In August, Time Warner Cable’s billing system went haywire for some 15,000 Ohio customers, some of whom found their promotional rates canceled, resulting in a doubling of their monthly bills.

One such Time Warner customer is Linda Sacash, who lives in Russell Township.  She had a three-year deal, in writing, with Time Warner that provided her family with a triple play package of Internet, telephone, and cable service for $89.95 a month.  But when her August bill arrived, Time Warner insisted she owed twice that amount — $179.

Sacash, among others, started calling Time Warner to complain about the inaccurate bills and was told the cable company unilaterally decided to expire promotional packages a year early.  Sacash wasn’t happy with that explanation, and noted a clause in her written agreement that limited rate increases to no more than 10 percent a year.  That didn’t matter much to Time Warner, who looked forward to receiving her new $179 payment by the due date on her bill.

Time Warner’s attitude changed, however, when WEWS-TV consumer troubleshooter Joe Pagonakis turned the camera on himself, and called the cable company looking for answers:

The company responded immediately, admitting some 15,000 bills were processed inaccurately during the summer.

Time Warner quickly corrected Sacash’s bill, and confirmed that her promotional offer will remain in place until November 2012, as stated in the Time Warner service invoice.

If considering a promotional offer, get it in writing and keep the paperwork for the length of the promotion, just in case your provider decides to renege on the deal. If signing up for a promotion over the phone, always get the name, extension/employee ID, and the exact details of the offer and keep those details in your files.  It’s often easier to get a company to stand up to their commitments when you have the name and extension number of the employee who sold it.

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/WEWS Cleveland Russell Township woman fights wins battle over inaccurate Time Warner digital cable bill 10-24-11.mp4[/flv]

WEWS-TV in Cleveland intervenes on behalf of a local woman who faced a doubling of her cable bill when Time Warner elected to end her promotion a year early.  (2 minutes)

Rogers Cable lets their customers purchase this cable box outright to avoid rental charges.

Stephen Simonin first came to our attention in January 2010 when he proposed charging cable operators room and board for their expensive cable set top boxes they require subscribers to rent.  Now, the chairman of the Litchfield (Conn.) Cable Advisory Council is back with another salvo — demanding an end to mandatory rental charges for cable TV equipment and access to competing providers:

The biggest industry in the US that has money for jobs is the entertainment industry. Federal law requires Cable to carry local broadcast and public channels in the clear for all. If we contact our Federal representatives and ask them to add: “Must carry adjacent competitors programming” We would add a million USA jobs immediately. Paid for by corporate cable and NOT tax dollars!

Cable has forced all of us to RENT cable boxes. We are not allowed to buy them because this is guaranteed free revenue forever for them. A box costs less than $100 and we pay nearly $10 a month for rental and power each month. Cablevision makes over $1,000,000,000 a year on set top box rentals alone. This is only one company! They have compressed TV to less than 20% of the transport. They use the other 80% for business and not covered under TV franchise (Wi-Fi, data, phone business). However, they use the TV franchise for this monopoly access to our front doors.

Adding this must carry clause will allow up to 5 different cable providers at our front doors for lower costs, higher quality and real competition. Cable will not want to give up that fat 80% business revenue they have today and will need to add a new fiber/co-ax transport across the country on their nickel! Think how many local jobs $1,000,000,000 can pay for. Now remember that we have several cable companies here in CT!

These are American jobs! Please help us get this passed! Call our Federal Congressman and Senators today. Remind them of the details I have sent them on behalf of the People.

Simonin’s proposal, sent to Stop the Cap!, enjoys some precedent… in Canada.

Sky Angel, a Christian television distributor, abandoned satellite in favor of IPTV several years ago. Their subscribers watch Sky Angel's channel lineup over a broadband connection.

