New York Landlords Demand ‘Door Fees’ to Let Telecom Companies In to Make Repairs

Phillip Dampier January 10, 2013 Consumer News, Public Policy & Gov't, Verizon 2 Comments
cover charge

Telecom door fees and other accommodations are often illegal under New York State law.

More details are emerging over Verizon’s complaint to the New York Public Service Commission after the company was refused entry to several New York multi-dwelling buildings to restore phone service after Hurricane Sandy and upgrade tenants to the company’s fiber optic network FiOS.

The New York Times reports the management blockade of telecom companies is nothing new. In some instances, landlords even expect to receive compensation for unlocking the front door for Verizon and Time Warner Cable, despite the fact it is illegal.

Verizon spokesman John Bonomo declined to tell the newspaper how much landlords are asking, but cable industry executives tell stories of building owners demanding as much as $150 per apartment in what they call “door fees.”

Verizon noted DSA Management, the company that takes care of 11 Maiden Lane, has asked for compensation. Theoretically, if DSA requested the same amount, it would run more than $10,000.

A DSA Management executive claims tenants in the building never lost phone service because of the storm and had no interest in the additional services Verizon FiOS had to offer. But a Stop the Cap! reader living in one of the impacted buildings shared a very different story with us.

“My phone has not worked right since even before Sandy hit,” shares a reader who wishes to remain anonymous to avoid possible retaliation. “You can get a dial tone but you also get to hear half of Manhattan when you make a phone call. I can’t hear myself over the other conversations. Verizon has let their copper network go to crap.”

The reader says Verizon is aware of the problem and a trouble ticket is open, and the company indicated it was having trouble arranging access to fix the problem.

verizon“I want FiOS yesterday. I guess some of these building owners already have it and will let us have it if the kickback is finally high enough. Time Warner Cable comes and goes whenever they like.”

Bonomo told the Times Verizon has paid “nominal fees” to building owners before, ostensibly to post fliers and set up sales tables in the lobby.

In some states, renters don’t have much of a choice. Cable operators have been known to sign lucrative deals with property owners to sign everyone in the complex up for cable, bundling the monthly bill into rent payments or mandatory fees. Customers can refuse the service, but they will still pay for it.

Some building owners claim they have a natural hesitancy allowing telecom companies into their buildings because they do not always take care to hide their work or avoid inconveniencing tenants with noise or damage.

TF Cornerstone says Verizon should not be in a hurry to effect repairs at 2 Gold Street or 201 Pearl Street. Both luxury high-rises have been uninhabitable since Sandy struck and until heat, hot water, and electricity is back, FiOS can wait, they say.

Broadband Maptastrophe; FCC Ignores Its Own 4/1Mbps Standard, Relies On Faulty Map Data

How accurate is the map?

How accurate is the map?

The biggest story you know nothing about is taking place at the Federal Communications Commission in Washington, where regulators are trying to figure out what to do with $185 million in leftover broadband expansion funds Internet Service Providers either could not qualify for or did not want. The FCC is on the verge of making a decision, one that will rely on broadband map data that service providers are now calling grossly inaccurate.

During the first phase of the Connect America program to fund broadband expansion in rural areas, the Commission offered up to $300 million to providers willing to wire consumers and businesses deemed too unprofitable to serve.

The rules largely favored phone companies, and although some including Frontier Communications gratefully accepted the funding to expand their DSL service, both of America’s largest phone companies expressed little interest. Many others, including CenturyLink and Windstream, petitioned to change the rules.

In the end, less than half of the available funding — $115 million — was actually spent, none in areas served by AT&T and Verizon.

The initial guidelines for participation were not exactly a high bar to cross. Under the program’s original rules, providers are required to deploy broadband within three years to certain locations that receive less than 768kbps downstream and 200kbps upstream (or no service at all). That “means test” set the bar far below the minimum speed providers can even call “broadband” under the FCC’s own current definition: 4/1Mbps.

The Federal Cable-Protection Commission

Anyone served by 1-3Mbps DSL “broadband” was instantly ineligible because the FCC effectively deemed those speeds ‘good enough for now.’ The FCC argued it wanted to first target funds to those without any service at all, not those who had inadequate service.

Participating carriers receive compensation up to $775 per home to defray connection costs, bringing expenses closer to the Return on Investment-test that decides whether your rural home will have broadband service or not. Large phone companies complained the subsidy was not nearly enough and did not bother applying. Some others said even with the subsidy, it was still too unprofitable to wire rural homes in their service areas.

This not-so-auspicious start of the Connect America project has driven the FCC to propose modifying the rules to increase participation by disinterested providers. In an opaque “Further Notice of Proposed Rulemaking,” the Commission proposes new rules that will “further accelerate the deployment of broadband facilities to consumers who lack access to robust broadband.”

