which are not gov’t req’d charges.” Verizon’s plan is similar.

You must have robust cell coverage for this service to work and be ready for speeds of 5-20Mbps, getting slower as more customers join a cell tower. The lowest rate available runs about $90 a month after taxes and fees are calculated and you need to switch it off when you approach 10GB of usage to avoid additional fees.

What is the Best Option?

No broadband? No sale.

No broadband? No sale.

As we have seen across the United States, communities offered the possibility of fiber optic Internet are embracing it, some even begging for the technology. There is simply no better future-proof, high-capacity broadband technology available. But installing it has been costly – a fact every provider has dealt with. Most rural providers treat fiber optic technology as an investment in the future because it has very low maintenance costs, is infinitely upgradable, and can offer a foundation on which current and future high-bandwidth online projects can expand.

The fact is, western Massachusetts has been left behind by Comcast and Time Warner Cable, as well as Verizon. Nobody in the private sector is coming to the rescue. Verizon has stopped expanding its FiOS fiber network and all signs point to its growing interest in exiting the landline and wired broadband business altogether in favor of its higher profit Verizon Wireless. Cable operators strictly adhere to a Return on Investment formula and will not expand service areas without major taxpayer support.

In communities in more conservative states like Tennessee and North Carolina, the obvious choice was for local governments and municipal power companies to provide the service other providers won’t. Despite the industry funded scare stories, projects like EPB Fiber in Chattanooga and GreenLight in Wilson, N.C., are doing just fine and attract new businesses and jobs into both regions. They offer far superior service to what the local cable and phone company offer in those areas.

It is unfortunate rural residents have to effectively pay more to get a service urban areas already have, but to go without would be disastrous for school-age children, local entrepreneurs, agribusiness workers, and tele-medicine.

Mr. Hamdan argues Hawley cannot afford WiredWest. But if one looks deeper at the alternatives, it becomes clear Hawley can’t afford not to be a part of a service that is likely to be ubiquitous across the region. Even those not interested in the Internet can ask any realtor how important Internet access is to a homebuyer that considers inadequate broadband a deal-breaker. That could cost much more than the $350/yr Mr. Hamdan theoretically suggests WiredWest will cost Hawley.

Mr. Hamdan offers no real answers for his community about alternatives that are available, affordable, and capable of providing the kind of service WiredWest is proposing. Voters should carefully consider the economic impact of leaving their community in a broadband backwater as the rest of the region advances towards fiber optic broadband. That is the cost that is too high to pay.

http://www.phillipdampier.com/video/Wired West Western Mass broadband woes 1-15.mp4

Wired West project coordinators didn’t have to go far to hear broadband horror stories in western Massachusetts, which has some of the worst Internet access in the world. (17:51)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Comcast Hints At the Price of Its New 2Gbps ‘Not for Your Average Joe’ Fiber Internet: Around $400 a Month

As Florida wakes up to news that Comcast will deliver its 2Gbps broadband service in the cities of Jacksonville, Miami, Ft. Lauderdale, and West Palm Beach, the rest of the country is learning the estimated price of the service, targeted to the “techno-elite.”Comcast-Logo

Cindy Arco, spokeswoman for Comcast in Jacksonville told the Florida Times Union final pricing hasn’t been established yet for 2 Gigabit Pro for Florida, but it likely will be in the range of the highest residential broadband tier, which amounts to $400 a month for 505Mbps.

“It’s the type of thing for early adopters — those people who want to have the latest, newest tech gadget and the latest everything related to tech,” Arco said.

In Florida, the residential customers will need to live within a third of the mile of the fiber optic service lines offered by Comcast.

Arco downplayed the relevance of the arrival of 2Gbps service from Comcast.

“It’s exciting, but it’s not for your average Joe,” Arco said.

Incumbent Cable, Phone Companies Will Tighten Bundle Pricing to Battle Cord-Cutting

triple play

A typical promotional offer from Comcast for a bundle of broadband, TV and phone service.

Cable and phone companies will continue to raise the price of broadband-only service while also increasing the value proposition of bundled packages of broadband, television, and phone service to keep customers from cutting the cable television cord.

For at least four years, cable companies have refocused rate increases and fees on Internet access, especially for broadband-only customers. At the same time, cable-TV rate hikes are easing, especially for customers subscribed to two or more services. Today, customers face prices as high as $67 a month for standalone Internet service. But that price can drop in half if customers bundle broadband with television and phone service. Most triple play promotions in markets where AT&T U-verse and Verizon FiOS compete can be as low as $90 a month. In less competitive markets, a similar promotion often costs $99-119 a month.

Recent research by Sanford Bernstein reveals these pricing strategies are not happening by accident.

