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Updated: Charter’s Plans for Time Warner Cable, Bright House Customers Apparently Leaked

charter twc bhUpdated 9/7/2016: Please check our latest coverage on promotional packages for Bright House and Time Warner Cable customers that are being introduced in September 2016 by new parent company Charter Communications. Some of the prices reflected below are now out of date! 

Charter’s plans for Time Warner Cable and Bright House Networks customers are now potentially clearer thanks to the apparent leak of several informational slides from a presentation given to employees to familiarize them with Charter’s forthcoming service plans.

A reader of DSL Reports in California shared what purports to be informational slides from a company training course. Los Angeles is among the first markets to be offered the new Charter/Spectrum service plans, likely to arrive as early as mid-September.

We’ve condensed the information down into a more readable format to give you an idea (subject to change, of course) about Charter’s pricing and plans. Existing customers may not need to give up their current plans right away, and some customers may not want to. Charter has recognized Time Warner Cable Maxx’s network upgrades in its plans and pricing, which means customers already upgraded for Maxx service will get better value from Charter’s plans than those customers who never made the upgrade list before Time Warner Cable was sold.

Keep in mind Charter will start by offering all “New Charter” customers a “new customer” promotion, priced low the first year and then increasing incrementally in price during the second and third years. Year three pricing will be equivalent to Charter’s regular price, which will be substantially higher than customers on Time Warner Cable customer retention plans have paid. Charter’s service plans offer improved broadband speeds, but at a significantly higher price. Standalone broadband customers in particular will feel an immediate sting. Charter’s entry-level price for most customers is $59.99 for 60Mbps, about $25 more than Time Warner Cable’s promotional rate for Standard 15/1Mbps service, which has been selling for about $35/mo for the first year. Charter will point out that it includes a cable modem for free while Time Warner Cable charged $10 a month, but that offers no solace to customers who have purchased their own equipment.

Please note these plans and prices have not been officially confirmed by Charter. In fact, we would not be surprised to see some pricing changes before the plans are officially available.

TELEVISION

spectrum selectThere are big changes in store from Charter. First, the company will end distribution and support for Digital Transport Adapters (DTAs) — the small boxes designed for older analog-only TV sets. Charter expects you to have a traditional set-top box on every cable-equipped TV in the house. Second, it seems Whole House DVR service is being discontinued. Charter prefers the alternative of placing DVR boxes on each set where you want to record and watch TV shows. There is a significant cost for Time Warner Cable to install Whole House DVR service and it involves a technician coming to your home. Charter seems to want to cut truck roll expenses, and traditional DVR boxes are easy for customers to install themselves.

DVR pricing is still confusing for customers. A single DVR box is priced at $4.99 for the equipment + an $11.99 DVR service fee. DVR’s 2-4 cost $4.99 per box + a $19.99 DVR service fee. We are not sure if the $19.99 inclusively covers all DVR boxes in the home or if that is charged for each additional DVR. (Update: STC reader Ricardo reports the $19.99 fee is inclusive, so it is only charged once regardless of how many extra DVRs you have.)

For the first year, traditional set-top boxes for New Charter customers are a bargain at $4.99/mo. Legacy Charter customers pay $2 more, and we predict you will pay more as well after the first year, but the equipment fees are less than what Time Warner Cable charged.

Customers will choose from three plans: Select, Silver, or Gold:

  • Select: 125+ channels (HD included), Spectrum App (comparable to TWC TV app), 10,000+ On Demand Library ($64.99)
  • Silver: 175+ channels (HD included), Spectrum App, On Demand, HBO, Cinemax, Showtime, NFL Network ($84.99)
  • Gold: 200+ channels (HD included), Spectrum App, On Demand, premiums shown above + TMC, Starz, Encore, Epix, NFL Redzone ($104.99)

Charter’s pricing is built to encourage customers to bundle multiple services together, because substantial discounts are provided, especially when combining TV and internet service.

INTERNET

(Image courtesy of Tech_Guy 88/DSL Reports)

(All presentation slide images courtesy of Tech_Guy 88/DSL Reports)

Charter moves to just two tiers of service available to the public (except in New York where TWC’s $14.99 Everyday Low Price Internet continues to be an option for the next two years — although it has been removed from TWC’s website) and standalone broadband pricing is considerably more expensive with Charter than with Time Warner Cable.

Perhaps special promotional offers will bring standalone internet prices closer to the $34.95-39.95 most new customers have gotten for Time Warner’s Standard Service (15/1Mbps) for years. We expect most customers will be more sensitive to price vs. speed and standalone internet at these prices will be a shock. We are not certain if Earthlink will continue to be an alternative option.

Upload speeds in non-Maxx areas are conservative, if these slides are accurate, topping out at just 5Mbps. This still leaves Charter as one of the slower U.S. providers.

In TWC Non-Maxx Areas (maximum TWC speed now 50/5Mbps):

  • Spectrum Internet 60/5Mbps: Standalone $59.99/mo or $29.99 as part of a triple play package (first year promo price), $59.99 standalone or $53.99 as part of a bundle (regular price);
  • Spectrum Ultra 100/5Mbps: Standalone $119.99/mo or $99.99 as part of bundled package (first year promo price), $119.99 standalone or $113.99 as part of a bundle (regular price).

In TWC Maxx Territories (maximum speed now 300Mbps):

  • Spectrum Internet 100/10Mbps: Standalone $59.99/mo or $29.99 as part of a triple play package (first year promo price), $59.99 standalone or $53.99 as part of a bundle (regular price);
  • Spectrum Ultra 300/20Mbps: Standalone $119.99/mo or $99.99 as part of bundled package (first year promo price), $119.99 standalone or $113.99 as part of a bundle (regular price)

Spectrum Wi-Fi, for those without their own routers, can be added to any internet plan for a $9.99 setup charge and $5 a month.

spectrum assistCharter’s discount plan for the income-challenged carries the usual restrictions. The most unconscionable effectively forces current Charter customers to go without internet access for 60 days before they can enroll in Spectrum Internet Assist. They also must not owe any past due balance to Charter.

Assuming you qualify (eligible for the National School Lunch Program and senior citizens 65 years and older eligible for the federal Supplemental Security Income program), $14.99 will get you up to 30/4Mbps, plus an extra $5 a month if you want Charter to supply a Wi-Fi enabled router. The usual $9.99 activation fee is waived. Self-installation is free. If they have to send a truck to your home, the prevailing standard installation rate will apply. This is the only level of service Charter sells that will not require a credit check.

PHONE

Time Warner’s phone service had been promoted for years at $10 a month as part of a double-play or triple-play bundle. Charter’s triple play bundle pricing seems to show the price for phone service will now be effectively $20 a month.

Charter’s digital phone service has never seemed to be a marketing priority for Charter in its legacy service areas, and will likely be treated as an afterthought going forward. No further information about any service or calling area changes from what Time Warner Cable offered is available yet.

Charter Spending Its Money Renaming Charlotte’s Time Warner Cable Arena After Itself

TIME_WARNER_CABLE_ARENA006Time Warner Cable Arena is no more.

After Charter Communications completed its acquisition of TWC, it discovered it had work to do rebranding all-things-TWC, including the Charlotte, N.C., sports arena that is home to the Charlotte Hornets.

Charter will be spending its time and resources rechristening the arena “Spectrum Center” in time for the new NBA season starting in late October. Charter’s suite of products is branded “Spectrum,” much the same way Comcast calls many of its products “XFINITY.”

The Charlotte-arena originally opened in 2005 and Time Warner Cable acquired the naming rights back in 2008.

 

Meet North Carolina’s Sen. Thom Tillis (R-ALEC/Time Warner Cable)

Tillis was honored in 2011 as ALEC's "Legislator of the Year" and received an undisclosed cash reward.

Tillis was honored in 2011 as ALEC’s “Legislator of the Year” and received an undisclosed cash reward.

Back when we first became aware of Republican member of the North Carolina legislature Thom Tillis around 2010, he was hard at work building his political future just as Republicans were poised to take control of the state legislature for the first time since the days of Reconstruction. Despite running unopposed in 2010, Tillis raised more money from cable and phone companies than any other lawmaker in the state, depositing $37,000 before knowing he would be the next Speaker of the North Carolina House of Representatives in January 2011. To celebrate, AT&T, Time Warner Cable, and Verizon each gave Tillis $1,000 just a few weeks before the swearing-in ceremony. It was money well spent, if you were a cable or phone company doing business in North Carolina.

Tillis left the legislature in 2015 to become the junior U.S. Senator from North Carolina. The telecom industry made sure to keep the campaign contributions flowing, if only to give their thanks for Tillis’ unwavering support for their agenda. Tillis doesn’t care much for his rural constituents still waiting for something better than dial-up internet access and as long as his campaign coffers remain bulging with corporate contributions, he doesn’t think he has much to fear from the state’s voters either. After all, he survived accusations from a resigning House Finance chairman that he had a secret business relationship with Time Warner Cable.

Raleigh’s The News & Observer felt it was their duty to mention Tillis in their editorial pages anyway, taking him to task for “cheering a loss for North Carolina consumers last week after a federal appeals court upheld a cable company protection law that he supported as state House speaker in 2011.”

The newspaper is talking about North Carolina’s infamous anti-public broadband bill that was literally constructed by lobbyists working for Time Warner Cable. The law effectively made it impossible for community broadband providers to bring their much-needed service to adjacent communities that have waited more than a decade for companies like Time Warner Cable, AT&T, CenturyLink and others to offer internet access in rural and underserved parts of the state.

Tillis personally helped shepherd the corporate protection bill, designed to shield incumbent cable and phone companies from community competition, through the state legislature, supporting it every step of the way. It would become law in 2011 and rural broadband in North Carolina hasn’t gotten any better since. In fact, it’s almost stagnant. But Tillis cannot say the same thing about his campaign bank accounts, which continue to bulge with corporate donations now in excess of $11 million.

An effort by the Federal Communications Commission to pre-empt the state law failed in a federal appeals court, much to the delight of Thom Tillis, something the newspaper calls an “insult” to North Carolinians looking for a better deal.

“Today’s ruling affirms the fact that unelected bureaucrats at the FCC completely overstepped their authority by attempting to deny states like North Carolina from setting their own laws to protect hard-working taxpayers and maintain the fairness of the free market,” Tillis said in a statement. Cough, cough.

The newspaper’s response:

Translation: Time Warner and other companies, thank goodness, will retain control of the market without having to worry about towns competing with them and thus will be able to charge people whatever the market will bear.

For Tillis to say the court ruling, which should be appealed, is a triumph for taxpayers is preposterous. It’s a setback. The “free market” he backs is one free of competition from municipal broadband services that offer a better product at a lower price.

Charter Announces Further Time Warner Cable Upgrades Are On Hold Until 2017

Maxx is dead.

Maxx is dead.

Charter Communications executives told Wall Street analysts that Time Warner Cable’s upgrade program has been suspended, to be replaced with Charter’s own previously announced plan of upgrades and “simplified pricing” sometime in 2017.

Time Warner Cable was responsible for a lot of the capital expenditures underway at the combined Charter-TWC-Bright House venture just before the merger deal closed in May. Christopher L. Winfrey, Charter’s chief financial officer and executive vice president, told investors Time Warner was on a small spending binge, rushing in orders for new cable broadband technology to hurry Maxx upgrades to customers before Charter took over operations.

Winfrey eased Wall Street’s concerns about Time Warner Cable spending 21% of revenue on capital expenditures during the last quarter, promising the more modest upgrades forthcoming from Charter will allow for future spending reductions. More immediately, Winfrey reassured investors the days of Time Warner Cable’s aggressive Maxx upgrade effort was over.

“There is, obviously, the significant amount of all-digital activity that was continuing at TWC,” Winfrey told analysts. “And that will be largely put on hold as we put in the Charter all-digital strategy the beginning of next year.”

Charter plans to cancel upgrades that would have established multiple Time Warner Cable speed tiers ranging from 50-300Mbps. Instead, Charter will roll out two speed tiers to Time Warner Cable customers — 60Mbps for around $60 a month and 100Mbps for around $100 a month for broadband-only customers.

Rutledge

Rutledge

“In the fall, we will begin to rebrand Time Warner Cable and Bright House and launch our Spectrum pricing and packaging in a number of key markets totaling over 40% of our acquired passings with the remainder in the first half of 2017,” said Charter CEO Thomas Rutledge.

Customers in certain states — notably New York — will be able to keep their current Time Warner Cable package for several years. Customers in other states will be pushed harder to transition into Charter’s simplified tiers.

“In 2017, the all-digital project at Time Warner Cable and Bright House markets will use the Charter all-digital strategy, which uses fully functioning two-way set-top boxes with video on demand and advanced guide functionality on every TV outlet,” said Rutledge. “We expect the project to be completed by 2018. We will also extend our practice of performing electronic connections instead of physical truck rolls as we go all-digital, allowing us to fully scale our self-installation and self-service practices.”

Charter only advertises 60Mbps internet access to most customers on its website.

Charter only advertises 60Mbps internet access to most customers on its website.

“Our plan is to have Spectrum Guide available in most Legacy Charter markets by the end of this year,” added Rutledge, referring to the on-screen channel guide. “We will launch Spectrum Guide in TWC’s larger markets by the middle of 2017 and other TWC and Bright House markets following through the year and likely continuing through 2018 as we complete the all-digital project.”

Rutledge was critical of Time Warner Cable and Bright House’s myriad of service tiers and prices.

“Through different metrics and stages of development, we can see that TWC and more recently, Bright House had both become reliant on rate increases and retention offers, each of which has various short and long-term effects including encouraging customers to initiate more transactions,” Rutledge said. “We’ve addressed these types of issues at Legacy Charter and we’ll do so at TWC and Bright House during the Spectrum pricing and packaging migration.”

That means Charter intends to dramatically cut the number of service and pricing options and convince customers to stop switching to promotional offers that they eventually abandon when the promotion ends. Charter prefers stable prices for services and reducing the amount of customer retention packages they have to offer to price-sensitive customers. As prices reset and increase, increased call volumes results as customers negotiate for a better deal. Removing the incentive to negotiate is seen as a cost saving maneuver and keeps customers on Charter’s regular price packages longer.

Charter: We Won’t Screw Up Southern California Like Frontier Did With Verizon

frontier frankCharter Communications is promising its Southern California customers it won’t bungle the transition from Time Warner Cable to Charter Communications like Frontier Communications did with former Verizon customers.

“We purchased all of Time Warner Cable and Bright House Networks. With this transaction we acquired everything,” company spokesman Justin Venech said. “We’re able to take more time in the integration process and not rush to make changes.”

Charter will take up to 18 months to make its presence fully known in areas formerly served by Time Warner Cable, and then primarily under its brand name known as Spectrum.

Time Warner Cable customers will be able to keep their current service and packages even after the transition, at least for a while.

charter twcBut not all customers are happy about Charter’s slow transition plans. Customers waiting for Time Warner Cable Maxx upgrades, some already in progress, may be out of luck. Charter’s new management team put an indefinite hold on Time Warner’s more aggressive upgrade plans in favor of Charter’s much more modest commitment to offer customers two broadband speed tiers – 60 and 100Mbps over the next 18 months. Customers in the northeast and midwest have been told there are no longer any definitive dates for the introduction of Maxx, which offers free speed upgrades up to 300Mbps.

Almost all of Time Warner Cable’s executive management has been escorted out of the company’s Manhattan headquarters, severance pay and benefits in hand. In fact, Charter plans to abandon Time Warner Cable’s Manhattan headquarters altogether and shift top management to its plush Connecticut office. Most workers will be reassigned to other locations yet to be announced, some possibly upstate.

Charter has already begun repricing service and packages that will resemble Spectrum offerings, at least for new customers across Time Warner Cable and Bright House territories. The packages will not carry the Spectrum brand just yet, however.

 

 

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