Under the new guidelines, providers could be able to apply for funding if the areas they propose to serve are not already getting at least 4/1Mbps service. But in a surprising footnote, the FCC announced they will “use 3Mbps downstream and 768kbps upstream as a proxy for 4/1Mbps service.” In other words, the FCC is ignoring its own standard definition of broadband and settling for something less. That will leave customers waiting for something better than 3Mbps service up the creek, excluded from Connect America funding.

The U.S. Telecom Association is a lobbying group dominated by AT&T, Verizon and other phone companies.

The U.S. Telecom Association is a lobbying group dominated by AT&T, Verizon and other phone companies.

The U.S. Telecom Association (USTA), which represents phone companies, was appalled, suggesting this footnote will block funding from approximately one million rural households that receive what most of us would consider substandard broadband.

“This is particularly true for rural areas served by DSL which in most cases has been engineered to provide an upstream speed of 768 Kbps,” the USTA wrote in comments to the FCC. “In such cases, significant and costly network upgrades would be necessary to provide broadband service meeting the 4/1Mbps  benchmark. Therefore, rather than relying on evidence of 3/768 service to exclude areas from eligibility, the Commission should use the next speed tier—6/1.5Mbps as a proxy for 4/1 service.”

Windstream, in its own comments, was reduced to educating the FCC about the basic technical facts of DSL:

One Mbps upload speeds are not necessarily available to all customers served by standard ADSL 2+ architecture over a 24 AWG copper pair of 12,000 feet. Rather, delivery of reliable upload speeds of 1 Mbps would require an upgrade, such as two-pair bonded ADSL 2+. Two-pair bonded ADSL2+ essentially doubles last mile deployment cost since the end user modem is two to three times the cost of a normal single pair modem, two cable pairs are used instead of one, and two ADSL2+ ports are required at the DSLAM. Moreover, to achieve 1 Mbps of customer payload throughput would require an upload connection speed of more than 1.2 Mbps, while an upload connection speed of 1 Mbps would produce an actual throughput of about 820 Kbps.

Even where the loop length from the DSLAM to the customer is less than 12,000 feet, a service provider can only deliver service meeting the 4/1 requirement—or more precisely, service at speeds of 6/1.5Mbps, the next-fastest standard service tier—if the DSLAM is ADSL2+ capable and fiber-fed.

Windstream provides a primer on DSL to the FCC.

The resource that will determine who qualifies for broadband funding and who does not is the National Broadband Map, which seeks to describe the broadband options available at hundreds of millions of American addresses. If the map shows an area unserved, it qualifies for funding. If the map shows there is no broadband inadequacy, no funding will be offered.

Unsurprisingly, providers of all kinds are hurrying in comments that declare often considerable inaccuracies in the FCC’s map. This is ironic since much of the collected data on which the map is based was voluntarily supplied by those providers.

In various submissions filed with the FCC, several ISPs suggest the national map is not to be trusted. Some complain the updated service areas they earlier submitted have never been incorporated into the map, others are discovering inaccuracies for the first time because they can make the difference between winning or not qualifying for rural broadband funding (either for themselves or a competitor). Among other complaints: providers are overestimating their coverage and fibbing about actual speeds, the map’s census tract granularity ends up declaring an area served if even one household manages to get DSL service while others cannot, and providers only serving business customers are treated as if they serve everyone.

Mississippi Gov. Phil Bryant is asking the FCC to clean up the inaccuracies in the Mississippi portion of the National Broadband Map.

Mississippi Gov. Phil Bryant is asking the FCC to clean up the inaccuracies in the Mississippi portion of the National Broadband Map.

The state of Mississippi is the poster child for inaccuracies in the National Broadband Map. All that was required to disqualify most of the state from rural broadband funding was a boastful and inaccurate submission from one cable broadband reseller that claimed they served virtually all of Mississippi. Nobody bothered to question the veracity of their submission or verify it. Now the governor’s office is involved in efforts to scrub the inaccurate broadband map they consider more a fantasy than reality on the ground.

With the FCC preparing to launch the second phase of the Connect America Fund with up to $1.8 billion of available funding per year over five years, the money sharks are in the water circling one another.

Cable operators and wireless ISPs are asking the FCC not to hand out money to their competitors and phone companies are returning fire claiming those providers are lying about their coverage areas and have restrictions on service.

Companies ranging from Comcast to small, independent cable operators working with the American Cable Association are filing objections to the existing map. Wireless ISPs, often family-owned, are even more worried what will happen if phone companies like Windstream get federal dollars to upgrade their DSL service while unsubsidized WISPs are left to compete on their own.

In fact, the Competitive Carriers Association argues wireless providers are best positioned to make use of the unspent funds to deploy rural wireless broadband immediately.

“Wireless carriers offer the best opportunity to bring much needed broadband services to unserved and underserved areas, and it only makes sense for the FCC to consider proposals from wireless carriers,” said CCA president Steven K. Berry. “Many of our members are ready and willing to build out these networks, but depend on [financial] support in order to do so.  Wireless remains underfunded, and this could be an opportunity for the FCC to provide significant support for the services consumers want most.”

Not if the USTA and Windstream have anything to say about it. Both are on the attack in comments filed with the FCC:

WISPs: “Coverage should be independently verified before such areas are considered ineligible for Connect America funding. Like satellite providers, WISPs often have capacity caps and service quality issues, including unpredictable degradation from third-party interference from common devices such as cordless phones, garage door openers and microwave ovens when WISPs use unlicensed spectrum. The sustained speeds WISPs offer, particularly during busy times, also tend to be slower than those offered by [phone company broadband], and certainly slower than the 4Mbps downstream standard required of future recipients of federal funding.” — U.S. Telecom Association

The USTA also attacks WISPs for their usage caps, which they claim should disqualify them from serious consideration because their networks are technically and realistically inadequate to service today’s broadband consumer.

Cable “Competitors”: Windstream claims the bare existence of a cable operator alone should not disqualify the phone company from funding. Windstream suggests cable companies in its service areas may only serve one or two customers in a census tract, not really offer service at all, or provide sub-standard broadband that is so bad, nobody will do business with them.

Windstream proposes its own competition test: “In many areas […] with an alleged presence of an unsubsidized competitor, Windstream has received no requests in the past two years from customers for telephone number ports that are accompanied by cancellation of the customer’s Windstream broadband service. In other words, despite the alleged presence of a competitor providing service at speeds of at least 3/768 in areas where Windstream itself does not provide service exceeding 3/768, Windstream has not received a single request in two years in an entire area to port a phone number to a competitor and cancel the associated Windstream broadband service. Windstream submits that the lack of such porting requests throughout an entire area over a reasonable historical period is strong evidence that there is no competitor providing 3/768 or better service in that area.”

The independent phone company proposes that alleged unsubsidized competitors offer proof they are actually providing service before the FCC excludes an area from funding consideration.

"Here is our view." -- Phillip Dampier

“Here is our view.” — Phillip Dampier

Consumers are free to share their own views with the FCC on these matters by filing their own comments here. The Proceeding Number you will need is 10-90. It is generally easier to create a .PDF, standard .txt file, or Microsoft Word document and attach it to the submission form. Your comments will be publicly visible and posted to the FCC website.

Stop the Cap! feels the FCC should not renege on its commitment to fund rural providers that will guarantee customers will receive at least 4/1Mbps service. This barely adequate minimum will require phone companies to upgrade their facilities to next generation DSL technology that can support future speed upgrades. Compromising on lower speeds gives phone companies the option to deploy outdated early generation DSL that cannot be upgraded easily. In a positive development, many phone companies seem willing to commit to these upgrades with some financial assistance.

Funding should also be available to the provider that can deliver the best broadband service at the lowest cost. As urban and suburban customers have learned, that service often does not come from the phone company. Cable operators willing to commit to rural broadband upgrades should not be disqualified from funding, nor should community-owned providers who want to build their own networks.

We have also repeatedly complained about broadband mapping that lacks a formal mechanism to clearly verify coverage and speeds independent of the ISP supplying the data. Providers have an incentive to artificially boost or reduce coverage, particularly if it means the difference between qualifying for federal broadband expansion funding or disqualifying a competitor because the provider can falsely claim they already offer the service.

Our thanks to Cassandra Heyne, who dubbed the current situation an FCC ‘maptastrophe.’

Up, Up and Away In My Beautiful Rogers Rate Increase (Profits Ballooned Up, Too!)

Phillip Dampier January 9, 2013 Canada, Consumer News, Data Caps, Rogers 1 Comment

rogersRogers Communications customers have a New Year’s surprise arriving in their mailboxes as eastern Canada’s largest cable company announces it is boosting rates effective Jan 24.

Many Rogers broadband customers will be paying an additional $3 a month for usage-capped service. Some of the steepest rate increases are reserved for budget-minded customers who only want the basics.

Those subscribed to Phone Essentials, Cable Digital Plus and Internet Lite face a 6.7 percent rate hike, which translates into $8 a month or $96 a year. One thing not increasing is Rogers’ usage allowances.

