Home » TWC » Recent Articles:

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.

 

 

Some of America’s Largest Telecom Companies Are Overbilling You

bill errorAs part of its investigation of cable and satellite television companies, the U.S. Senate Permanent Subcommittee on Investigations found large discrepancies in how five of America’s largest cable and satellite companies—Charter Communications, Comcast, Time Warner Cable, DirecTV, and Dish—identify and correct overcharges caused by company billing errors.

The subcommittee released its report to coincide with today’s hearings on customer service and billing practices in the cable and satellite television industry. The Senate subcommittee focused its attention primarily on billing errors associated with rented set-top boxes and receivers, not programming packages or add-on services. The bipartisan report found satellite TV company Dish was probably the least prone to billing errors associated with satellite equipment and Time Warner Cable was the worst at identifying equipment billing discrepancies. Even when it did find instances of overbilling, the company refused to give customers automatic full refunds as a matter of “efficiency.”

That “efficiency” is expected to be very profitable for Time Warner Cable, which is likely to collect $1,919,844 from overbilling this year alone. Time Warner Cable estimates that, in 2015, it overbilled 40,193 Ohio customers a total of $430,393 and 4,232 Missouri customers a total of $44,152. Time Warner Cable also told the subcommittee that, during the first five months of 2016, it overbilled customers in Ohio for 11,049 pieces of equipment, totaling $108,221.

Charter Communications only did marginally better, mostly because it is a much smaller cable company. Charter estimates that it has overcharged approximately 5,897 Missouri customers a total of $494,000. Charter, along with Time Warner Cable, made no effort to trace equipment overcharges to their origin unless customers specifically asked them to and did not provide notice or refunds to customers.

Let’s review how the five companies compare:

Time Warner Cable

time-warner-cable-sucksTime Warner Cable is notorious for its “no refunds unless asked” policy, which often leaves customers uncompensated for service outages and other problems. That policy also extends to equipment-related billing errors. During the 6.5 year time period covered by the subcommittee investigation, Time Warner Cable never automatically refunded or credited customer for equipment overcharges discovered by the company. Instead, Time Warner’s “Revenue Assurance” team quietly identified and corrected billing errors without any notification or explanation to customers, which may explain why your Time Warner Cable bill can change even when you are locked in with a promotion.

The subcommittee discovered Time Warner Cable still relies on two entirely different billing systems. One, “Integrated Communications Operations Management System”, otherwise known as ICOMS, is especially troublesome to navigate at Time Warner because the company does not use standardized coding across the entire company. Placing an order for Internet service in the Northeast Division of Time Warner Cable is completely different from ordering the same product in a city like Kansas City or the west coast. Employees have complained about ICOMS for years, noting it can take up to 30 separate codes entered correctly in the system to add just one product, like High-Speed Internet. A simple data entry error can mess up an order and generate a billing error (or a lost order or service request that is never processed). But Time Warner Cable also relies on a different platform developed by CSG to manage some of its billing. Some of Time Warner Cable’s acquisitions, like Insight Communications, have operated under the Time Warner Cable brand for several years, but still use some of the billing platforms that were in place before Time Warner took over.

The subcommittee found strong evidence ICOMS is a big problem for Time Warner Cable. Attempts to audit the platform often crash, as it did in May of this year, preventing Time Warner Cable from identifying billing issues. At best, the company only aims for an 80% correction rate using its auditing tools.

One audit uncovered 18,000 customers in the Carolinas, Midwest, and Northeast that were being overbilled for modem and CableCARD equipment. Although Time Warner Cable was going to remove the erroneous charges going forward, it had no plans to automatically refund customers it identified as overcharged unless customers somehow realized that themselves and called in to request retroactive credit.

icoms error

Time Warner Cable erroneously billed one of its own employees for three Internet accounts.

Time Warner Cable once erroneously billed one of its own employees for three Internet accounts.

