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Not Only Was Comcast’s Customer Retentions Guy Annoying, He Was Also Factually Wrong

astound-broadband-logoNearly two million people have listened to the Comcast customer service call from hell since it went viral earlier this week.

Comcast quickly decided it was best to apologize:

We are very embarrassed by the way our employee spoke with Mr. Block and Ms. Belmont and are contacting them to personally apologize. The way in which our representative communicated with them is unacceptable and not consistent with how we train our customer service representatives. We are investigating this situation and will take quick action. While the overwhelming majority of our employees work very hard to do the right thing every day, we are using this very unfortunate experience to reinforce how important it is to always treat our customers with the utmost respect.

csrSetting aside all that, we decided to investigate why Mr. Block was willing to subject himself to 18 minutes of phone hell to cancel his service.

At one point, we learn he is switching to Astound, a provider of cable TV, broadband internet, and telephone services on the West Coast, serving over 325,000 residential and business customers within communities in the San Francisco Bay area. Astound is an overbuilder, which means it is one of those rare instances where Comcast faces head to head competition with a company that can deliver more than DSL.

Although Comcast’s rep swore Comcast had the fastest Internet speeds (it doesn’t) and can deliver maximum savings (also wrong), it turns out Astound offers both cheaper and faster Internet service. We’d probably switch too, although we wish Astound would dump its 1TB monthly usage cap. How many customers even come close to that isn’t known, but it is likely under 1%, which makes us wonder why they bother with a cap at all?

We collected pricing information from both Astound and Comcast’s websites and here is what we found:

Stop the Cap! will include this incident in our formal filings with the FCC and New York State Public Service Commission in opposition to the merger of Time Warner Cable and Comcast. Comcast customers tell us Mr. Block’s experiences, although extreme, are not uncommon when dealing with Comcast’s customer retention department.

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Here’s How to Tell the N.Y. Public Service Commission to Reject the Comcast/TWC Merger

ny pscThe New York Public Service Commission needs to hear from you about the Comcast-Time Warner Cable merger. Unlike some of the southern and midwestern states that have utility commissions that basically rubber stamp the agenda of Big Telecom companies, New York’s PSC has a reputation for being tougher and more customer-oriented. But the PSC cannot act in your interest if you don’t share your views.

It is incredibly easy to file your own comments with the PSC. Nearly 2,300 New Yorkers have done so thus far, but we need to make sure they understand our serious objections to Comcast’s usage caps, its expensive service, and customer abuse.

We have provided a sample letter below. We hope you will write your own, but offer ours as a guide that includes some of our biggest concerns. We may prepare another one soon outlining other concerns.

How to file your comment:

  • E-Mail: [email protected]
  • Mail: Hon. Kathleen H. Burgess, Secretary, Public Service Commission, Three Empire State Plaza, Albany, New York 12223-1350.
  • Phone: 1-800-335-2120 (press “1″ to leave a recorded comment)

All comments should refer to “Case 14-M-0183, Petition of Comcast Corporation and Time Warner Cable Inc.”

Hon. Kathleen H. Burgess
Secretary
Public Service Commission
Three Empire State Plaza
Albany, New York 12223-1350

Re: Case 14-M-0183, Petition of Comcast Corporation and Time Warner Cable Inc.

Dear Ms. Burgess,

I am writing to ask the Public Service Commission to reject the merger proposal of Comcast and Time Warner Cable on the ground the companies have failed to show such a merger would be in the best interests of New York and its residents.

Although Time Warner Cable has never been a prize, Comcast’s reputation for bad service, high prices, rationed Internet access, and customer abuse is well documented in just about every community the company serves. Comcast has repeatedly been voted the “Worst Company in America” by Consumer Union’s Consumerist.com. The American Consumer Satisfaction Index has documented so many complaints about Comcast, it declared it the worst company it has ever scored, performing even worse than the Internal Revenue Service. For more than three years running, Harris Interactive has called Comcast one of the least reputable companies in America.

That alone should be enough to reject this merger out of hand. Permitting it would reward this company’s appalling behavior towards its own customers and expose New Yorkers to an even bigger monopoly problem than we deal with now. Unless you live in a Verizon FiOS service area, cable is your only real choice for true broadband speeds. DSL is rapidly losing favor and market share and Verizon has shown no interest in expanding it.

Comcast already uses its market power to its advantage by raising prices… a lot. Time Warner Cable charges less for its services than Comcast does.

For example, Time Warner Cable offers a standard television service package that provides all the popular cable networks for one price. Comcast offers a similar package but stripped out cable networks including Cloo, CNBC World, Al Jazeera America, Discovery Fit & Health, Disney XD, DIY, a range of ESPN’s extra networks, EWTN, Fine Living, Fox Business News, Great American Country, IFC, Investigation Discovery, Lifetime Real Women, Military Channel, MLB, most of MTV’s extra networks, NBA, National Geographic Channel, NFL Network, NHL Network, most of Nickelodeon’s extra networks, OWN, Oxygen, Sundance, Turner Classic Movies, The Science Channel, and VH1′s extra networks.

Customers who want these networks, like Turner Classic Movies, National Geographic, and IFC will have to pay a stunning price of up to $86 a month — just for television. Many of these networks are especially popular with fixed income older residents, who will now face an even larger cable TV bill.

Comcast promotes the fact its Internet speeds are faster than Time Warner Cable, but that is not true as Time Warner Maxx upgrades arrive. Comcast Internet service costs more, is slower, and increasingly usage-capped. Time Warner Cable has made clear it will not limit customers’ Internet usage. Comcast has made clear it will, predicting usage limits/usage-based pricing will be imposed on customers across its entire footprint within five years. That is no improvement for New York. That is literally a downgrade. We can do better in New York with Time Warner Cable.

In fact, the company has promised extremely little to New York after winning your approval to merge. Comcast is so arrogant, it already announced it will not share any cost savings with customers, promising even higher cable bills for New York with the merger. Even its touted X1 set top system will cost New Yorkers — it comes with a steep installation price of almost $100. Again, how does this serve the public interest?

Comcast’s public service programs are also woefully inadequate. Its Internet Essentials is a bureaucratic nightmare that only provides temporary discounts to a small percentage of customers (with school age children) who need an affordable Internet option. I guess childless couples and the elderly poor don’t matter. Time Warner Cable offers a $14.99 discount program available to anyone who wants it, no paperwork or waiting periods required.

