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How to Score a Better Deal From Time Warner Cable and Save Over $700 a Year: 2015 Edition

In 2012, Stop the Cap! helped thousands of readers slash their Time Warner cable bills by more than $50 a month with less than 10 minutes of effort. This year, it will take you longer to read this article than it will to get a better deal from Time Warner Cable.

Many of our readers have contacted us to let us know their promotional rate has expired and have sought help scoring more savings from Time Warner Cable. This year, we decided to enlist the help of Stop the Cap! volunteers who are also Time Warner Cable customers to see what kind of savings we could negotiate from the cable company that dominates much of the northeast, Texas, southern California, and parts of the midwest. We’re happy to report even greater savings (more than $700 annually for some) are there for the asking. Even better, it took some of us less than five minutes to win a better deal and by using social media, we never had to argue with anyone — great news if you don’t like negotiating on the phone.

When your Time Warner Cable promotion expires, expect to receive a letter like this in the mail, gradually increasing your rates.

When your Time Warner Cable promotion expires, expect to receive a letter like this in the mail, gradually increasing your rates.

Our volunteers for this effort came from Rochester, N.Y. (myself), Greensboro, N.C.,  Flower Mound, Tex., Los Angeles, Calif., and Portland, Maine. Two of us are triple play customers with 50/5Mbps broadband, Preferred TV (the 200+ channel package), and Time Warner home phone service. Two others are double play customers with Preferred TV and 30/5Mbps service, and our volunteer in Portland is a broadband-only customer.

We used three methods to contact Time Warner to discuss our current bills:

  • Calling Time Warner Cable’s office and asking for a lower rate or to cancel service;
  • Tweeting a message to Time Warner threatening to change providers;
  • Posting a complaint about our cable bill on the company’s Facebook page.

Dealing with customer churn – the rate of customers coming and going – is always a concern at cable companies. New customer promotions are costly and often include a cash rebate. It is much less expensive for Time Warner to lower the bills of current customers than trying to win back wayward ex-customers with promotions later on. The company maintains several specialized customer retention call centers around the country that pay employees around $14 an hour + a bonus for each customer they keep. Employees are trained to deal with hostile callers and pleas for lower bills by escalating unresolved service problems to technical specialists, issuing service credits, and cutting rates.

bill shockBut telephone retention specialists also have an incentive to cut back on your package before they cut the price. Just as we found three years ago, the two volunteers that phoned for a better deal were significantly less happy with the outcome than those who relied on social media.

“Their ‘review’ of my package quickly turned into an interrogation about whether I needed this movie channel or that Internet speed,” said Stop the Cap! volunteer Denise, who insisted on a better deal or her next phone call would be to sign up for service from Verizon. “Before they talk price, they want you to cut back on services.”

Cerise, a broadband-only customer in Portland had the same experience.

“I wanted a better deal than the $60 I am paying them for 15Mbps Internet-only service and they wanted to cut my speed to 6Mbps before we would even talk price,” Cerise said. “They knew my only other choice was DSL from FairPoint.”

My experience with Twitter was even easier than it was three years ago. Time Warner acceded to my request for a better deal in a message left on my voicemail: a rate cut of $63 a month with no change in service. I never had to speak with anyone and the new rate has already been applied to my account.

Sam, a triple play customer in Los Angeles took a phone call from Time Warner after his wife blasted the company on its Facebook page about a “new special promotional rate” that was “neither special or promotional” in her eyes.

“Their letter in the mail makes it sound like they are doing you a favor, but it’s really just the dead-end road back to paying normal prices.”

Time Warner Cable promotions run typically 12 or 24 months, after which the company mails a letter inviting you to experience a new “promotional rate” reset to a higher price, but not one that will usually deliver bill shock. A year after that less generous promotion expires, in most cases rates reset to regular pricing.

How to Negotiate

Because our experiences consistently found that interacting with Time Warner’s social media team is more effective at winning the best possible deal, we again strongly recommend you do not call Time Warner looking for a better deal. Instead, engage them through Twitter or Facebook. But before that happens, get organized:

1. Visit Time Warner Cable’s current plans and promotions web page. Your goal is to note the current promotions available and find the package that most closely resembles the services you have now. You can get a current copy of your Time Warner bill from the My Services section of Time Warner’s website.

