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Big Telecom’s Astroturf Snowjob: Blizzard of Bull from CenturyLink and Comcast to Kill Competition

You can look all over this astroturf group's website and never find the fact it's bought and paid for on behalf of Colorado's largest cable company -- Comcast.

The next time Comcast or CenturyLink wants to increase your rates because of the “increased costs of doing business,” you might want to ask them why they have collectively spent more than $300,000 on an astroturf campaign to stop the city of Longmont, Col. (pop. 86,000) from using excess fiber capacity to provide competition to the phone and cable company without raising taxes a penny.

Longmont voters are headed to the polls today with a simple question to answer: should the city be allowed to open their fiber network to all-comers to provide competitive video, data, and telephone services to city residents.  Longmont’s fiber network was constructed in the 1990s as part of its electrical infrastructure.  Some utility companies buried enormous amounts of fiber intending to use it to electronically collect usage data from ratepayers so meter readers could become a thing of the past.  Like in other cities, Longmont now has a fiber network that is woefully underused, and the city wants to open up the tremendous excess capacity for telecommunications uses.  They are even open to allowing Comcast and CenturyLink to use the network to help service their own respective customers, but the thought a new competitor (including a community-owned provider) might deliver service over that network has created an absurd $300,000 Hissyfit.

Comcast has been caught funding the majority of the opposition, the so-called “No on 2A” and “Look Before We Leap” projects, sponsored primarily by the Colorado Cable Telecommunications Association, which counts Comcast as a member.

But visitors to the campaign’s cheesy website never realize who is running the show because the effort hides its association with Big Telecom.

It’s a classic example of Astroturf Fear, Uncertainty, and Doubt.  Scare residents into believing the city will raise taxes or go into financial distress.  Raise uncertainty by claiming important details are being left out.  Encourage doubt by comparing the advanced fiber network with anemic public Wi-Fi failures of the past involving Earthlink (remember them?).

But the No on 2A campaign is also willing to check themselves into a deluxe suite at the Hypocrisy Hotel, accusing city officials of hiding the names of their pro-fiber supporters and backers, including (gasp!) a company based in France!

The No on 2A website breathlessly relates the incriminating documents were unearthed from “previously secret emails just made public thanks to a Colorado Open Records Act.” They suggest a nefarious connection with Alcatel-Lucent because that company, which sells products and services related to fiber networks, communicated with the city in a handful of e-mail messages last summer.  You know those French, always up to something.

When it doubt, blame the French for being in on it.

The rich, buttery irony of a “group” secretly funded by the state’s largest cable company accusing others of keeping secrets is ignored at Kabletown.

But then I’ve received e-mail from Alcatel-Lucent (and Comcast) myself.  And I have a French last name.  Sacrebleu!

The website’s “opponents,” evidently gleaned from the few hundred residents that signed their visitor’s book, includes names like Joanna Crawford, “Garrett County,” and El Cordova, which we think could be the name of a Mexican pro-wrestler, we’re not sure.

City officials are stunned by the sheer amount of money being spent by cable and phone companies to keep competition far, far away.  So apparently is the local media, which has taken to identifying the “grass roots” opposition right down to their job title and name of the lobbying firm they work for.

Take Times-Call, which helpfully discloses “Look Before We Leap” spokesman George Merritt is actually a senior strategist for Onsight Public Affairs of Denver.  That’s a real nice way to say “lobbying firm hired to develop social media strategies to snooker influence public opinion on behalf of corporate clients.”

You know you’re not dealing with a neighborhood group lobbying to reduce road speeds in the neighborhood or sign a petition for improved trash collection when you read Leap’s financial disclosure reports:

  • $120,913.64 to mass communications firm SE2 of Denver for a variety of services, including mail pieces, consulting, two television buys and ad production and design.
  • $70,500 to Rocky Mountain Voter Outreach of Denver for “canvass, management rent and miscellaneous associates.”
  • $37,500 to OnSight Public Affairs for consulting.
  • $22,000 to Drake Research and Strategy of Boulder for polling.
  • $15,776.84 to Zata3 for phone work.
  • $12,260 to Holland and Hart of Denver for legal expenses.
  • $8,000 to EIS of Grand Junction for consulting.
  • $4,334.65 to Campaign Products of the Rockies, of Denver, for a voter file, mailing lists, stickers and yard signs.
  • $2,500 to Mark Stevens of Denver for research.
  • $743.75 to Tim Thomas of Boulder for general campaign work.

The whole dog and pony show of Big Telecom money has bemused Longmont mayor Bryan Baum, who supports the 2A measure and believes the distortion campaign has gone way over the top.