It is my understanding Comcast must prove this merger is in the public interest to win your approval. It has utterly failed to do so, and I expect my state’s Public Service Commission to reject this merger. This is one deal that can never be modified sufficiently to make it acceptable for people like myself. You are doing us no favors trying to negotiate for an Internet discount program or expanding Comcast’s service area by a small amount in rural upstate New York. The end result is that millions of New Yorkers will get worse service than we get today, at a higher price, with little/no competition on the horizon.

This is a rare opportunity for our state, which lost most of its oversight powers over the cable industry years ago. Cable operators have abused their deregulated status and have raised prices, provided dreadful customer service, and have kept competition away. Letting Comcast into New York from Buffalo to the Bronx will only encourage more abuse, wreaking havoc on New York’s growing digital economy. Let’s send a clear message to Comcast New York isn’t willing to put our broadband future in the hands of “the worst company in America.” Let’s make it clear enough is enough.

Sincerely,

 

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Sprint Testing New Shared Data Plans, More Aggressively Priced Framily Plans to Stay Relevant

Waiting for an upgrade... Sprint Spark is the latest and fastest, but it's only in 24 cities.

Waiting for an upgrade… Sprint Spark is the latest and fastest, but it’s only in 24 cities.

Sprint may be feeling the music is about to stop and it doesn’t have a chair at the table.

While AT&T and Verizon Wireless divide up the premium market and T-Mobile goes for the aggressive price championship, Sprint is muddling along with its glacially paced upgrade to 4G LTE and a barely usable 3G experience that has a lot of customers pondering a switch. This spring Sprint lost 364,000 pre-paid and 231,000 valuable postpaid customers.

CNET reports Sprint is now seeking to follow other carriers with a shared family data plan and better pricing on both its Framily and individual plans.

Sprint may be America’s least exciting wireless carrier. While T-Mobile’s CEO gets into hot water with bombastic rhetoric about Verizon and AT&T, he largely ignores Sprint. To more than a few in the wireless industry, Sprint seems to be just plodding along.

“I will be collecting Social Security before Sprint upgrades to 4G around here,” writes suburban Sacramento resident Danny Chiang. “You just keep holding out for something better from Sprint just around the corner, but they never seem to actually get there.”

Chiang and others have endured a heavily congested 3G network while Sprint initially focused on rural and small market 4G network upgrades — hardly intuitive for loyal Sprint customers in urban areas. Today, all Sprint can claim is that it has America’s “newest network.”

Some investment analysts believe Sprint is being more conservative about spending as it navigates towards a potential merger with T-Mobile. Its Japanese owners — Softbank, have argued a combined Sprint and T-Mobile is the only way America’s third and fourth largest carriers can possibly hope to compete toe to toe with Verizon and AT&T.

Sprint’s latest network innovation — Spark — which combines spectrum in three different frequency bands to deliver a larger data pipe, is only available in two dozen cities. Spark would be a natural showcase for Sprint’s enormous spectrum holdings. Sprint Spark combines 4G FDD-LTE at 800MHz and 1.9GHz and TDD-LTE at Clearwire’s old WiMAX 2.5GHz spectrum.

But network upgrades do no good if your customers are headed out the door to the competition. While Sprint continues to upgrade its network, it is testing a variety of new plans in different cities for a possible wider release later this year.

Shared/Family Mobile Data Plan Trials — San Diego, Portland, Ore. and Las Vegas

Sprint believes its Framily Plan might be too expensive.

Sprint believes its Framily Plan might be too expensive.

Data Allowance Options

  • 1GB – $20
  • 2GB – $30
  • 4GB – $40
  • 6GB – $50
  • 10GB – $60
  • 20GB – $100
  • 30GB – $130
  • 40GB – $150
  • 60GB – $225
  • No unlimited shared data option
  • Unlimited Talk/Text Phone Access Charge (required charge per phone): $25 for 1-10GB data plans, $15 for 20+GB data plans
  • Annual Device Upgrade included at no extra charge for all customers with 20+GB shared data plans (San Diego and Portland only)
  • Annual Device Upgrade Option: $5/month (Las Vegas only)

CNET points out Sprint’s plans are a better deal for heavy data users. The $20 plan for 1GB, for instance, is only $5 cheaper than a comparable AT&T plan. But the 30GB plan is $75 cheaper than AT&T’s $225 version.

Discounted Framily Plan Trials – Buffalo, Philadelphia, and Providence, R.I.

  • Starting price reduced $10 to $45/month. Add five people to your “framily” and the price drops to $25/month (two fewer people now required to get the largest discount).
  • Selecting the $20 unlimited data option automatically enrolls you in an annual upgrade plan (Buffalo and Philadelphia only).
  • Customers can choose to pay $5 extra a month for an annual upgrade option (Providence only).

New Bring Your Own Device Option for Individual Plan Trials — Chicago, Minneapolis, and West Michigan

  • Customers paying full price for a smartphone, those paying in monthly installments,  or who bring their own device to Sprint are eligible for a $50 unlimited plan or a $40 for 3GB of data per month plan. Unlimited Framily data plans usually cost $75 a month.
  • Unlimited data customers in Chicago and Minneapolis are automatically eligible for annual upgrades.
  • West Michigan customers will have to pay a $5 fee each month for their annual upgrade.
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Aereo Declared Illegal by Supreme Court; 6-3 Decision is Certain to End Streaming Venture

aereo_logo

“We did try, but it’s over now.” — Barry Diller, a major investor in Aereo

The multibillion dollar broadcasting conglomerates that control over-the-air television and most cable networks got everything they wanted today from a 6-3 decision in the U.S. Supreme Court that declared Aereo, an independent provider of online over-the-air television streams, illegal.

The court’s liberal justices joined Chief Justice John Roberts and moderate Anthony Kennedy in a complete repudiation of the legality of Aereo’s business model – selling over the air television signals received by individual tiny antennas and streamed over the Internet — without seeking permission from the stations involved. In a sweeping ruling, the court found that no matter the technology involved, any effort to resell access or copies of television programs without the permission of the copyright holders is illegal. “We conclude that Aereo is not just an equipment supplier,” Justice Breyer wrote in the opinion. “We do not see how the fact that Aereo transmits via personal copies of programs could make a difference.”

Aereo CEO and founder Chet Kanojia quickly released a statement declaring the decision “a massive setback for the American consumer.”

