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Charter Watch: Slashing Time Warner Cable’s Accounting Office in Charlotte

charter-watchCharter Communications is wasting no time looking for increased shareholder value by slashing jobs in states where regulators placed few, if any conditions on the acquisition of Time Warner Cable and Bright House Networks.

The Charlotte Agenda reports North Carolina-based Time Warner Cable employees are just starting to feel the pain of the multi-billion corporate cable merger, with the elimination of 258 jobs in Time Warner Cable’s accounting department in Charlotte. Nearly 20% of the workforce, including 70 senior accountants, 45 staff accountants, 44 accounting supervisors or managers, and an even larger number of finance analysts and accounts payable specialists will be collecting unemployment starting Nov. 1 and extending through the second quarter of 2017.

Company officials claim affected employees can seek employment with Charter Communications at other office locations around the country.

North Carolina regulators effectively rubber-stamped the acquisition of Time Warner Cable in granting its approval. The only condition Charter Communications has to meet is notifying North Carolina’s Department of State Commerce at least 30 days before those unlucky employees are out of a job.


Windstream Brings Kinetic TV to Communities Around Charlotte, North Carolina

Kinetic WindstreamWindstream will bring its fiber to the neighborhood service Kinetic TV to around 50,000 homes in 13 suburban and exurban communities surrounding Charlotte, N.C., to stay competitive with Time Warner Cable/Charter and a publicly owned cable system serving Mooresville.

The independent phone company submitted a formal application for a cable television franchise with North Carolina’s Department of the Secretary of State to begin offering television service in Albemarle, Badin, China Grove, Concord, Harrisburg, Hemby Bridge, Indian Trail, Kannapolis, Matthews, Mooresville, Mt. Pleasant, New London and Oakboro.

Windstream claims Kinetic TV leverages “a 100 percent fiber-backed network,” which leaves customers with the impression they are getting fiber optic delivery of television, broadband, and phone service. In fact, for many communities Windstream is constructing a network similar to AT&T U-verse. The phone company brings fiber optic cables into each neighborhood, but relies on existing copper wire infrastructure connecting individual homes to a nearby fiber optic-connected neighborhood hub. The upgrade allows Windstream to expand broadband capacity to support concurrent use of television, phone and internet access. For many Windstream customers complaining about the poor performance of Windstream’s DSL service, that offers a significant improvement. But Windstream does provide even better upgrades in some communities. In April 2016, Windstream launched gigabit speed internet service for seven North Carolina towns: China Grove, Concord, Davidson, Harrisburg, Kannapolis, Lewisville and Matthews. By applying for a statewide video franchise agreement in North Carolina, Windstream will be able to sell cable television service along with gigabit broadband speed.

Kinetic TV is now an exceptionally good deal for new customers.

Kinetic TV is currently available in Lincoln, Neb., Lexington, Ky., and Sugar Land, Tex.

Kinetic TV is already available in Lincoln, Neb., Lexington, Ky., and Sugar Land, Tex.

Windstream aggressively prices its most deluxe double play package of 50Mbps broadband and 270+ channels and Whole House DVR service at a one-year introductory price of $89.99 a month with a one-year service commitment. Customers can upgrade to a triple play package with the same 12 month commitment that includes a phone line with unlimited long distance calling for just $2 more — $91.99 a month. New double/triple-play customers also receive a one-time bill credit of $250, which will generally cover the first two months of service. This promotion is by far the best value for money. Unfortunately, after the promotion expires your price increases by $72.99 to $162.98 a month.

Kinetic TV operates with wireless set-top boxes that can be moved to different televisions as needed. The DVR can handle recording four channels at the same time and Windstream promises no lag while channel changing. The usual $80 installation fee is waived when new customers sign up under a promotional offer. Anyone can register to be notified about Windstream’s promotional offers on the company’s website and will likely receive an invitation as Kinetic TV becomes available in your area.

Earlier this year, Windstream debuted Kinetic TV in Sugar Land, Tex., joining the communities of Lexington, Ky. and Lincoln, Neb. The 13 small cities and communities in North Carolina will be Windstream’s fourth service area for Kinetic TV.

Kinetic TV's Whole House DVR

Kinetic TV’s Whole House DVR

The service has received generally positive reviews from those not expecting to place a lot of demand on the service. The fastest internet package tops out for most at 50Mbps and some customers report their actual speeds are sometimes slightly lower. Windstream currently offers Kinetic customers unlimited, uncapped data plans. If you cancel service before the end of your contract, the penalty as stated in Windstream’s terms and conditions is among the steepest we have ever seen: 100% of the charges you would have paid had you kept the service through the rest of your contract.

There is other fine print:

  • Kinetic TV cannot support more than four Standard Definition video streams (television sets in use concurrently). HD channels for recording or viewing are limited to between one and four, depending on the capacity of your connection. If you exceed it, the remaining video streams or recordings will be in Standard Definition.
  • Kinetic TV will not allow pay per view or video on demand charges to exceed $200 in a calendar month.
  • Prices above include one Kinetic TV receiver. Each additional box is billed at $7 a month, and may be limited in quantity. A Windstream gateway, also required for service, is assessed a separate monthly charge.
  • Your internet speeds may be affected by how many televisions are concurrently in use in your home.
  • Windstream collects information about programming watched, recorded, or accessed. Currently, they use this information to make general programming recommendations to all customers and/or specific recommendations to you based on your personal viewing habits.

(Windstream pricing information gathered by entering a residential street address in Sugar Land, Tex., Zip Code 77478.)

Meet North Carolina’s Sen. Thom Tillis (R-ALEC/Time Warner Cable)

Tillis was honored in 2011 as ALEC's "Legislator of the Year" and received an undisclosed cash reward.

Tillis was honored in 2011 as ALEC’s “Legislator of the Year” and received an undisclosed cash reward.

Back when we first became aware of Republican member of the North Carolina legislature Thom Tillis around 2010, he was hard at work building his political future just as Republicans were poised to take control of the state legislature for the first time since the days of Reconstruction. Despite running unopposed in 2010, Tillis raised more money from cable and phone companies than any other lawmaker in the state, depositing $37,000 before knowing he would be the next Speaker of the North Carolina House of Representatives in January 2011. To celebrate, AT&T, Time Warner Cable, and Verizon each gave Tillis $1,000 just a few weeks before the swearing-in ceremony. It was money well spent, if you were a cable or phone company doing business in North Carolina.

Tillis left the legislature in 2015 to become the junior U.S. Senator from North Carolina. The telecom industry made sure to keep the campaign contributions flowing, if only to give their thanks for Tillis’ unwavering support for their agenda. Tillis doesn’t care much for his rural constituents still waiting for something better than dial-up internet access and as long as his campaign coffers remain bulging with corporate contributions, he doesn’t think he has much to fear from the state’s voters either. After all, he survived accusations from a resigning House Finance chairman that he had a secret business relationship with Time Warner Cable.

Raleigh’s The News & Observer felt it was their duty to mention Tillis in their editorial pages anyway, taking him to task for “cheering a loss for North Carolina consumers last week after a federal appeals court upheld a cable company protection law that he supported as state House speaker in 2011.”

The newspaper is talking about North Carolina’s infamous anti-public broadband bill that was literally constructed by lobbyists working for Time Warner Cable. The law effectively made it impossible for community broadband providers to bring their much-needed service to adjacent communities that have waited more than a decade for companies like Time Warner Cable, AT&T, CenturyLink and others to offer internet access in rural and underserved parts of the state.

Tillis personally helped shepherd the corporate protection bill, designed to shield incumbent cable and phone companies from community competition, through the state legislature, supporting it every step of the way. It would become law in 2011 and rural broadband in North Carolina hasn’t gotten any better since. In fact, it’s almost stagnant. But Tillis cannot say the same thing about his campaign bank accounts, which continue to bulge with corporate donations now in excess of $11 million.

An effort by the Federal Communications Commission to pre-empt the state law failed in a federal appeals court, much to the delight of Thom Tillis, something the newspaper calls an “insult” to North Carolinians looking for a better deal.

“Today’s ruling affirms the fact that unelected bureaucrats at the FCC completely overstepped their authority by attempting to deny states like North Carolina from setting their own laws to protect hard-working taxpayers and maintain the fairness of the free market,” Tillis said in a statement. Cough, cough.

