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The Trauma Trinity: Comcast, Time Warner, Charter Now America’s Most-Hated Companies

ygbix_logoAmericans would rather deal with unwanted telemarketing calls, fight their insurance company, or pay top dollar for oil and gas because almost anything is better than dealing with the cable company, if it happens to be named Comcast, Time Warner Cable, or Charter.

As state and federal regulators contemplate allowing these three companies to co-mingle, Americans have bottom-rated them like never before in the most recent YouGov BrandIndex survey of consumer satisfaction.

Any number below 60 results in the failing grade of “F” and shame for all concerned. The three cable operators managed a grade of just 13.2, nearly twice worse than the next lowest scoring industry – wireless providers. The cable sector once again achieved the lowest scores among 43 rated industries and has sunk to a level reserved for a war criminal popularity contest.

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YouGov BrandIndex

Although Time Warner Cable’s scores were called “crap” by one consumer advocate reviewing the data, Comcast performed much worse, plummeting to new lows after customers related to the gone-viral recording of Ryan Block’s customer service call from hell. Block spent more than 20 minutes arguing with a cocky and insufferable customer service representative who repeatedly resisted Block’s efforts to cancel his service. It hit a familiar nerve with Comcast customers and the company took a major hit, according to Lance Fraenkel, head of client services for BrandIndex.

cable guy“That to me stands out as a major event over the last few months that has damaged the brand and category perception,” Fraenkel told The Huffington Post.

The proposed merger of Comcast and Time Warner Cable, although well received by non-profit groups and politicians receiving Comcast contribution checks, is a dead on arrival proposition for average consumers. This allowed Charter, which typically rates about as popular as burnt popcorn, to achieve a new high in its perennially dismal consumer satisfaction score. It can take its “barely neutral” rating to the bank.

But it isn’t bad for everyone. Verizon FiOS in particular achieved top grades for service, with AT&T U-verse also doing better than the cable competition.

“If you have a couple brands in negative territory and the category average is still firmly positive, then you know that there are brands that perform well in the sector,” Fraenkel added.

Comcast and Time Warner Cable both acknowledged their lousy ratings, both promising to continue spending millions improving the customer service experience. Comcast has promised that annually since 2007 and its ratings continue to decline. Many blame offshore call centers and intransigent operators unwilling to depart from a script that emphasizes giving credits and refunds only as a last resort. Most complaining customers are offered temporary discounts on service upgrades, which eventually expire and result in an even higher bill.

Charter couldn’t be bothered responding to a call for a comment. When the alternative is DSL from Frontier, CenturyLink or Windstream, why should they?

Time Warner Cable Finishes Maxx Upgrades in NY, LA; Will Upgrade Only 7 Additional Areas in 2015

Phillip Dampier November 13, 2014 Broadband Speed, Consumer News, Time Warner Cable 4 Comments

twcGreenTime Warner Cable has finished the rollout of TWC Maxx upgrades in New York and Los Angeles and will likely finish in Austin by the end of this year, delivering free broadband speed upgrades up to 300Mbps and a better television experience.

“Today marks an important milestone in Time Warner Cable’s commitment to provide our customers with best-in-class products and service,” said Time Warner Cable chairman and CEO Robert Marcus, in a release. “Every customer in our two largest markets now has access to the superfast Internet and new TV experience promised by TWC Maxx.  Faster speeds are also available to every customer in the Austin, Texas, market, and we’ve committed to reinvent the service experience in seven additional markets in 2015.”

Unless you live in Kansas City, Dallas, San Antonio, San Diego, Hawaii, Charlotte or Raleigh, there will likely be no reinvention of broadband service for you, with top speeds still “maxing” out at just 50/5Mbps at the beginning of 2016.

maxed outWhile Time Warner Cable customers have seen the company’s top premium speed stagnate at 50/5Mbps in many parts of upstate New York, South Carolina, western Ohio, and Maine for several years, TWC Maxx communities will see Standard Service speeds start at 50Mbps and rapidly increase from there. The differences in speed and price paid for broadband in Maxx markets vs. non-Maxx markets is staggering.