“We’ve said all along that we worked diligently to create a technology that complies with the law, but today’s decision clearly states that how the technology works does not matter. This sends a chilling message to the technology industry,” Kanojia said. “We are disappointed in the outcome, but our work is not done. We will continue to fight for our consumers and fight to create innovative technologies that have a meaningful and positive impact on our world.”

That is news to Barry Diller, perhaps Aereo’s biggest investor. He has said for months if Aereo loses in the Supreme Court, the service will be shut down. He repeated that today on CNBC.

“We did try, but it’s over now.” Diller said.

Image: Wall Street Journal

Image: Wall Street Journal

Reed Hundt, former FCC chairman under the Clinton Administration, said despite the fact the ruling may inconvenience Aereo subscribers, the court wasn’t wrong in its decision.

“Aereo has very little chance surviving in the business and Barry Diller got his hands caught in the regulatory cookie jar,” Hundt said. “You can’t use technological tricks to bypass [cable network] rules and regulations. I think that’s a very reasonable decision.”

Observers worried about the impact the Aereo case might have on ancillary services unintentionally caught up in any broad legal language, but the court appeared to carefully avoid those complications.

The ruling leaves antenna manufacturers unaffected because antenna users simply capture over-the-air signals for reception in the home without paying the kind of ongoing subscription fees Aereo charged its customers.

The decision also protects the legality of cloud computing, DVR recordings, and other new technologies not directly related to the lawsuit. “We agree with the Solicitor General that “[q]uestions involving cloud computing, [remote storage] DVRs, and other novel issues not before the Court, as to which ‘Congress has not plainly marked [the] course,’ should await a case in which they are squarely presented,” Breyer wrote.

The court’s liberal wing shared Breyer’s opinion. Ruth Bader Ginsburg, Sonia Sotomayor and Elena Kagan all voted in favor of broadcasters including Walt Disney (ABC), Comcast (NBC), CBS Corp., and FOX.

Conservatives slammed the majority ruling against Aereo, claiming the court was bending over backwards for Hollywood and giant broadcasting conglomerates. Justice Antonin Scalia’s dissent ripped the majority’s ruling, claiming it would “sow confusion for years to come.” Scalia predicts there will be plenty of new litigation before the courts on issues related to online transmission of copyright works as a result of today’s decision.

Although Aereo was still pre-registering customers as of this afternoon, that isn’t likely to stay true for much longer. Aereo’s only bid to stay alive is to seek licensing agreements with the stations it distributes over its service. With broadcasters’ strengthened hand, it is unlikely they will be receptive to pricing agreements that would allow Aereo to continue providing service for $8 a month. Major cable and satellite operators are signing retransmission consent agreements with volume discounts that run above $1 a month per subscriber for each television station in a local area. In most cities, that would amount to at least $5 a month, but Aereo will likely face even higher costs because it lacks access to discounts.

http://www.phillipdampier.com/video/CNN Supreme Court rules against Aereo 6-25-14.mp4

CNN attempts to explain the meaning of the Aereo case to its less-informed viewers with mixed success. But the story explains why this is relevant to cord cutters. (4:41)

http://www.phillipdampier.com/video/Bloomberg Supreme Court Rules Against Aereo in Landmark Case 6-25-14.flv

Bloomberg News reports the Aereo case was a decisive victory for programmers who now have a strengthened hand asking for more compensation during retransmission consent negotiations with cable and satellite providers. (1:55)

http://www.phillipdampier.com/video/Bloomberg Aereo Ruling Gets Positive Response from Broadcasters 6-25-14.flv

Broadcasters called today’s victory “pro-consumer” but that is open to debate. Bloomberg News digs deeper into what this case means for DVR and cloud storage services as well. (5:26)

http://www.phillipdampier.com/video/Bloomberg Aereo Violating Broadcaster Copyrights Stocks Up 6-25-14.flv

Wall Street is rewarding big television networks and station owner groups with higher stock prices after winning a decisive victory against Aereo, Bloomberg reports. (2:35)

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Thoughts on the NY Public Service Commission’s Information Meeting in Buffalo on Comcast-TWC Merger

Phillip "The new unofficial spokesman of Time Warner Cable?" Dampier

Phillip “The new unofficial spokesperson for Time Warner Cable?” Dampier

I testified last evening at the Buffalo Public Information Meeting held by the New York Public Service Commission on the merger of Comcast and Time Warner Cable.

The regulator invited four witnesses to testify about the merger last evening. The other three:

  • Mark E. Reilly, Comcast’s senior vice president of government affair, northeast division (for);
  • Aaron Bartley, executive director of PUSH Buffalo (against);
  • Christine Carr, executive director of Computers for Children (neutral).

The meeting was sparsely attended with only about two dozen in the audience, a good number of those arriving from Rochester. Also in attendance were groups with direct financial connections to Comcast, some partly disclosed during the evening, others not. Readers will not be surprised they were strongly in favor of the merger. Common Cause was represented and was clearly against the merger, although their representative also had harsh words for Time Warner Cable.

Niagara County Legislator David E. Godfrey (R-Wilson) and Orleans County Legislator Lynne M. Johnson (R-Lyndonville), representing the Niagara Orleans Regional Alliance, spoke on behalf of rural New Yorkers who lack broadband service. Neither went on record opposing the merger but seemed to suggest its approval be tied to a rural broadband solution. The record on successfully pulling that off in earlier deals has been mixed at best. The cable industry treats its Return On Investment formulas like a biblical text. If expanding service isn’t going to make the companies money in the short term, it is very unlikely to happen. We believe New York’s broadband subsidy program is a better deal for consumers if it means keeping Comcast out of New York.

The audience was almost entirely silent during the event and it wrapped up earlier than originally planned. Buffalo seemed less engaged on broadband issues than I would have expected. Had the hearing been held in Rochester, I have no doubt the audience would have been far larger. Broadband matters in Rochester have always drawn crowds and significant news coverage. One Buffalo resident offered that the PSC chose its meeting location poorly — on “an out of the way” college campus in Amherst now in summer session that charges for parking (although we did park for free). Others have told us the meetings were poorly advertised. Thankfully, the PSC is keeping the record open for comments in writing and by phone.

The strongest contrast of views came from testimony from Mr. Reilly and myself, although the meeting was not configured as a debate.