Media analyst Todd Juenger recently held his second cord-cutting focus group in Comcast-dominant San Francisco and found some of those most likely to cancel cable television decided to keep their Comcast bundle after they discovered the cable company charges $66.95 a month for Internet-only service, excluding the modem rental fee. For $10 more per month during the first year, customers can get that same 25Mbps broadband service bundled with 140 TV channels. Assuming the customer doesn’t protest the subsequent rate increase beginning a year later, that rate will eventually reset to $136.90 a month. But price-sensitive customers who complain often avoid any rate increase at all.

Juenger’s focus group surveyed 18 men and women in the age group most likely to drop cable television – 21-38 year-olds. Despite their love for Netflix, Hulu, Amazon, and other online video services, the participants broadly recognized the cable/telco bundle now delivers a better value proposition and as long as cable and phone companies continue to price up standalone Internet service, many will choose to stay with the company they hate and not try to cobble together a comparable package of broadband and television service from other providers.

cablecord“Hence, we remain cautiously optimistic that cord-cutting, in large numbers, isn’t likely to happen,” Juenger wrote his clients. “It’s one of those ideas that sounds great in the abstract but crumbles when faced with the reality.”

As cable television pricing continues to exceed many household budgets, providers are seeking new customers that can afford cable TV but choose not to subscribe. One of their primary targets: broadband-only customers and cord-nevers who might be persuaded to add cable television at a starting price of $10-20 above what they pay for broadband service. That price is less than what Sling TV or PlayStation Vue charges for far fewer channels.

The challenge competing online video providers face is finding a compelling limited channel lineup that will appeal to all-comers. Although the average cable subscriber generally watches fewer than a dozen cable channels regularly, not having access to one or more of those favored channels is a deal-breaker for many.

Juenger’s focus group was most open to a hypothetical a-la-carte package of any 10 customer-chosen channels for $20 a month. But Juenger reminded his investor clients no such package currently exists and probably never will.

“Simply put, for existing pay-tv subs, the content [available to Sling or View customers] is too limited (relative to the cost savings); and for cord-nevers, the price is too high (relative to the appeal of the content),” Juenger wrote.

But Juenger did warn that customers are enthusiastic about sticking it to their current provider, if they can get the programming they want. That could make some programmers, especially broadcast stations and networks, more vulnerable to revenue loss. If a company can reliably offer a variety of theme-based slimmed down cable packages coupled with an effective and seamless over-the-air antenna, no retransmission fees would be paid to over-the-air stations and networks.

If the bundled package pricing argument doesn’t work with cord-cutters, the broadband usage cap probably will. Customers will quickly learn they can eat through their monthly Internet usage allowance watching live television online, or avoid that prospect by subscribing to cable TV, which offers unlimited viewing.

Suddenlink: Subscribers Walloped With Big Rate Increases and “Free” Speed Upgrades (With Usage Caps)

suddenlink meter

Suddenlink customers are unhappy with the cable company’s usage caps that go with “free speed upgrades.”

Suddenlink subscribers promised “free” speed upgrades are calling them Suddenlink’s Trojan Horse because they are accompanied by dramatically higher cable programming surcharges and usage caps.

St. Augustine, Tex. subscribers got a smaller bite in the mail than some other communities:

Effective with the March 2015 billing cycle, Suddenlink customers will experience no change to the price of telephone service and no change to the price of Basic TV service. There will also be no change to the price of Expanded Basic TV service; however, a $3.00 sports programming surcharge will be added to the bills of customers subscribing to this service to cover a portion of the skyrocketing cost of dedicated sports channels and general entertainment networks with sports programming. The broadcast station surcharge will increase $2.88 per month to cover the escalating fees charged by broadcast TV station owners. Optional tiers of digital TV channels will increase $1.25 per month per tier. High-speed Internet services will increase $3.00 per month.

Over in Chandler, Tex., fees went even higher, with one customer reporting his broadcast station surcharge now exceeded $8 a month. Another customer counting up all the extra fees added to his bill found them coming close to an extra $25 a month.

But the state that gets the worst from broadband providers remains West Virginia, where Suddenlink faces only token DSL competition from Frontier Communications. Suddenlink retention representatives dealing with customers threatening to cancel service in West Virginia are well aware customers have nowhere else to go and don’t break a sweat trying to rescue business.

“We are a business and our goal is to make a profit,” one retention representative told a Suddenlink customer dropping service in favor of DirecTV.

Customers tell Stop the Cap! they were first excited Suddenlink was dramatically boosting Internet speeds — good news for the small and medium-sized cities Suddenlink favors over larger cable operators. The bad news is Suddenlink is bringing back strict enforcement of usage caps, temporarily suspended when its usage measurement tool was proven inaccurate.