The average Time Warner Cable customer in Los Angeles will pay a promotional price of $35 a month for 50/5Mbps service. In upstate New York and other un-Maxxed areas, the price for that speed is $70 a month — twice as much.

Some customers in Los Angeles are being provided rent-free cable modems while subscribers in other cities continue to pay $6 a month.

There is speculation Time Warner Cable has set a conservative upgrade schedule for Maxx upgrades with the understanding the company will probably no longer exist long before the end of 2015, becoming a part of Comcast sometime early next year. Whether Comcast will continue the Maxx upgrade program is unknown, but it is doubtful — Time Warner’s maximum cable broadband speeds in Maxx markets are considerably faster than what Comcast offers most of its own customers.

 

Big Cable, Telcos Spent $42 Million In 2013-2014 Lobbying for Deregulation, Against Net Neutrality

AT&T, Comcast, Verizon, Time Warner Cable and the cable industry’s chief lobbying group spent $42.8 million during the 2013-2014 election cycle to weigh in on issues including burying Net Neutrality, outlawing community broadband competition, winning tax breaks for themselves, and avoiding consumer protection regulations.

A Common Cause analysis of data from the Center for Responsive Politics and the Institute for Money in State Politics shows that the usual suspects poured money into political coffers on the state and federal level to influence lawmakers.

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On the federal level, murky party committees received the largest individual checks: a total of $862,223 for House and Senate Republicans and $552,605 for Democrats. Individual members of Congress also received their own contributions, including Republican House Speaker John Boehner ($98,175 from Comcast) and Democratic Senator Mark Pryor ($88,650 from Comcast, TWC, and National Cable and Telecom. Assn.) Pryor will need to spend his contributions quickly. He was de-elected by Arkansas voters last Tuesday.

Net Neutrality is a major topic on the minds of the cable and telco companies, as is ongoing deregulation and decommissioning rural landline service, and pushback on revelations AT&T and Verizon were only too happy to turn over your phone records to the federal government.

In the states, the bigger the issues coming up in the legislature, the bigger the campaign checks. In Florida, AT&T is the state’s single largest source of political donations, giving $1.53 million to state lawmakers in the past year and another $660,000 to Gov. Rick Scott (R) and his appointed heads of state agencies. AT&T is lobbying for eliminating Florida’s telecommunications tax, win the right to place cell towers wherever they wish without much interference from local officials, and further deregulation. Most of AT&T’s money goes into the hands of the state’s Republicans.

In New York and California, Democrats got a major chunk of money from Comcast and Time Warner Cable — New York Governor Andrew Cuomo received $60,800 each from both Comcast and Time Warner Cable (totaling $121,600). California Governor Jerry Brown received $54,400 from Time Warner Cable and $27,200 from Comcast. Both states are reviewing the merger of the two companies this year. AT&T and Verizon are also major donors – AT&T wants to dismantle the rural telephone network in California and Verizon is trying to convince the New York legislature to approve its own rural landline replacement – Voice Link. It also wants reduced scrutiny of its landline performance in New York and more access to New York City buildings where it faces resistance from property owners who want compensation from Verizon to install FiOS.

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New York Regulators Again Delay Final Decision on Comcast-Time Warner Merger

Stop the Cap! has learned the New York State Public Service Commission has again delayed its final decision on the merger of Comcast and Time Warner Cable.

The latest deadline the PSC will pass is Nov. 19, and the new deadline, accepted by both cable operators, is Dec. 31, 2014.

Sources tell us the multiple delays come as a result of regulators underestimating the complexity of the transaction and its potential impact on New York residents.

There is also an ongoing legal dispute over the possible public release of information both cable companies argue is proprietary and confidential. Public interest groups argue otherwise and consider details about current broadband subscriptions, future expansion plans, and the possible fate of Time Warner Cable’s $14.99 low price Internet plan worth sharing with New York residents.