The newspaper’s response:

Translation: Time Warner and other companies, thank goodness, will retain control of the market without having to worry about towns competing with them and thus will be able to charge people whatever the market will bear.

For Tillis to say the court ruling, which should be appealed, is a triumph for taxpayers is preposterous. It’s a setback. The “free market” he backs is one free of competition from municipal broadband services that offer a better product at a lower price.

Sixth Circuit Court of Appeals Reverses FCC Rule Allowing Public Broadband Expansion

6th CircuitA federal appeals court has reversed an effort by the Federal Communications Commission to pre-empt state laws restricting municipal broadband expansion in Tennessee and North Carolina, ruling the FCC exceeded its authority by interfering with both states’ rights to define the boundaries where the community broadband networks can and cannot operate.

In a near-unanimous decision (with some minor dissent from one judge), judges from the Sixth Circuit Court of Appeals found the FCC exceeded their authority.

“The FCC order essentially serves to re-allocate decision-making power between the states and their municipalities,” the court ruled. “This is shown by the fact that no federal statute or FCC regulation requires the municipalities to expand or otherwise to act in contravention of the preempted state statutory provisions. This preemption by the FCC of the allocation of power between a state and its subdivisions requires at least a clear statement in the authorizing federal legislation. The FCC relies upon § 706 of the Telecommunications Act of 1996 for the authority to preempt in this case, but that statute falls far short of such a clear statement. The preemption order must accordingly be reversed.”

In other words, the court ruled that the FCC’s belief that Section 706 of the Telecommunications Act of 1996 allowed it to pre-empt state broadband laws goes too far. The judges opined Congress would have to rewrite the law to clearly state it was acceptable for the federal branch of government to overrule how a community or state decides to draw boundaries for public utilities.

EPB is the municipal utility in Chattanooga, Tenn.

EPB is the municipal utility in Chattanooga, Tenn.

The ruling will have an immediate impact on plans by municipal utility EPB in Chattanooga and city-owned provider Greenlight in Wilson, N.C., to expand service outside of their respective service areas. EPB has been working inside the Tennessee legislature to overturn or change the current broadband law but has been unsuccessful so far. Comcast and AT&T have lobbied the Tennessee legislature to keep municipal competitors from expanding, even where neither company offers service.

“Ultimately, Tennessee’s broadband gap is a problem for Tennesseans, and we need a Tennessee solution,” said David Wade, president of EPB. “We will continue to work with the growing number of state legislators and grassroots citizens interested in removing the barriers that prevent EPB and other municipal providers from serving our neighbors in surrounding areas who have little or no access to broadband. We are further encouraged by Commissioner Randy Boyd’s interest in addressing the lack of broadband in rural areas. As the head of the Tennessee Department of Economic and Community Development, he is especially well positioned to join with state lawmakers in addressing this challenge on behalf of Tennesseans.”

Greenlight announces gigabit service for Wilson, N.C.

Greenlight announces gigabit service for Wilson, N.C.

North Carolina’s law was effectively drafted by Time Warner Cable, who shepherded the bill through the Republican-controlled state legislature, making huge political campaign contributions along the way, eventually winning enough votes to see the bill become law.

The ruling is a serious blow to FCC chairman Thomas Wheeler, who made municipal broadband expansion one of his active agenda items at the FCC. Wheeler believed the two state laws were not supposed to inhibit rural broadband expansion. Critics of the laws contend they were written and lobbied for by the same incumbent cable and phone companies that could eventually face competition from public broadband networks.

“Let’s be clear: industry-backed state laws to block municipal broadband only exist because pliant legislators are listening to their Big Cable and Big Telecom paymasters,” said Michael Copps, a former FCC commissioner. “This decision does not benefit our broadband nation.”



Wheeler tacitly agreed, saying today’s decision “appears to halt the promise of jobs, investment and opportunity that community broadband has provided in Tennessee and North Carolina.”

