Time Warner Cable Maxx Customers in LA Are Being Offered Free Cable Modems

Phillip Dampier November 4, 2014 Broadband Speed, Consumer News 1 Comment

twcmaxTime Warner Cable broadband customers in Los Angeles still using older cable modems are being offered replacement modems from the cable company for free, avoiding Time Warner Cable’s $6 monthly modem rental fee.

The Los Angeles Times notes some customers are receiving letters offering a free modem upgrade, but the company won’t say exactly how many subscribers have been offered a way out of the company’s modem rental fee.

A survey of Los Angeles residents suggests Time Warner is primarily targeting customers still using older DOCSIS 2 or basic DOCSIS 3 modems that are not capable of getting the full benefit of Time Warner Cable’s Maxx speed upgrades, which provides up to 300Mbps service for the same price the rest of the country pays for 50Mbps.

Customers taking advantage of the offer are expected to swap out their existing modem themselves, using an “Easy Install Kit” mailed by Time Warner. They will need to contact the cable company to activate their replacement modem.

The replacement is a basic, yet fully capable DOCSIS 3 modem without built-in Wi-Fi. Customers who don’t use a router with built-in Wi-Fi can upgrade to Time Warner’s Wi-Fi capable modem, but it will cost around $11 a month for the service. Stop the Cap! recommends customers buy their own router with built-in Wi-Fi, which is almost always a better deal than renting equipment from Time Warner.

There is no word if a similar offer will be made to customers in other Maxx cities, New York and Austin.

Netherlands Telecom Regulator: A Broadband Duopoly Doesn’t Equal Competition

Phillip Dampier November 3, 2014 Broadband Speed, Competition, Public Policy & Gov't Comments Off on Netherlands Telecom Regulator: A Broadband Duopoly Doesn’t Equal Competition

logo-acm-enIn the Netherlands, having access to two broadband competitors isn’t enough to guarantee broadband competition, and Dutch telecom regulators are not about to deregulate Internet service in the country until consumers have more choices for broadband access.

The Dutch telecom regulator on Friday announced it will keep wholesale access regulations in place for an extra three years to guarantee KPN – the former state-owned telephone company – plays fair with competitors.

“If ACM were not to step in, there would be too little choice: Dutch telecom company KPN and cable company UPC/Ziggo would then dominate the market,” says the Authority for Consumers and Markets (ACM) in a written statement. “In ACM’s opinion, having just two providers in these markets cannot be considered healthy competition.”

“Furthermore, KPN and UPC/Ziggo are challenged by their competitors to continue to invest in their networks and to innovate,” said Henk Don, a board member of ACM. “As a result, faster and better connections become available in the Netherlands.”

kpn

KPN

The Dutch telephone and mobile provider will be required to continue allowing competitors such as Vodafone and Tele2 access to KPN’s landline and fiber to the home networks to offer competitive broadband service. ACM reports that Dutch consumers are saving at least $312 million a year in lower Internet access pricing just by forcing KPN to allow other companies to compete using its network.

KPN isn’t hampered by the forced openness, because ACM has also given the phone company relaxed operating rules to allow it to invest in DSL upgrades including vectoring and the forthcoming G.Fast standard, which could dramatically boost broadband speeds.

Most Dutch consumers, like those in North America, realistically have a choice between one telephone and one cable company — usually Ziggo (currently merging with UPC), for broadband service. But unlike in the United States, Dutch regulators have remained wholly unconvinced an effective duopoly is subject to enough competitive pressure to protect consumers and nascent competition from upstarts. Therefore, ACM has applied regulatory checks and balances to protect the marketplace and consumers from abusive pricing and service practices.

U.S. telecom companies argue that regulations hamper investment and delay network improvements. In the Netherlands, where broadband speed rankings exceed the United States, prices are also lower.

Russia Accelerating Broadband Speed Upgrades In Global Broadband Catch-Up

Phillip Dampier November 3, 2014 Broadband Speed, Competition, Consumer News, Public Policy & Gov't Comments Off on Russia Accelerating Broadband Speed Upgrades In Global Broadband Catch-Up

onlimeRussian Internet Service Providers have been strongly encouraged to upgrade their service and speeds as a matter of national pride as the Kremlin encourages broadband improvements across the vast expanse of the country.

Responding to the call, regional ISP Onlime, operated by Russian telecom giant Rostelecom, has introduced new broadband packages to subscribers at prices that would make most North Americans drool:

  • “100 for 500” is Onlime’s most aggressive promotion, offering unlimited 100Mbps service for 500 Russian rubles, equal to $11.47US a month on promotion. The regular rate after the promotion expires should run around $20 a month;
  • beeline15Mbps budget Internet is regularly priced at $6.88 a month;
  • 30Mbps standard service costs $9.18 a month;
  • 60Mbps turbo service runs $11.47 a month;
  • 80Mbps deluxe service was tariffed before the “100 for 500” promotion, and its everyday price is $16.06 a month.

Meanwhile, Russian wireless mobile operator Vimpelcom also runs wired broadband service in parts of Russia and is boosting speeds without raising prices. Customers signed up with “Beeline” in the Moscow Oblast, including the communities of Moscow, Domodedovo, Zelenograd, Sergyev-Posad, Serpukhov, Chekhov, and Lyubertsy will now receive up to 30Mbps service. You can’t beat the price. At just 350 Russian rubles, that is just over $8 a month in U.S. dollars.

The speed increases start Nov. 10.

Cable Magnate John Malone, Shareholders Avoid Billions in U.S. Taxes Exploiting Inversion Loopholes

Phillip Dampier November 3, 2014 Consumer News, Liberty/UPC, Public Policy & Gov't 1 Comment
Malone

Malone

Cable magnate John Malone has rarely had it this good at the expense of the U.S. Treasury. Using his vast wealth to hire some of the smartest tax advisers in the country, he has personally avoided hundreds of millions in U.S. taxes and shared the benefits of his tax tips with shareholders, who collectively stiffed the tax man out of more than a billion dollars in 2013.

As the Obama Administration fights with Republicans in Congress to close the loopholes, corporate executives and fellow billionaires routinely engage in tax avoidance schemes that shift their tax burden to ordinary Americans that cover the difference in the form of service cuts or higher taxes and fees to offset the lost revenue.

In 2013, Malone jumped on the “inversion” bandwagon, shifting the corporate address of Liberty Global, Inc. from Colorado to London, largely out of reach of the Internal Revenue Service.

Bloomberg News detailed Malone’s exploits over decades of “rich get richer” deals and the consequences of loopholes unavailable to most Americans that stay in the tax code at the behest of those who directly benefit from them.

Malone is fiercely protective of his $7.5 billion net worth, structuring investments, tax shelters, and end runs around tax laws in ways that often leave him with no tax liability at all.

dictionaryinversionsNot everyone can afford to move their assets overseas or set up complicated charitable trusts to shelter income, but the enormously wealthy Malone can. He recently passed Ted Turner as America’s biggest private landowner, owning 2.2 million acres of property in the United States, including more than 5% of the state of Maine.

Malone spreads his vast wealth around — owning stakes in Liberty Media, Liberty Global, and Liberty Interactive, as well as pieces of News Corp., Viacom, Time Warner, Inc., QVC, Discovery Communications, the old Court TV, DirecTV, SiriusXM satellite radio, Barnes & Noble, and Expedia.com.

Malone’s influence over the U.S. tax code comes in part from his advocacy work as an unpaid director at the Cato Institute, a Libertarian think tank that lobbies Washington hard for lower taxes and deregulation.

Malone’s personal tax code is to avoid taxes at all costs and, where possible, let someone else pick up the tab.

Malone’s baseball team, the Atlanta Braves, was instrumental as part of Liberty Media’s deal to cash out its stake in Time Warner without paying a dime in capital gains tax. Malone walked away with $1.4 billion in tax-free cash and ownership of the baseball team. Atlanta taxpayers will be responsible for more than $300 million in costs to build the Braves a brand new stadium in the Atlanta suburbs.

SiriusXM satellite radio subscribers were notified this week of the latest rate increase, due by the end of this year.

What they may not know is Malone’s Liberty Media now owns and controls the satellite radio venture. In 2009, Malone invested $530 million in the struggling operation. But he also gained the benefits of SiriusXM’s $6 billion in tax losses that Malone used to offset taxes on Liberty’s future profits. As a fringe benefit, Malone has also boosted revenue by imposing regular rate hikes on SiriusXM customers.

Like many U.S. corporations, Malone’s various Liberty ventures store massive amounts of cash in offshore bank accounts, avoiding U.S. taxes. When Liberty contemplated tapping that offshore cash, it faced a U.S. corporate tax rate of 35 percent. So Liberty joined more than a dozen other U.S. corporations relocating overseas, avoid corporate taxes back home.

Tax-Avoidance-600x400Although the corporation escapes a tax bill, shareholders usually do not, subject to tax for shares converted from the old U.S.-based company to the new overseas entity. Faced with owing capital gains taxes at a rate of 23.8 percent, the day before the inversion was announced, Malone transferred almost $600 million of his shares to the Malone-controlled, tax exempt LG 2013 Charitable Remainder Unitrust, avoiding much of the tax. Not satisfied with the fact he still would owe tax on the remaining $260 million of his personal stake in Liberty, the company hired Shearman & Sterling LLP to devise a strategy to get Malone (and shareholders) off the hook for any tax liability.

They found one, turning the government’s own efforts to plug tax loopholes against itself, manufacturing income that would not only satisfy the IRS’ recently hardened rules, but also let Malone & Co. escape any British tax liabilities in their new home.

“Malone threw a multi-billion dollar left hook at the Treasury Department,” said Samuel C. Thompson, a law professor at Pennsylvania State University. “They didn’t see it coming.”