Time Warner Cable Boosting Basic Broadband Speed from 3 to 6Mbps

Time Warner Cable is in the process of upgrading “Basic” broadband tier ($30-40 a month) customers from 3 to 6/1Mbps at no extra charge. You may have the upgraded speeds even if you haven’t received e-mail from Time Warner Cable yet. Follow the instructions below and check your speed:

basic speed

(Image courtesy: Rachel Barnhart)

A merger with Comcast will see Time Warner Cable customers forced to downgrade back to 3Mbps for Comcast’s basic “Economy Plus” service ($39.95/mo) or pay a higher Internet bill for Comcast’s 6Mbps Performance Starter plan ($49.95/mo). An $8 a month modem rental fee also applies, likely to rise to $10 by early 2015.

Net Neutrality Freakout: Wall Street Popping Prozac, GOP Furious, Big ISPs, Allies Shocked and Appalled

President Barack Obama’s strong commitment to robust Net Neutrality protections for the Internet has created a nightmare scenario for Net Neutrality opponents who can no longer count on an ex-telecom industry lobbyist now in charge at the Federal Communications Commission to take care of their business interests with watered down, damage-controlled, net-protection-in-name-only.

The attacks on President Obama’s convictions began almost immediately after his video was published on whitehouse.gov with Sen. Ted Cruz’s declaration that Net Neutrality was Obamacare for the Internet, a statement that may have played well with his Texas tea party base, but was quickly parodied on social media:

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Hal Singer from the ironically named Progressive Policy Institute opined that President Obama’s decision to declare real Net Neutrality would likely lead to the new majority of Republicans to completely defund the agency in retaliation. PPI is strongly opposed to Net Neutrality and many other consumer protection measures and represents the interests of the George W. Bush wing of the Democratic Party, which consists of about six people (and Harold Ford, Jr. probably wishes he was one of them.)

net neutrality fee“We are stunned,” Michael Powell, a former FCC chairman who is now president of the National Cable & Telecommunications Association, said in an e-mail to Bloomberg reporters. After six years of supine oversight of giant telecommunications companies from former FCC chairman Julius “Data caps are innovative” Genachowski and the installation of an ex cable and wireless industry lobbyist as chief regulator of the country’s telecommunications industry, AT&T, Verizon and Comcast have faced few challenges to their regulatory wish lists.

The Washington Post “Innovations” editorial page proved once again the Post is now the leading publication neocons and pro-business conservatives keep hidden under their mattresses next to the Wall Street Journal for those private moments. WaPo devoted news space to a hack editorial from Larry Downes, who turned up in Congress earlier this summer to cheerlead the merger of AT&T and DirecTV and has vociferously opposed Net Neutrality since at least 2011.

In his generally fact-challenged piece, Downes proclaims the Obama Administration was seeking nothing less than to saddle the Internet with oppressive outdated regulations written in 1934, that the courts threw out earlier hybrid/compromise Net Neutrality regulations simply because they lacked the words “commercially unreasonable,”  and that implementing Net Neutrality would destroy investment in the world’s leading cable, mobile, and fiber networks.

Downes does not get out much, because other countries as diverse as South Korea, Lithuania, Bulgaria, Japan and Singapore have long since passed the United States, with much of Europe poised to follow their lead. Some of them even enforce Net Neutrality and the sky failed to collapse as a result. Broadband life is good in Bucharest.

Nothing about the Obama Administration’s proposal for Net Neutrality would do anything beyond preserving the Internet as we know and love it and judges told the FCC’s attorneys they had no authority to impose Net Neutrality under the freak flawed framework established by Michael Powell, former FCC chairman-turned cable industry lobbyist.

Downes also laims he is shocked, shocked I tell you to discover the FCC isn’t immune to political pressure from the White House and other Beltway forces. Except he is one of those Beltway forces.

The Post was content disclosing that Downes was simply a co-author of “Big Bang Disruption:  Strategy in the Age of Devastating Innovation” (Portfolio 2014) and the project director at the harmless-sounding Georgetown Center for Business and Public Policy.

If you suspected Downes was just a tad closer to the industry he often advocates for than the newspaper was letting on, you would be right.

net neutrality comicIn fact, Downes is a “fellow” at the Bell Mason Group, a corporate advisory firm “passionate about partnering with forward-thinking corporate venturing and innovation executives, […] helping clients build risk-reduced, impactful programs and overcome corporate antibodies and obstacles [and deliver] measurable value.”

Net Neutrality is an example of one of those “risky corporate obstacles” to total monopoly control that could deliver Big Telecom companies “measurable value.” Among Downes’ past clients is a tiny phone company named AT&T, but you wouldn’t know it from Bell Mason’s well-scrubbed website. Too bad for them archive.org took a snapshot of an earlier version of his bio, revealing his less-than-arm’s-length relationship with AT&T.

None of this is apparently pertinent to the editors of the Washington Post. Disclosing Downes’ co-authorship of a far-less germane book one critic called a “big bang disappointment” was more than enough.

Bloomberg News avoided the hopelessly unbelievable talking points about Internet takeovers and concluded President Obama threw his FCC chairman under the bus. But even that conclusion originated from the conservative, anti-Net Neutrality group the Heritage Foundation, quoted in the piece:

“He threw Tom Wheeler under the bus,” said James Gattuso, a senior research fellow at the Heritage Foundation, a Washington-based policy group. Obama’s strong stance makes it harder for Wheeler to reach a compromise among proponents of regulation, Gattuso said.

Except proponents of Net Neutrality are tired of compromises that favor ungrateful telecom companies that routinely sue even the most minor consumer protections out of existence. Wheeler was rumored to be proposing yet another compromise as late as last week, one that would protect deep-pocketed content companies but leave consumers open to further abuse from high cost fast lanes and speed throttles.

Various tea party groups ginned up with claims of an imminent Obama socialist takeover of the Internet, Maoist censorship and protectionist rate regulation took to the comment sections of various news pieces and wrote comments like this:

“I don’t want government control that would force private companies not to control what I can see on the Internet.” 

riskyFor public policy mavens that claim Net Neutrality is a solution in search of a problem, countering Wall Street’s decisive view that Net Neutrality is a disaster for plans of revenue boosting schemes are harder to counter.

Obama’s intervention effectively kills Wheeler’s mixed plan, Paul de Sa, a senior analyst at Sanford C. Bernstein & Co. in New York, said in a note. It will be hard for the FCC, with a majority of Democrats appointed by Obama, to deviate significantly from his preference, and strong rules are likely, de Sa said.

Obama’s intervention “does not lead to price regulation of broadband,” in part because the FCC has no desire to do so, he said. Debate in Washington will intensify, with Congress holding “interminable hearings” and trying to prohibit the FCC from applying the strong rules, de Sa said.

The meaning to investors was clear: Internet profiteering plans are on indefinite hold. Comcast Corp. fell 63 cents or 1.2 percent, to $52.33 at 10:39 a.m. in New York trading, and are down as much as 5.1 percent this week. Time Warner Cable Inc. dropped $3.34, or 2.5 percent. AT&T Inc. fell 16 cents to $34.97 and Verizon Communications Inc. (VZ) fell 15 cents to $50.57.

A move to fully reclassify broadband, even if it includes “forbearance” from rate regulation, as President Obama suggested, would send investors scurrying, according to Kim Wallace, a policy analyst at Renaissance Macro Research. That is because it would cast doubt on cable and telecom companies’ abilities to generate a “sufficient return” on capital investments, which they expect to be sky high based on the limited amount of competition that exists today.

Craig Moffett, perennial cable stock booster, had the temerity to blame the latest developments on Comcast.

“The great irony is Comcast helped start this ball rolling by trying to buy Time Warner Cable in the first place,” said Moffett, an analyst at MoffettNathanson. “With the specter of possible price regulation hanging in the balance, [the question is] would Comcast still want to increase its exposure to distribution assets” in broadband.

The Wall Street press provides some salve for the chafed telecom industry high-flyer — the likely prospect of litigation tying up Net Neutrality long enough for Republicans to write new telecom laws that would lead to near-total regulatory capitulation and a free hand for providers. But investors sure hate uncertainty, so the Money Party will have to be postponed for now.