“[Since 2015], over 50 communities have taken steps to build their own bridges across the digital divide,” Wheeler said in written comments. “The efforts of communities wanting better broadband should not be thwarted by the political power of those who, by protecting their monopoly, have failed to deliver acceptable service at an acceptable price.”

The ruling can be appealed to the U.S. Supreme Court, and the FCC has an excellent chance of getting the high court to overturn today’s decision. Rulings issued by the Sixth Circuit were reversed by the Supreme Court 24 out of the 25 times they were reviewed in the five annual terms starting in October 2008 and ending in June 2013 — the highest number of any federal appellate court during that time period.

Broadband activists can also return to the two state legislatures and urge that the broadband laws be modified or repealed. Wheeler seems ready to join the fight.

“Should states seek to repeal their anti-competitive broadband statutes, I will be happy to testify on behalf of better broadband and consumer choice,” Wheeler said. “Should states seek to limit the right of people to act for better broadband, I will be happy to testify on behalf of consumer choice.”

Chop-Chop: Altice Axes 81 Suddenlink Employees in Greenville, N.C.

SuddenlinkLogo1-630x140At least 81 Suddenlink employees are suddenly seeking new employment after parent company Altice USA disclosed their intention to lay the workers off as early as next month.

North Carolina’s Worker Adjustment and Retraining Notification Act requires businesses with at least 100 workers to give the state at least 60 days notice ahead of mass layoffs. Suddenlink’s call center in Greenville qualifies. Last month Suddenlink mentioned the call center would be closing, with jobs shifted into larger call centers elsewhere in the country.

Lisa Anselmo, a Suddenlink spokeswoman, claims some of the 81 workers have found jobs at other Suddenlink facilities, but would not specify how many.

Pre-Empting Moronic Broadband Law Means Everything to Rural North Carolina

greenlightThe community of Pinetops, N.C. has finally got 21st century gigabit broadband, but no thanks to a state legislature so beholden to Time Warner Cable, it let the cable giant write its own law to keep potential competitors away.

The passage of H129 was almost a given after Republicans regained control of both chambers of the state legislature in 2011 for the first time since 1870. The bill made it almost impossible for any of the state’s existing community-owned broadband networks to expand out of their immediate service areas. It also discouraged any other rural towns from even considering starting a public broadband network to solve pervasive broadband problems in their communities.

It was not the finest moment for many of H.129’s supporters, who had to explain to the media and constituents why the state’s largest cable operator needed protection from potential competition and more importantly, why public officials were catering to the corporate giant’s interests over that of the public.

"I wish you'd turn the camera off now because I am going to get up and leave if you don't," said Rep. Julia Howard

“I wish you’d turn the camera off now because I am going to get up and leave if you don’t,” said Rep. Julia Howard

Rep. Julia Howard (R-Davie, Iredell) found herself losing her cool when WNCN reporters in Raleigh caught up with her and confronted her with the fact her campaign coffers had been filled by the state’s largest telecom companies. She didn’t have an answer for that. Moments later, she appeared ready to flee the interview.

“I wish you’d turn the camera off now because I am going to get up and leave if you don’t,” Howard told the reporter.

Rep. Marilyn Avila was so close to Marc Trathen, then Time Warner Cable’s top-lobbyist in the state, we decided five years ago it would be more accurate to list Time Warner Cable as her sole constituent. Avila’s name appeared on the bill, but it was readily apparent Time Warner Cable drafted most of its provisions. The nearest city in Avila’s own district wanted no part of H129, and neither did many of her constituents.

The bill managed to pass the legislature and after becoming law effectively jammed up community broadband expansion in many parts of the state.

It would take the Federal Communications Commission to pre-empt the legislation on the grounds it was nakedly anti-competitive and prevented broadband improvements in communities major telecom companies have ignored for years.

As a result of the FCC’s actions, the community of Pinetops now has access to gigabit broadband, five years late, thanks in part to Rep. Avila who got a $290 dinner for her efforts and was honored as a guest speaker at a cable industry function in recognition of her service… to Time Warner Cable.

Rep. Avila with Marc Trathen, Time Warner Cable's top lobbyist (right) Photo by: Bob Sepe of Action Audits

Rep. Avila with Marc Trathen, Time Warner Cable’s top lobbyist (right) Photo by: Bob Sepe of Action Audits

Greenlight, Wilson’s community-owned fiber to the home provider, switched on service in the community this spring to any of the 600 Pinetops homes that wanted it, and many did.

