Time Warner Cable’s Rate Hikes Reach the Carolinas: Still $58/mo for Standalone Broadband

Winston-Salem Time Warner Cable customers can expect to pay around 4% more for cable service in 2012.

Time Warner Cable’s annual rate increases have now reached the Carolinas.

The company is mailing letters to customers that announce rate hikes for off-contract clients in the $2-4 a month range, including price increases for Road Runner broadband that will now cost between $49.45-$57.95 a month.

“Our new prices reflect dramatically higher programming costs, additional programming and features, and continued investment in our network and customer service,” said Time Warner spokesman Scott Pryzwansky. “Time Warner Cable invested more than $350 million in capital in the Carolinas over the past year to make our network even more robust and to enable our customers to get the services and features they want.”

The company also invested heavily in lobbying lawmakers to keep community-owned broadband competition at bay, helping pass a measure through the Republican-controlled legislature that makes municipal broadband competition much more unlikely.

The result is another year of unfettered rate increases for customers in cities like Winston-Salem:

  • Cable TV increases from $10.23 to $11.49 for broadcast basic, $64.99-$69.49 for standard analog service, $80.99-$85.49 for digital cable;
  • Broadband increases from $47.95 to $49.45 for customers who also have digital cable, $52.95 to $55.95 for customers with any other tier of cable TV, $57.95 for standalone broadband service;
  • Telephone rates are unchanged.

Customers can avoid some of the price increases through creative bundling, threatening to take your business elsewhere, or by signing up for alternative providers:

  1. Customers on discounted promotional packages, retention deals, and term contracts will not face the rate increases until their promotional rates or contract expires;
  2. If you are unhappy with the rate increase, consider calling Time Warner and telling them to cancel your service 1-2 weeks from today’s date.  Then wait for them to start calling you with promotional “win-back” offers that deliver at least a year of substantial savings off regular rates;
  3. If you are a broadband standalone customer, consider signing up for Earthlink under their six-month promotion for just under $30 a month.  You will continue to be billed by Time Warner Cable and receive the same speeds and service with two exceptions: no PowerBoost (a temporary speed increase during the first few seconds of downloading), and you lose your Road Runner e-mail address (which you are not actually still using, are you?)  Get a Gmail account, don’t worry about speed gimmicks, and save $28 a month.  At the end of six months, sign up for Time Warner’s Road Runner service under their promotional rate, which is around $30 a month for a year.  Total savings over the 18 month combined promotional rate term: $504!

More than two years after Time Warner introduced DOCSIS 3 speed upgrades in New York, Time Warner is finally completing broadband upgrades for their customers in the Carolinas.  The latest cities scheduled to get the company’s Wideband (50/5Mbps) and Road Runner Extreme (30/5Mbps) services are Wilmington, Jacksonville and Morehead City. The new services will be available by early 2012.

Most customers in eastern North Carolina and parts of South Carolina still get Standard service speeds of 10Mbps download, 512kbps upload.  After the upgrade, a boost in upstream speeds to 1Mbps for Standard service customers is expected.

Public Service Commissioner Accuses Louisiana Governor of Sabotaging Broadband Grant

Phillip Dampier November 17, 2011 AT&T, Community Networks, Competition, Consumer News, Public Policy & Gov't, Rural Broadband, Video Comments Off on Public Service Commissioner Accuses Louisiana Governor of Sabotaging Broadband Grant

Campbell

A commissioner on the Louisiana Public Service Commission accused Gov. Bobby Jindal of sabotaging a now-rescinded $80 million dollar broadband improvement grant for the benefit of the state’s largest telecommunications companies.

Public Service Commissioner Foster Campbell publicly berated the Republican governor for intentionally interfering with the project until time ran out and the government withdrew its funding.

The cancellation of the project has proved embarrassing because it is the first and only time a state has lost federal broadband grant money.

“We want to know what the heck happened; we’re the only ones in the country that dropped the ball,” Campbell said. “I meet with people in every parish, and the number one priority by far is high-speed Internet, and how do you lose $80 million coming from the federal government to do that. How do you drop the ball, and if they did drop the ball was it because someone whispered in their ears, ‘it’s going interfere with big companies?'”