“It doesn’t really matter at this stage of the game,” Baum told the newspaper. “It’s going to the electorate. The electorate will vote. And we will know on Tuesday how they voted – if they believe a $300,000 ad campaign, or if they believe the people they’ve entrusted their votes to.”

Some of that $300,000 has also gone into vilifying a real grass-roots effort in support of the Longmont fiber initiative — Longmont’s Future.  Comcast’s front group tried to raise questions about where that pro-fiber group got their backing and money.  The newspaper discovered Longmont’s Future isn’t backed by any French conglomerate or nefarious outside interest.  It’s the work of Jonathan Rice, who operates the website all by himself, spending a grand total of $353 to fight Comcast’s $300,000.

“Every single candidate for office and every incumbent, in every race, supports this measure,” says Rice. “But Comcast and its friends are more interested in profit than progress, and continue to run a smear campaign to spread misinformation and outright lies – they recently posted Mayor Baum’s name as an opponent of 2A when he is actually a vociferous supporter.”

Community Broadband Networks has compiled a series of articles detailing the project and helping to expose the so-called “grassroots” opponents.  We encourage readers to become better acquainted with the underhanded tactics community broadband opponents will use to stop anything that resembles competition.

Comcast Kicks CenturyLink Around With Very Aggressive ‘Switch Provider’-Discount Deals

Phillip Dampier October 24, 2011 Comcast/Xfinity, Competition, Consumer News, Editorial & Site News Comments Off on Comcast Kicks CenturyLink Around With Very Aggressive ‘Switch Provider’-Discount Deals

Stop the Cap! reader Wayne A. dropped us a line to let us know Comcast has been getting very aggressive in the Denver area, poaching CenturyLink customers with enormous discounts:

My wife and I just accepted a package from Comcast to leave CenturyLink for a package that includes:

  • Digital Premier HD with DVR
  • HBO, Cinemax, Showtime, and other premium movie channels
  • Broadband service at 25/5Mbps
  • Unlimited Long Distance Digital Phone Service

Comcast’s price?  An amazing $109.99/month for the first year, $129.99/month for the second.  Wayne says that’s a savings of $90 a month over ordinary Comcast prices, and compared with what he was paying CenturyLink, he will save $912.12 during the first year and around $600 for the second.

What makes Comcast’s pricing so aggressive is the fact they include much faster broadband speed than many other retention or “capture” customer deals.  They also throw in free premium movie channels.  We’ve seen Time Warner Cable offer triple-play retention deals for less than $90 a month for the first year, but they don’t include movie channels and deliver broadband service at the standard 10/1Mbps speed.

If you are paying Comcast more, it may be time to pick up the phone and threaten to walk unless you can have the same deal.  We’ve found dealing with customer retentions to be a real “your results may vary”-experience.  Don’t be willing to take the first offer.  Don’t be afraid to dismiss weak deals with a non-committal “I’ll think about it” if the price is not right for you.  Then call back.

In the last few weeks, we’ve found Time Warner Cable’s best deals still go to customers who actually schedule a service disconnection. Within hours, Time Warner starts calling, looking to “make an offer you cannot refuse.” The retention specialists at Time Warner who reach out to you generally have the most aggressively priced deals. You qualify if you call, schedule a disconnect a week or two out, and wait by the phone. You can keep your service running while company representatives try to convince you to stick with them.  Just make sure you answer those unfamiliar Caller ID-calls — it’s probably the cable company.  Most will ask why you disconnected.  If you answer “price,” the deals start coming.

Unfortunately, there was no way we could take advantage of any of their latest offers, which literally started two hours after disconnecting my late grandmother’s cable service.

It’s a buyer’s market for telecommunications products, so never settle for the regular price when a substantial discount is a phone call away.

Comcast’s New Dumbed-Down Set Top Boxes Offer Improved User Experience

Phillip Dampier October 10, 2011 Comcast/Xfinity, Consumer News, Editorial & Site News, Video Comments Off on Comcast’s New Dumbed-Down Set Top Boxes Offer Improved User Experience

[flv width=”480″ height=”290″]http://www.phillipdampier.com/video/Daily Local New cable TV programming guide on display 10-5-11.mp4[/flv]

Comcast has been showing off changes to the company’s set top boxes, which have been effectively “dumbed-down” by removing internal processing power for box-based program guides and other content functions and moving it to the cloud.  Comcast’s newest generation of boxes offer a slimmed-down “browser” experience which relies on stored content at the cable company office, delivered over the cable to the set top box. 