“We just love it!” said Brenda Harrell, the former acting town manager.

In fact, Greenlight is now delivering the best broadband in Edgecombe County, and deploying fiber to the home service was hardly a stretch for Greenlight, which was already installing fiber optics to manage an automated meter infrastructure project. The only thing keeping better broadband out of the hands of Pinetops residents was a law written by an industry that loathes competition and will stop it at all costs. Time Warner Cable didn’t bother to offer service in the community even after its bill became law and residents endured years of unreliable DSL or dialup access instead. Talk about a win-lose scenario. Time Warner Cable got to keep its comfortable cable monopoly while many families had to drive their children to businesses miles away just to borrow their Wi-Fi signal to finish homework assignments.

Faster broadband is likely to be transformative for the quiet rural community. Current town manager Lorenzo Carmon sees more than nearby fields of sweet potatoes and soybeans. With gigabit fiber and cheap local housing, Pinetops could become a bedroom community for upper income professionals now living in Greenville, a university town heavily populated by doctors, students, and high-tech knowledge economy workers. If and when they arrive, they’ll find a tech-ready community, right down to the local Piggly-Wiggly supermarket, which now has fiber fast internet service too.

pinetopsPinetops offers proof of the obscenity of bought-and-paid-for-politicians supporting corporate protectionism that harms people, harms education, harms jobs, and leaves rural communities with no clear path to the digital economy of the 21st century. Legislation like H129, which continues to be enforced in more than a few U.S. states, needs to be pre-empted nationwide or even better repealed by state legislators.

But North Carolina’s legislature still isn’t getting the message. They are outraged the FCC outsmarted Time Warner Cable and them, and are now wasting time and resources to have the FCC’s pre-emption overturned in court, evidently so that rural North Carolina can continue to tough it out with DSL indefinitely. That’s political malpractice and North Carolina voters need to show the door to any elected representative that cares more about the interests of a giant cable company than what is good for you and your community. Reps. Avila and Howard don’t have to live with 3Mbps DSL, so why should you?

“If the private sector is not providing the services, the government has to step in,” said Carmon. “The internet is just like electricity. You can’t live without it.”

We couldn’t agree more.

Suddenlink Closing Call Centers, Adds New Paper Billing Fee

Phillip Dampier July 20, 2016 Consumer News, Public Policy & Gov't, Suddenlink 1 Comment

unemployedAltice’s ongoing efforts to cut expenses and boost profits at Suddenlink will cost an unspecified number of call center workers their jobs in three states and customers will soon pay a fee to receive their cable bill in the mail.

In three separate announcements, Suddenlink has begun notifying employees at three separate offices that many will be out of their jobs by this fall as the company shutters call centers and sales offices in Greenville, N.C., St. Joseph, Mo.,  and Parkersburg, W.V.

“We are migrating call center activities to some of Suddenlink’s larger call centers in the U.S. based on call volume, and where we have the greatest number of business partners,” said a company news release.

All of Suddenlink’s sales jobs will now be in Texas, and that means sales employees in the company’s Parkersburg office were given two choices: move to Texas, or take a different job in the Parkersburg office.

St. Joseph area employees were told their jobs will be relocated to larger call centers elsewhere where Altice has spent money to improve customer care.

“We have invested in advanced customer-care technology in those locations, and based on that believe this new structure will enable us to provide a superior service experience to all of our customers,” said Suddenlink spokeswoman Lisa Anselmo.

SuddenlinkLogo1-630x140This summer Suddenlink is also continuing incremental rate hikes for customers not already subject to them. Parts of North Carolina are the latest to face a new $1 billing fee, which began July 1. New customers already pay the fee, but now current customers will also face the extra charge if they want a paper statement mailed to them.

“This fee covers the handling and postage costs associated with providing a paper statement,” said spokesman Gene Regan, senior director of corporate communications.

Notification of the new fee went out in the company’s May and June billings. To avoid the fee, customers must opt-in to electronic billing by visiting the company’s paperless billing web page and logging in to their Suddenlink account.