The subcommittee found if an audit showed that a customer had not been billed for equipment or services that the customer had received, the company treats those inconsistencies as undercharges and adds the charge to the customer’s bill going forward. Time Warner Cable does not attempt to retroactively charge the customer for previous months where that customer was undercharged.

If the audit shows that a customer has been billed for equipment or services that he or she does not have, the story is more complicated. In some cases, customers agree to pay for equipment they do not actually have so that they can receive a cheaper package price—for example, a consumer who wants only Internet service might decide the cheapest option is a promotional package including both Internet and cable television. By participating in the promotion, the customer agrees to pay a monthly rental fee for a set-top box but may instruct the company not to provide a set-top box. In such a case, the customer’s billing records will show a charge for a set-top box, but the customer’s equipment records will show that he or she does not physically have a set-top box. In April 2016, for example, Time Warner Cable identified 49,132 pieces of equipment associated with overcharges; of those 37,653 (approximately 77 percent) were not “correctable” overcharges because they were associated with accounts participating in promotional offers.

Time Warner Cable does not attempt to trace billing errors to their origin. Instead, it only provides a partial credit for the month during which the error was discovered. The company will not notify you of the error or for how long it has been on your bill. Unless you call and demand full credit for the overbilling, you will not receive it.

The cable company defends its policy on the ground that it is “efficient.” Going through months of customer bills to identify overcharges would be costly and time consuming, the company argues. The company also claims that the customer is best positioned to notice an overcharge and bring it to Time Warner Cable’s attention.

After reviewing policies at several different companies, the subcommittee cast doubt on Time Warner’s assertions, noting other companies had no problems returning overbilled amounts to customers without a request to do so.

Charter Communications

Unfortunately for customers, not included on the list of companies willing and able to automatically refund overbilling is Charter Communications, which recently acquired Time Warner Cable and Bright House Networks.

therealcharterbundleThe subcommittee called Charter’s process of identifying and correct overbilling “substandard.”

According to Charter, prior to August 2015, the company did not run any systematic audits to reconcile its billing records with equipment records. Charter’s failure to perform regular audits means that overcharged customers could not receive a prospective correction of their bill unless they noticed the problem themselves and contacted Charter. Beginning in August 2015, however, Charter began taking steps to identify equipment overcharges now on its system. Charter will complete that process in June 2016.

Charter recently upgraded some of its systems to make sure that when an employee adds or deletes services and/or equipment, an update to the customer’s billing record occurs automatically. Charter has 21 employees working for its Billing Quality Assurance department. The employees randomly sample bills to check their accuracy and when Charter changes its bill format or presentation, the team is supposed to review the bills to make certain any billing changes do not introduce mass errors. The subcommittee found these auditing methods were unlikely to discover common “one-off” errors, such as when customers are overbilled for equipment or programming on their specific account.

Charter’s alternate methods of identifying discrepancies quickly become more convoluted and less useful after that.

For example, beginning in August 2015, Charter undertook what it called a “controller reconciliation,” in which the company began to reconcile its billing records with equipment data from its 35 “controllers” throughout the country. These “controllers” are designed to manage box authorizations and “from the office” service connection and disconnection so that a truck roll is unnecessary. These systems can also be useful in identifying unauthorized equipment installed at locations where they were never registered or if the box was authorized for channels a customer was not paying to receive. A controller reconciliation allowed Charter to identify anomalies like in Missouri, where almost 6,000 customers were being billed for set-top boxes they were not using.

The subcommittee was unhappy neither Time Warner Cable or Charter seem willing to use “brute manpower to identify how long a customer has been overcharged and automatically grant a refund or credit,” as well as do more to minimize equipment and programming mismatches with billing records.

Comcast has bigger problems than overbilling.

Comcast has bigger problems than overbilling.