Reilly

Reilly

Mr. Reilly did not seem well-informed about specifics regarding Comcast’s products and pricing. He stumbled through incomplete answers when asked directly (twice) to compare Comcast’s prices against Time Warner Cable. Unfortunately, the question and answer session did not allow for interjection from other witnesses, because if it did, I was more than ready to help Mr. Reilly answer that question because I brought the rate cards for both companies with me. Perhaps he did not want to answer, because as the evidence clearly shows, Comcast costs more.

He also implied Comcast had widely deployed up to 505Mbps broadband service in its service area. Speeds of 300-500Mbps are offered only to a limited number of customers that can, number one afford the high asking price ($300/month plus installation fee) and second are passed by Comcast’s fiber or Metro Ethernet networks.

We also disagreed over usage caps. Reilly claimed the average Comcast customer used just 17GB a month. Comcast’s own website claims median monthly data usage is 20-25GB per month. But according to Digital Trends, the average family with Internet-only service uses 212GB of data each month — more than seven times those who watch traditional television. That is because after cutting cable-TVs cord, they are watching shows over their broadband connection. That number is rising, and fast. Over the four years Comcast had a nationwide cap, it did not adjust it upwards even once to account for broadband growth.

Independent analysis from Sandvine found that Internet users, in general, are accessing increasingly larger amounts of data. The overall mean usage on North American fixed-access networks (as opposed to mobile networks) was 51.4 GB in March, which is up from the 44.5 GB noted in Sandvine’s most recent previous study. Cord-cutters as a whole now dominate network usage, accounting for a 54-percent majority of total monthly network traffic. Cord-cutters are also responsible for some of the cable industry’s biggest revenue challenges with their television packages.

The old industry meme that usage caps affect only a tiny minority of customers was also trotted out. We did not have the opportunity to ask, “if only a tiny percentage of customers exceed their allowance, why bother with usage caps at all?”

Time Warner Cable was not represented at the meeting, and in an ironic twist, that left me as their unofficial spokesbooster. In fact, nobody seemed aware of Time Warner Cable’s Maxx upgrade program which is delivering faster, more affordable Internet access than Comcast offers over its cable broadband network without the threat of looming usage caps.

Jump through hoops for $9.95 Internet

Jump through hoops for $9.95 Internet

Internet affordability emerged as a major topic last evening. Predictably Comcast touted its $9.95 Internet Essentials program without mentioning its highly restrictive pre-qualification requirements:

The program is only available to households that (i) are located where Comcast offers Internet service; (ii) have at least one child who receives free/reduced rate school lunches through the National School Lunch Program (the “NSLP”) and as confirmed annually while enrolled in the program; (iii) do not have an overdue Comcast bill or unreturned equipment; and (iv) have not subscribed to any Comcast Internet service within the last ninety (90) days (sections 1(i)-(iv) collectively are defined as “Eligibility Criteria”). The program will accept new customers for three (3) full school years, unless extended at the sole election of Comcast. Comcast reserves the right to establish enrollment periods at the beginning of each academic year in which it accepts new customers that may limit the period of time each year in which you have to enroll in the program.

2. In order to confirm your eligibility for the program, Comcast will need to verify that your children receive free/reduced rate school lunches through the NSLP in the initial enrollment year and each subsequent year you are enrolled in the program. In order to confirm eligibility, participants in the program will be required to provide copies of official documents establishing that a child in the household is currently receive free/reduced rate school lunches through the NSLP. Each year you will be required to reconfirm your household’s current eligibility by providing Comcast or its authorized agent with up-to-date documentation. If you fail to provide documentation proving your eligibility in the program, you will be deemed no longer eligible to participate in the program.

3. You will no longer be eligible to participate in the program if (i) you no longer have at least one child living in your household who receives free/reduced rate school lunches under the NSLP; (ii) you fail to maintain your Comcast account in good standing; (iii) Comcast ceases to provide the Covered Service to your location; or (iv) your account opened under the program is closed. A change in address may result in your account being closed, even if you continue to receive Comcast services at a different address. Program participation also may be terminated if the Covered Service is upgraded, altered or changed by you for any reason. If you are no longer eligible for the program, but continue to receive the Covered Service from Comcast, regular rates, and any other applicable terms and conditions will apply to the Covered Service.

In brief, you can only qualify if you don’t have Comcast Internet service already. If you do, Comcast demands you stay without Comcast Internet service for at least 90 days before applying (good luck making that work). This is nothing more than a revenue protection mechanism for Comcast so that customers don’t downgrade to discounted Internet. Only poor families with school age children qualify and Comcast intrusively re-verifies eligibility regularly. Had a past due bill in the past or loss/stolen equipment? You are not qualified. Miss a payment? Comcast can kick you off the program. Try to upgrade any part of your Comcast package? You are done with Internet Essentials. Move to a new address? Your Internet discount isn’t going with you.

John Randall from the Roosevelt Institute came to a similar conclusion:

Comcast’s Internet Essentials program does more to benefit Comcast’s customer acquisition, public relations, and lobbying departments than to help people in America who need high-speed Internet access at a reasonable price. The reality is that the program is a cleverly designed customer acquisition program that benefits Comcast’s bottom line.

It was also a cynical way to help Comcast win approval of its merger with NBCUniversal. Comcast held back the program until they could use it as a political chip in their merger lobbying campaign. As we reported back in 2012:

In 2009, Comcast insiders were hard at work on a discount program for the disadvantaged who could not afford Comcast’s regular prices for broadband service. But the program was stalled at the direction of Cohen, who wanted it to be a chip with regulators to win approval of its acquisition of NBC-Universal. The program, sure to be popular among advocates of the digitally disadvantaged, was a key part of approving the $30 billion deal.

“I held back because I knew it may be the type of voluntary commitment that would be attractive to the chairman [of the FCC],” Cohen said in a recent interview.

You would probably take this used car to a mechanic before deciding whether to buy. Why doesn't Comcast know the state of Time Warner's cable systems before they made an offer?

You would probably take this used car to a mechanic before deciding whether to buy. Why doesn’t Comcast know the state of Time Warner’s cable systems before they made a $45 billion offer?

Lastly, Mr. Reilly repeatedly confessed Comcast did not know the state of Time Warner Cable’s system and equipment and could not answer questions about precisely how much Comcast would invest in upgrades. He admitted Comcast’s part-acquisition of Adelphia Cable (its systems were largely divided up between Comcast and Time Warner) resulted in a major under-estimate of repair and upgrade work required.

If I buy a used car, I take it to an expert who can describe its current condition, alert me to likely service required both now and in the near future, and predictions about the vehicle’s anticipated lifetime. Apparently Comcast buys cable systems sight-unseen.