Consumers there can purchase cable boxes in stores like Best Buy ranging from $80 for a refurbished unit that works with Shaw Cable to $500 for a cable box with DVR designed for Rogers Cable customers.  Buying your own box puts an end to rental fees, often $7+ per month, which never stop, even after the box is effectively paid for in full.  But for those seeking a built-in DVR, the initial price tag is on the steep side.  The practice of buying boxes has also generated some surprising competition between Rogers and itself.  When customers call to inquire about new service, Rogers often includes discounts including free box rentals, making it unnecessary to purchase the box at all (as long as you remember to re-negotiate an extension of the promotion when it ends).  That’s a savings of nearly $100 a year for some customers.  Buying DVR equipment guaranteed to work with your current provider also makes it easy to upgrade the device with larger capacity hard drives that can store more programming.  Since the failure point for most DVR’s is the hard drive, occasional replacements and upgrades can keep a box running for years.  Many pay providers in the United States charge higher rental prices for higher capacity equipment, with no option to buy.

Simonin’s proposal to open up cable networks to other providers is more novel, and probably a lawyer’s dream come true for the endless litigation it offers.  It’s highly unlikely the courts will side with the notion of forcing cable operators to open their infrastructure to competing providers, and considering the amount of informal collusion between companies today, it’s probably not going to deliver much savings.

A bigger hope on the horizon is the ongoing march to IPTV — television programming delivered using Internet technology.  With strong Net Neutrality policies in place (and a strong position against Internet Overcharging with usage caps or usage-based billing), dozens of new virtual “cable companies” could be launched, delivering their lineups over the Internet, direct to computer and television screens.  That could deliver consumers an endless choice of providers, assuming regulatory oversight is in place to make sure programming is available to all at fair and reasonable prices and that broadband providers are not allowed to block or impede access to the offerings that result.

It’s much easier to do an end run around Big Cable than trying to find a way to get them to change their business plans.

Communications Workers of America president Larry Cohen got himself off script and tangled in the percentages over the weekend when he told German magazine Focus the merger deal between AT&T and T-Mobile that the CWA has been cheerleading since it was first announced had little chance of coming to pass.

Cohen told Focus the chance of the deal getting beyond the current court challenge from the U.S. Department of Justice was around 20 percent. That seemed to signal the union was getting in line with those prepared to throw the current merger deal under the nearest bus.

Soon after that quote came home on the Bloomberg News wires (and reached AT&T), it didn’t take long for a revised quote (that a union spokesperson would later claim to be a “clarification”) to appear in a subsequent story:

There is about a 60 percent chance of a settlement between the companies and the Justice Department, Cohen said in a telephone interview today. Should the case go to court, it would be 50-50 on which way the decision would go, he said.

But the fuzzy math truly got exposed when the Wall Street Journal got this explanation for the discrepancy:

A spokeswoman for CWA said it was mostly a case of fuzzy math. Mr. Cohen’s point, she said, was that there was a 60% chance that the Justice Department’s lawsuit against the deal would be settled out of court.

But in the 40% chance that it didn’t, then there was a 50-50 chance that the company would prevail, which he may or may not have stated as 20 percent.

In reality, he meant to say that it was more likely than not that the case would be settled and the merger would succeed, the spokeswoman said.

“Perhaps it wasn’t the best of use of math,” she said. “Things got lost in the percentages.”

So, did AT&T push for the comments to be clarified? “I had some exchanges with my counterpart at AT&T, yes,” she said. “I sent her our clarification… which is good.”

Stop the Cap! received this unsolicited letter from an employee working at Frontier Communications about how the company has been running the business and treating their customers.  We’ve been able to independently verify enough of this letter, by talking with other Frontier employees, to highlight it for our readers. 

Frontier Communications is a long way from its progenitor (and namesake) — Rochester Telephone Corporation, which operated locally with excellence for 100 years.  Rochester Tel changed its name to Frontier Communications as it sought to abandon its image as a basic phone company.  It was later sold to Global Crossings, which later sold it to Citizens Communications, which decided to adopt the Frontier name itself.