“What we are finding is more and more people in recent months have gone to electronic billing. A lot of customers have made the change in recent months,” Regan told The Daily Reflector. “Today so many people are online, more and more people are online, and a lot of people don’t like to deal with paper mail. They like the convenience and the opportunity to use other ways to pay.”



But many customers would prefer the option of a lower cable TV bill.

In Louisiana, Lake Area residents continue to complain about Suddenlink’s business practices, especially rates, channel options, and equipment fees. City councilwoman Luvertha August told American Press she is inundated with complaints about the cost of cable television in particular.

“All of these comments are from senior citizens. They’re on fixed incomes and they have limited budgets,” August told the newspaper. “They’re concerned with what they deem are constant changes with the Suddenlink cable company.”

Seniors have been confronted with cable TV bills that have soared from $20 two decades ago to over $80 in many cases today. This month Suddenlink completed its all-digital transition in southern Louisiana, which requires customers to attach equipment to every cable-enabled television in the home, at an additional cost.

The Leichtman Research Group, which specializes in research on broadband media and entertainment, found today’s average cable-TV bill is just under $100 after fees, surcharges, and taxes are included. Seniors who have seen no significant increase in their Social Security checks for several years are hard-pressed to pay for channels they don’t want or watch.

Last year, August attempted to involve the state’s legislative delegation to coordinate a message that consumers want more options, including a-la-carte for cable television. Her effort found almost no interest from state and federal lawmakers representing Louisiana, many who receive substantial campaign contributions from telecom companies. Sen. David Vitter (R-La.) did respond, but falsely claimed cable television is a state matter and the “federal government had nothing to do with the issue.”

In fact, many members of Congress have asked the FCC to get involved in the issue and others have supported efforts to increase competition and push for mandatory a-la-carte channel choices for consumers. AT&T U-verse has a franchise in southern Louisiana and may offer some consumers a choice, but after AT&T completed its acquisition of DirecTV, many consumers report AT&T is marketing satellite television more aggressively than its own U-verse TV option.

Told You: Altice Brings Its Special Kind of Cost-Cutting to Suddenlink and Cablevision

Phillip Dampier June 28, 2016 Altice NV, Cablevision, Consumer News, Suddenlink No Comments

cheapDespite vociferous denials to New York regulators that Altice’s unique way of cost-cutting expenses in Europe would mean the same in the United States, a Suddenlink employee in the Appalachians found herself visiting a nearby Kroger supermarket recently to pick up some “forever” postage stamps after the office’s postage meter machine stopped working.

“Nobody paid the bill, leaving us to raid petty cash to get some mail out,” the Suddenlink employee told Stop the Cap! “They got the problem resolved later that week, but this was only the most recent of several incidents that make it clear our new owner doesn’t like us spending any money.”

Suddenlink employees in West Virginia needed money to get a broken ice machine in their office fixed and got the third degree instead of a quick answer.

The Wall Street Journal reports during a March “investment committee” meeting, Altice’s bean counters pelted employees with questions about the nature of the ice machine business in the United States and whether it would be smarter to buy or lease.

“A complete waste of people’s time and energy,” said the former Suddenlink employee.

In North Carolina, call center employees are updating their resumes after watching job positions slowly get eliminated starting this past April.

“Since that time, rumors have been spreading that the call center [itself] may be closing soon,” shared another employee. “And if you’re paying attention the writing is on the wall that the rumors are true. But no one from upper management or corporate will share any information.”

SuddenlinkLogo1-630x140When Altice took over Cablevision, employees were stunned when top executives dined in the staff canteen on their first day after the deal closed. That was never the style of former CEO James Dolan and other executives who avoided hobnobbing with anyone too far from the executive suites. Dolan himself often used a helicopter to travel back and forth from the office, occasionally with bodyguards.

Charles Stewart, chief financial officer of Altice U.S., warns everyone better get used to it.