It was widely known in the industry at the time that troubled Adelphia Cable properties were neglected as the company neared bankruptcy. Imagine Adelphia as a metaphor for the state of Sears or K-Mart these days.

Two members of the Rigas family that founded Adelphia were convicted on multiple charges of securities fraud, conspiracy to commit bank fraud and bank fraud. Prosecutors said the Rigases hid the fact the company was dangerously overextended with $2.3 billion in unreported debts. The family used the company’s bank accounts to finance a range of personal follies, including 100 pairs of slippers for Timothy Rigas and more than $3 million to produce a film by John Rigas’ daughter. We don’t know if the film was actually any good.

At the end of the evening in Buffalo, we were still left with the impression Comcast’s promises and commitments were vague and the much-touted benefits were much to be desired as soon as you began reading the fine print.

But frankly, I was disappointed by the low turnout. Consumers who do not want Comcast to be their next Internet provider -must- make their feelings known or that is precisely what is going to happen. We need all New Yorkers within travel distance of Albany or New York City to pack the PSC’s meeting rooms and have the courage to get up and speak. You can talk for 30 seconds or 3-5 minutes. You can also write or call the PSC if you want to extend your remarks in writing. New Yorkers have the power to throw a major wrench into a deal very few of us wants. But only if they make their voices heard:

Wednesday, June 18

SUNY Albany
Performing Arts Center
1400 Washington Avenue
Albany

6:00 pm: Informational Forum
7:30 pm: Public Statement Hearing

Thursday, June 19

NYS DPS Office
90 Church Street
New York

Please bring ID with you.

6:00 pm: Informational Forum
7:30 pm: Public Statement Hearing

Those who cannot attend or prefer not to speak at a public statement hearing may comment electronically to Hon. Kathleen H. Burgess, Secretary, at [email protected] or by mail or delivery to the Secretary at the Public Service Commission, Three Empire State Plaza, Albany, New York 12223-1350. Comments should refer to “Case 14-M-0183, Petition of Comcast Corporation and Time Warner Cable Inc.”

Toll-Free Opinion Line: You may call the Commission’s Opinion Line at 1-800-335-2120. This number is set up to take comments about pending cases from in-state callers, 24 hours a day. Press “1″ to leave comments, mentioning the Comcast/Time Warner merger.

All comments provided through these alternative methods should be submitted, or mailed and postmarked, no later than July 31, 2014. All such statements and comments will become part of the record and be reported to the Commission for its consideration.

All submitted comments may be accessed on the Commission’s Web site at www.dps.ny.gov, by searching Case 14-M-0183.

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Independent Cable Companies Unify Against Cable TV Programmer Rate Increases

big 7Subscribers of more than 900 independent cable companies may face an unwelcome surprise this summer in the form of a mid-year rate increase.

For years, members of the National Cable Television Cooperative (NCTC) have joined forces to negotiate for the kinds of volume discounts only the largest cable and satellite companies like Comcast, Time Warner Cable, DirecTV, Dish Networks, Charter, and Cablevision have traditionally received. NCTC members range from family owned cable operators, rural co-ops, community-owned providers, independent telephone companies, and small multi-system operators servicing multiple communities. With group-buying power, NCTC-member cable companies used to be able to negotiate volume discounts that could keep their rates competitive with larger providers.

But as consolidation among major network media, cable, satellite, and phone companies marches on, only the largest operators — some directly affiliated with the cable programming networks — are getting the best deals at contract renewal time. All NCTC members combined serve just five million cable TV subscribers. Comcast has 21 million, DirecTV: 20 million, Dish Networks: 14 million, and Time Warner Cable: 11 million.

When NCTC’s contract with Viacom was up for renewal, the owner of networks like MTV and Comedy Central raised the renewal price more than 40 times the rate of inflation. In fact, Viacom’s asking price was so high, operators like Cable ONE pulled the plug on 15 Viacom networks for good and replaced them with other programming. NCTC members eventually compromised on a deal to renew Viacom-owned networks, but customers of companies like Massillon, Ohio-based MCTV are paying the price in the form of a mid-year rate hike Bob Gessner, MCTV’s president, did not want to have to pass on to customers.

MCTV“I don’t like to do this because it puts me in a difficult position of raising prices, which no one likes, or reducing the product, which no one likes, or cutting back on the quality of our customer service, which no one likes,” said Gessner. “Large media companies control all the TV programming and they are raising the price.  The cost of TV programming is rising very rapidly and it is causing this rise in retail prices.”

Some facts about cable TV programming:

  • Nine media companies control 95% of the paid video content consumed in the U.S.;
  • The average household watches only 16 channels, yet networks package their channels to force you to buy those you don’t want to get those that you do want;
  • tvonmysideProgramming network fees account for the bulk of your monthly cable bill;
  • The cost of basic cable has risen 3½ times the rate of inflation over the last 15 years because of demands from networks for higher programming fees;
  • One media company honcho recently stated that, “…content is such a fundamental part of daily life that people will give up food and a roof over their heads before they give up TV.” This shows that they have lost their perspective and the demands for huge increases will continue.
Gessner

Gessner

Gessner has broken ranks with many cable operators that say little more at rate hike time than “increased programming costs.”

Gessner has produced a 20-minute video that carefully explains to his customers what is going on in the cable programming industry and why providers like MCTV are forced to shovel networks onto cable lineups few customers want or watch and how the biggest cable and satellite companies are now negotiating volume-discounted renewal pricing at the expense of smaller providers.

While the largest cable companies in the country secure lower rates through those volume discounts, programmers have found a way to make up the difference: demanding even higher rates for smaller cable companies to cover what they lose from Comcast and other big players.

Gessner, as well as other NCTC member companies, confront huge programmers like Comcast-NBCUniversal, Viacom, Time Warner (Entertainment), Discovery and Disney that first demand 3-7 year renewal contracts with built-in, automatic annual rate increases averaging 5-10 percent, regardless of the ratings of their networks. Most also demand that all of their cable networks be carried on their systems, whether customers are interested in them or not. If these companies dream up new cable networks, like ESPN’s SEC Network and the Longhorn Network, MCTV is committed to carry those channels as well, even though they are of little interest to residents of northeastern Ohio where MCTV operates.

