Real estate listings increasingly are promoting Verizon FiOS availability to would be buyers and renters

Real estate listings that prominently mention Verizon FiOS availability?

It’s true.  The much-coveted fiber-to-the-home service from Verizon has increasingly become important in residential home sales and rentals, according to realtors.  With the housing market still a shadow of its former self, just having broadband access is no longer good enough for many homebuyers and renters.  They want assurances that they can obtain fiber optic service, particularly as Verizon ceases expansion of its fiber deployments for the time being.

Despite claims from some providers that the type of broadband doesn’t really matter, real estate agents, such as those on www.hpw.com/, beg to differ.  The only thing worse than slow broadband is no broadband.  Those homes without broadband access of any kind can be a dead weight in an agent’s portfolio.  Practically nobody wants a home stuck with dial-up.  It’s like buying a home without electricity.

Just closing a sale on property that can only obtain slow speed DSL service or is served by a lackluster cable operator can also be a nuisance if a better provider is available nearby.

Some real estate listings have even begun providing Verizon FiOS certification guaranteeing would-be buyers of renters that FiOS service is ready and available. Look at this listing of Myrtle Beach sc homes for sale to find your next investment property.

None of this escaped Verizon’s attention, of course.  The company has used demand for FiOS in its advertising and communications strategies, and even has a rewards program for real estate professionals who convince buyers they are missing out if they aren’t Verizon FiOS customers.

Verizon claims up to 65 percent of home buyers say fiber optic broadband, including Internet connectivity, TV and phone service is an important and growing part of their home buying decision.

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/Verizon FiOS Real Estate.flv[/flv]

Verizon produced this video about how important their FiOS product is becoming to home buyers and renters.  (2 minutes)

[flv]http://www.phillipdampier.com/video/Verizon Agent Rewards Program benefits Real Estate with FIOS.flv[/flv]

Verizon has an Agent Rewards Program that rewards real estate professionals with $100 gift cards for signing up home buyers and renters for Verizon service.  (1 minute)

One of the lesser-known implications of broadband reform includes major changes to the Universal Service Fund (USF), a program that collects a few dollars a month from every phone customer to help subsidize the costs of delivering service to rural America.  As traditional phone lines become ever less important, a proposal to begin applying USF charges to broadband service has gotten increasing attention from conservatives who oppose the program, calling it a new “tax on broadband.”

The need for USF subsidies on rural telephone service continues to decline along with the number of landline customers.  Over the history of the program, repeated abuses have been documented which have diverted funding into cell phones for school administrators, telecommunications services in decidedly non-poor or rural areas, and steering vendor contracts to providers that kick money, trips, or other gifts back to decision makers.  With the FCC increasing the USF subsidy rate to 15.3 percent for the second quarter of 2010, an enormous amount of money is at stake, available for qualified programs.

So much money is available, some companies are building USF funding into their business plans.  Independent rural telephone companies can make a killing on USF subsidies, which are targeted precisely at their service areas.  But now cell phone companies have begun riding the USF gravy train, and are now marketing products and services that would be impossible to provide without USF funding.

One of the most controversial programs is free cellphones for income-challenged Americans, a program that first appeared during the Bush Administration, made possible by the Universal Service Fund.

To qualify, subscribers must either have an income that is at or below 135% of the federal Poverty Guidelines, or participate in one of the following assistance programs:

• Medicaid,
• Food Stamps,
• Supplemental Security Income (SSI),
• Federal Public Housing Assistance (Section 8),
• Low-Income Home Energy Assistance Program (LIHEAP),
• Temporary Assistance to Needy Families (TANF), or
• The National School Lunch Program’s Free Lunch Program

An extension of Lifeline and Link-Up, the free cell phone program has been extended to more than a dozen states by providers like TracFone’s SafeLink Wireless or Sprint’s Assurance Wireless.

Safelink provides qualified customers with free ($50 value) Motorola cell phones and free calling with no contract requirement.  They also receive free texting, national/international calling, voicemail, caller ID, and call waiting.

“A telephone service, just in general, is not a privilege, it’s a right, and we feel it’s a corporate responsibility to provide it,” says José Fuentes, TracFone’s director of government relations. “Everyone should be in contact, should have the opportunity to get a phone call, especially if it’s an employer.”

Fuentes may be right, but TracFone’s altruism is made considerably easier when the federal government is picking up the majority of the tab every month.  USF funding contributes $10 of the estimated $13.50 the service actually costs to provide.