As has been so often the case, the IRS eventually closed the loophole, but only after Malone exploited it.

Malone’s defenders point out all of his creative tax strategies are perfectly legal, and he is only taking advantage of existing U.S. tax laws. Detractors note America’s wealthy and powerful have exercised disproportionate influence over how those laws are written, usually through well-funded think tanks, lobbying firms, and anti-tax astroturf efforts. Most Americans lack the resources to take advantage of loopholes and benefits that require sophisticated advisers prepared to withstand any scrutiny from the IRS.

An emboldened Liberty Global is even willing to publicly signal its next tax avoidance measure.

In a filing last April, Liberty disclosed that a U.S. subsidiary will pay at least $7 billion in tax-deductible interest to its new UK parent over the next decade. Such payments are known to tax lawyers as “earnings stripping,” because the big interest deductions strip profits out of the U.S., thus cutting any U.S. tax obligation.

The practice has become so common among inverted companies headquartered overseas, Democratic Sens. Charles Schumer and Richard Durbin authored a bill to ban the practice. It has gone nowhere in the legislature because of objections raised primarily by Republicans, who characterize loophole closing measures as disguised “tax increases” on business.

What is Malone doing with all the money he has successfully kept out of the hands of the U.S. Treasury? He bought an Irish castle and three major Irish hotel properties. He did it using a capital gains tax holiday offered by Ireland’s government to wealthy investors willing to buy Irish real estate and retain ownership for a minimum of seven years.

Killing Off Affordable Rural Internet: BMI Loses $99 Sprint Unlimited, Gains 10GB Verizon Plan for $100

John Hattersheid November 3, 2014 Competition, Consumer News, Data Caps, Millenicom, Sprint, Verizon, Wireless Broadband Comments Off on Killing Off Affordable Rural Internet: BMI Loses $99 Sprint Unlimited, Gains 10GB Verizon Plan for $100

bmi.net-logoRural Americans who cannot get cable broadband or DSL will now pay more money for less service as wireless carriers continue to cancel affordable mobile broadband plans with a generous usage allowance in favor of premium-priced, stingy usage-capped wireless Internet.

Two weeks after Millenicom was forced to drop affordable Verizon wireless broadband service, Blue Mountain Internet received word its unlimited Sprint broadband reseller agreement was being terminated the following day, forcing the company to hurry out cancellation notices to affected customers.

“We received notification yesterday from our upline provider that our mobile broadband accounts utilizing the Sprint network (Net2) will all be cancelled on Friday, Oct. 31st, 2014,” the company wrote in an email to customers. “We apologize for the short notice but we just received notice yesterday.”

BMI had offered customers an unlimited use mobile broadband plan from Sprint for $99 a month. It has been replaced with a Verizon plan that costs a dollar more and comes with a 10GB monthly data allowance with a steep $20/GB overlimit fee. “Heavy users” can pay $120 a month for a monthly allowance of 20GB. Affected customers intending to switch to Verizon get a discount off the monthly plan price if they pay quarterly: $85 (10GB) or $100 (20GB).

Blue Mountain Internet Mobile Broadband Rental Prices & Plans

Package Network Traffic Traffic Email AV Optimizer Best Price Monthly Quarterly
      Optimized Accts Licenses Software paying quarterly 3 months
VMBB-HalfGig 1 1/2Gb 1.5Gb 1 1 Yes $19.99/Mo $24.95 $59.97
VMBB-1GB 1 1Gb 3Gb 1 2 Yes $34.95/Mo $39.99 $104.85
VMBB-3GB 1 3Gb 9Gb 1 2 Yes $52.95/Mo $59.99 $158.85
VMBB-5GB 1 5Gb 15Gb 1 2 Yes $69.99/Mo $79.99 $209.97
VMBB-10GB 1 10Gb 30Gb 1 2 Yes $84.95/Mo $99.99 $254.85
VMBB-20GB 1 20Gb 60Gb 1 2 Yes $99.99/Mo $119.99 $299.97
Plan Details: Network 1 Overages are charged at a rate of $20/Gigabyte – regardless of plan. Hardware options available or you can bring your own device (BYOD). Traffic optimizer software is free for Windows & Macintosh. Optimizer does not compress video or already compressed files.

EVDOinfo notes that with Millenicom and BMI losing their relationships with Verizon and Sprint respectively over the course of just one month, “it seems unlikely that we’ll see another [reseller] emerge with a no-contract, high-data plan using one of the major carriers’ networks.”

Millenicom customers were being offered a slightly different plan if they agreed to switch to a Verizon Wireless account: 20GB a month for $99 with a $15/GB overlimit fee. Customers signing up for a “More Everything” plan will pay considerably more. A 30GB plan with a mobile hotspot device costs $150 a month, not including fees and taxes. A one-year contract commitment usually applies.

Search This Site:

Contributions:

Recent Comments:

Your Account:

Stop the Cap!