These dream contracts (for cable programmers) are the single biggest reason cable-TV rates are skyrocketing. But Gessner says it gets even worse when those contracts expire. When renewal negotiations begin, programmers these days inevitably demand a “rate reset” which starts rate negotiations at a price 10, 30, even 60 percent higher than under the expiring contract.

local cleveland tv

Those dollar amounts cover local station retransmission consent agreements nationwide.

Gessner says he doesn’t know how much longer MCTV can afford to carry expensive networks like sports channels. If he drops them, angry subscribers could cancel cable service and switch to a provider willing to pay the asking price. Unless all of his competitors stand together, programmers will maintain the upper hand.

Some cable companies, like Cable ONE, are starting to risk the wrath of their customers by refusing to negotiate for terms they consider unreasonable. When subscribers learned the reasons why Cable ONE dropped more than dozen Viacom channels, many were supportive because the company replaced the networks with other channels and promised to keep rate increases down because they won’t have to pass on Viacom’s higher prices. Viacom retaliated by locking out Cable ONE’s Internet customers from accessing any of Viacom’s free-to-view online programming.

“Viacom lets web surfers from Albania watch Spongebob but Viacom blocks people who live in Alabama, and if you are an advocate of this thing called Net Neutrality, you should be very concerned,” Gessner said. “Viacom is blatantly violating the spirit of Net Neutrality by discriminating against certain Internet users in order to extract higher fees from TV viewers. That’s the sort of vicious bullying behavior many of the content companies use to maintain their stranglehold on the U.S. television industry.”

Gessner and other independent cable operators hope cable operators’ willingness to drop cable networks over their price is the start of something big — a pushback that could eventually force programmers to charge rational rates.

“Hopefully this will serve as a wakeup call to the rest of the industry to stop paying these ridiculous prices for TV rights,” said Gessner. “I have no illusion that sanity will come to the industry overnight — it will take time — but this is a step in the right direction.”

http://www.phillipdampier.com/video/MCTV Rate Increase 2014.flv

MCTV president Bob Gessner hosted this thoughtful presentation to carefully explain why his customers are facing a $1-3 mid-year rate increase for cable television. Gessner breaks with tradition by explaining the cable television business model is effectively broken and needs serious reform, including more choices for customers seeking fewer channels and a lower bill. It’s well worth 20 minutes of your time. (20:11)

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The Invisible Rate Hike: Verizon Introduces New $0.99 “Because We Can” FiOS Voice Surcharge

Unsimplify

Unsimplify

When is a rate increase not a rate increase? When it is an “administrative surcharge” of course!

Verizon FiOS phone customers will soon find the company’s latest innovation in the form of a new line on their June bill, along with a $0.99 surcharge.

Notice of Price Increase
Effective May 17, 2014, Verizon will apply an FDV Administrative Charge of $0.99 per FiOS Digital Voice line. This monthly surcharge helps defray account servicing costs associated with providing voice services. This is a Verizon surcharge, not a tax or governmental fee. Visit verizon.com for more information.

Instead of simply raising the advertised price of the service, Verizon added a new opaque charge which they admit is nothing more than an effort to increase revenue. Prospective customers will still see Verizon’s attractive promotional pricing, but only later discover the final bill is higher once taxes, fees, and other surcharges are tacked on.

In fact, Verizon’s new FiOS Digital Voice fee is subject to taxes as well, so for some the true cost of the rate increase is $1.21.

Some angry Verizon customers are switching to Ooma, a service that asks customers to pay upfront for the hardware but offers basic telephone service for free (customers pay well under $10 a month to cover taxes that Ooma does not pocket itself.) A more deluxe option including more phone features runs around $10 a month.

One annoyed customer considers the fee an end run around consumer contract law:

My concern [is] with a regulated utility’s ability to get around a contract price by labeling an increase as an “administrative charge.”

I called their customer service line to discuss/complain.  When I asked what would prevent Verizon from using this as a vehicle to increase prices by $10 or $15, assuming Time Warner/AT&T/DirectTV raised their prices as well, he admitted that he was not aware of any restrictions.  Neither am I.

I can’t find anything in my contract with Verizon that lets them increase my price by instituting back-end increases.  I’m pursuing with government regulators and encourage you all to do so as well.  If this gets through, there will be more.

In fact, one of the reasons why Verizon loves their digital voice product so much is because it is unregulated and not subject to government oversight. They can set rates at will and their current contract allows for the addition of administrative fees without violating any “price lock” agreements. So far, most companies implementing these fees have kept them low enough to avoid provoking government scrutiny, but the number of them and their respective amounts have increased over time.

Customer recourse? Complain and ask for a credit for the administrative fee or cancel service.

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Deutsche Telekom Agrees to Sell T-Mobile USA to Sprint, But Regulators May Balk

And then there were three?

And then there were three?

Deutsche Telekom has agreed to sell T-Mobile USA to the Japanese parent company of Sprint in a deal that would combine the third and fourth largest wireless companies in the United States under the Sprint brand.

Japan’s Kyodo News Agency said they learned about the buyout agreement from industry sources, but did not reveal any further details.

SoftBank CEO and Sprint chairman Masayoshi Son and his lobbyists have been promoting such a merger for weeks, so the outlines of a deal between the two companies come as no surprise.

SoftBank son

Softbank CEO Masayoshi Son

U.S. regulators have repeatedly signaled their discomfort with any merger between Sprint and T-Mobile, however. Both the heads of the Federal Communications Commission and the U.S. Justice Department have repeatedly raised concerns about the emergence of just three national wireless competitors in the U.S.

AT&T is largely responsible for that perception after its failed attempt to buy T-Mobile in 2011. The large breakup fee and spectrum T-Mobile received after the deal collapsed helped T-Mobile relaunch as a feisty competitor that has forced competitors to cut prices. To regulators, it demonstrated the importance of having at least four national competitors, if only to check the dominance of leaders AT&T and Verizon Wireless. Both the FCC and Justice Department fear any additional mergers would lead to increased prices for U.S. consumers.

Son has argued that the four-competitor policy has left AT&T and Verizon dominant against their two much-weaker competitors. An enlarged Sprint would force broadband speeds upwards as a combined Sprint and T-Mobile launch a massive network upgrade that would force prices down.

Both Softbank and Deutsche Telekom seem eager to close a deal. Softbank is already arranging financing for the estimated $50 billion Deutsche Telekom is expected to ask for T-Mobile USA and the German owner of T-Mobile has sought to exit the U.S. market for at least two years, with the proceeds of any sale used to improve its operations in Germany and eastern Europe, where the company has been more profitable.

So far, Wall Street has had only a muted reaction to the merger news. Many analysts still expect U.S. regulators to shoot down any deal that proposes merging any of the four current large wireless carriers.

SoftBank CEO and Sprint chairman Masayoshi Son was interviewed at this week’s Code Conference. On the current state of wireless: “Oh my god, how can Americans live like this?” (1:23)

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Verizon’s Idea of a “Modest Rate Increase” in New Jersey: 440%; $15 Billion Collected for Phantom Fiber

Verizon-logoWhile the New Jersey Board of Public Utilities was able to quickly settle its differences with Verizon by granting the phone company’s wish to walk away from its commitment to offer 45Mbps broadband across the state, New Jersey ratepayers are out $15 billion in excess phone charges levied since 1993 for promised upgrades many will never get.

The Opportunity New Jersey plan the state government signed with Verizon was supposed to expand advanced broadband across the state in return for “a modest amount of pricing flexibility” in the fees Verizon charged customers in New Jersey. But Verizon is not a modest company and a new report shows the phone company used the agreement to boost rates as much as 440% — primarily through ancillary surcharges including inside wire maintenance, wire investment, an investment recovery fee, a local number portability surcharge, merged local calling area charge, and various other charges for phone features including Caller ID, Call Waiting, etc.

Tom Allibone, the president of LTC Consulting joined forces with New Networks’ Bruce Kushnick to analyze more than 30 years of Verizon New Jersey phone bills and discovered when it comes to tallying up rate increases, Verizon’s addition skills are akin to taking out a bag of M&M’s and only counting the yellow ones.

“This Verizon New Jersey bill from April 2002 [...] has an “FCC Subscriber Line Charge”, which was $6.21 cents per line. Verizon’s quote doesn’t include this charge in their analysis of no increases between 1985 to 2008,” Kushnick writes. “The FCC Line Charge (it has many names), is on every local phone bill and the charge started in 1985. You can’t get service without paying this charge and the money does NOT go to fund the FCC but is direct revenue to Verizon New Jersey.”

verizonnjrateincreaseAfter adding up various other surcharges, Kushnick’s bill increased a lot.

“Add up the ‘Total Monthly Charges’ for 2 phone lines— It’s ugly,” Kushnick said. “While the cost of the ‘monthly charges’ was $25.62, there’s an extra $17.70 cents — 70%. I thought that Verizon said there were no ‘increases.’”

“Anyone who has ever bought a bundled package of services from Verizon (or the other phone or cable companies) knows that they all play this shell game; the price of service you have to pay is always 10-40% more than the advertised price. That’s because the companies leave out the cost of these ancillary charges and taxes in their sale pitch,” he added.

Verizon raised local residential service rates 79% in 2008, according to Kushnick. Business customers paid 70 percent more. Caller ID rates increased 38% — remarkable for a service that has a profit margin of 5,695%. But Verizon did even better boosting the charge for a non-published number by 38% — a service that has a 36,900% profit margin as of 1999 — the services are even cheaper to offer now.

Telephone service is one of those products that should have declined in price, especially after phone companies fully depreciated their copper wire networks — long ago paid off. Companies like Verizon have cut the budgets for outdoor wire maintenance and the number of employees tasked with keeping service up and running has been reduced by over 70 percent since 1985, dramatically reducing Verizon’s costs. But Verizon customers paid more for phone service, not less.

The cost of service might not have been as much of an issue had Verizon taken the excess funds and invested them in promised upgrades, but that has not happened for a significant percentage of the state and likely never will. Instead, they just increased company profits. More recently, Verizon has directed much of its investments into its more profitable wireless division.

Even though Verizon achieved total victory with the Christie Administration-dominated BPU, the company is still making threats about any future plans for investment.

“It’s important that regulators and legislators support public policies that encourage broadband growth in New Jersey rather than ones that could jeopardize the state’s highly competitive communications industry, or risk future investments by providers like Verizon,” wrote Sam Delgado, vice president of external affairs.

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United States of AT&T: DirecTV Acquired by AT&T in $48.5 Billion Deal

http://www.phillipdampier.com/video/WSJ ATT Buys DirecTV 5-19-14.flv

For $48.5 billion, AT&T will vault itself into second place among the nation’s largest pay television providers with the acquisition of DirecTV. The Wall Street Journal reports the executives at AT&T have been looking to for a giant deal for several years. Most executives earn special bonuses and other incentives worth millions for successfully completing these kinds of transactions. (3:03)

AT&T plans to spend $48.5 billion to acquire the nation’s biggest satellite television provider, allowing AT&T to become the second largest pay television company, behind a merged Comcast and Time Warner Cable.

att directvThe deal, finalized on Sunday, pays $95 per DirecTV share in a combination of stock and cash, about a 10% premium over DirecTV’s closing price on Friday. Including debt, the acquisition is AT&T’s third-largest deal on record, behind the purchase of BellSouth for $83 billion in 2006 and the deal for Ameritech Corp., which closed in 1999, according to data compiled by Bloomberg.

“This is a unique opportunity that will redefine the video entertainment industry and create a company able to offer new bundles and deliver content to consumers across multiple screens – mobile devices, TVs, laptops, cars and even airplanes. At the same time, it creates immediate and long-term value for our shareholders,” said Randall Stephenson, AT&T chairman and CEO. “DirecTV is the best option for us because they have the premier brand in pay TV, the best content relationships, and a fast-growing Latin American business. DirecTV is a great fit with AT&T and together we’ll be able to enhance innovation and provide customers new competitive choices for what they want in mobile, video and broadband services. We look forward to welcoming DirecTV’s talented people to the AT&T family.”

The announced acquisition has left some on Wall Street scratching their heads.

“Like any merger born of necessity rather than opportunity, the combination of AT&T and DirecTV calls to mind images of lifeboats and rescues at sea,” telecommunications analyst Craig Moffett of MoffettNathanson Research wrote this week. AT&T, Moffett wrote, is in “dire need of a cash producer to sustain their dividend.”

http://www.phillipdampier.com/video/Bloomberg ATT DirecTV Deal a Head Scratcher 5-19-14.flv

Craig Moffett, founder of MoffettNathanson LLC, talks about AT&T Inc.’s plan to buy DirecTV for $48.5 billion. Moffett speaks with Tom Keene, Scarlet Fu, William Cohan, and Adam Johnson on Bloomberg Television’s “Surveillance.” StockTwits founder Howard Lindzon also speaks. (5:12)

pay market shareThe deal would combine AT&T’s wireless, U-verse, and broadband networks with DirecTV’s television service, creating bundling opportunities for some satellite customers. As broadband becomes the most important component of a package including phone, television, and Internet access, not being able to offer broadband has left satellite TV companies at a competitive disadvantage. AT&T’s U-verse platform – a fiber to the neighborhood network – has given AT&T customers an incremental broadband speed upgrade, but not one that can necessarily compete against fiber to the home or cable broadband.

Some analysts are speculating AT&T will eventually shut down its U-verse television service and dedicate its bandwidth towards a more robust broadband offering. Existing television customers would be offered DirecTV instead.

But deal critics contend AT&T is spending a lot of money to buy its competitors instead of investing enough in network upgrades.

“The amount of cash alone AT&T is spending on this deal — $14.55 billion — is as much as it cost Verizon for its entire FiOS deployment, which reaches more than 17 million homes,” Free Press’ Derek Turner tells Stop the Cap! “Add in the $33 billion in AT&T stock and $18.6 billion in debt, and you can see just how wasteful this merger is.”

In effect, AT&T is spending nearly $50 billion to buy DirecTV’s customer relationships, its satellite platform, and its agreements with programmers, all while removing one competitor from the market. Cable has 54 percent of the pay TV market, satellite has 34 percent, and AT&T and Verizon share 11 percent. AT&T’s U-verse has 5.7 million TV customers. DirecTV has 20.3 million. Combining the two gives AT&T 26 million television customers, second only to Comcast/Time Warner Cable.

Rural Americans will effectively see their choice in competitors drop by one-third, giving them the option of the phone company or Dish Network.

AT&T intends to persuade regulators to approve the deal despite its antitrust implications by offering several commitments the company says are in the public interest and protect consumers:

  • 15 Million Customer Locations Get More High Speed Broadband Competition. AT&T will use the merger synergies to expand its plans to build and enhance high-speed broadband service to 15 million customer locations, mostly in rural areas where AT&T does not provide high-speed broadband service today, utilizing a combination of technologies including fiber to the premises and fixed wireless local loop capabilities. This new commitment, to be completed within four years after close, is on top of the fiber and Project VIP broadband expansion plans AT&T has already announced. Customers will be able to buy broadband service stand-alone or as part of a bundle with other AT&T services.
  • Stand-Alone Broadband. For customers who only want a broadband service and may choose to consume video through an over-the-top (OTT) service like Netflix or Hulu, the combined company will offer stand-alone wireline broadband service at speeds of at least 6Mbps (where feasible) in areas where AT&T offers wireline IP broadband service today at guaranteed prices for three years after closing.
  • Nationwide Package Pricing on DIRECTV. DIRECTV’s TV service will continue to be available on a stand-alone basis at nationwide package prices that are the same for all customers, no matter where they live, for at least three years after closing.
  • Net Neutrality Commitment. Continued commitment for three years after closing to the FCC’s Open Internet protections established in 2010, irrespective of whether the FCC re-establishes such protections for other industry participants following the DC Circuit Court of Appeals vacating those rules.
  • Spectrum Auction. The transaction does not alter AT&T’s plans to meaningfully participate in the FCC’s planned spectrum auctions later this year and in 2015. AT&T intends to bid at least $9 billion in connection with the 2015 incentive auction provided there is sufficient spectrum available in the auction to provide AT&T a viable path to at least a 2×10 MHz nationwide spectrum footprint.

a dtv 2

http://www.phillipdampier.com/video/CNN ATT DirecTV Merger 5-19-14.flv

CNN says AT&T’s buyout of DirecTV is about getting video programming to customers using all types of technology, but public interest groups suspect it’s about reducing competition. (1:17)

A closer look at AT&T’s commitments exposes several loopholes, however.

AT&T U-verse and DirecTV compete head-on in these areas.

AT&T U-verse and DirecTV compete head-on in these areas.

  • AT&T’s “commitment” to expand broadband to 15 million new locations is in addition to their Project VIP U-verse expansion now underway. However, AT&T does not say how many rural customers will see wired U-verse service finally become available vs. how many will lose their landlines permanently and have to rely on AT&T’s wireless landline replacement and expensive, usage-capped wireless broadband;
  • AT&T’s speed commitment is largely unenforceable and falls apart with language like, “where feasible.” Anywhere they don’t deliver 6Mbps DSL speed can easily be explained away as “unfeasible.” AT&T also only commits to providing DSL where it already offers DSL, so no expansion there;
  • The FCC’s Net Neutrality protections never covered wireless and three years is a very short time to commit to the “light touch” approach the FCC had with Net Neutrality back in 2010;
  • AT&T’s wireless auction commitment comes with loopholes like “meaningfully,” “provided there,” and “a viable path to at least.”

“You can’t justify AT&T buying DirecTV by pointing at Comcast’s grab for Time Warner, because neither one is a good deal for consumers,” said Delara Derakhshani, policy counsel for Consumers Union, the advocacy arm of Consumer Reports. “On the heels of Comcast’s bid for Time Warner Cable, AT&T is going to try to pull off a mega-merger of its own. These could be the start of a wave of mergers that should put federal regulators on high alert.  AT&T’s takeover of DirecTV is just the latest attempt at consolidation in a marketplace where consumers are already saddled with lousy service and price hikes. The rush is on for some of the biggest industry players to get even bigger, with consumers left on the losing end.”

“The captains of our communications industry have clearly run out of ideas,” said Craig Aaron, president of Free Press. “Instead of innovating and investing in their networks, companies like AT&T and Comcast are simply buying up the competition. These takeovers are expensive, and consumers end up footing the bill for merger mania. AT&T is willing to pay $48.5 billion and take on an additional $19 billion in debt to buy DirecTV. That’s a fortune to spend on a satellite-only company at a time when the pay-TV industry is stagnating and broadband is growing. For the amount of money and debt AT&T and Comcast are collectively shelling out for their respective mega-deals, they could deploy super-fast gigabit-fiber broadband service to every single home in America.”

http://www.phillipdampier.com/video/CNN Al Franken Skeptical About DirecTV Deal 5-19-14.flv

Sen. Al Franken (D-Minn.) appeared on CNN’s New Day this morning to express his skepticism about the consumer benefits of a merger between AT&T and DirecTV. “We need more competition, not less.” (2:40)

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