Campbell suspects the state’s largest phone and cable companies lobbied the governor’s office for changes in what was originally proposed as a public broadband network reaching large sections of rural Louisiana that do not have broadband access.

The state’s Division of Administration eventually scrapped plans for the public broadband network and replaced it with a proposal to use grant dollars to purchase long term institutional broadband contracts from private providers.  AT&T is the dominant local phone company in Louisiana — the same company that has steadfastly refused to provide DSL service across rural Louisiana. The new proposal would have not delivered any broadband access to individual Louisiana homes, only to institutions like schools, libraries, and local government agencies.

In Campbell’s eyes, the grant represented a competitive threat and seeing it dead and buried was the governor’s special favor to Big Telecom.

“I think they threw a little dirt on this one or a lot of dirt on it,” Campbell told the Tulane Hullabaloo.

Jindal himself admits his administration did get directly involved in changing the project’s course.

The governor called the revised private provider-focused project “a reasonable approach that would have expanded broadband access and not hurt private providers.” Jindal attacked the public broadband network originally planned by the Louisiana Broadband Alliance as “a heavy-handed approach from the federal government that would have undermined and taken over private businesses.”

With the $80 million dollars back in the hands of the federal treasury, Jindal is now blaming the Obama Administration for taking the money back.

The Louisiana Broadband Alliance, a collaboration among six state agencies, would have deployed more than 900 miles of fiber-optic network to expand broadband Internet service in some of the most economically distressed regions of Louisiana. The new network intends to provide direct connections for more than 80 community anchor institutions including universities, K-12 schools, libraries, and healthcare facilities. The 3,488-square-mile service area includes 12 impoverished parishes targeted by the state’s Louisiana Delta Initiative and a separate five-parish area that is home to four federally-recognized American Indian Tribes.

AT&T Ripped Off Hamilton County (Tenn.) 911 By “Intentionally Undercollecting” Fees, New Suit Alleges

Phillip Dampier November 17, 2011 AT&T, Consumer News, Public Policy & Gov't, Video Comments Off on AT&T Ripped Off Hamilton County (Tenn.) 911 By “Intentionally Undercollecting” Fees, New Suit Alleges
The Hamilton County’s Emergency Communications District is suing AT&T of Tennessee for what it says was an intentional decision to under-report and under-charge customers the monthly $1-3 911 fee levied on residential and commercial phone lines.  Hamilton County, which includes the city of Chattanooga, Tenn., ironically discovered the “intentional under-collection” of the mandatory 911 fees when it received a proposal from the phone company to provide telephone service to the county at a lower rate than competitors could offer, in part because AT&T offered to discount or eliminate the 911 surcharges.The county 911 agency, through its lawsuit, suggests most of the under-reporting is taking place with business customers who are using AT&T’s multiplexed Centrex phone service.  AT&T provides up to 23 voice phone lines over a single circuit, but only charges 911 fees on a single line, the lawsuit alleges.

“They were able to do what they call bundling,” ECD Executive Director John Stuermer told WRCB-TV. “Technology allows multiple phone lines over a single pair of wires, [but] we’re not getting the funding for the lines as we should have.”

Hamilton County ECD wants a U.S. District Court to fine AT&T $10,000 for each falsified financial report it has filed since 2001. Collectively, that could amount to a fine up to $1.33 million.

The lawsuit demands that AT&T open access to its billing files for a county investigation.

AT&T won’t comment on the lawsuit, but it isn’t the first time the phone company has faced scrutiny for similar under-collection of 911 fees. In 2006, the 911 district for Madison County, Ala., sued AT&T’s predecessor BellSouth for the same thing. The company settled that lawsuit privately in 2009.

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/WRCB Chattanooga Hamilton County sues ATT for 911 fees 11-15-11.mp4[/flv]

WRCB in Chattanooga reports Hamilton County 911 may not be getting the funding it needs because AT&T isn’t passing along what it owes in 911 surcharges.  (3 minutes)

Rural Americans Losing Reliable Phone Service; FCC Investigates Growing Landline Failures

Phillip Dampier November 17, 2011 Consumer News, Public Policy & Gov't, Rural Broadband, Windstream Comments Off on Rural Americans Losing Reliable Phone Service; FCC Investigates Growing Landline Failures

The Great Plans Communications Company has taken to notifying their customers about the growing problem of rural phone calls that never go through.

Rural Americans in 37 states are experiencing unprecedented problems making and receiving telephone calls on their landline phones.  The problem has grown so much, the Federal Communications Commission has announced it will investigate the 2,000 percent increase in complaints from customers who are fed up with bad phone service.

In a Stop the Cap! special report published this week, we shared details about the deteriorating landline networks owned by AT&T and Verizon.  But the problem extends beyond those phone companies, and is causing more than a little inconvenience for affected customers.

Hospitals report they are increasingly unable to reach rural patients and 911 emergency call centers say a growing number of emergency calls are not getting through.  Callers assume the problem isn’t with their landline telephone company, but with the hospital or 911 call center.

In response, the FCC has created the Rural Call Completion Task Force to investigate delayed, uncompleted, or poor quality calls.

“It’s not only an economic issue, it’s a public safety issue,” said Jill Canfield, the director of legal and industry at the National Telecommunications Cooperative Association.

In parts of Minnesota, problems are not limited to local dial tone service, but also extends to long distance calling.

Members of the Minnesota Telecom Alliance, which represents rural phone companies in Minnesota, discovered growing problems completing calls nearly a year ago.  Customers would dial numbers and be met with silence or uncompleted call intercept recordings.  Other customers, especially in area codes 320 and 218 couldn’t hear or be heard by the other calling party.  Other calls sounded like they were made underwater.

Phone companies also dealing with frustrating long distance problems have taken to their blogs to alert customers.  Great Plains Communications is one example:

For a while now, we’ve been aware of a particularly frustrating situation affecting rural telephone customers around the country.

Across the country, residents of rural communities are unable to receive long distance phone calls or are receiving calls of poor quality due to incomplete or blocked long distance calls. The issue affects landline, toll-free and wireless long distance calls.

So what’s the reason for this? Well, in the U.S., phone calls are carried on a network of phone lines that may be owned by a wide range of companies who charge a fee to carry long distance calls. To cut costs, some long distance companies attempt to use the lowest cost route available even if that route includes providers who aren’t capable of providing good call quality or even completing the call.

The result is thousands of dropped calls or calls with almost no sound quality occurring across the nation. Additional problems that customers have experienced are:

• The caller hears ringing but the receiving party hears nothing.
• The caller’s phone rings, but then hears only “dead air” when the call is answered.
• The call takes an unusually long time to place.
• Garbled, one-way, or otherwise poor call quality on completed calls.
• Callers receive odd or irrelevant recorded messages.

Investigators examining the problem confirm that company’s suspicions that fierce cost-cutting has a lot to do with the problem, especially as phone companies try and save money using cheaper Voice Over IP technology.  While most of the problems seem to afflict long distance calls (and the carriers that handle them), local phone companies like Windstream are also being targeted in the review.

A decade ago, consumers chose their long distance provider.  But today’s bundled service packages often include unlimited long distance, using the phone company’s preferred provider.  Some long distance calls are routed over the least expensive route, even if call quality suffers.

What particularly provokes customers are quality reductions coming at the same time companies like Windstream are raising prices in states like Minnesota.

Windstream defends its network and says it isn’t to blame for the problems.

“The fault is not in our network and not in our system,” Windstream spokesman Scott Morris told the SCTimes. “We do feel like we’re providing high-quality service … in what we can control and fix.”

Save Rural Broadband: South Texas’ Most Innovative Telecom Provider is a Rural Co-Op

Phillip Dampier November 16, 2011 Broadband Speed, Community Networks, Public Policy & Gov't, Rural Broadband, Video Comments Off on Save Rural Broadband: South Texas’ Most Innovative Telecom Provider is a Rural Co-Op

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Save Rural Broadband Texas.flv[/flv]

For over 50 years, Valley Telephone Cooperative has provided telecommunications services to rural communities in South Texas. VTCI was among the first providers in the world to guarantee 100% of its customers access to DSL broadband and now the innovative co-op is doing right by their customers by delivering advanced fiber-to-the-home service to residents in Roma and Rio Grande City.  That is service folks in large Texas cities can’t count on getting from the biggest phone and cable companies around.  Cooperatives like VTCI deliver the innovation that big phone and cable companies simply don’t deliver to rural America.  (7 minutes)

 

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