We have four illuminating news stories to share today on Net Neutrality:

http://www.phillipdampier.com/video/PBS Why is Obama weighing in on net neutrality 11-10-14.mp4

More than 3 million commenters crashed the Federal Communications Commission website in July to weigh in on the issue of net neutrality. Now President Obama has added his strong support, directing the FCC to protect equal access to all web content. Judy Woodruff speaks with U.S. chief technology officer Megan Smith about the president’s move. (7:33)

http://www.phillipdampier.com/video/Bloomberg Ex-FCCs Furchtgott-Roth Copps Debate Net Neutrality 11-10-14.flv

Former Federal Communications Commission members Harold Furchtgott-Roth and Michael Copps talk about President Barack Obama’s call for the “strongest possible rules” to protect the open Internet and the value of so-called net-neutrality rules. They speak with Cory Johnson on Bloomberg Television’s “Bloomberg West.” (7:00)

http://www.phillipdampier.com/video/CNN Here is why you should care about net neutrality 11-10-14.flv

CNN explores why you should care about Net Neutrality and reminds us in a world of distorted punditry exactly what “Net Neutrality” is. (3:58)

http://www.phillipdampier.com/video/Fox Business Michael Powell Net Neutrality 11-10-14.flv

Fox Business gives former FCC chairman Michael Powell an unchallenged platform to present his views on Net Neutrality. It becomes clear which side Fox is on when they call porn peddler Larry Flynt the quintessential Net Neutrality advocate. (5:08)

The Menace of the Unburied Line: Cable & Phone Companies Create Hazards for Homeowners

One Alabama customer found her fence the home of not one, but two artistically-managed Charter Cable lines serving her neighbors.

One Alabama customer found her fence the home of not one, but two artistically-Amanaged Charter Cable lines serving her neighbors.

All across the country, people are encountering communications wiring that belongs underground or on a utility pole, but is instead scattered on the ground or left dangling on fences or in the street. Isolated incidents or a consequence of deregulation that has left community leaders’ hands tied? Stop the Cap! investigates.

A Louisiana woman eight months pregnant is suing Cox Communications Louisiana and its contractor after tripping over an exposed cable wire in her mother’s backyard the company didn’t bother to bury.

In Fort Myers, Comcast connected a neighbor’s cable service in a senior living community by scattering a cable across lawns and sidewalks for nearly a year before finally burying it.

In Alabama, Charter Cable turned cable wiring into an art form, attaching multiple homeowners’ cable TV wires in artistic designs to a neighbor’s fence, and he wasn’t even a customer.

Welcome to the scourge of the unburied, exposed cable wire. Typically called a “drop” by cable installers, these lines are common in communities where a cable or phone company uses a third-party contractor to manage buried lines. Some manage them better than others.

In the northern United States, replacement drops installed during the winter months often stay on the ground until spring because the ground in frozen, but in warmer climates in the southeast, cable companies are notorious for “forgetting” about orphaned cable lines that can take weeks or months to bury, often only after intervention by a local media outlet or politician.

Chardae Nickae Melancon’s complaint claims Cox installed cable service in June, 2013 and left the cable wire exposed in the backyard. In late August, Melancon claims she tripped and fell over the wire injuring her arm, right side, and other unspecified injuries. Her suit alleges Cox was warned the wire was installed improperly and only after her injury did Cox return to finish the job.

In Fort Myers, it took more than 11 months for Comcast to return and bury its line, snaked across lawns and sidewalks connecting several buildings in the retirement community.

Comcast left this cable lying across a sidewalk in a retirement community in Fort Myers, Fla. for 11 months.

Comcast left this cable lying across a sidewalk in a retirement community in Fort Myers, Fla. for 11 months.

“You know this [community] is 55 and older. We have got people in here that are 90 years old,” Bonnie Haines, a resident in the Pine Ridge Condo retirement community told WFTX-TV. “Could you imagine them walking or walking around that sidewalk and tripping over this, what would happen? They couldn’t see it at night. Fortunately for me I know it’s there. I’ve lived with it all this time but if somebody would come to visit an older person or something, they don’t know it’s there.”

Across the street lies another unburied Comcast cable.

“We’ve called multiple times. we’ve reported it multiple times,” said Eric Ray, the manager of the Pine Ridge Homeowners Association. “In fact, every time I see a Comcast truck in here I personally grab the driver, take him over to the spot, and he puts in a work order and takes pictures right in front of me and still no response.”

Comcast’s last reply before making the evening news:  “We’ll get to it soon.”

Twenty four hours after being a featured story on the station’s newscast, the cables were finally buried.

In Montgomery, Ala., an artistic cable installer has used one resident’s fence as the adopted home of Charter Cable’s lines. Jamie Newton, who isn’t a Charter customer, noticed an orange Charter Cable line attached to her fence one day after returning home. That was two years ago. Suddenly, an extra cable appeared, draped like Christmas tree garland.

http://www.phillipdampier.com/video/WFTX Ft Myers Residents worried about exposed cable tv wire 1-15-14.mp4

Residents of a Ft. Myers, Fla. retirement community worry residents as old as 93 could be seriously injured if they trip over this Comcast Cable left on the sidewalk for at least 11 months. (3:00)

“At first I was surprised, and then it turned into a little bit of anger and frustration,” Newton told WSFA. “I have small children, I have friends’ children over, and the neighborhood kids come and play in my backyard. It’s not safe.”

Charter Cable is not interested because Newton is not a customer. Charter in fact recorded just one complaint from a Charter customer six months earlier, and they claimed a “glitch” was responsible for the cable not being buried.

(Image: WEWS-TV Cleveland)

(Image: WEWS-TV Cleveland)

While some customers have been encouraged to remove offending lines that cross property lines themselves, some have gotten into trouble doing so, charged with destruction of private property. The most common mistake homeowners make is cutting or displacing cables placed on or in a utility easement, which can be difficult to identify.

Some of the worst problems occur with cables that served now ex-customers. Residents complain AT&T, Comcast and Charter are not responsive to requests from non-customers to deal with abandoned wiring in disrepair. An outside line supervisor in San Francisco tells Stop the Cap! AT&T has few provisions to manage cabling no longer in service for a paying customers.

The city of Cleveland, Ohio is a prime example of how AT&T deals with unused cables. Residents reports dozens of abandoned lines snipped at head level and allowed to dangle off utility poles, eventually to fall to street level where children can handle them. Time Warner Cable was also accused of allowing cables to hang over Cleveland streets. Some are left over after demolishing vacant houses but the most frequent cause of hazardous cables is competition. When a customer cuts cable’s cord, drops a landline, or flips between providers, installation crews often cut and leave old lines swaying in the breeze or draped over sidewalks.

The problem grew so pervasive in Cleveland, city officials requested telecom companies coordinate an audit of their cable networks and remove dangerous wiring before someone gets hurt. But all they can do is ask. Ohio’s sweeping telecom deregulation law stripped local authority over AT&T and Time Warner Cable. The city’s leverage is now based on creative code enforcement and embarrassing the companies in the local media.

“We don’t have any regulation for phone and cable companies and hanging wires create a hazardous situation and it’s going to have to be regulated,” said Cleveland councilman Tony Brancatelli. “One of these times it’s going to be a hot line.”

Local media reported nearly the same problem four years earlier in Cleveland, and efforts to keep up with cables left in disrepair seem to wane after the media spotlight moves on.

http://www.phillipdampier.com/video/WEWS Cleveland Neighbors worry kids will get desensitized to seeing low wires 4-3-14.mp4

Kids are at risk if they begin to disrespect hanging utility wires. An epidemic of abandoned cable and telephone cables are dangling over Cleveland streets and deregulation means cities have to ask providers nicely to deal with the problem. (3:00)

Time Warner Cable and AT&T have also pointed fingers at each other, implying the other is more responsible for the cables left hanging:

AT&T: “We certainly welcome attention on the topic of safety and any telephone wires that look out of place. To that end, we encourage you to share with your viewers the number for our statewide repair information line: 800-572-4545. Please do call this line to report locations of telephone wires that look out of place.  While your story pointed out that many of the problem lines you saw may not have been telephone lines, we look forward to removing or repairing any that we find, that indeed belong to our company.”

Time Warner Cable: “Maintaining line clearance is something we act quickly to correct anytime we identify a potential issue. Though it is not clear who owns the wires you cite in your story, when our lines need to be adjusted, we take immediate action.  If someone comes across a line they feel maybe too low, please call us and we will respond.”

One important tip from Stop the Cap! for both your safety and avoiding legal entanglements — don’t take on the job yourself.

Municipal officials tell us readers should call a local code enforcement officer and have them investigate utility cable issues. Unresponsive companies or those creating dangerous conditions for the public can be fined and most will respond quickly to an officer’s request to manage the problem, even when deregulated.

Customers allowing the cable company to install a temporary line in their own yard should check if they are signing a total liability waiver as part of the process. Doing so can limit your leverage if the cable company doesn’t return to bury the line.

http://www.phillipdampier.com/video/WEWS City of Cleveland promises to address low hanging wires 4-7-14.mp4

WEWS-TV in Cleveland followed up on their earlier report after getting no response from cable and phone companies and finding even more hazardous, abandoned wiring littering Cleveland. (3:15)

http://www.phillipdampier.com/video/WEWS Cleveland Major utility and cable companies meet with City of Cleveland 4-17-14.mp4

Cleveland officials asked cable and phone companies to send representatives to coordinate action to fix the problem, but deregulation makes the effort voluntary. (2:47)

Third Party Contractors Sue Comcast In Race to the Bottom for Wages, Business Contracts

Cable Line LogoComcast’s dependence on third-party contractors to support its cable plant and handle certain service calls has made a few companies very rich while putting several others into bankruptcy.

In March, Cable Line, Inc., and McLaughlin Communications filed suit against the cable company in Philadelphia Common Pleas Court for putting them out of business after being compelled “to start and finance work in new markets, only to abandon [both] firms once they had been induced to create the infrastructure necessary for Comcast’s expansion.”

Attorney Charles Mandracchia alleges both companies were sold on Comcast’s commitments and hired and trained scores of workers, opened new facilities and borrowed heavily to finance purchases of trucks and equipment only to face what the suit calls an arbitrary cancellation of both companies’ contracts while their workforce was hired away by firms favored by Comcast.

“This is about more than my company,” Cable Line owner Kevin Diehl told the Philadelphia Inquirer. “‘Scale up or die,’ they told us. I bought a Harrisburg warehouse and a Perkasie office,” and built his staff up to 120 workers.

Comcast’s dependence on Diehl’s firm was so strong, the cable company enforced a no-compete clause in Cable Line’s contract to block a lucrative acquisition offer from another company in the early 2000s.

Things changed dramatically in 2012 when Comcast suddenly canceled its contract and gave Cable Line’s business to larger firms that recruited away his trained workforce. Cable Line went out of business shortly afterwards. McLaughlin makes similar claims.

“Comcast clearly had a decided intent and plan to eliminate small companies like Cable Line and McLaughlin Communications in order to monopolize the market, and in fact it did precisely that,” according to the lawsuit.

installerAllegations of corruption were included in a similar federal lawsuit filed by an Illinois-based cable installer, Frontline Communications, that claimed top Comcast officials “accepted cash, gifts and other benefits” in exchange for awarding installation contracts to favored firms. That case was dismissed on a technicality and has yet to be refiled.

A handful of firms favored by Comcast have done well as favored partners. Dycom, a Florida-based telecommunications installer with a nationwide footprint has acquired a number of smaller competitors over the last three years and disclosed to the Securities & Exchange Commission that just three companies — AT&T, CenturyLink and Comcast account for 39% of its business. If Comcast and Time Warner Cable win merger approval, that number will increase to above 50%.

With consolidation of third-party cable contractors continuing, workers have seen dramatic compensation cuts. Installers working for Dyson-acquired Prince Telecommunications accuse the company of cutting their labor rate in half. Others complain contractors force them to buy their own tools, under-compensate for fuel and don’t pay workers when they arrive to find subscribers not at home to accept a service call.

“This consolidation across the country is very bad for skilled cable technicians, who now have very few choices of employment,” Diehl told the newspaper, warning that installers working for Time Warner Cable will see even more dramatic compensation and benefits cuts “as Comcast gobbles them up.”

Diehl told the newspaper he personally helped build Comcast’s cable system in the Philadelphia suburbs and calls it “obsolete.”

“It should be fully fiber. It should have a bigger power supply, like FiOS,” Diehl said. “That’s why your TV sometimes doesn’t work after a storm.”

Earlier this week, UniTek Global Services Inc., a Blue Bell company that employs 3,200 people installing DirecTV, ATT, Comcast and other TV and Internet systems, filed for Chapter 11 reorganization in federal bankruptcy court in Wilmington, Del. The company is seeking a “comprehensive debt restructuring” after trying to diversify its business portfolio beyond its major clients, including Comcast.

GreatLand Connections Has Few Employees, No Building; Yet Wants to Serve 2.5 Million Subscribers

greatlandGreatLand Connections, a new cable company with no headquarters building and only a handful of employees, is seeking permission to serve 2.5 million ex-Comcast/Time Warner Cable customers while saddled with $7.8 billion in debt the day its opens for business.

The entity, now administered primarily by a small executive team, will trade on the NASDAQ exchange under the symbol ‘GLCI’ and would start operations in 2015. Tidbits about the planned cable operator were included in a regulatory filing with the Securities and Exchange Commission, primarily concerning how shareholders and executives will be handled if the merger is approved.

GreatLand Connections was created to appease the U.S. Justice Department and Federal Communications Commission that earlier expressed concern about any single cable operator exceeding 30 percent of the national cable television market. Spinning off 2.5 million customers in less desirable service areas keeps Comcast’s market share just under 30%, but the SEC filing reveals Comcast isn’t exactly kicking customers out in the cold and disinheriting them. Comcast shareholders will own and control 67% of GreatLand Connections. Comcast will also select six of the nine members of the Board of Directors at GreatLand, and the SEC filing includes an admission to shareholders that a conflict of interest could exist between certain executives and board members who have investments in both cable companies.

The new company’s large debt load — about five times the company’s estimated earnings before interest, depreciation, taxes, and certain other expenses, is designed to shield Comcast from having to pay taxes on the spinoff. GreatLand’s filing states the transfer deal and spin-up of its company will qualify as a tax-free reorganization transaction.

The initial debt load is considerably higher than what most other cable companies carry, which makes it likely subscribers will be asked to help pay it off in the form of higher rates for years to come.

Even without a single piece of office furniture in place, GreatLand could begin serving as one of the nation’s largest cable companies with an estimated value of $5.7 billion in less than a year.

(Clarification: This article was updated to reflect Comcast shareholders will own 67% of GreatLand after the transaction closes.)

Time Warner Cable Maxx Customers in LA Are Being Offered Free Cable Modems

Phillip Dampier November 4, 2014 Broadband Speed, Consumer News, Time Warner Cable 1 Comment

twcmaxTime Warner Cable broadband customers in Los Angeles still using older cable modems are being offered replacement modems from the cable company for free, avoiding Time Warner Cable’s $6 monthly modem rental fee.

The Los Angeles Times notes some customers are receiving letters offering a free modem upgrade, but the company won’t say exactly how many subscribers have been offered a way out of the company’s modem rental fee.

A survey of Los Angeles residents suggests Time Warner is primarily targeting customers still using older DOCSIS 2 or basic DOCSIS 3 modems that are not capable of getting the full benefit of Time Warner Cable’s Maxx speed upgrades, which provides up to 300Mbps service for the same price the rest of the country pays for 50Mbps.

Customers taking advantage of the offer are expected to swap out their existing modem themselves, using an “Easy Install Kit” mailed by Time Warner. They will need to contact the cable company to activate their replacement modem.

The replacement is a basic, yet fully capable DOCSIS 3 modem without built-in Wi-Fi. Customers who don’t use a router with built-in Wi-Fi can upgrade to Time Warner’s Wi-Fi capable modem, but it will cost around $11 a month for the service. Stop the Cap! recommends customers buy their own router with built-in Wi-Fi, which is almost always a better deal than renting equipment from Time Warner.

There is no word if a similar offer will be made to customers in other Maxx cities, New York and Austin.

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