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Time Warner Cable Customers Bait and Switched to Charter/Spectrum Products

Milan Gohil’s customer retention promotion with Time Warner Cable was coming to an end. Following in the footsteps of what tens of thousands of other Time Warner Cable customers have done for the last several years – it was time to call and request another deal.

Unfortunately for Gohil, this year the phone was answered by Charter/Spectrum and not a customer retention specialist at Time Warner Cable. That will be increasingly true for all Time Warner Cable customers as Charter continues its gradual transition towards a Spectrum rebrand across the country. That transition for Bright House customers appears to have been already completed. As a consequence, Time Warner Cable and Bright House offers will be replaced with a “simplified” menu of options from Charter.

For Gohil, a Time Warner Cable Maxx customer, those choices didn’t amount to anything except a speed downgrade and a broken promise.

“I had 200Mbps for $60 a month through Time Warner Cable, but the plan was set to expire in a few days,” Gohil explained. “I spoke to a customer service representative and was told I could upgrade to 300Mbps service for $68 a month, including taxes.”

Believing a good deal was in hand, Gohil readily agreed and while waiting on the phone, the representative activated the new promotion. There was only one problem: Milan ended up with Charter’s default internet plan in Time Warner Cable Maxx service areas converted to Spectrum service – 100Mbps.

“I spoke to a Spectrum tech support agent and was told my account was downgraded and that my TWC legacy pricing was no longer available,” Gohil told Stop the Cap! Trying to get his old 200Mbps Maxx speed plan back at any price proved fruitless.

“I was then put in touch with a Spectrum ‘Customer Solutions’ representative and pleaded with them to reinstate my original TWC legacy plan,” Gohil said. “I was told this was not an option and that if I wanted their Ultra 300 (closest option), there would be a $200 activation fee!”

After an hour of negotiation, Spectrum had won the first battle, leaving a dissatisfied customer behind.

“I had 200Mbps just two hours ago and now have only have half of that. I am EXTREMELY disappointed,” Gohil shared. “I would never have agreed to a drastic reduction in speed to save a few bucks.”

Gohil regrets ever calling Spectrum, and is livid customer service could not restore a plan other Time Warner Cable Maxx customers still have and can keep for the next several years, all because a Spectrum call center agent misrepresented a promotion.

Despite’s Charter’s promises to consumers and regulators that their way of doing business would result in better service at a better price for Time Warner Cable and Bright House customers, many of those converted to Spectrum have told us they’d rather have Time Warner Cable and Bright House back, because more options were available and they were at least open to negotiation.

Finding a supervisor at a problem resolution center proved difficult at first. Time Warner Cable’s executive customer service department, formerly reachable at (212) 364-8300 has been taken over by Spectrum and disconnected. Calls are now being taken by 1-800-892-4357, and that is where we referred Gohil, which turned out to be at least some help.

“After an hour on the line with Spectrum/TWC billing and retention, I was able to get 300Mbps for $80 per month for one year,” said Gohil, but there was a catch. “I was informed that it will go up to $100 in 2018.”

But Spectrum has another nasty surprise in store for customers like Gohil looking for speed upgrades: a $200 activation fee.

Spectrum minimizes the chance customers will encounter this fee by marketing only one internet speed tier to most customers: 60Mbps for most Bright House and non-Maxx Time Warner Cable customers and 100Mbps for those Time Warner customers lucky enough to see Maxx upgrades completed before the cable company was acquired by Charter. Most customer service agents are trained to sell this single internet plan, and we’ve found several not trained to offer customers anything else.

When existing Time Warner Cable or Bright House customers are first converted to a Spectrum plan, the $200 activation fee does not apply. But once a Spectrum customer, any attempt to further upgrade broadband service usually results in a $200 fee. Some customers have managed to negotiate their way out of the fee, but it takes some effort and faith the representative isn’t telling you a tall tale to get you upgraded and off the phone.

“After negotiating with the retention specialist, she implemented the 300Mbps service for me,” Gohil reports. “It was implied that the ridiculous $200 ‘activation fee’ would be waived. However, I wouldn’t be surprised if [it] appears on next month’s bill. I’ll cross that bridge when I get to it.”

For Gohil, cable mergers have never lived up to their promised “consumer benefits” and he’s worried about what is coming next.

“With Trump taking office, it’s certain that broadband consumers are going to continue to be exploited by the telecom duopoly,” writes Gohil. “As a cord cutter and Net Neutrality proponent, I am deeply concerned about the future of America’s broadband landscape.”

Here are some tips from Stop the Cap! for Time Warner Cable and Bright House customers to consider before changing your account.