“[Cost discipline is] our whole philosophy,” Stewart said. “It triggers a discussion at a very nitty-gritty level, which is where the difference is made.”

atice-cablevisionWith a commitment to slash $900 million in expenses out of Cablevision alone during 2016, that’s a lot of discipline. Employees are echoing their French counterparts at Altice’s SFR-Numericable when they call life at Suddenlink and Cablevision “a culture of fear,” watching workers exiting each week without being replaced. Much the same happened in Europe, despite commitments not to engage in job-cutting. In both cases, Altice claims the slow but steady trickle of employee departures are “normal churn,” not layoffs.

Altice designed its “investment committee” to be an authoritarian hellhole on purpose. Those who dare to attend the weekly meetings, which extend for hours, face micro-scrutiny of every expense brought before it, with employees peppered with questions to justify their expenses. The same occurred in France, where Altice officials debated how often they should pay to vacuum the carpets and clean the restrooms.

Employees figure out soon enough it is easier not to ask (or to simply buy what you need on your own), before enduring a prolonged debate on mundane topics like using new or recycled toner cartridges.

“It creates consternation for about two months,” admitted Altice USA CEO Dexter Goei. “Then people realize, ‘Boy, I really don’t want to go to the investment committee. We just got 500 printers a year ago; we can probably extend their life one more year.’”

While Altice has a deal with regulators not to layoff “customer-facing” Cablevision employees in New York, it is already slashing one of Dolan’s pet projects: Freewheel, a Wi-Fi powered wireless phone, SMS, and data service.

Coming next: Channel Renewal Battles. Altice executives believe it’s time to declare total war on channel carriage costs, even it leads to prolonged channel blackouts.

“We have about half of our programming lineup that’s up for renewal very soon,” Goei said. “There are clearly a lot of channels that we’d like to get rid of.” But Goei also told the Wall Street Journal many of the networks he doesn’t want are part of broader programming deals that require all of a company’s channels to be carried.

So what is next? Altice has stated emphatically it wants to be either the largest or second largest cable operator in the U.S. That guarantees more acquisitions, probably beginning next year. Cox and Mediacom — both privately held — may decide not to sell, which means Altice will have to refocus on taking over Charter Communications, which itself just absorbed Time Warner Cable and Bright House Networks, or divert to making acquisitions in wireless — T-Mobile or Sprint, perhaps, or content, which likely means one or more Hollywood studios.

Time Warner Cable Says Tiny North Carolina Power Co-Ops Are Bullies

twc repairTime Warner Cable says it is forced to pay monopoly rates to rent space on North Carolina’s publicly owned utility poles and it now wants the state government to settle the issue by regulating prices to better reflect actual costs.

The cable company is suing five rural, member-owned electric cooperatives at the North Carolina Utilities Commission, claiming the tiny utilities are bullies that routinely stonewall, coerce, retaliate and strong-arm the country’s second largest cable company into paying up. Time Warner Cable claimed when it refused to pay one co-op’s rate demands in full, the utility threatened to add the unpaid fees to Time Warner’s electric bill and eventually cut off electricity if it went unpaid. The cable company also claims it has faced penalty fees in the millions of dollars and in one case, a threat to call the local sheriff on a cable technician repairing a line during a service outage.

The News & Observer reports the public utilities and cable operator are at an impasse. Rural utilities claim they are being undercut by a federal rate formula that many for-profit, investor-owned utilities subscribe to that requires cable companies to pay $5-7 per pole per year in rental fees. But many rural co-ops have substantially higher costs, do not generate their own electricity, have wiring and poles stretched between significantly fewer customers and don’t set rates and policies with an aim to compensate investors and shareholders.

Project4.qxdThe five public utilities each serve between 26,800-122,000 customers. Altogether, the five maintain 75,000 utility poles now involved in the dispute. All charge considerably more for pole rentals than Duke Energy, the state’s largest for-profit utility, which gets somewhere between $5-7 a year for each pole. Co-ops South River EMC is seeking $17.40 per year. Carteret-Craven EMC wants $23.60 a year.

The National Rural Electric Cooperative Association explains the disparity in rates is the result of the higher risks co-ops face if the local cable company gets sloppy and damages the pole or creates operational or safety issues.

CCEC Slide“In order to maintain 501(c)(12) cooperative tax-exempt status, cooperatives charge cost-based rates for their services, including pole attachments,” claims NRECA. “Some costs are difficult to identify and quantify, especially operational or safety issues that improper pole attachments may cause. If a federal uniform rate pushed attachment rates lower than actual costs, member owners of the not-for profit electric co-op would wind up subsidizing cable, broadband and telecommunications corporations, many of which are for-profit entities.”

NRECA claims the federal pole attachment rate formula that Time Warner Cable now advocates be applied across North Carolina was set artificially low to promote rural broadband expansion by enticing cable operators to wire areas they have never wired before. While that may sound good for rural consumers looking for cable broadband service, electric ratepayers could end up subsidizing the cable company’s expansion through higher electricity rates to recoup unpaid pole expenses. The electric co-op group also argues that even with artificially low pole attachment rates, that doesn’t guarantee cable companies will actually invest the savings into service expansion or lower prices for their customers.

Ironically, cable operators like Time Warner Cable that show little interest in sharing their infrastructure with others argue rural co-ops should be forced to share their poles.

“Once cable operators have constructed their aerial networks on existing pole infrastructure,” Time Warner wrote, “they are essentially captive because it would be prohibitively expensive and impractical (or impossible) to rebuild those networks underground or to install their own poles.”

Sen. Ted Cruz’s Latest Enemy: Community Broadband; Wants State Bans Reinstated



Although running a distant second behind Donald Trump in the Republican presidential primary, Texas Sen. Ted Cruz is still managing to have an influence in the U.S. Senate, where his office is filing a plethora of amendments to various telecommunications bills. Among his top priorities: throwing up roadblocks to keep municipalities from offering broadband to their communities.

Cruz and Sen. Deb Fischer, a fellow Republican from Nebraska, are jointly proposing to attach an amendment to the FCC Process Reform Act that would prohibit the FCC from preempting state laws that limit or prohibit municipal broadband networks. The amendment would “prohibit the FCC from preventing states from implementing  laws relating to provision of broadband Internet access service by state and local governments.”

Several Republicans in Congress have been highly critical of public broadband, despite the fact many local governments in their districts are clamoring for better broadband solutions for their residents.

Cruz and other municipal broadband opponents are responding to FCC Chairman Thomas Wheeler’s decision to effectively overturn those restrictions in Tennessee and North Carolina. Wheeler is considering expanding preemptions in other states where lawmakers passed bills restricting or prohibiting municipal broadband expansion.

The FCC is currently defending its actions in court.

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Recent Comments:

  • No One Important: Great article!! Within my workgroup, we affectionately say WTF!....Welcome to Frontier....
  • Gregory Blajian: We were not Charter, gave up Comcast TV and phone to save money. Before we cancelled we were paying Comcast $250+/mo now we give them $57/mo for broad...
  • mike b: Still our best hope. Trump sure as hell isn't going to put someone in place who's willing to promote consumer-friendly practices....
  • John: Count me as one of those in Texas who dropped all services but Internet. I was an existing triple play customer under a current package price that st...
  • James R Curry: They're slowly expanding to cover most of those 7 cities, but they have sign-up windows. If you're not in your sign-up window then you can't get serv...
  • SAL-e: “Nearly everyone on the list is part of the Clinton campaign’s network of tech advisers, which helped draft the Democratic nominee’s tech policy platf...
  • Steve P.: Can someone explain Google Fiber to me? Don't they cover a small portion of 7 cities? About a fraction of 1% of the country, and not showing any signs...
  • Josh: Wow, that's nuts. If I lived in a Time-Warner area, that those copy restrictions *ALONE* would make me dump their service. I'm not trying to do any...
  • Dan: They need to bite the bullet, hire Amdocs to gut their ordering platform and copper facilities lookup tools, hire ATG to fix online ordering *after* A...
  • xnappo: Interesting view point SAL-e - one I have heard many times, but still thanks for the input....
  • SAL-e: "... I am paying their salary ..." No. You don't pay their salaries. The commissioners of the FCC are appointed bureaucrats by US president and appro...
  • Berfunkle: I wouldn't mind OTA 4K television. Where else are you going to get 4K content? The cable cos? LOL They don't even provide 1080P! It's a hassle and c...

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