Second, visit the competition. Check your phone company for any promotional offers for services like U-verse or FiOS, or satellite television promotions many telephone companies bundle with DSL. Familiarize yourself with the packages you would consider signing up for and jot down the prices.

Are you overpaying for premium movie channels? If you are paying more than this, you are.

Are you overpaying for premium movie channels? If you are paying more than this, you are.

Third, be flexible. The best promotional deals go to those who sign up for Time Warner Cable’s triple play packages. If you are a double play customer, adding phone service may actually cost you less on certain promotions than the best double play offers, even if you never use the phone line. If you have landline service from the phone company, Time Warner’s triple play offers will certainly save you in the long run, because unlimited long distance and local calling can often be added for as little as $10 a month. You can also consider switching to Ooma, a top-rated landline provider that works over your broadband connection and costs as little as $5 a month.

Fourth, ask about free or discounted upgrades to your existing service. Time Warner Cable has several attractive promotions for services that many customers dismiss as too expensive. Whole House DVR lets you watch DVR recordings on other televisions in the home. Some promotions add this feature for just a few dollars extra a month — less than maintaining two DVRs in the home. Also consider a broadband speed upgrade to 30/5 or 50/5Mbps. Attractive promotions are usually available for these as well.

Fifth, be willing to drop premium movie channels before you start negotiations. Time Warner raised the price of add-on HBO to $16.99 in January and other premium channels typically cost around $13 a month each. You are better off dropping them before negotiating for a better deal. After your new deal is in place, you can visit Time Warner’s website and add back the premiums you want at new promotional prices:

  • A 12-month premium promotional package combining HBO, Cinemax, Starz, and Showtime runs $29.99 a month and can be ordered online;
  • HBO, Cinemax, Showtime, and Starz can be had a-la-carte for $9.99 a month each for one year (The Movie Channel is inexplicably not included and costs $15.99/mo — you won’t miss it) and you may also qualify for a $50 rebate by adding Starz before March 31, 2015.

Finally, unless you live in a Time Warner Cable Maxx city (New York, Los Angeles, Austin, Kansas City, etc.), it usually doesn’t pay to negotiate over modem rental fees. Time Warner has waived modem fees in certain cases in Los Angeles, but we recommend you invest in buying your own modem and be rid of the modem rental fee  for good. If you are not in a Maxx market, we still recommend the Motorola SB6141, which will work at speeds up to 100Mbps on Time Warner’s network. If Maxx is coming to your area and you want even faster speeds, we recommend the ARRIS/Motorola SB6183 ($130+). It is approved to work at 300Mbps speeds in Maxx-upgraded areas.

Now you are ready to reach out!

twitter_logo

Sign up for a Twitter account.

tweet

Once registered and logged in, click the button that appears like a quill pen at the upper right corner of your screen and a new window will appear where you can compose a message of 140 characters or less. You will address your message to @TWC_Help (note the underscore – you can cut and paste that address into your message or use Twitter’s search function – type in TWC and you should be able to find and select it there). Here is a sample Tweet we came up with, but you can compose your own, of course:

twc_help

After clicking the Tweet button, your message will be read by Time Warner’s social media team. Sometime later, you will receive a response asking for your contact information and account number. This should be sent in a private “Direct Message,” not as an open Tweet:

response

Click the three dots and find the option Share via Direct Message. Click it, add TWC_Help as a recipient and click Next. A conversation window will appear with their message and a space for your private response. Include your Account Number and PIN from your Time Warner Cable bill and a callback number, as shown below.

direct message

 

Time Warner should call you back within the next three days. If you do not receive a reply to your Tweet, send another one during regular business hours. They may have missed your first message.

facebook_logoYou can also try Facebook to lodge your rate protest.

Visit the Time Warner Cable Facebook page and find the box (as shown highlighted below) where you can write a public message on the page.

