CenturyLink Reportedly in Talks to Acquire TW-Telecom

Phillip Dampier October 1, 2012 CenturyLink, Competition, Consumer News 1 Comment

Colorado-based TW Telecom is up for sale and CenturyLink is now seen as a potential buyer, according to reports in mergers and acquisitions trade publication DealReporter, citing unnamed sources.

TW Telecom, originally a commercial services unit within Time Warner Cable, went independent in the late 1990s, and today sells telecommunications services to medium and large-sized companies.

Talks have been underway for weeks, according to the online publication, but the acquisition would make sense for CenturyLink as it attempts to bolster its business services unit.

Level 3 Communications was also reportedly interested in acquiring the company, but TW Telecom balked at the price offered.

But DealReporter cannot be certain the deal is done. TW Telecom completed a $480 million bond offering last week, and raising debt right before a sale is highly unusual, the publication reports.

Neither CenturyLink or TW Telecom offered comment.

 

America’s Fastest-Rated ISPs Bring No Surprises: Fiber Wins, Telco DSL, U-verse Loses

Phillip Dampier October 1, 2012 Broadband Speed, Competition, Consumer News Comments Off on America’s Fastest-Rated ISPs Bring No Surprises: Fiber Wins, Telco DSL, U-verse Loses

PC Magazine has declared fiber to the home service America’s fastest broadband technology, and among larger providers, Verizon’s FiOS once again took top honors for delivering the fastest and most consistent broadband speeds.

Over the past nine months, the magazine’s readers have been conducting regular speed tests using their personal broadband connections. The magazine found fiber optics remains the best current technology for delivering cutting-edge broadband service, with an average speed rating for FiOS reaching 29.4/16.7Mbps. Since PC Magazine readers were subscribed to various speed tiers while conducting the tests, the magazine’s ratings do not measure the fastest possible speeds on offer from different providers. Verizon’s most-popular service bundle includes 15/5Mbps service, heavily weighting Verizon’s speed rating which is capable of even faster speeds with their 50-300Mbps premium service tiers. But on average, consistently fast speeds kept them in the top spot.

Cable broadband technology was the second-best choice, depending on how cable operators implement it. Cable companies depend on a singl, shared broadband pipeline in each neighborhood. DOCSIS 3 upgrades allow a cable operator to vastly expand that pipeline by “bonding” several channels together to increase the maximum bandwidth. Cable operators that combine the latest technology with the smallest number of customers sharing a connection do the best.

Midcontinent Communications (better known by customers as Midco), achieved first place nationwide. The company, which serves customers in Minnesota, the Dakotas, and Wisconsin, took top honors with an average speed of 24.7/4.4Mbps — the best of any cable operator.

Ratings sometimes show the level of investment made by cable operators in their network. A sudden boost in average speeds is a sure sign a cable operator is rolling out network upgrades. A speed decline can expose a cable company trying to oversell an already constrained network. Charter Cable, which has routinely gotten poor ratings in Consumer Reports’ rankings, showed dramatic improvement in PC Magazine’s ratings, achieving third place with an average speed increase from 15Mbps to 18.5Mbps. But while the added speed is nice, the company’s usage caps are not. Conversely, WOW!, which achieved top scores in Consumer Reports’ ratings, scored towards the bottom of PC Magazine’s tests.

Comcast, which last year trumpeted its high rankings in controversial ads claiming to deliver the fastest broadband in the nation has now been overrun by both Midco and Charter. Comcast Xfinity is now in sixth place, hardly the fodder for any future ad campaign.

Cox Cable actually lost ground since last year, with average speed now down to 14.8Mbps. The bottom four: Time Warner Cable, Mediacom, WOW!, and Suddenlink — are all hampered by slow upload speeds and more anemic “take-rates” on higher speed broadband plans with the speeds on offer. With fewer premium speed customers, average speed ratings take a hit from the larger proportion of customers sticking with standard service.

Phone companies barely appeared in the magazine’s top ratings. AT&T’s U-verse could not even make the top-15. While 25Mbps was adequate when U-verse was first deployed, the broadband speed race has quickly overshadowed the company’s fiber to the neighborhood service, which still relies on home phone lines and antiquated copper infrastructure in the immediate neighborhood.

Phone companies still offering traditional ADSL on almost all-copper networks turned in even more dismal results — most too low to rate. Only Frontier’s adopted FiOS network kept them in the rankings in the overall broadband “slow zone” in the Pacific Northwest, along with CenturyLink’s acquired ADSL2+ and bonded DSL networks built by Qwest.

ISPs that perform poorly typically criticize the methodology of voluntary speed tests as the basis for speed and performance ranking. Most criticize the apparent lack of consistency, random sampling, the possibility rankings may be weighted in certain geographic areas, and may mix a disproportionate number of customers with standard or premium level speeds to unfairly boost or diminish average speed rankings. But overall, PC Magazine’s rankings show some technologies superior to others. If a customer has a choice, finding a fiber to the home provider is likely to provide an improvement over what the cable company offers, but the differences between phone company DSL and cable broadband are even starker.

The FCC speed test program, conducted by SamKnows, takes more regular snapshots of broadband quality from volunteer panelists. Your editor’s home broadband connection from Time Warner Cable is profiled above, showing results from January-September 2012

Wall Street Goes for Another Round of Sprint-Bashing: Why Are They Still in Business?

Phillip Dampier September 27, 2012 Broadband Speed, Competition, Consumer News, Sprint, Video, Wireless Broadband Comments Off on Wall Street Goes for Another Round of Sprint-Bashing: Why Are They Still in Business?

[flv width=”360″ height=”290″]http://www.phillipdampier.com/video/Bloomberg Sprint Liquidity Doesnt Fix Company 9-26-12.mp4[/flv]

Sanford Bernstein’s Craig Moffett is back on Bloomberg News dismissing Sprint’s business strategy and lamenting the cost of subsidizing Apple’s iPhone 5 for existing customers who don’t really ‘need’ a new phone. Moffett sees all downsides for America’s third largest carrier (in May he gave the company a 50-50 shot of landing in bankruptcy court), trying to compete against a virtual duopoly successfully maintained by AT&T and Verizon. He thinks iPhone subsidies and purchase guarantees cost Sprint too much, their 4G LTE network is too little, too late (and will never perform as well as larger competitors who have lower frequency spectrum available for better reception), and their stock is overvalued. Wall Street routinely brings out analysts cheerleading additional mergers and acquisitions for further consolidation in the wireless market. By cutting down Sprint, Wall Street continues to emphasize it has already picked winners (AT&T and Verizon) and losers (Sprint, T-Mobile, everyone else).  (6 minutes)

Frontier Attempts to Win Over Dissatisfied Cable Customers Plagued With Rate Hikes, Outages

Phillip Dampier September 27, 2012 Broadband Speed, Competition, Consumer News, Frontier, Rural Broadband Comments Off on Frontier Attempts to Win Over Dissatisfied Cable Customers Plagued With Rate Hikes, Outages

Frontier Communications is targeting promotional offers to customers that have been impacted by cable service outages and rate hikes, despite having a relatively poor service record itself.

Frontier president and chief operating officer Dan McCarthy told investors attending the recent Goldman Sachs Communicopia Conference the company was pulling out all the stops looking for surgical marketing opportunities.

“People don’t wake up every day, and say, ‘I want to switch broadband providers.’ It’s really about finding what is that lever to pull. Sometimes it’s a message at a key point — it could be during an outage, it could be during change of prices for them. It could be there are some substandard speeds that are being offered,” McCarthy said. “We are looking at what is the right mix of messaging and promotional offers that really allow us to do that. I think you’ll see us be pretty aggressive in that area,” he added.

But Frontier itself has had plenty of service problems, and was the only major Internet provider in the country to have lost ground in a July FCC report measuring broadband quality. The company continues to face extensive service outages when fiber cables are cut or copper wiring is stolen by thieves. Recent storms this past summer disrupted 277 Frontier central offices in the Carolinas, Indiana, Pennsylvania, and West Virginia, according to a Securities and Exchange Commission filing. The repair work, including overtime and equipment, is expected to cost the company at least $15 million.