Time Warner Cable legacy offers in an area not yet switched to Charter Spectrum plans look like this.

If your local area is still being served by Time Warner Cable and their old service plans are still being advertised:

  1. If you are on a new customer promotion, have a rebate offer, or a discount you negotiated to remain a customer, Charter will honor the deal until it expires. However, once your offer or the submission deadline for a rebate has been reached, you will probably not be able to negotiate an extension or new offer. Your rates will either gradually or immediately reset to regular pricing and your rebate will be lost.
  2. Time Warner Cable seems to have ended most of their customer retention deals under the Time Warner Cable brand, but they are still offering new customer promotional offers. If you are an existing customer facing a rate reset, you can cancel service under your name and sign up with a new customer promotion under the name of another member of your household before the Spectrum plans arrive in your area. This is the only certain method remaining to get a discount off existing Time Warner Cable plans and will generally last one year.
  3. You can continue to select any Time Warner Cable legacy service plan advertised on the website, and as long as the transition to Spectrum has not yet happened in your area, you can safely change between those plans. You can also continue an existing plan indefinitely, but you will pay dearly for doing so — eventually forced to pay regular Time Warner Cable pricing which is generally higher than what Charter’s Spectrum plans will cost.

Bright House customers have already been introduced to Charter Spectrum plans.

If you are a Bright House customer (you have already been introduced to Charter Spectrum plans):

  1. If you are on a new customer promotion from Bright House or a discount you negotiated to remain a customer, Charter will honor the deal until it expires. However, because your area has now switched exclusively to Charter/Spectrum branding, your current plan has been grandfathered and you cannot change it without losing it and switching to a Spectrum plan.
  2. Any “promotion” Charter offers you will be based on a Spectrum plan. You will lose your existing Bright House plan permanently if you accept the offer.
  3. Spectrum’s broadband offer will likely default to 60Mbps, which may be a reasonably good deal if you subscribed to a lower speed tier through Bright House itself. Faster speeds may be available but you will need to call to be certain. There is a significant price jump of about $40 a month to upgrade to 100Mbps at regular Charter Spectrum prices. Ask about discounts and if one is available you may want to upgrade immediately. If you decide to upgrade later, you are likely to encounter a $200 upgrade fee.
  4. In general, Charter’s offer for Bright House customers will prove initially cheaper than what Bright House offered before at its regular prices. But most Spectrum plans will increase in price after your first and second anniversary unless Charter changes its rate structure. Charter has also strongly discouraged representatives from renewing promotions for existing customers as they expire, so negotiating a better deal is going to be more difficult than before.

When your area has been fully converted to Charter Spectrum, the available plans will look something like this.

If you are a Time Warner Cable Maxx customer now served by Charter/Spectrum (the only plans on the website are branded Spectrum):

  1. If you are on a new customer promotion from Time Warner Cable, have a rebate offer from TWC in progress, or a discount you negotiated with TWC to remain a customer, Charter will honor the deal until it expires. However, because your area has now switched exclusively to Charter/Spectrum branding, Charter has a demonstrated history of not honoring requests to renew customer promotions, will not honor rebate requests that have not been already fulfilled by TWC and will not be much help if you have to intervene about a missing rebate.
  2. You cannot change your Time Warner Cable Maxx plan features. Once an area has been converted to Spectrum, TWC Maxx plans are grandfathered as-is. If you want to change your plan, you will be offered a Spectrum plan instead. Any “promotion” Charter offers existing Maxx customers will also be based on a Spectrum plan. You will lose your Time Warner Cable Maxx plan permanently if you accept their offer.
  3. Choose wisely if you are thinking of moving from Maxx to a Spectrum broadband plan. Spectrum will usually enroll you in their traditional 100Mbps plan by default. If you already have 200 or 300Mbps service, you may see a significant price change switching to Spectrum unless you can negotiate a discount. If you decide to upgrade your speed later, you will also face Charter’s $200 upgrade fee. There are some promotions available that can get 300Mbps service down to about $80/mo for a year, but it will increase to $100/mo the following year. Some customers have successfully negotiated the $200 fee off their bill, but make sure you ask for the name of any representative offering to waive the fee and keep that information handy if the fee shows up anyway.
  4. Customer promotions are available for existing customers, but you will have to negotiate and you can expect them to be less generous than what Time Warner Cable offered in the past. Also, Charter has strongly discouraged representatives from renewing promotions as they expire. Charter management is on record stating they feel Time Warner Cable’s tradition of extending ongoing discounts were bad for business.

If you are in a Time Warner Cable area never upgraded to Maxx service -and- you are now served by Charter/Spectrum (the only plans on offer are branded Spectrum):

  1. If you are on a new customer promotion from Time Warner Cable, have a rebate offer from TWC in progress, or a discount you negotiated with TWC to remain a customer, Charter will honor the deal until it expires. However, because your area has now switched exclusively to Charter/Spectrum branding, Charter has a demonstrated history of not honoring requests to renew existing customer promotions, will not honor rebate requests that have not been already fulfilled by TWC and won’t be much help if you have to intervene about a missing rebate.
  2. You cannot change your current Time Warner Cable plan without switching to an available Spectrum plan.
  3. Any “promotion” Charter offers you will be based on a Spectrum plan. You will lose your existing Time Warner Cable plan permanently if you accept the offer.
  4. For most customers currently subscribed to a broadband plan up to 30Mbps, Spectrum’s broadband offer will likely be an upgrade worth considering, especially if you are still paying a modem rental fee. Spectrum will widely market just one speed in your area – 60Mbps, and that is the default plan you will get. Because Time Warner Cable already overprovisions their 50/5Mbps Ultimate tier to speeds that approach 60Mbps, Spectrum’s offer will probably be cheaper, but it won’t be faster. Your area will probably also have 100Mbps service available as an alternative, but it won’t be widely advertised. It’s not cheap, adding another $40 a month to your bill. If you think you may want that speed, ask about any discount promotions and sign up at the same time you abandon your Time Warner Cable plan to avoid paying a $200 upgrade fee later on.
  5. In general, Charter’s offer for Time Warner Cable customers never upgraded to Maxx will prove initially cheaper than Time Warner Cable’s regular prices. But the rates might not be cheaper if you negotiated a lower bill from Time Warner during the last year. Many Spectrum promotions initially offered are comparable to new customer deals and you can expect rates to increase on your first and second anniversary with Charter, with regular prices returning by the third year. Charter has strongly discouraged representatives from renewing promotions for existing customers as they expire. Charter management is on record stating they feel Time Warner Cable’s practice of offering ongoing discounts were bad for business.

Charter/Spectrum Relocating Northeast Regional HQ to Rochester, N.Y.

Artist rendition of Charter's new regional headquarters in Rochester, N.Y.

Artist rendition of Charter’s new regional headquarters in Rochester, N.Y.

The northeast region of Charter/Spectrum, encompassing six states, will soon be managed from a new regional headquarters office to be opened in Rochester, N.Y.

Elected officials across western New York joined Gov. Andrew Cuomo to congratulate Charter Communications for its decision to locate its new headquarters in suburban Rochester, where the cable company is expected to add 228 new full-time jobs.

Gov. Cuomo announced Charter will invest more than $2.9 million to renovate its existing offices on Mount Hope Avenue in downtown Rochester and its new 46,000 square-foot facility in Henrietta, which will house regional executives, call center workers, and technicians. New York taxpayers will cover $2.5 million of those costs through the Empire State Development Corporation, a public-benefit corporation that offers tax credits in return for job creation commitments.

“This expansion of one of the nation’s leading cable providers in the Finger Lakes is a clear signal that our economic strategy is driving innovation and transforming the local economy,” Gov. Cuomo said. “Cutting-edge companies are betting on this region like never before and are growing their businesses and creating-good paying jobs in the process. By incentivizing private sector growth, we are generating momentum and strengthening the economy in Monroe County and beyond.”

Cuomo

Cuomo

“By early next year, this beautifully restored facility will allow us to bring together our field operations leadership and vital support functions under one roof,” said Charter executive vice president of field operations Tom Adams. “Through our partnership with the New York State Economic Development Corporation, the Rochester area benefits from an influx of high-paying technical jobs, while our customers across Upstate New York and throughout New England benefit from improved communication, collaboration and efficiency in our operations.”

Time Warner Cable employed 460 workers at its existing office in downtown Rochester. Charter’s new regional headquarters will add 230 workers.

Gov. Cuomo has heavily promoted New York as a new corporate-friendly state to create jobs and grow businesses. The “Finger Lakes Forward” initiative has already spent $3.4 billion in the region since 2012 to invest in and attract key industries like photonics, agriculture/food production, and advanced manufacturing. The plan has seen some success for the key regions of Rochester (photonics), Batavia (milk/yogurt production), and Canandaigua (mixed manufacturing), but has not been as successful keeping jobs when businesses have downsizing on their mind.

For Rochester, Charter’s announcement will still result in a net job loss of more than 300 jobs in the telecommunications sector because of Verizon Wireless’ announced closure of its Rochester call center, which will eliminate 645 jobs in the area when the facility closes Jan. 27, 2017. The governor’s office called Verizon’s job cuts “an egregious example of corporate abuse.”

Charter/Spectrum Only Sells Up to 100Mbps in Time Warner Cable Territories

charter-spectrumAlthough existing Time Warner Cable Maxx customers will be able to keep their broadband speed upgrades up to 300Mbps, new customers and those switching to a Charter Spectrum plan will find Spectrum’s advertised broadband options reduced to just one: 100Mbps in TWC Maxx cities like New York and 60Mbps in territories never upgraded to Maxx service.

Charter Spectrum has soft launched their new plans in the New York City market and will begin heavily promoting them later this month. But customers will find their choices dramatically limited, except for television service.

Spectrum is marketing just three triple play plans on its revamped website in the NYC area, varying only with respect to the number of channels included in the TV package:

spectrum-nyc

When we selected internet-only service, we were presented with only one option in New York City: 100Mbps

spectrum-internet

Time Warner Cable plans are no longer promoted in areas switched to Charter Spectrum service.

TWC plans are no longer promoted in areas offered Charter Spectrum service.

At least the modem rental is included in the promotional price, which incidentally rises in the second and third year until it reaches $60 for 60Mbps service, and $100 for 100Mbps service, assuming your promotion has expired.

The promotional prices are not too bad if you are a devotee of cable television, and the broadband price is affordable as well, at least for the first year. After the first 12 months, prices rise and company officials have already warned they will be far more stingy about offering customers repeat retention pricing than Time Warner Cable was.

Charter has announced it will continue to roll out Spectrum packages across the Time Warner Cable and Bright House service areas until the conversion is complete early next year. New York City and Florida are the next targeted markets, but it is clear Charter has already begun offering Spectrum plans instead of continuing to market Time Warner Cable plans that customers can still buy upstate.

Customers will be able to keep their existing Time Warner Cable plans, but any promotional pricing deals will not likely be renewed when they expire, causing your Time Warner Cable bill to spike dramatically in some cases.

We are unsure if existing TWC Maxx customers will be forced to give up their 300Mbps TWC Maxx plan if they switch to a Spectrum plan. There may be several non-publicized plans for these customers. Time will tell.

Editor’s Note: These prices/packages were obtained from timewarnercable.com using a residential street address on W 72nd St, New York, NY, 10023

Charter Still Losing Time Warner Cable Customers With Hard Line on Retention Deals

charter-twc-bhAt least 54,000 Time Warner Cable customers downgraded or canceled their cable TV service in the last three months as Charter Communications continues to take a harder line on offering or renewing customer retention discounts for customers unhappy with their bill.

Time Warner Cable customers are “mispriced” with discounts and deals that lower the cost of service but face bill shock when the promotion ends, according to Charter CEO Thomas Rutledge.

“Third quarter customer results were more inconsistent with good performance at Legacy Charter and Bright House, but higher churn and downgrades in the Time Warner Cable markets, as we expected, given the way Time Warner Cable had marketed promotional pricing,” said Rutledge. “Until our Spectrum pricing and packaging is launched across the newly acquired service areas, we continue to expect higher levels of churn and downgrades where Time Warner Cable was the operator.”

“Over the next few quarters, our operating results will reflect reversing certain product and packaging strategies, in particular at TWC, in which in our view are not sustainable, given high promotional roll-offs and annual rate increases, high customer equipment fees, including modem fees, all coupled with complex and stacked offers,” added Charter’s chief financial officer Christopher Winfrey.

Traditionally, Time Warner Cable has dealt with price sensitive customers rolling off special pricing promotions by gradually resetting rates higher or, when necessary, by renewing the promotion for another year in an effort not to lose the customer. That will stop under Charter’s ownership, according to Mr. Rutledge. As a result, Charter Communications is seeing significant customer losses at Time Warner Cable when customer service representatives won’t budge on pricing.

Rutledge is seeking more discipline in product pricing so Charter does not have to extend cut-rate retention promotions to customers. As part of the Charter Spectrum rebrand, the cable company introduces new cable, broadband, and phone plans while allowing Time Warner Cable’s legacy plans to stay in effect until a customer elects to switch. While Texas and California Time Warner Cable customers have already been introduced to Spectrum plans, much of the rest of the country is still being offered plans only from Time Warner Cable or Bright House.

Rutledge

Rutledge

Customers are most likely to cancel service as their promotion expires. The resulting price hike can be a considerable shock as rates quickly reset to Bright House or Time Warner’s “regular price.”

Charter wants an incentive to get customers to forfeit their Time Warner or Bright House plan and switch to a new Spectrum plan as they are introduced. By making the grandfathered plans as unattractive as possible, the alternative Spectrum plans appear to be a better deal. Unfortunately, until Spectrum-branded plans arrive nationwide, many customers are stuck in limbo rolling off a promotion, are unable to renew it, and forced to wait for new Spectrum plans to be introduced.

Rutledge announced last week that the next markets to be introduced to Spectrum this month are in New York City and Florida, the latter former Bright House territory. Rutledge predicted half of Time Warner Cable customers will be offered Spectrum plans by the end of this year. But some Time Warner Cable customers may have to wait until next spring before Spectrum rebranding is complete.

Time Warner Cable Maxx is Still Dead, Earning Charter $36 Million in Reduced CapEx

Charter also reported significant financial benefits from prematurely terminating the Time Warner Cable Maxx upgrade effort. Time Warner’s upgrades would have given customers free speed upgrades up to 300Mbps. But Charter pulled the plug on the upgrade project just after completing its acquisition, and has no plans to restart it.

“Cost to service customers declined by about 2% despite overall customer growth of 5.1%, which reflects lower service transactions at Legacy Charter, the lack of all-digital activity at TWC this quarter versus last year’s third quarter, and some benefit from less physical disconnects in all-digital markets,” reported Winfrey. “Capital expenditures totaled $1.75 billion, including $109 million of transition spend. Excluding transition CapEx, our third quarter CapEx was down by $36 million year-over-year, about 2%, driven by all-digital spending at TWC, primarily on [equipment], which did not recur in the third quarter of this year.”

Winfrey

Winfrey

Charter expects to increase CapEx next spring, as the company continues its less ambitious transition to all-digital cable service, which includes broadband speeds topping out at 100Mbps, three times less than what Time Warner Cable was implementing.

Charter is Less Enthusiastic About Digital Phone Service

Time Warner Cable maintained a healthy market share for its digital phone service by bundling it at a promotional price of $10 a month, a rate that remained relatively stable for customers sticking with a triple play package bundle. Time Warner Cable also enhanced its phone service by adding the European Union nations, Mexico, and several popular Asian calling destinations as part of the local calling area, making those calls free of charge.

Charter’s own plan is less feature-rich and customers have to buy an add-on plan to cover international long distance, making the product considerably less attractive to customers. Some customers also find the cost of the phone service has increased under Spectrum, a problem acknowledged by Winfrey, who noted Time Warner Cable’s low-price voice offer in prior year quarters had been discontinued, resulting in higher voice downgrades and relationship churn.

Charter’s Plans for Legacy Charter Customers and Newly-Adopted Time Warner Cable and Bright House Customers

charter spectrum logoRutledge made clear that despite any product changes or rebranding, the long term goal of Charter Communications is to see revenue grow. Whether that will come from gradual repricing of cable products and services to a higher rate or from improved products and services that attract new upgrade business is not yet certain. But Rutledge outlined key areas Charter expects to focus on in the next few years:

  • Charter will complete the all-digital transition at Time Warner Cable and Bright House over the next two years, but it will resemble the kind of service legacy Charter customers get today, not TWC Maxx;
  • Over the next five years or so, with relatively small infrastructure investments, Charter plans to implement DOCSIS 3.1 which will be able to deliver symmetrical multi-gigabit speeds to all 50 million homes and businesses in their service area;
  • Charter plans to aggressively market and grow its services for commercial customers, targeting businesses large and small, at prices that more closely resemble residential service pricing, instead of the price premium Time Warner Cable has traditionally charged its commercial customers;
  • Charter is activating its MVNO agreement with Verizon, which will allow Charter to create and market its own wireless/cellular service using Verizon’s nationwide network. The company is also exploring using millimeter-wave (5G) service to offer better broadband coverage in large commercial spaces like malls and rural properties currently not wired for cable service. Expect the company to create its own wireless/cellular bundle first, because it will rely entirely on Verizon’s network, keeping Charter’s costs low.

Charter Raising Prices for Time Warner Cable Customers: New and Higher Fees

Phillip Dampier October 25, 2016 Consumer News, Time Warner Cable/Spectrum No Comments

twc logoCharter Communications has announced price changes and new fees for existing Time Warner Cable customers that will take effect Dec. 15, 2016:

  • Late payment fee increases from $8.50 to $8.95
  • If a live agent assists you with making a payment over the phone, there is a new fee of $5 for each transaction. Paying with an automated attendant should still be free.
  • Damaged/unreturned equipment charges are changed (some fees increasing, others decreasing): Traditional Set top box: $123, Wi-Fi Modem/Extender/Router/Gateway: $78, Access Point: $172

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