Rogers Rates Up, Up, and Away

  • Phone Essentials up 7.0%
  • Phone Favorites up 5.2%
  • Phone Deluxe up 4.6%
  • Cable Basic up 2.9%
  • Cable Digital Plus up 5.7%
  • Cable VIP up 2.9%
  • Internet Lite up 7.8%
  • Internet Express up 6.1%
  • Internet Extreme up 4.8%
  • Internet Extreme Plus up 4.2%

Rogers Communications isn’t exactly hurting. Their profits have been accelerating every quarter over the last year:

  • Q4 2011: $327 million profit
  • Q1 2012: $356 million profit
  • Q2 2012: $400 million profit
  • Q3 2012: $466 million profit
Image courtesy: Rick

Image courtesy: Rick

Rogers’ customer Sunfox, who lives in Markham, Ont., and provided the breakdown, is purely tongue-in-cheek about Rogers’ quest for more of their customers’ money.

“I mean clearly something had to be done,” he writes on Broadband Reports’ Rogers Forum. “Any reasonable person can see that $1.5 billion profit in 12 months isn’t anywhere near enough, so it was time to significantly increase rates for their customers.”

Customers who want out can follow these instructions provided by Rogers:

Affected customers who wish to respond to the rate increase notice may call us at 1 888 ROGERS 1 (764-3771).

Residents of New Brunswick who do not wish to accept any applicable rate increase may choose to cancel the service(s) affected by the rate increase(s). Any applicable early cancellation fee, device savings recovery fee or service deactivation fee will apply.

Residents of Newfoundland and Labrador and Québec who do not wish to accept any applicable rate increase may choose to cancel the service(s) affected by the rate increase(s) without any early cancellation fee by sending us a notice to that effect no later than 30 days after the rate increase(s) take effect, as indicated in the rate increase notice.

Residents of Ontario who do not wish to accept any applicable rate increase may choose to cancel the service(s) affected by the rate increase(s) without any early cancellation fee, device savings recovery fee or service deactivation fee, as applicable, by sending us a notice to that effect no later than 30 days after receiving the rate increase notice.

Revolving Door: Vermont’s Broadband Czar Takes Job With Telecom Company She Oversaw

Phillip Dampier January 9, 2013 Consumer News, Issues, Public Policy & Gov't, Rural Broadband Comments Off on Revolving Door: Vermont’s Broadband Czar Takes Job With Telecom Company She Oversaw
Marshall

Marshall

Karen Marshall, Vermont’s appointed “broadband czar” and head of ConnectVT has accepted a lucrative job offer from one of the broadband providers she formerly oversaw.

Marshall’s trip through the revolving door from public servant to the private sector she helped regulate will land her as the new president of VTel Data Network.

Raising eyebrows across the state is the fact her new employer received $116 million in broadband stimulus grants in 2011 to expand service in rural Vermont. Less than two weeks ago, Marshall was praising VTel for another $5 million state grant from the state’s telecommunications authority to expand rural cell service in the state. VTel is the largest recipient of taxpayer-financed grant funding in Vermont.

VTel executives said Marshall would be a perfect fit for the company that owns a fiber network in the state with connections to New York, Montreal, and Boston.

VTDigger called Marshall, a former Comcast employee, a one-woman enforcer for the current administration’s broadband goals:

Her job has been to ensure that state and federal agencies, private companies and Vermont municipalities work together to meet the governor’s 2013 deadline.

The VTel project is key to that effort. No other company has received as much federal funding. ECFiber, a fiber-optic company, Burlington Telecomm and FairPoint are also expanding broadband in the state.

ConnectVT is widely viewed as Shumlin’s alternative to the Vermont Telecommunications Authority, which is dominated by former Gov. Jim Douglas appointees. After four years of state funding, the authority failed to make much progress on broadband expansion, in part because of corporate disinterest in investing in expensive rural broadband development. It’s only been in the last few years that private companies were awarded enough federal funding to make extending broadband access to very rural parts of the state financially viable.

Comcast CEO Cashes In: $11.6 Million Holiday Gift for Himself While Your Rates Increase

Phillip Dampier January 9, 2013 Comcast/Xfinity, Consumer News Comments Off on Comcast CEO Cashes In: $11.6 Million Holiday Gift for Himself While Your Rates Increase
Roberts

Roberts

While Comcast customers face New Year rate hikes that could cost some as much as $60 more a year for cable, broadband, and phone service, life is good for Brian Roberts, chairman, CEO and president of Comcast Corporation.

Comcast disclosed Roberts ditched 317,000 shares of stock in the company for nearly $11.6 million, according to a filing with the Securities and Exchange Commission.

Roberts sold 105,800 shares of his wife’s stock on Dec. 19, 106,000 shares owned by his trusts on Dec. 20, and another 105,400 shares owned by his wife on Dec. 21.

He has plenty of shares left. Roberts owns 100% of Comcast’s Class B common stock, which entitles him to one-third of Comcast shareholders’ voting power.

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