Frontier reports it expected to replace at least 167,000 feet of damaged or stolen copper cable and purchased 203,000 backup power generators to keep central exchanges up and running during extended electric outages.

This week, a major service outage struck customers in parts of Ft. Wayne, Ind. after an accident severed an important cable.

A number of customers in Frontier service areas have already disconnected their landlines with the company, but where cable companies do not provide service, Frontier reports it is having success selling a standalone DSL product it dubs, “Simply Broadband.”

“We are seeing success in attracting and retaining customers with this product and it is having a positive impact on our Q3 residential customer counts,” Frontier reports in an SEC filing.

Frontier has also recently announced speed boosts in several states that can deliver up to 25Mbps DSL service to certain customers.

17 Porn Films in 4 Days; Time Warner Cable: ‘An Electrical Short or You Watched ‘Em, Pay Us $154.65’

Phillip Dampier September 27, 2012 Consumer News, Editorial & Site News 2 Comments

A 52-year old Los Angeles woman was bill shocked when she found Time Warner Cable charged her for 17 pay-per-view adult movies ordered over four days, often within minutes of each other.

Total charge: $154.65.

The actual number of adult movies watched, according to Time Warner customer Carol Scott: Zero.

Time Warner Cable’s initial response to Scott’s billing complaint: “We don’t make mistakes. You must have watched all those movies.”

The Los Angeles Times‘ David Lazarus reported on the plight of the healthcare lawyer the cable company thinks can’t put down her remote control:

On one day, the bill shows, a dirty movie was ordered at 9:55 a.m., followed by additional orders at 9:57, 10:03, 10:04, 10:05 and 10:06. Each movie came with a $7.98 charge.

Two days later, according to the bill, Scott’s craving for porn returned in a big way with orders for adult movies at 10:39 a.m. and 10:40, and again at 2 p.m., 2:01, 2:03 and 2:04.

She was apparently in such a randy mood, the bill shows that two adult movies were simultaneously ordered twice that day at 2:03 p.m. and 2:04.

The next day, a little more afternoon delight was seemingly in order. Scott’s bill indicates that two more adult movies were ordered, at 12:15 p.m. and immediately after at 12:16.

Unfortunately, Time Warner’s bill doesn’t specify the titles of the various films, so we can only guess at the range of tastes on display.

Scott explained she never ordered an adult pay per view movie in her life, much less 17 of them — a fact Time Warner Cable could have taken into account had it appropriately investigated her pay per view order history.

Instead, the representative insisted he had proof the movies were directly streamed to her television (was he outside her window?). If she wasn’t the one watching, someone else was — or several people, considering Scott’s bill showed she had as many as six sleazy sex flicks running at the same time.

Scott’s request to block adult pay per view titles from being ordered ever again was blocked by Time Warner. A customer service agent explained it was all or nothing — block all pay per view titles or none of them.

When the Los Angeles Times reporter called Time Warner Cable on behalf of Scott, the cable operator got nervous and had premature explanations.

Scott said one representative suggested electrical shorts could have resulted in her pay per view porn escapade, or perhaps someone got inside her cable box. Another repeated the company’s earlier insistence she must have watched the movies.

Jim Gordon, a company spokesman, didn’t really want to talk about it.

“We take customer privacy seriously, which we know our customers appreciate, and as such we are not able to comment on a particular customer’s account,” Gordon said.

Gordon passed the newspaper reporter to Motorola to discuss cable box hacking, as the Time Warner Cable set top box involved was manufactured by them.

In the meantime, under threat of going public with a relationship gone bad, Scott’s account was credited $154.65 and the cable company found its way clear to configure a block on future adult pay per view titles on Scott’s account.

If you do not use your cable company’s pay per view service, why not consider avoiding being the next lucky victim of cable porn roulette and ask your provider to block all pay per view purchases.

Search This Site:

Contributions:

Recent Comments:

Your Account:

Stop the Cap!