As with Twitter, you want to get straight to the point and tell Time Warner you are paying too much for cable service and have a better offer from a competitor. Let them know you are willing to consider their counter-offer, if it arrives soon.

They are likely to respond asking for your account information, including the account number and PIN as shown on your monthly bill. Again, send this information privately using the Facebook Messenger. Include your best contact number.

twc facebook

Here is where your write your public complaint about your cable bill and ask for a better deal. You should keep this short and to the point, and do not post your account information here. Wait for their reply and respond in a private message.

 

Our Results

Was $175. Now $112.

Was $175. Now $112.

Myself – Rochester, N.Y.: Full package of every cable television channel on offer, no premiums, Whole-House DVR with five cable boxes, 50/5Mbps broadband, Unlimited Home Phone: $112/mo, down from a fading promotional price now resetting to $175 (had been gradually increasing from $110 since 2014)

Tania, Greensboro, N.C.: Double play of all cable television channels, no premiums, DVR and one traditional set-top box with 30/5Mbps broadband: Was paying $156. Offered $99 with free upgrade to 50/5Mbps and Whole House DVR; offered and declined Unlimited Home Phone for extra $10/month. This promotion essentially matched AT&T U-verse introductory pricing for comparable services with slower broadband.

Denise, Flower Mound, Tex.: Started by calling Time Warner to cancel over $175 cable bill covering all cable channels, one premium, DVR with extra set-top boxes, 50/5Mbps broadband. Representative wanted her to cancel HBO and drop Internet speed to a lower 15Mbps tier to bring price to $125 range. She threatened to call Verizon, representative told her to ‘go ahead.’ On the second attempt Denise used Twitter and representative phoned back the next day with a message her bill was instantly cut to $120 and she will receive a one time $30 inconvenience credit for the rudeness she experienced over the phone. She keeps HBO and all of her other services and was offered to call back to discuss free Whole House DVR service.

Sam, Los Angeles: Used Facebook to contact Time Warner Cable about his $215 cable bill. Sam appreciated the fact TWC Maxx had arrived in Los Angeles and boosted his broadband speed to around 200Mbps, but didn’t appreciate the $25 a month rate reset that occurred this month as his promotional rate ended. Sam has a full cable television package, three premium movie channels, fast Internet, and Home Phone Unlimited. He also has two DVR boxes, two standard cable boxes, and rented his cable modem. Sam told Time Warner he would rather spend his money with Netflix, Amazon, and Sling’s $20 cable television over the Internet package and he was prepared to cut the cord. Time Warner cut his bill instead. He’s temporarily dropping all of his premium movie channels to score a promotion of $129 a month, drop the second DVR in favor of Whole House DVR service, and he is buying his own modem. He will add back his premiums on the aforementioned $30 a month promotion, which also gives him Starz and a $50 rebate.

Cerise, Portland, Me.: Our broadband-only volunteer, Cerise had the most trouble securing a better deal. Time Warner Cable initially wouldn’t budge beyond offering the same rate new customers get for one year: $34.99/mo + modem rental fee for 15/1Mbps service. Stop the Cap! intervened before Cerise considered her alternative – 6Mbps DSL from FairPoint Communications. After we pointed out Earthlink was selling identical broadband service on Time Warner’s network for $29.95 a month for six months, Time Warner’s “no” turned into “yes” and they agreed to match that price. If they don’t match that price again next year, Cerise can make a phone call and jump ship to Earthlink for their $29.95 promotion and then jump back to Time Warner six months after that. Cerise is also buying her own modem.

Let us know about how your negotiations went in the comment section below.

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

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

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

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

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

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

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

Here are the current offers:

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

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

Time Warner Cable Will Extend Maxx Upgrades to 75% of Its Markets by 2016, If Comcast Merger Dies

twc maxxTime Warner Cable plans to reach 75 percent of its customers with Maxx service upgrades offering broadband speed boosts up to 300/20Mbps for the same price it charges for 50Mbps by the end of 2016, assuming a merger with Comcast does not result in the plans being shelved.

Time Warner Cable customers will also escape Comcast’s ongoing experiments with usage caps and usage-based billing if the company remains independent, as Time Warner Cable executives continue to maintain that usage pricing should only be offered to customers that want it.

Company officials discussed the ongoing investments in Maxx upgrades during a quarterly results conference call with investors held earlier today.

CEO Rob Marcus indicated Time Warner Cable will choose markets for Maxx upgrades based on what kind of competition the cable company faces in each city.

“Our aim is to have 75% of our footprint enabled with Maxx […] by the end of [2016], and my guess is we’re continuing to roll it out beyond that,” said Marcus. “So the only question is prioritization, and obviously as we think about where to go first, competitive dynamics are a factor. So that includes Google, although it’s not explosively dictated by where Google decides to go. In fact I think we announced the Carolinas before Google did their announcement this week. So competitors are certainly relevant obviously.”

Time Warner Cable has targeted its Maxx upgrades in areas where its principal competitors — AT&T, Google, and Verizon — have made or announced service and speed improvements. Maxx upgrades are now complete in New York City and Los Angeles. Much of Austin, Tex., is also finished, where both AT&T GigaPower U-verse and Google Fiber plan to offer gigabit service.

This year, Time Warner will focus on bringing Maxx to Charlotte, Dallas, Hawaii, Kansas City, Raleigh, San Antonio and San Diego. Charlotte, Raleigh, and Kansas City will eventually see high-speed competition from both Google Fiber and AT&T U-verse. Time Warner is facing increasingly aggressive competition from Hawaiian Telcom, San Antonio is on Google’s short list and will also likely see faster U-verse, and San Diego is on AT&T’s list for GigaPower upgrades.

Time Warner spent $4.1 billion on capital expenses in 2014, up nearly $900 million above 2013 spending. Most of the money went to network upgrades in Maxx markets where new set-top boxes and cable modems are being provided to customers. Marcus refused to offer any guidance about how much the company intends to spend on upgrades in 2015, citing its looming merger with Comcast.

Marcus

Marcus

Not every city will benefit from network upgrades. Although 2/3rds of Time Warner Cable markets will get Maxx over the next two years, several will have to make do with the service they have now. The Time Warner Cable markets most at risk of being left off the upgrade list also have the weakest competition:

  • Yuma, Ariz.
  • Nebraska
  • Wisconsin
  • Eastern Ohio & Pennsylvania (except Cleveland)
  • Binghamton, Utica, Watertown, Elmira, and Rochester, N.Y.
  • Kentucky
  • West Virginia
  • South Carolina
  • Western Massachusetts
  • Maine

If the merger with Comcast is approved, the Maxx upgrade effort is likely to be shelved or modified by the new owners as customers are gradually shifted to Comcast’s traditional broadband plans.

Marcus also continued to shoot down compulsory usage-based billing and usage caps questions coming from Wall Street analysts. Marcus reminded the audience Time Warner Cable already offers optional usage-based pricing packages, and they have no intention of forcing customers to accept usage billing or caps.

“I think the ultimate success of usage based pricing will depend on customer uptake and customers’ interest in availing themselves of a usage based tier versus unlimited tier,” said Marcus. In earlier conference calls, Marcus admitted only a tiny fraction of Time Warner customers have shown any interest in usage allowances. The overwhelming majority prefer flat rate service.

In contrast, Comcast’s broadband customers in several southern cities continue to be unwilling participants in that cable company’s ongoing usage billing trials.

Google, Cablevision Challenge Traditional Cell Phone Plans, Wireless Usage Caps With Cheap Alternatives

freewheelLuxurious wireless industry profits of up to 50 percent earned from selling some of the world’s most expensive cellular services may soon be a thing of the past as Google and Cablevision prepare to disrupt the market with cheap competition.

With more than 80 percent of all wireless data traffic now moving over Wi-Fi, prices for wireless data services should be in decline, but the reverse has been true. AT&T and Verizon Wireless have banked future profits by dumping unlimited data plans and monetizing wireless usage, predicting a dependable spike in revenue from growing data consumption. Instead of charging customers a flat $30 for unlimited data, carriers like Verizon have switched to plans with voice, texting, and just 1GB of wireless usage at around $60 a month, with each additional gigabyte priced at $15 a month.

With the majority of cell phone customers in the U.S. signed up with AT&T or Verizon’s nearly identical plans, their revenue has soared. Sprint and T-Mobile have modestly challenged the two industry leaders offering cheaper plans, some with unlimited data, but their smaller cellular networks and more limited coverage areas have left many customers wary about switching.

Google intends to remind Americans that the majority of data usage occurs over Wi-Fi networks that don’t require an expensive data plan or enormous 4G network. The search engine giant will launch its own wireless service that depends on Wi-Fi at home and work and combines the networks of Sprint and T-Mobile while on the go, switching automatically to the provider with the best signal and performance.

googleCablevision’s offer, in contrast, will rely entirely on Wi-Fi to power its mobile calling, texting, and data services. Dubbed “Freewheel,” non-Cablevision customers can sign up starting in February for $29.95 a month. Current Cablevision broadband customers get a price break — $9.95 a month.

Cablevision’s dense service area in parts of New York City, Long Island, northern New Jersey and Connecticut offers ample access to Wi-Fi. Cablevision chief operating officer Kristin Dolan said its new service would work best in Wi-Fi dense areas such as college campuses, business districts, and multi-dwelling units.

New York City is working towards its own ubiquitous Wi-Fi network, which could theoretically blanket the city with enough hotspots to make Cablevision’s service area seamless. But the biggest deterrent to dumping your current cell phone provider is likely to be available coverage areas. Google’s answer to that problem is combining the networks of both Sprint and T-Mobile, offering customers access to the best-performing carrier in any particular area. While that isn’t likely to solve coverage issues in states like West Virginia and the Mountain West, where only AT&T and Verizon Wireless offer serious coverage, it will likely be sustainable in large and medium-sized cities where at least one of the two smaller carriers has a solid network of cell towers.

Comparing the Wireless Alternative Providers

  • Google Wireless will offer seamless access to Wi-Fi, Sprint and T-Mobile voice, SMS, and mobile data at an undetermined price. Likely to arrive by the summer of 2015;
  • Cablevision Freewheel depends entirely on Wi-Fi to power unlimited voice, SMS, and data. Launches in February for $29.95/mo ($9.95/mo for Cablevision broadband customers);
  • FreedomPop Wi-Fi ($5/mo) offers an Android app-based “key” to open unlimited Wi-Fi access to 10 million AT&T, Google, and cable industry hotspots nationwide for calling, texting, and mobile data;
  • Republic Wireless developed its own protocol to properly hand off phone calls between different networks without dropping it. Calling plans range from $5-40 a month. Less expensive plans are Wi-Fi only, pricier plans include access to Sprint’s network;
  • Scratch Wireless charges once for its device – a Motorola Photon Q ($99) and everything else is free, as long as you have access to Wi-Fi. Cell-based texting is also free, as a courtesy. If you need voice calling or wireless data when outside the range of a hotspot, you can buy “access passes” to Sprint’s network at prices ranging from $1.99 a day each for voice and data access to $24.99 a month for unlimited data and $14.99 a month for unlimited voice.
Scratch Wireless

Scratch Wireless

Google is pushing the FCC to open new unlicensed spectrum for expanded Wi-Fi to accommodate the growing number of wireless hotspots that are facing co-interference issues.

Wi-Fi-based wireless providers are likely to grow once coverage concerns are eased and there is reliable service as customers hop from hotspot to hotspot. The cable industry has aggressively deployed Wi-Fi access with a potential to introduce wireless service. Comcast is already providing broadband customers with network gateways that offer built-in guest access to other Comcast customers, with the potential of using a crowdsourced network of customers to power Wi-Fi coverage across its service areas. FreedomPop will eventually seek customers to volunteer access to their home or business networks for fellow users as well.

AT&T and Verizon are banking on their robust networks and coverage areas to protect their customer base. Verizon Wireless, in particular, has refused to engage in price wars with competitors, claiming Verizon customers are willing to pay more to access the company’s huge wireless coverage area. AT&T told the Wall Street Journal its customers want seamless access to its network to stay connected wherever they go.

Verizon’s chief financial officer Fran Shammo appeared unfazed by the recent developments. On last week’s conference call with investors, Shammo dismissed Google’s entry as simply another reseller of Sprint’s network. He added Google has no idea about the challenges it will face dealing directly with customers in a service and support capacity. While Google’s approach to combine the coverage of T-Mobile and Sprint together is a novel idea, Shammo thinks there isn’t much to see.

“Resellers, or people leasing the network from carriers, have been around for 15 years,” Shammo said. “It’s a complex issue.”

Investors are taking a cautious wait-and-see approach to the recent developments. Google’s new offering is likely to offer plans that are philosophically compatible with Google’s larger business agenda. Challenging the traditional business models of AT&T and Verizon that have implemented usage caps and usage pricing may be at the top of Google’s list. The new offering could give large data allowances at a low-cost and/or unlimited wireless data for a flat price. Such plans may actually steal price-sensitive customers away from Sprint and T-Mobile, at least initially. Sprint is clearly worried about that, so it has a built-in escape clause that allows a termination of its network agreement with Google almost at will.

http://www.phillipdampier.com/video/WSJ Google Cablevision Challenge Wireless Industry 1-26-15.flv

The Wall Street Journal talks about the trend towards Wi-Fi based mobile calling networks. (1:59)

Welcome to 2015; Another Year Fighting for a Square Deal for Essential Broadband Service

Phillip Dampier January 5, 2015 Editorial & Site News No Comments
Phillip Dampier

Phillip Dampier

Welcome to 2015!

This is the seventh year Stop the Cap! has fought for better broadband across North America and beyond. Whether your provider is Comcast, Time Warner Cable, Rogers, Bell, AT&T, Verizon or a (dwindling) number of other cable and telephone companies, there is plenty of room for improvement.

When we began in the summer of 2008, Frontier Communications was contemplating a usage cap of just 5GB a month on their broadband service. A year later Time Warner Cable market tested caps as high as 40GB a month. For almost as long as we’ve existed, Comcast has believed 250GB a month was all most customers ever needed. Rogers’ most popular Internet package today offers 60GB a month, despite the fact Canadians on average watch more online video than anyone else. AT&T thinks 150GB a month is fine for DSL and 250GB is all you’d need as a U-verse customer. Verizon doesn’t see a need for limits on either its DSL or fiber optic networks. Neither does Cablevision.

Usage caps and so-called “usage-based billing” continue to be one of the most under-reported stories in the tech press. Touted as “fair pricing,” these plans are in fact little more than profit-padding for a service that already earns companies as much as 90% gross margin. There is nothing fair about usage-based billing in North America. Customers face the same prices they have always paid for unlimited service, but now endure an arbitrary usage allowance that usually includes a stiff overlimit fee. Those providers charging usage pricing do not offer the fastest service, have not made significant improvements above and beyond other providers that still charge flat rate prices, and frequently also charge excessive modem rental fees.

The duopoly most Americans have for broadband service has become quite fat and happy collecting ever-increasing amounts of money for service that only seems to improve after an upstart competitor like Google arrives ready to offer better service at a lower price. Customers in Kansas City, Austin, and a handful of other communities are getting the best upgrades and are empowered to negotiate a lower price for service. The rest of the country is not so lucky. A handful of often-under capitalized fiber competitors have arrived in some areas, but their market share generally remains a fraction of what the cable and phone companies have locked up.

We have always believed broadband was destined to become the next must-have utility service, following clean water, electricity, gas and some form of telephone service. Unfortunately, Washington policymakers continue to treat Internet access as an optional extra, allowing one or two companies to dominate access in most communities. Policymakers and regulators have done very little to protect consumers from the effects of marketplace concentration, allowing cable and phone companies to merge and raise prices, remain uncommitted to protecting the Open Internet with strong Net Neutrality protections, and not taking the effects of usage caps seriously.

One of the most effective ways a community can combat bad service and high prices is to support launching its own public broadband network. Throughout the United States, local town and counties enduring “good enough for you” broadband (or no service at all) are constructing their own fiber optic networks to better meet the realities of the 21st century digital economy. They face industry-funded opposition in at least 20 states where lawmakers have banned or severely curtailed these networks to protect private telecom giants from the effects of serious competition.

In 2015, Stop the Cap! will continue to fight for consumers looking for a better deal:

  • We continue to oppose industry consolidation. Mergers and buyouts benefit executives and shareholders. They almost never benefit customers who soon find rate increases, fewer choices, and often worse service as a result. Connecticut residents know that first hand enduring Frontier Communications’ recent bungled transition from AT&T service. Customers that dislike Time Warner Cable will likely loathe Comcast if that merger wins regulator approval. AT&T’s buyout of DirecTV leaves one less competitive choice for customers living in AT&T’s service areas looking for an alternative to U-verse television. Imagine if the government had approved AT&T’s attempted buyout of T-Mobile, the one wireless carrier now willing to throw a monkey-wrench into the current dominance of almost-identical expensive wireless service plans from AT&T and Verizon.
  • Usage caps and consumption billing remain unjustified, particularly for wired broadband. Despite industry claims that usage caps and usage billing stimulate investment, in most cases the costs of delivering broadband service and the amounts companies invest in network upgrades continue their relentless decline on a per customer basis. Usage billing is no prescription for congestion problems either. Most congestion problems occur during peak usage levels — when light and heavy users alike are most likely to be online. A truly fair usage pricing scheme would charge a fair price for actual usage and nothing else. But such a pricing scheme would likely cut broadband bills and profits. So providers offer pre-determined compulsory usage allowances at current prices instead, and do not offer a flat rate option or rollover unused usage to a future month. As a result, customers often pay more for less service and constantly have to check their usage to make sure they do not get an unexpected surprise on their bill.
  • Strong Net Neutrality protection is the best guarantee of preserving the Internet as it exists today – where success or failure of an online venture is based on what it offers customers, not on the size of its bank account. A nationwide end to laws restricting the development and expansion of community broadband is also essential to give communities self-determination of their broadband future.
  • We will continue to educate consumers on how to negotiate a better deal with your provider and avoid expensive surcharges like modem rental fees. We will also continue to enlighten you about the pervasive influence of Big Telecom money on non-profits, state and federal governments, and researchers that support the various agendas of some of the largest telecom corporations in the country.

Broadband is improving at an incredible pace around the world, but back home prices continue to rise while Internet speed improvements are often met by usage cap road bumps. Internet affordability remains as much of a problem as rural broadband access. The more you know, the more effective you can argue for a change in telecom policies, where the public interest is better-balanced against corporate profits and duopoly prices.

Thank you for being a part of our efforts to make things better.

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  • Joe V: It wouldn't surprise me in the least if Frontier is being propped up with help by the U.S. Government with all these acquisitions and network investme...
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  • Fred H: I posted the below to my Facebook page just last weekend (before this updated post came out - I'll be updating the link after I finish this comment): ...
  • Phillip Dampier: Readers: Please see our newly updated 2015 guide to Getting a Better Deal from Time Warner Cable. You will get the latest information about negotiatin...
  • Ryan: Ok this article was good. Helped save me $40 per month plus gave me a one time credit of $40. Did my research with the competition first. I didn't ...
  • Dave: Apparently the middle class American(born here) is fast becoming the country's poor by sucking the life blood out of this class of people. Greed, is a...
  • Limboaz: I don't trust big corporations like Comcrap, but I trust the Obama administration even less. In cases such as this, they have a habit of bundling in i...
  • Wendy: Im thinking to sue att I had unlimited data and they made a mistake and removed it from my plan I was told I can't get it back that was a lie they do ...
  • Bob Patten: I live in Grand Ledge MI. I assure we are in the exact same boat. I rarely ever see speeds promised or even close to them. Today is a great day - I am...
  • Miriam Shore: BH bites the biggun. Glad they got it stuck up their posteriors with today's net neutrality ruling. When competition enters this area, it will be a ...
  • AC: This is a double-edged sword at best. The problem is that once you make it a government entity you will create comcast/att/verizon/frontier/time warn...

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