Traditional Lifeline landline service has been a part of American life for decades, but the prospect of welfare recipients getting free cell phones is ready-made for demagoguery in the media.  A common meme is that the program represents more “Obama socialism,” despite the fact the program began under the previous administration, and there may be nothing inherently wrong with extending Lifeline service to an increasingly wireless world.

What this really represents is the opportunity to consider different approaches to funding subsidy programs.  For example, would such programs like cell phone subsidies be better served if they were funded by the carriers themselves as part of spectrum auction proceeds?  Is the FCC trying to substantiate the need for continued USF spending by expanding the number of projects and programs qualified to receive funding?  Is 15.3 percent a fair amount to charge telephone ratepayers?

Under the FCC’s proposed Broadband Plan for America, USF fees would be collected from and largely diverted to broadband service.  Rural America would get broadband service at a price comparable to what big city residents pay, and providers could substantiate the return on investment to begin constructing such projects partly subsidized by USF funding.

But that means the price of your broadband service will increase and some consumers don’t like it.

[flv]http://www.phillipdampier.com/video/WLOS Asheville Broadband Tax 4-28-10.flv[/flv]

WLOS-TV in Asheville, North Carolina reports on concerns about a forthcoming proposed broadband tax.  (2 minutes)

[flv width=”451″ height=”260″]http://www.phillipdampier.com/video/WGRZ Buffalo Free Cell Phones On Your Dime 4-8-10.flv[/flv]

WGRZ-TV in Buffalo covers the free cell phone angle as residents see ads from companies like Assurance Wireless that offer free cell phones to income-challenged Americans. (2 minutes)

Time Warner Cable's DOCSIS 3 service is marketed as "wideband"

Time Warner Cable has made its DOCSIS 3 wideband broadband service its star at the 2010 Cable Show in Los Angeles.  Demonstrating up to 290Mbps service, company officials are suddenly excited about the prospect of delivering 21st century broadband speeds just one year after foot-dragging their way through upgrade plans for their cable systems nationwide.

Time Warner Cable has been among the slowest to deliver channel-bonded broadband service to its residential customers.  Currently marketed mostly in areas where Time Warner faces competition from Verizon FiOS or AT&T U-verse, DOCSIS 3 upgrades deliver faster speed tiers to its customers and reduce congestion.  At the top end, Time Warner residential customers can purchase 50/5Mbps service for just under $100 a month.  Because of its premium price tag, the company hasn’t had too many takers.  As of the fourth quarter of last year, just 2,000 customers signed up.  But the trends are clear — if the price comes down, adoption rates will increase.

For business customers, the price isn’t cheap either.  In Cincinnati, for example, Time Warner business customers face $350 a month for 50/5Mbps service.  Contrast that with Comcast in San Francisco, which charges businesses $189 a month for the same thing.

If Time Warner Cable is as enthusiastic about wideband as it suggested during this year’s Cable Show, it should be firing up its upgrade plans to deliver the service to all of its customers and attempt some new marketing that brings service at a more aggressive price.

In New York, Time Warner Cable’s DOCSIS 3 upgrades have so far skipped cities like Rochester, which faces only token competition from Frontier Communications’ DSL service.

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/TWC 2010 Cable Show – Chief Marketing Officer Sam Howe.flv[/flv]

Time Warner Cable employees and chief marketing officer Sam Howe fall all over themselves, ecstatic with Time Warner Cable’s wideband broadband service, in this company-produced video taken at the 2010 Cable Show in Los Angeles.  (4 minutes)

Customers of Vistabeam in Nebraska and Wyoming who subscribe to the company’s rural Wireless Internet Service are about to discover their online activities are about to be capped… for real this time.

Matthew Larsen, who runs the Wireless Cowboys blog, includes some illustrative examples of Internet Overcharging schemes in action and what they’re all about.  He writes about his experiences at Vistabeam, which serves rural Nebraska and Wyoming with wireless broadband service.  The company started operations with an admittedly-unenforced 3GB usage limit, backed up with a stinging $25/GB penalty overlimit fee to underscore the point.  Today that cap is described by Larsen as “a joke” — too low to be taken seriously.  [Note to Frontier: Are you reading this?]

But the company was determined to monitor and measure its customers’ online activities and developed an in-house tool that is providing daily insights into customer usage, and gives Vistabeam the ability to begin penalizing customers who exceed the limits established by the provider.

Wireless providers, known as WISPs, often provide the only Internet access in rural areas that are too sparsely populated to deliver DSL service and where cable television is a financial impracticality.  For Nebraska and Wyoming residents bypassed by cable and underserved by DSL (if at all), it’s often a choice between dial-up, satellite fraudband service barely capable of 1Mbps service with a punitive “fair access policy,” or an independent WISP.  A number of customers have chosen the latter.

Vistabeam offers service plans for its 2000 customers ranging from 384kbps for $29.95 a month to 4Mbps service for $99.95 a month, with a discount for paying in six month increments.  That’s not cheap by any means.  But rural Americans routinely face higher broadband bills because of the inability of providers to achieve economy of scale.  Fewer customers have to share the expenses to construct, operate and maintain the service.

But those bills could soon grow even higher if customers exceed the new harder-line Vistabeam will take on usage cap offenses.

Larsen’s measurements identified what their customers were doing with their broadband connections and identified Vistabeam’s biggest users:

Out of 2000+ customers, 80 used more than 10 gigs for the month.

One customer – a 1 meg subscriber at the far eastern edge of our network, behind seven wireless hops and on an 802.11b AP – downloaded 140gig.

Another one, on the far western side of our network, downloaded 110gig.   We called them and found out that they were watching a ton of online video.

We discovered a county government connection that was around 100gig – mostly because someone in the sheriff’s department was pounding for BitTorrent files from 1am to 7am in the morning, and sometimes crashing their firewall machine because of the traffic.

One wonders what the sheriff’s department was grabbing off BitTorrent, but the question itself opens the door as to whether or not your provider (and by extension, you and I) should know what they are doing with their broadband connection in the first place.

Larsen says the other subscribers on his list were watching lots of online video, had a virus, or had “mistakenly” left their file sharing programs running.

Larsen’s solution is usage caps and overlimit penalties for his subscribers.

A home equipped with a WISP antenna on the roof

Package                                                               Monthly Download Cap

384k                                                                       10 gigabytes

640k                                                                       10 gigabytes

1 meg                                                                    20 gigabytes

2 meg                                                                    40 gigabytes

3 meg                                                                    50 gigabytes

4 meg                                                                    60 gigabytes

8 meg                                                                    80 gigabytes

Additional capacity over cap                        $1 per gigabyte over the cap

Although Larsen claims the cap and the overlimit fee isn’t “a profit center,” it would be disingenuous to suggest it isn’t about the money (underline emphasis ours):

I feel that these caps are more than generous, and should have a minimal effect on the majority of our customers.   With our backbone consumption per customer increasing, implementing caps of some kind became a necessity.    I am not looking at the caps as a new “profit center” – they are a deterrent as much as anything.    It will provide an incentive for customers to upgrade to a faster plan with a higher cap, or take their download habits to a competitor and chew up someone else’s bandwidth.

Customers upgrading to a faster plan have to pay a correspondingly higher price for that service and taking their “download habits to a competitor” reduces the cost for the provider no longer encumbered with serving the higher-usage-than-average customer now heading for the door.  Among his 2,000 customers, the end effect will be what Larsen himself hopes is a deterrent for customers using increasingly common higher bandwidth applications like online video, file backup, and uploading and downloading files.  Larsen himself admits that one of his customers was a little bit upset to be told he was using too much.

Rural providers do face higher costs to provide service than their urban counterparts.  But before they enjoy any benefits from Universal Service Fund reform or other government-provided stimulus, customer-unfriendly Internet Overcharging schemes should not be part of the deal.

Time Warner Cable is convinced subscribers are confused about the enormous number of channels that occupy today’s cable dials.  With today’s rapid growth in HD channels, the cable company is introducing some dramatic channel realignments for its customers in the Carolinas.

Next month, customers in the Triangle will join Time Warner Cable’s Common Digital Lineup, a project to align channel assignments throughout the two states.  When complete, all digital channels will be located in the same place on the dial throughout the Carolinas.  The company is also switching to a theme-based channel lineup.  Each category will have its respective channels grouped together.  Among them: news, general entertainment, sports, children’s programming, music, and movies.

For those in the northeastern states, this doesn’t represent anything new for the cable company — Time Warner Cable systems in New York, for example, have grouped digital channels into categories for years.

But the Carolinas realignment does make it considerably easier to locate HD channels, which will be aligned with their standard definition counterparts.  For example, CNN will soon be found throughout the Carolinas on channel 400.  Finding CNN HD becomes effortless – just put a “1” in front of the channel number — 1400.  The Disney Channel is on channel 200.  Disney Channel HD is easy enough to find — it’s now on channel 1200.  Even local channels are easier to deal with.  In Greensboro, for example, WXII, the NBC affiliate, will be on channel 120 for standard definition viewing or channel 1120 for HD viewing.

Complete channel lineup guides for the Carolinas are available from Time Warner Cable’s website.

[flv width=”432″ height=”260″]http://www.phillipdampier.com/video/News 14 Carolina In Depth Melissa Buscher TWC digital lineup changes 3-2010.flv[/flv]

Time Warner Cable’s House Organ, News 14 Carolina, delivers plenty of airtime to spokeswoman Melissa Buscher, who gushes about the channel alignment changes completed in Charlotte this past March.  (3 minutes)

The new lineup will take effect for North Carolina customers on the following dates:

The new channel lineup will be grouped as follows:

• 100’s – Local Broadcasters & Local Programming
• 200’s – Kids & Family, Learning & Discovery, Faith & Inspiration
• 300’s – Entertainment, Home & Leisure, Shopping
• 400’s – News & Information, Music
• 500’s – Sports
• 600’s – Movies
• 700’s – Premiums, Pay-Per-View Events
• 800’s – International
• 900’s – Music Choice
• 1000’s – On Demand
• 1100 and above- High Definition

Meanwhile, a lot of other Time Warner customers would prefer to share their continued displeasure with Time Warner’s “new and improved” program guide and DVR configuration menus.  Mystro Navigator has mystified a large number of customers who can’t stand the software and don’t understand why Time Warner radically changed it in the first place.

One Raleigh customer complains the software upgrade turned his DVR’s fast forward and rewind buttons into mud.  The upgrade dropped the 4x fast forward option which rapidly scanned through recorded programming.  Fast forwarding through commercials has become a nightmare because the box automatically rewinds about 10-20 seconds behind the point where the customer stopped fast-forwarding.

Buffalo and Rochester, New York customers have also given the software a hostile reception.  Some customers in Buffalo have canceled Time Warner Cable over the upgrade and switched to Verizon FiOS. In Rochester, a few residents have noted it has become much more difficult to manage manual recordings or setting the DVR up to record series properly.  The most common complaints:

• No apparent “jump to end” in playback
• Fast forward and rewind are not accurate
• Finding shows by title is laborious at best
• Recording shows and series has become needlessly complex by the changed menu structure
• No apparent 4x fast forward and reverse
• Program descriptions are heavily truncated on DVR recordings
• Erasing and managing recorded shows often drops you out of the DVR menu
• DVR recording is not consistent
• Configuring Navigator to work with HD sets is confusing for the uninitiated
• Extremely sluggish channel changing, responsiveness

Dealing with Navigator and the Time Warner Cable remote control, especially in the dark, should be an Olympic event.  One Buffalo resident has thrown up his hands:

Time Warner reminds me of former Illinois Governor Rod Blagojevich. Both have severe technology handicaps. I watched the governor get fired on The Apprentice because he couldn’t use a cell phone or send an email or use the simplest technology.

Time Warner can’t seem to design a clicker that works. Mine has 63 buttons and looks like part of a 767 cockpit console. Hello? All I want is channel, volume and on/off.

The Time Warner remote doesn’t have a single on/off button — it has two – a ‘system’ and a “power” button. The engineer who designed that monstrosity should be dragged through the streets by a mob of angry senior citizens who must fumble with that thing every day.

Some tips have been circulating informally among Time Warner Cable engineers about how to deal with Navigator’s temperamental behavior:

Navigator Guide Data:

1. Newly installed or downloaded guides can take up to 24 hours for all seven days of guide data to populate. In many cases, new installs may only go out by three days until a full 24 hours have completed.
2. When Setting Up Series Recording for your first week with Navigator: (and even thereafter if you can help it) DO NOT DELETE SHOWS IN THE MIDDLE OF RECORDING THEM! Let Navigator do at least one complete recording of a series. If you need to delete a series, do it through the Series Manager, but before the recording starts. If you delete a series in the middle of recording it, Navigator will think it made an error, and will keep looking out for more episodes to record of that series.
3. Navigator needs to see AT LEAST ONE instance of a series for the populated guide data to be able to record it. Remember, under Record Series With Options you can set up on what channel(s) the series should record, the number of episodes to keep, and set series priorities.

[flv width=”480″ height=”340″]http://www.phillipdampier.com/video/Time Warner Cable Dealing with Navigator 5-2010.flv[/flv]

Time Warner Cable produced these two videos to assist Navigator customers trying to understand how to record programming or set up their televisions to properly display cable programming.  (3 minutes)