Comcast

Comcast relies on a very similar auditing process in use at Time Warner Cable to identify billing discrepancies, except once Comcast finds one it identifies how long a customer was overcharged, notifies the customer and automatically credits the customer’s account. Starting late last year, Comcast began running audits weekly to improve billing accuracy. Comcast claims just a 0.3% error rate.

Comcast has more than 60 employees nationwide on the east and west coasts examining billing issues and, when needed, individually investigates each case to identify applicable refunds.

DirecTV

DirecTV doesn’t do regular audits, instead relying on a program called SAS Enterprise Miner to search for billing errors before bills are generated. It can also use the same tools to identify and correct past billing errors. The satellite provider goes as far back as necessary to correct past mistakes, and pointed to instances where credits of thousands of dollars were issued to affected customers. DirecTV’s Revenue Assurance department can also reach out and communicate with employees at all levels of the company to investigate billing issues and prevent future ones. What will change as a result of AT&T’s ownership of the company isn’t known.

Dish Network

dishDish was cited by the subcommittee report as having the billing system least likely to generate billing errors. Dish links its equipment and billing systems together, which means any change on one system automatically updates the other.

According to Dish, it is impossible to add or remove equipment without altering the customer’s billing records. Dish provides each customer with one free “receiver”—Dish’s term for the equivalent of a set-top box—and charges $7.00 to $15.00 per month for each additional receiver a customer has. That is the only equipment charge. Dish’s system will only send a television signal to receivers that have been “activated,” which happens as part of the installation process. Once a receiver has been activated, the customer’s billing information is automatically updated to reflect that addition. That system ensures that no receiver is added to a customer’s account unless it has been activated.

Dish customers return their receivers by mail. Dish provides a packaging label so that it can track the receiver once it has been mailed. When the receiver returns to the Dish warehouse, an employee scans the barcode on the receiver, which removes the receiver from the customer’s provisioning records and, in turn, from the customer’s bill.

Hearing: Customer Service and Billing Practices in the Cable and Satellite Television Industry

Permanent Subcommittee on Investigations, June 23, 2016 10:00AM ET

(Video starts at 19:55) (2:18:54)

Search This Site:

Contributions:

Recent Comments:

  • James R Curry: No guarantee at all. But, as there's no contract commitment, you can at least cancel if they gut the line-up....
  • Required: Much more expensive than Hulu or Netflix, doesn't let you time-shift (VOD) all the shows/movies,, and doesn't solve the local news/sports problem, rea...
  • JayS: Looks like the era of the CVNO (CableTv Virtual Network Operator) has arrived. MVNO's have been terrific for the Mobile-phone consumer. We now have nu...
  • Gregory Blajian: A quick analysis for my wife and my entertainment situation is below. Getting Starz and MLB Network plus the A&E and Viacom family of channels mig...
  • Elbert Davis: Your last paragraph is exactly why Armstrong Cable cord-cutters cannot have this--200GB a month is all we're allowed to have until we have to pay Arms...
  • ANgela Hill: Did you get anywhere with this? I am about to do the same thing myself. My bill is $170 month, and I cannot do it any longer....
  • Paul A Houle: Frontier is not going to be a competitor. Verizon will sell their copper to Frontier. Frontier can't afford to upgrade their networks but they can a...
  • Limboaz: Trump has named David Higbee and Joshua Wright to his transition team. I guess we can assume they will be involved in anti-trust enforcement since tha...
  • Chad: If you're in NY, and you think you've been charged unfairly by TWC, you should submit a claim with David. It takes 5 minutes and they'll fight for a r...
  • Abraham Long: I have standard internet here in Rochester, NY. The intro price is $34.99 and recently it went up to $44.99 for the second year. All I had to do was m...
  • Lee: Switched to Earthlink internet and PlayStation Vue and couldnt be happier. How did I not figure this out before?!?!?! Its worth a peek....
  • Disgruntled Employee: I work for this company and this is the most spot-on article I've read about what's truly going on in this company. The guys at the top only care abo...

Your Account: