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Windstream’s Kinetic TV Barely Competes With Time Warner Cable in Nebraska

kinetic logoIf Windstream was hoping to make a splash with its new Kinetic IPTV service, Time Warner Cable certainly isn’t reaching for a towel.

Kinetic debuted in April in Lincoln, Neb., the first community to get Windstream’s fiber to the neighborhood TV service. Three months after being introduced, it’s available in about half of the city. But it is not proving much of a threat to incumbent Time Warner Cable because Windstream set rates roughly the same or higher than what the cable company charges.

In fact, a Stop the Cap! reader contemplating a trial run of Kinetic was quickly dissuaded when he learned Windstream charged $10 more than what he already paid Time Warner Cable.

“Windstream either does not understand Time Warner’s pricing or is artificially trying to limit demand for the moment,” our reader tells us. “I have to believe it is one or the other because the alternative is they don’t know what they are doing and are creating an experiment built to fail. When I told Time Warner I was toying with the idea of trying Kinetic, they cut my bill another $30 a month and Kinetic is now dead to me.”

Time Warner Cable’s customer retention department is well positioned to keep customers because it can sell faster Internet speeds at a lower price than Windstream has offered so far. The phone company obviously has no interest in starting a price war in Lincoln:

  • Windstream Kinetic offers packages ranging from $39.99-$129.98/mo;
  • Time Warner Cable offers packages ranging from $19.99-$129.99/mo.

The Lincoln Journal Star reports other customers have had similar experiences.

lincolnRyan Pryor said he inquired about Kinetic, but the price quoted was slightly more than what he now pays for a similar bundle with Time Warner and would have offered a slower Internet speed. So he chose to stick with what he has.

Where Windstream has had some success is attracting current satellite customers. Jason Smith was tired of losing satellite service during storms and since he was already a Windstream DSL customer, upgrading to Kinetic made sense.

“The picture quality has been very impressive,” Smith told the newspaper. “The one thing I noticed was how much better the picture looked than on DirecTV with the same HDMI connection to my TV.”

Smith is also happy with a more capable whole house DVR and the fact Windstream offers wireless set-top boxes.

But Smith also admitted he wasn’t sure if we would stick with the service long-term. A significant disadvantage of Kinetic is its reliance on copper wiring part of the way between Smith’s home and Windstream’s central office. All fiber to the neighborhood projects have bandwidth limitations that would not exist with a straight fiber to the home upgrade. Kinetic’s limits become clear when trying to watch three HD signals at once while being on the Internet. He can’t. Kinetic limits customers to two HD video streams at a time, compared with DirecTV’s five. Broadband speeds slow if other members of the household are also accessing telephone and television services.

With competition like that, Time Warner Cable has done little to strengthen its position, with no immediate plans to upgrade service in the city. All that has changed recently is a channel realignment that groups like-channels together starting at channel 100. Time Warner began that nationwide channel realignment in Syracuse, N.Y., in the spring of 2013. More than two years later, that change is only now reaching Lincoln.

Bryan Brooks, the Windstream vice president of business development, did not offer the newspaper many specifics about how Kinetic was performing, except to say demand has met expectations.

“Since launch, we have consistently met our daily target numbers for installations and anticipate the number of residents interested in signing up for Kinetic to continue to grow,” Brooks said in an emailed statement. “We are very pleased with how Kinetic has been received in Lincoln.”

Frontier Runs America’s Worst Website: Dead Last in 2015 Web Experience Ratings

frontier frankFrontier Communications scored dead last in a nationwide survey of websites run by 262 companies — ranked for their usability, helpfulness, and competence.

The “2015 Web Experience Ratings,” conducted by the Temkin Group, a customer experience research and consulting firm, looked at how customers feel about companies based on experiences visiting their websites. The firm wanted to know whether customers would forgive a company if its website proved less than satisfactory. The answer appears to be no, and phone and cable companies were the most likely to experience the wrath of dissatisfied customers.

“It’s ironic that many of the cable companies that provide Internet service earned such poor ratings,” Bruce Temkin, managing partner of Temkin Group, said.

Most household name cable companies did especially poor in the survey. Time Warner Cable, Comcast and CenturyLink all tied at 252nd place (out of 262 firms). But special hatred was reserved for the website run by Frontier Communications, repeatedly called “incompetent” by consumers, especially after the phone company disabled most of the website’s self-service functions in late April. A well-placed source inside Frontier told Stop the Cap! the company could not manage to get its website ordering functions working properly and simply decided to give up, forcing customers to call instead.

Only 29% of consumers were willing to forgive a telecommunications company for a lousy web experience, according to the findings. Other website disasters were run by: Cox Communications, Charter Communications, Spirit Airlines, Blue Shield of CA, and Haier.

Which websites do consumers love the most? Temkin says USAA (a bank) and Amazon.com have traded the #1 and #2 spots for the last five years.

Charter Asks FCC to Approve Time Warner Cable/Bright House Merger; Stop the Cap! Urges Changes

charter twc bhCharter Communications last week filed its 362 page redacted Public Interest Statement laying out its case to win approval of its acquisition of Time Warner Cable and Bright House Networks, to be run under the Charter banner.

“Charter may not be a household name for all Americans, but it has developed into an industry leader by implementing customer and Internet-friendly business practices,” its statement reads.

The sprawling document is effectively a sales pitch to federal regulators to accept Charter’s contention the merger is in the public interest, and the company promises a range of voluntary and committed service upgrades it says will improve the customer experience for those becoming a part of what will be America’s second largest cable operator.

Charter’s proposed upgrades fall under several categories of direct interest to consumers:

Broadband: Charter will commit to upgrade customers to 60Mbps broadband within 30 months (about 2.5 years) after the deal is approved. That could mean some Time Warner Cable customers will still be serviced with standard speeds of 15Mbps as late as 2018. Time Warner Cable’s Maxx upgrade program will be effectively frozen in place and will continue in only those areas “consistent with Time Warner Cable’s existing deployment plans.” That will leave out a large sections of the country not on the upgrade list. Charter has committed to impose no data caps, usage-based pricing or modem fees, but only for three years, after which it will be free to change those policies at will.

Wi-Fi: Charter promises to build on Time Warner’s 100,000 Wi-Fi hotspots, most in just a few cities, and Bright House’s denser network of 45,000 hotspots with a commitment to build at least 300,000 new hotspots across Charter’s expanded service area within four years. Charter will also evaluate deploying cable modems that also act as public Wi-Fi hotspots. Comcast already offers over 500,000 hotspots with plans for many more, making Charter’s wireless commitment less ambitious than what Comcast today offers customers.

Cable-TV: Charter has committed to moving all Time Warner and Bright House systems to all-digital service within 30 months. Customers will need to lease set-top boxes designed to handle Charter’s encryption system for all cable connected televisions. Among those boxes includes Charter’s new, IP-capable Worldbox CPE and cloud-based Spectrum Guide user interface system.

Video on the Go: Charter will adopt Time Warner Cable’s streaming platform and apps to provide 300 streaming television channels to customers watching from inside their homes (a small fraction of those channels are available while outside of the home). Customers will not be able to watch on-demand recorded DVR shows from portable devices, but can program their DVRs from apps or the website.

Discount Internet for the Poor: Charter references the fact its minimum entry-level broadband speed is 60Mbps so that does not bode well for Time Warner Cable’s Everyday Low Priced Internet $14.99 slow-speed Internet plan. Instead Charter will build upon Bright House Networks’ mysterious broadband program for low-income consumers.

Based on Charter’s initial proposal, Stop the Cap! will urge state and federal regulators to require changes of these terms before approving any merger. Among them:

  1. All existing Time Warner Cable and Bright House service areas should be upgraded to meet or exceed the levels of service offered by Time Warner Cable’s Maxx program within 30 months. It is not acceptable to upgrade some customers while others are left with a much more modest upgrade program proposed by Charter;
  2. Charter must commit to Net Neutrality principles without an expiration date;
  3. Regardless of any usage-cap or usage-based pricing plans Charter may introduce after its three-year “no caps” commitment expires, Charter must permanently continue to offer unlimited, flat rate Internet service at a reasonable price as an alternative to usage-priced plans;
  4. Customers must be given the option of opting out of any leased/provided-modem Wi-Fi hotspot plan that offers a wireless connection to outside users without the customer’s consent;
  5. Charter must commit to a more specific Wi-Fi hotspot program that details towns and cities to be serviced and proposed pricing for non-customers;
  6. Charter must allow customers to use their own set-top equipment (eg. Roku, Apple TV, etc.) to receive cable television service without compulsory equipment/rental fees. The company must also commit to offering discount alternatives such as DTAs for secondary televisions and provide an option for income-challenged customers compelled to accept new equipment to continue receiving cable television service;
  7. Charter must retain Time Warner Cable’s Everyday Low Priced $14.99 Internet plan regardless of any other low-income discount program it offers. If it chooses to adopt Bright House’s program, it must broaden it to accept applications year-round, simplify the application process and eliminate any waiting periods;
  8. Charter must commit to independent verification of customer quality and service standards and adhere to any regulatory guidelines imposed by state or federal regulators as a condition of approval.
  9. Charter must commit to expansion of its cable network into a reasonable number of adjacent, unserved areas by committing a significant percentage (to be determined) of measurable financial benefits of the merger to the company or its executives towards this effort.

Stop the Cap! will closely monitor the proceedings and intends to participate on both the state (New York) and federal level to guarantee any merger provides consumers with an equitable share of the benefits. We will also be examining the impact of the merger on existing Time Warner Cable and Bright House employees and will promote merger conditions that protect jobs and limit outsourcing, especially overseas.

Some Time Warner Cable Customers Get a Small Speed Boost Thanks to Overprovisioning

Phillip Dampier June 29, 2015 Broadband Speed, Consumer News, Time Warner Cable 4 Comments

timewarner twcTime Warner Cable customers in parts of the northeast have noticed their broadband speeds increased slightly over the last several days.

Stop the Cap! reader Howard Goldberg was among those who noticed Time Warner’s broadband performance in upstate New York has improved, at least for upper tiers.

“Over the past 24 hours, Speedtest.net (against the TWC site in Syracuse, and many others) is reporting 60-62Mbps down and 6.0-6.2Mbps up, an increase from 55/5.5Mbps we have had over the past few years,” Goldberg notes. He is subscribed to Time Warner Cable Ultimate, marketed in upstate New York as 50/5Mbps service.

We noticed the same thing late last week here in Rochester as speed test results now consistently top 60Mbps when using a Time Warner Cable-based server. The upstream speed increase was less visible, but still measurable.

Goldberg also reports ping times have dropped from the 18-22ms range to 13-15ms when using the Syracuse, N.Y. test site, which could also point to a more responsive Internet connection overall.

Cable companies occasionally deliver speeds that are actually faster than what they sell, known as overprovisioning, to improve customer satisfaction and boost their performance in the Federal Communications Commission’s ongoing national speed test program, designed to verify if providers are actually providing the speeds they are marketing to customers.

Are Time Warner customers in other areas seeing similar results? Report your findings in the comment section.

Bright House’s Mysterious Internet Discount Program Charter Wants to Adopt Nationwide

If you can find it.

If you can find it.

A major concern about the merger between Charter and Time Warner Cable and Bright House Networks is the availability of affordable Internet access. That was a major issue for New York regulators contemplating the earlier failed merger attempt between Comcast and Time Warner Cable.

Time Warner Cable offers all subscribers a low-speed budget Internet option called Everyday Low Price Internet for $14.99 a month with no pre-qualifications, no paperwork, and no contract commitment. Although originally designed to appeal to price sensitive DSL customers, it has become Time Warner’s de-facto low-income Internet offering for those who cannot afford Standard Internet service.

According to Charter Communications’ Public Interest Statement filed today with the Federal Communications Commission — its case to win approval of its acquisition of Time Warner Cable and Bright House — the future is not looking too good for Time Warner’s $15 Internet program if the merger is approved. Charter makes a point of stating its entry-level Internet option is 60Mbps service at almost three times that price.

So what will “New Charter” offer more than 10 million cable customers going forward:

New Charter will build upon Bright House Networks’ broadband program for low-income consumers by making a broadband offering available with higher speeds and expanded eligibility while continuing to offer the service at a significant discount, and will begin making the offer available within six months after the transaction closes and offer it across the New Charter footprint within three years of closing.

If you were even aware Bright House offered a discount broadband program, congratulations!

An advocate of affordable Internet service claims Bright House has done an excellent job keeping any mention of the program off its website. In fact, it appears arranging for a visa to visit North Korea is probably slightly easier than getting cheap service from Bright House.

It turns out Bright House does have a modified version of its barely advertised “Lite Internet” plan offering 2Mbps downloads and 512kbps uploads. Anyone can buy that plan for about $20 (with a separate modem fee). Bright House’s Low-Income Internet plan offers the same service for $9.95 a month for up to 24 months.

To qualify, there is an Olympic-style playing field of hoops to jump through, according to Cheap Internet:

1) You must have at least one child qualified for the National School Lunch Program. They need not be enrolled now.

2) You cannot have been a Bright House broadband customer during the last three months. If you are a current customer, you must first cancel and go without Internet service for 90 days (or call the phone company and hope to get a month-to-month DSL plan in the interim.)

3) If you have an overdue bill older than 12 months, you are not eligible until you pay that bill in full.

But it gets crazier.

4) Bright House does not enroll customers in discounted Internet programs year-round. From a Bright House representative:

“We do participate in this particular program, however, it is only around September that we participate in it. This is a seasonal offer that we have which can only be requested from the middle of August to the middle of September, which is when most start up with school again for the year.”

That restriction gets heavy criticism from Cheap Internet.

“Families fall into poverty every day of the year, and poverty-stricken families move from one school district to another every day of the year,” the website writes. “So it’s horribly unfair to tell them they’d qualify for this program if only they had fallen into poverty sometime between the middle of August and the middle of September.”

Time Warner Cable offers $14.99 to anyone without paperwork.

Time Warner Cable offers $14.99 to anyone without paperwork.

But wait, there is more.

Bright House does not take orders for the Low-Income Internet plan over the Internet. That’s right. No Internet sign ups over the Internet. You have to enroll by phone: (205) 591-6880. We dialed it and experienced 30 seconds of… silence. No ringing, no busy signals, nothing. Then an automated attendant picked up looking for a pre-qualification phone number to decide if we are in a Bright House service area. That is as far as we could get. It hung up.

It turns out Bright House sometimes refers to its discount Internet program under another name: Connect2Compete. As both Cheap Internet and Stop the Cap! found, if you visit Bright House’s website and search for either term, you will find absolutely nothing.

Does it seem Bright House lacks enthusiasm selling this option to income-challenged consumers?

The most information available about the discount Internet program Charter wants to bring to Time Warner Cable customers is available on a pretty skimpy third-party website that has no connection to Charter, Time Warner or Bright House. Nothing to be concerned about there!

New Charter promises to improve the program, but Stop the Cap! believes there is a much simpler solution. For $5 more, Time Warner Cable already offers a fine discount option available to anyone, anywhere, for as long as they want it. No paperwork, no complications, no drama. The fact New Charter seems to prefer a different option — one that requires an archaeological dig to unearth needed information — makes us wonder whether they are interested in serving the needy at all.

The ISP Defense Squad Attacks Guardian Story on Internet Slowdowns

Phillip "Speaking as a Customer" Dampier

Phillip “Speaking as a Customer” Dampier

Two defenders of large Internet Service Providers are coming to the defense of the broadband industry by questioning a Guardian article that reported major Internet Service Providers were intentionally allowing a degradation in performance of Content Delivery Networks and other high volume Internet traffic in a dispute over money.

Richard Bennett and Dan Rayburn today both published articles attempting to discredit Battle for the Net’s effort highlighting the impact interconnection disputes can have on consumers.

Rayburn:

On Monday The Guardian ran a story with a headline stating that major Internet providers are slowing traffic speeds for thousands of consumers in North America. While that’s a title that’s going to get a lot of people’s attention, it’s not accurate. Even worse, other news outlets like Network World picked up on the story, re-hashed everything The Guardian said, but then mentioned they could not find the “study” that The Guardian is talking about. The reason they can’t find the report is because it does not exist.

[…] Even if The Guardian article was trying to use data collected via the BattlefortheNet website, they don’t understand what data is actually being collected. That data is specific to problems at interconnection points, not inside the last mile networks. So if there isn’t enough capacity at an interconnection point, saying ISPs are “slowing traffic speeds” is not accurate. No ISP is slowing down the speed of the consumers’ connection to the Internet as that all takes place inside the last mile, which is outside of the interconnection points. Even the Free Press isn’t quoted as saying ISPs are “slowing” down access speed, but rather access to enough capacity at connection points.

Bennett:

In summary, it appears that Battle for the Net may have cooked up some dubious tests to support their predetermined conclusion that ISPs are engaging in evil, extortionate behavior.

It may well be the case that they want to, but AT&T, Verizon, Charter Cable, Time Warner Cable, Brighthouse, and several others have merger business and spectrum auction business pending before the FCC. If they were manipulating customer experience in such a malicious way during the pendency of the their critical business, that would constitute executive ineptitude on an enormous scale. The alleged behavior doesn’t make customers stick around either.

I doubt the ISPs are stupid enough to do what the Guardian says they’re doing, and a careful examination of the available test data says that Battle for the Net is actually cooking the books. There is no way a long haul bandwidth and latency test says a thing about CDN performance. Now it could be that Battle for the Net has as a secret test that actually measures CDNs, but if so it’s certainly a well-kept one. Stay tuned.

The higher line measures speeds received by Comcast customers. The lower line represents speeds endured by AT&T customers, as measured by MLab.

The higher line measures speeds received by Comcast customers connecting to websites handled by GTT in Atlanta. The lower line represents speeds endured by AT&T customers, as measured by MLab.

Stop the Cap! was peripherally mentioned in Rayburn’s piece because we originally referenced one of the affected providers as a Content Delivery Network (CDN). In fact, GTT is a Tier 1 IP Network, providing service to CDNs, among others — a point we made in a correction prompted by one of our readers yesterday.

Both Rayburn and Bennett scoff at Battle for the Net’s methodology, results, and conclusion your Internet Service Provider might care more about money than keeping customers satisfied with decent Internet speeds. Bennett alludes to the five groups backing the Battle for the Net campaign as “comrades” and Rayburn comes close to suggesting the Guardian piece represented journalistic malpractice.

Much was made of the missing “study” that the Guardian referenced in its original piece. Stop the Cap! told readers in our original story we did not have a copy to share either, but would update the story once it became available.

We published our own story because we were able to find, without much difficulty, plenty of raw data collected by MLab from consumers conducting voluntary Internet Health Tests, on which Battle for the Net drew its conclusions about network performance. A review of that data independently confirmed all the performance assertions made in the Guardian story, with or without a report. There are obvious and undeniable significant differences in performance between certain Internet Service Providers and traffic distribution networks like GTT.

So let’s take a closer look at the issues Rayburn and Bennett either dispute or attempt to explain away:

  1. MLab today confirmed there is a measurable and clear problem with ISPs serving around 75% of Americans that apparently involves under-provisioned interconnection capacity. That means the connection your ISP has with some content distributors is inadequate to handle the amount of traffic requested by customers. Some very large content distributors like Netflix increasingly use their own Content Delivery Networks, while others rely on third-party distributors to move that content for them. But the problem affects more than just high traffic video websites. If Stop the Cap! happens to reach you through one of these congested traffic networks and your ISP won’t upgrade that connection without compensation, not only will video traffic suffer slowdowns and buffering, but so will traffic from every other website, including ours, that happens to be sent through that same connection.

MLab: "Customers of Comcast, Time Warner Cable, and Verizon all saw degraded performance [in NYC] during peak use hours when connecting across transit ISPs GTT and Tata. These patterns were most dramatic for customers of Comcast and Verizon when connecting to GTT, with a low speed of near 1 Mbps during peak hours in May. None of the three experienced similar problems when connecting with other transit providers, such as Internap and Zayo, and Cablevision did not experience the same extent of problems."

MLab: “Customers of Comcast, Time Warner Cable, and Verizon all saw degraded performance [in NYC] during peak use hours when connecting across transit ISPs GTT and Tata. These patterns were most dramatic for customers of Comcast and Verizon when connecting to GTT, with a low-speed of near 1 Mbps during peak hours in May. None of the three experienced similar problems when connecting with other transit providers, such as Internap and Zayo, and Cablevision did not experience the same extent of problems.”

MLab:

Our initial findings show persistent performance degradation experienced by customers of a number of major access ISPs across the United States during the first half of 2015. While the ISPs involved differ, the symptoms and patterns of degradation are similar to those detailed in last year’s Interconnections study: decreased download throughput, increased latency and increased packet loss compared to the performance through different access ISPs in the same region. In nearly all cases degradation was worse during peak use hours. In last year’s technical report, we found that peak-hour degradation was an indicator of under-provisioned interconnection capacity whose shortcomings are only felt when traffic grows beyond a certain threshold.

Patterns of degraded performance occurred across the United States, impacting customers of various access ISPs when connecting to measurement points hosted within a number of transit ISPs in Atlanta, Chicago, Los Angeles, New York, Seattle, and Washington, D.C. Many of these access-transit ISP pairs have not previously been available for study using M-Lab data. In September, 2014, several measurement points were added in transit networks across the United States, making it possible to measure more access-transit ISP interconnection points. It is important to note that while we are able to observe and record these episodes of performance degradation, nothing in the data allows us to draw conclusions about who is responsible for the performance degradation. We leave determining the underlying cause of the degradation to others, and focus solely on the data, which tells us about consumer conditions irrespective of cause.

Rayburn attempts to go to town highlighting MLab’s statement that the data does not allow it to draw conclusions about who is responsible for the traffic jam. But any effort to extend that to a broader conclusion the Guardian article is “bogus” is folly. MLab’s findings clearly state there is a problem affecting the consumer’s Internet experience. To be fair, Rayburn’s view generally accepts there are disputes involving interconnection agreements, but he defends the current system that requires IP networks sending more traffic than they return to pay the ISP for a better connection.

Rayburn's website refers to him as "the voice of industry."

Rayburn’s website refers to him as “the voice of industry.”

  1. Rayburn comes to the debate with a different perspective than ours. Rayburn’s website highlights the fact he is the “voice of the industry.” He also helped launch the industry trade group Streaming Video Alliance, which counts Comcast as one of its members. Anyone able to afford the dues for sponsor/founding member ($25,000 annually); full member ($12,500); or supporting member ($5,500) can join.

Stop the Cap! unreservedly speaks only for consumers. In these disputes, paying customers are the undeniable collateral damage when Internet slowdowns occur and more than a few are frequently inconvenienced by congestion-related slowdowns.

It is our view that allowing paying customers to be caught in the middle of these disputes is a symptom of the monopoly/duopoly marketplace broadband providers enjoy. In any industry where competition demands a provider deliver an excellent customer experience, few would ever allow these kinds of disputes to alienate customers. In Atlanta, Los Angeles, and Chicago, for example, AT&T has evidently made a business decision to allow its connections with GTT to degrade to just a fraction of the performance achieved by other providers. Nothing else explains consistent slowdowns that have affected AT&T U-verse and DSL customers for months on end that involve GTT while Comcast customers experience none of those problems.

We also know why this is happening because AT&T and GTT have both confirmed it to Ars Technica, which covered this specific slowdown back in March. As is always the case about these disputes, it’s all about the money:

AT&T is seeking money from network operators and won’t upgrade capacity until it gets paid. Under its peering policy, AT&T demands payment when a network sends more than twice as much traffic as it receives.

“Some providers are sending significantly more than twice as much traffic as they are receiving at specific interconnection points, which violates our peering policy that has been in place for years,” AT&T told Ars. “We are engaged in commercial-agreement discussions, as is typical in such situations, with several ISPs and Internet providers regarding this imbalanced traffic and possible solutions for augmenting capacity.”

competitionMissing from this discussion are AT&T customers directly affected by slowdowns. AT&T’s attitude seems uninterested in the customer experience and the company feels safe stonewalling GTT until it gets a check in the mail. It matters less that AT&T customers have paid $40, 50, even 70 a month for high quality Internet service they are not getting.

In a more competitive marketplace, we believe no ISP would ever allow these disputes to impact paying subscribers, because a dissatisfied customer can cancel service and switch providers. That is much less likely if you are an AT&T DSL customer with no cable competition or if your only other choice cannot offer the Internet speed you need.

  1. Consolidating the telecommunications industry will only guarantee these problems will get worse. If AT&T is allowed to merge with DirecTV and expand Internet service to more customers in rural areas where cable broadband does not reach, does that not strengthen AT&T’s ability to further stonewall content providers? Of course it does. In fact, even a company the size of Netflix eventually relented and wrote a check to Comcast to clear up major congestion problems experienced by Comcast customers in 2014. Comcast could have solved the problem itself for the benefit of its paying customers, but refused. The day Netflix’s check arrived, problems with Netflix magically disappeared.

More mergers and more consolidation does not enhance competition. It entrenches big ISPs to play more aggressive hardball with content providers at the expense of consumers.

Even Rayburn concedes these disputes are “not about ‘fairness,’ it’s business,” he writes. “Some pay based on various business terms, others might not. There is no law against it, no rule that prohibits it.”

Battle for the Net’s point may be that there should be.

FCC Likely to Toss First Formal Net Neutrality Complaint Against Time Warner Cable

The nation’s first Net Neutrality complaint filed with the Federal Communications Commission accuses Time Warner Cable of refusing to provide the best possible path for its broadband customers to watch a series of high-definition webcams covering San Diego Bay.

sundiego_banner

Commercial Network Services’ CEO Barry Bahrami wrote the FCC that Time Warner Cable is degrading its ability to exercise free expression by choosing which Internet traffic providers it directly peers with and which it does not:

I am writing to initiate an informal complaint against Time Warner Cable (TWC) for violating the “No Paid Prioritization” and “No Throttling” sections of the new Net Neutrality rules for failure to fulfill their obligations to their BIAS consumers by opting to exchange Internet traffic over higher latency (and often more congested) transit routes instead of directly to the edge provider over lower latency peering routes freely available to them through their presence on public Internet exchanges, unless a payment is made to TWC by the edge provider. These violations are occurring on industry recognized public Internet peering exchanges where both autonomous systems maintain a presence to exchange Internet traffic, but are unable to due to the management policy of TWC. As you know, there is no management policy exception to the No Paid Prioritization rule.

By refusing to accept the freely available direct route to the edge-provider of the consumers’ choosing, TWC is unnecessarily increasing latency and congestion between the consumer and the edge provider by instead sending traffic through higher latency and routinely congested transit routes. This is a default on their promise to the BIAS consumer to deliver to the edge and make arrangements as necessary to do that.

The website responsible for initiating the complaint shows live webcam footage of the San Diego Bay.

The website responsible for initiating the complaint shows live webcam footage of the San Diego Bay.

Bahrami’s complaint deals with interconnection issues, which are not explicitly covered by the FCC’s Net Neutrality rules that prohibit intentional degradation or paid prioritization of network traffic. For years, ISPs have agreed to “settlement-free peering” arrangements with bandwidth providers that exchange traffic in roughly equal amounts with one another. To qualify for this kind of free interconnection arrangement, CNS’ webcams must be hosted by a company that receives about as much traffic from Time Warner Cable customers as it sends back to them — an unlikely prospect.

As bandwidth intensive content knocks traffic figures out of balance, ISPs have started demanding financial compensation from content producers if they want performance guarantees. This is what led Comcast, Verizon and AT&T to insist on paid interconnection agreements with the traffic monster Netflix.

Time Warner Cable is calling on the FCC to dismiss Bahrami’s letter on the grounds it is not a valid Net Neutrality complaint.

“[The FCC should] reject any complaint that is premised on the notion that every edge provider around the globe is entitled to enter into a settlement-free peering arrangement,” Time Warner Cable responds. That is a nice way of telling CNS it doesn’t get a premium pathway to Time Warner Cable customers for free just because of Net Neutrality rules.

CNS250X87Bahrami responds Time Warner’s attitude is based on a distinction without much difference because he is effectively being told CNS must pay extra for a suitable connection with Time Warner to guarantee his web visitors will have a good experience.

“This is not a valid complaint, and there is no way the FCC is going to side with them,” Dan Rayburn, a telecom analyst at Frost & Sullivan and the founding member of the Streaming Video Alliance told Motherboard. “The rules say you can’t block or throttle, but there’s no rule that says Time Warner Cable has to give CNS settlement-free peering. I don’t see how the FCC could possibly say there’s a violation here.”

The FCC made it clear in its Net Neutrality policy it intends “to watch, learn, and act as required, but not intervene now, especially not with prescriptive rules” with respect to interconnection matters.

That makes it likely Bahrami’s complaint will either be tossed out on grounds it is not a Net Neutrality violation or more likely dismissed but kept in what will likely be a growing file of future cases of interconnection disputes between ISPs and content producers. If that file grows too large too quickly, the FCC may be compelled to act.

AT&T, Verizon, Time Warner Cable Implicated In Content Delivery Network Slowdowns

fat cat attIf your YouTube, Netflix, or Amazon Video experience isn’t what it should be, your Internet Service Provider is likely to blame.

A consumer group today implicated several major Internet providers including Comcast, AT&T, Time Warner Cable and Verizon in an Internet slowdown scheme that prevented customers from getting the broadband performance they are paying for.

A study* of 300,000 Internet users conducted by Battleforthenet found evidence some of America’s largest providers are not adequately providing connectivity for Content Delivery Networks (CDNs) that supply high-capacity traffic coming from the Internet’s most popular websites.

Significant performance degradation was measured on the networks of the five largest American ISPs, which provide Internet connectivity for 75% of U.S. households.

“For too long, Internet access providers and their lobbyists have characterized Net Neutrality protections as a solution in search of a problem,” Tim Karr from Free Press told the Guardian newspaper, which had advance notice of the study. “Data compiled using the Internet Health Test show us otherwise – that there is widespread and systemic abuse across the network. The irony is that this trove of evidence is becoming public just as many in Congress are trying to strip away the open Internet protections that would prevent such bad behavior.”

freepressThe study revealed network performance issues that would typically be invisible to most broadband customers performing generic speed tests to measure their Internet speed. The Open Technology Institute’s M-Lab devised a more advanced speed test that would compare the performance of high traffic CDNs across several providers. CDNs were created to reduce the distance between a customer and the content provider and balance high traffic loads more evenly to reduce congestion. The shorter the distance a Netflix movie has to cross, for example, the less of a chance network problems will disrupt a customer’s viewing.

If technicians controlled the Internet, the story would end there. But it turns out money has gotten between Internet engineers with intentions of moving traffic as efficiently as possible and the executives who want to be paid something extra to carry the traffic their customers want.

That may explain why Comcast can deliver 21.4Mbps median download speeds for traffic distributed by a CDN Tier1 IP network called GTT to customers in Atlanta, while AT&T only managed to squeeze through around 200kbps — one-fifth of 1Mbps. It turns out AT&T’s connection with GTT may be maxed out and AT&T will not upgrade capacity to a network that sends AT&T customers more than twice the traffic it receives from them without direct compensation from GTT.

Internet traffic jam, at least for AT&T customers in Atlanta trying to access content delivered by GTT.

Internet traffic jam, at least for AT&T customers in Atlanta trying to reach content delivered by GTT.

An AT&T U-verse customer in Atlanta would probably not attribute the poor performance depicted in M-Lab’s performance test directly to AT&T because Internet responsiveness for other websites would likely appear normal. Customers might blame the originating website instead. But M-Lab’s performance results shows the trouble is limited to AT&T, not other providers like Comcast.

AT&T: Slow down, you move too fast.

AT&T: Slow down, you move too fast.

The issues of performance and peering agreements that provide enough capacity to meet demand are close cousins of Net Neutrality, which is supposed to prevent content producers from being forced to pay for assurances their traffic will reach end users. But that seems to be exactly what AT&T is asking for from GTT.

“It would be unprecedented and unjustified to force AT&T to provide free backbone services to other backbone carriers and edge providers, as Cogent et al seek,” AT&T wrote in response to a request from several CDNs to disallow AT&T’s merger with DirecTV. “Nor is there any basis for requiring AT&T to augment network capacity for free and without any limits. Opponents’ proposals would shift the costs of their services onto all AT&T subscribers, many of whom do not use Opponents’ services, and would harm consumers.”

* – When a copy of the study becomes publicly available, we will supply a link to it.

Correction: It is more accurate to describe GTT as a “Tier1 IP network” which supplies services to CDN’s, among others. More detail on what GTT does can be found here.

Net Neutrality Now in Full Effect; The Internet Is Still Working, Providers Are Still Getting Rich

netneutralityThe Federal Communications Commission’s Net Neutrality rules took full effect Friday, after a three-judge panel of the U.S. Court of Appeals for the D.C. Circuit denied petitions for a temporary stay of the rules made in separate lawsuits by AT&T and other telecom industry opponents.

“This is a huge victory for Internet consumers and innovators!,” FCC Chairman Thomas Wheeler exclaimed in a written statement. “There will be a referee on the field to keep the Internet fast, fair and open. Blocking, throttling, pay-for-priority fast lanes and other efforts to come between consumers and the Internet are now things of the past. The rules also give broadband providers the certainty and economic incentive to build fast and competitive broadband networks.”

The Net Neutrality rules govern both wired and wireless Internet services, and most observers predict the biggest impact will be felt by wireless customers. Wireless providers have experimented with speed throttling, priority access, data caps, and so-called “sponsored data” exempt from usage caps or usage billing. Some of these practices are now illegal under Net Neutrality rules and others are subject to increased scrutiny by the FCC.

Providers generally have not opposed rules blocking online censorship, paid prioritization, and selective speed throttling, but they are vehemently against the FCC’s catch-all “Internet general conduct rule,” that effectively allows the agency to oversee issues like interconnection agreements that connect content producers with each ISP, data caps/usage billing, and issues like zero-rating — providing an exemption from an ISP’s usage allowance for preferred content partners.

Providers argue the FCC could block innovative pricing and usage-based billing they argue customers would like to have.

Other industry groups claim Net Neutrality will lead to a significant decline in investments towards broadband upgrades and expansion. But Charter Communications CEO Thomas Rutledge, now in the middle of a multi-billion dollar merger deal with Time Warner Cable and Bright House Networks, disagreed, noting it will have no effect on Charter’s investment plans for its own cable systems or those it may acquire.

“The big news today is that there is no news,” said Timothy Karr, senior director of strategy for Free Press. “With Net Neutrality protections in place, there are no dramatic changes to the way the Internet works. Internet users are logging onto a network that’s open, as they’ve long expected it to be.”

Empire Access Expands Fiber to the Home Service Across Western N.Y./Southern Tier

empireA Prattsburgh, N.Y. family-owned company has picked up where Verizon left off and is busily wiring up small communities across western New York and the Southern Tier with fiber to the home service, giving both Verizon and Time Warner Cable some competitive headaches.

Empire Access is concentrating its service in areas where Verizon FiOS will never go and Time Warner Cable maxes out at 50/5Mbps. The company recently launched service in downtown Batavia in Genesee County and will be launching serving in Big Flats later this year.

Empire promises no data caps or usage-based billing and offers 100/20Mbps at introductory prices ranging from between $45-65/mo. Gigabit broadband speed is also available.

Where it has franchise agreements with local communities, Empire also offers cable television packages ranging from $31.45-73.40, with up to 130 channels. The packages are not as comprehensive as those from Time Warner Cable, but customers may not mind losing a dozen or two niche cable channels to save up to $30 a month off what Time Warner charges. Nationwide home phone service is also an option.

Empire relies heavily on two public/non-profit fiber backbone networks to deliver service. The Southern Tier Network comprises a 235-mile long fiber backbone that runs through Steuben, Chemung and Schuyler counties. Further north, Axcess Ontario provides backbone connectivity across its 200+ mile fiber ring around Ontario County.

fiber backboneWith the help of public and non-profit broadband infrastructure, residents in small communities across a region extending from Sayre, Pa., north to Batavia, N.Y., will have another choice besides Verizon or Frontier DSL, Comcast or Time Warner Cable.

Residents in some communities, like Hammondsport and Bath — south of Keuka Lake, love the fact they have a better choice than Time Warner Cable. Empire has reportedly signed up 70 percent of area businesses and has more than a 20% residential market share in both villages after a year doing business in the Finger Lakes communities.

Empire targets compact villages with a relatively affluent populations where no other fiber overbuilder is providing service. It doesn’t follow Google’s “fiberhood” approach where neighborhoods compete to be wired. Instead, it provides service across an entire village and then gradually expands to nearby towns from there.

Most western New York villages are already compact enough to attract the attention of cable companies, predominately Time Warner Cable, which has an effective broadband monopoly. Verizon and Frontier offer limited slowband DSL, but Verizon has stopped expanding the reach of its broadband service and will likely never bring FiOS fiber to the home service to any western N.Y. community outside of a handful of suburbs near Buffalo.

empire-access-truckThe arrival of Empire reminds some of the days when the first cable company arrived to wire their village. Word of mouth is often enough to attract new customers, but a handful of local sales agents are also on hand to handle customer signups. From there, one of the company’s 80+ employees in New York handle everything else.

Bryan Cummings, who shared the story of Empire Access with us, “is pretty stoked.”

“Bye, bye Time Warner Cable,” Cummings tells Stop the Cap!.

Time Warner has treated most of western New York about as well as its service areas in Ohio, often criticized for not keeping up with the times. With fiber overbuilders Empire Access in the Finger Lakes region and Southern Tier and Greenlight Networks in Rochester, the fastest Internet options are not coming from the local phone and cable company anymore.

WSKG in Binghamton explores fiber broadband developments in the Southern Tier of upstate New York. Empire Access is providing the fast fiber broadband Verizon, Frontier, and Time Warner Cable won’t. (3:54)

You must remain on this page to hear the clip, or you can download the clip and listen later.

At present, Empire Access provides service in:

  • Village of Arkport
  • City of Batavia
  • Village of Bath
  • Village of Canisteo
  • Village of Hammondsport
  • City of Hornell
  • Village of Montour Falls
  • Village of Naples
  • Village of North Hornell
  • Village of Watkins Glen
  • Village of Waverly (N.Y.)
  • Boroughs of Sayre, Athens, and South Waverly (Pa.)
  • Borough of Troy (Pa.)

Communities on Empire’s radar for future expansion include Urbana, Dansville, Wayland and Cohocton. Further out, there is some consideration of larger cities like Corning and Elmira, as well as other towns in far northern Pennsylvania. With Empire’s expansion into Naples, the company also has many options in affluent and growing communities in Ontario County, south of Rochester.

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