Suddenlink has been upgrading its cable systems since 2014 and has gradually rolled out new speeds. Most customers can now choose speed tiers of 50, 75, 100, or 150Mbps, but some larger systems are getting more robust upgrades:

  • Current speed 15Mbps increases to 50Mbps (250GB usage cap)
  • Current speed 30Mbps increases to 50Mbps (250GB usage cap)
  • Current speed 50Mbps increases to 75Mbps (350GB usage cap)
  • Current speed 100Mbps increases to 300Mbps (500GB usage cap)
Suddenlink's sales website makes no reference to the company's broadband usage caps.

Suddenlink’s sales website makes no reference to the company’s broadband usage caps.

Suddenlink is also enforcing usage caps again, which most customers only learn about after signing up for service. Suddenlink makes no references to usage allowances on their sales or general support pages and information is difficult to find unless a customer uses a search engine to find specific information.

Suddenlink’s explanation for its usage caps is among the most cryptic we have ever seen from an ISP:

Consistent with our Acceptable Use Policy and Residential Services Agreement, Suddenlink has applied monthly usage allowances to residential Internet accounts in most of its service areas. To determine if there is a monthly allowance associated with your account – and what that allowance is – please set up or log in to an existing online account. See the related instructions under question #8.

While existing residential customers will quickly learn their usage allowance and find a usage measurement tool on Suddenlink’s website, that is not much help to a new or prospective customer. The overlimit fee, also difficult to find, is $10 for each allotment of 50GB.

Some customers have found a way around the usage cap by signing up for Suddenlink’s business broadband service, typically 50/8Mbps for around $75 a month. Business accounts are exempt from Suddenlink’s caps.

House and Senate Hold Hearings on GOP Fake Net Neutrality Alternative Supported by Telecom Lobby

Phillip Dampier January 21, 2015 Astroturf, Net Neutrality, Public Policy & Gov't 3 Comments
Thune

Thune

The House and Senate today held back-to-back hearings on the issue of adopting a Republican alternative to the president’s idea of Net Neutrality.

After the president directly addressed his support of strong Net Neutrality protections, FCC chairman Thomas Wheeler indicated he intended to act on the issue next month. Now many Republican legislators have changed their original view that Net Neutrality was “a solution in search of a problem” into a high priority agenda item demanding immediate attention, hoping to cut off Wheeler’s regulatory solution with new legislation.

That came in the form of a proposed new bill to define the principles of Net Neutrality from Sen. John Thune (R-S.D.) and Rep. Fred Upton (R-Mich.).

“By turning the FCC away from a heavy-handed and messy approach to regulating the Internet, this draft protects both consumers who rely on Internet services and innovators who create jobs,” Thune wrote in a statement.

Both hearings were stacked against reclassification of broadband under Title II to assure strong Net Neutrality principles, including three witnesses formerly with the FCC that have moved into industry advocacy jobs.

(Image courtesy: Steve Rhodes)

(Image courtesy: Steve Rhodes)

Former FCC chairman Michael Powell is today America’s top cable lobbyist. Meredith Baker quickly left the FCC in 2011 after voting in favor of the Comcast-NBC merger deal, taking a lucrative position at Comcast before moving on to become the country’s top wireless industry lobbyist. Robert McDowell left the FCC in 2013 to take a job at the same law firm hired by Comcast to successfully challenge the FCC’s authority to fine the cable company over its past speed throttling practices. Today, McDowell’s employer also represents the interests of AT&T and Verizon.

Other witnesses testifying included Dr. Nicol Turner-Lee from the Multicultural, Media, Telecom & Internet Council, which claims to be a civil rights organization but in fact receives the bulk of its funding from corporate interests, including large telecom companies. It often advocates for the corporate agendas of its sponsors, including opposition to Title II reclassification and past support for the failed AT&T-T Mobile merger deal.

Tom Simmons, senior vice president of public policy for small cable operator Midcontinent Communications also appeared, opposing strong Net Neutrality policies. Simmons said that once the company explained Title II reclassification and how it would increase customers’ cable bills, support for Net Neutrality diminished.

Just two witnesses testified on behalf of consumer interests. Gene Kimmelman, president of Public Knowledge strongly advocated for Title II reclassification of broadband and Paul Misener, vice president of Global Public Policy for Amazon.com strongly opposed Internet fast lanes and other traffic manipulation practices.

The New York Times today reported that the Republicans may have an increasingly uphill fight with some of their own traditional supporters to push through legislation Internet activists claim is riddled with company-friendly loopholes.

“The libertarian conservative base is pretty astute at recognizing crony capitalism and understand how campaign finance and corporate influence affects policy,” said David Segal, executive director of Demand Progress, a Net Neutrality advocacy group. “And this is a pretty transparent moment for all that.”

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