In Denver, Xfinity representatives demonstrated the new products to groups of media and local radio personalities.  Among the most visible improvements is the program guide, which is starting to come closer to Netflix and farther away from the TV Guide Channel of years-past.  Among the features includes box art from movie titles, online reviews, social networking tie-ins, and instant recommendations for other similar programming to watch, either concurrently or in the future.  Subscribers can program shows for recording, alert friends to upcoming shows, and even submit their own review for other subscribers to see.

It’s a significant improvement over older technology, like that still used by Time Warner Cable and other cable operators, which requires extensive delays before incremental improvements are made, and operates on expensive set top terminals.  Video courtesy of: The Daily Local.  (2 minutes)

Comcast Tells Widow to Go Stand In Line With Death Certificate to Make Account Changes

Phillip Dampier October 6, 2011 Comcast/Xfinity, Consumer News, Editorial & Site News Comments Off on Comcast Tells Widow to Go Stand In Line With Death Certificate to Make Account Changes

A Comcast customer in San Carlos, Calif., wanted to change her Comcast account so she need not be reminded of the recent passing of her husband, under whose name the account was listed.  A simple call to Comcast to request a change met with resistance from a representative, who told her to get in her car, drive to Redwood City, and go stand in line with an original copy of his death certificate.

Judy did as she was told, and Comcast didn’t.  The following month, another bill in his name arrived.  Judy ended up telling the whole story to the San Jose Mercury News:

I again called customer service and was told, “Don’t worry, the change is in the system and will show on your next bill.”

Well, I received the bill dated Aug. 28, and it is still in his name.

On Sept. 1, I mailed a letter to the customer service manager at the Redwood City service center and to this date have had no response.

On Sept. 6, I emailed to the “We Want to Hear from You” address telling them about this, and I received an automatic response: “Thank you for your comments,” but nothing since.

In my letter I told them I will not pay that bill until I receive the bill in my name accompanied by a written apology for this gross insensitivity and complete lack of “customer service.”

A Comcast representative eventually called her back and told her the company doesn’t do written apologies, but did apologize over the phone.

After the newspaper intervened, attitudes changed dramatically.

“On Monday morning Debbie called me and after much apologizing on her part, we agreed on a month of our service deducted from my current bill,” Judy reports.

Cable companies who have earned the scorn of their customers could go a long way towards correcting their dismal record of customer service by using some common sense and sensitivity.  A family tragedy should never force someone to hike down to the local cable office with an original death certificate just to change a name on an account.  It also should not take media intervention to get someone to do the right thing.  Stop the Cap! has covered at least a dozen cases of customers running into brick walls with front line service representatives who are not authorized to do what needs to be done.  When that changes, consumers will be grateful.

 

Comcast Testing Its Version of “A-La-Carte” Cable: Theme Packs & Channel Bouquets

Cable subscribers paying ever-increasing television bills for hundreds of channels they never watch may find some relief if Comcast decides its experiment in “a-la-carte” cable-TV is a success.

The company is testing a new way of selling service that delivers a basic package of channels for a lower price and then offers customers bouquets of add-on channels sold in “theme packs” for $10 apiece.

Comcast is testing what it calls MyTV Choice in parts of Connecticut, Massachusetts, Vermont and Charleston, South Carolina, and plans to expand it to the Seattle area soon.

Here’s how MyTV Choice works:

Customers start with a basic package of channels that Comcast calls “Get Started” ($24.95) or “Get Started Plus,” which sells for $44.95 a month.

What differentiates the two options are the networks they contain.  Inexpensive cable networks turn up in Get Started — A&E, Discovery, C-SPAN, Animal Planet, Daystar, Food Network, home shopping, and The Weather Channel are among the 32 channels that accompanies a basic package of local channels.

Get Started Plus includes all of those networks plus sports — the budget-busting networks that help keep cable bills growing.  ESPN and other regional sports channels are included in the more expensive package.

Missing from the basic package of channels are kids shows, news, movies, and niche networks.  That’s where Comcast’s “Choice” packs come into play.  Customers can add a 19-channel News & Info pack, 31-channel Entertainment & Lifestyle pack, 16-channel Movie pack, and/or an 11-channel Kids pack for $10 each.

That’s where the “choice” ends.  Customers cannot skip the basic channel package to select only one of the theme packages, individual channels are not for sale, and anywhere outside of Charleston, customers also have to buy phone and Internet service from Comcast. HD also costs extra.

So much for a lower bill.

In fact, Comcast sells a digital cable package incorporating a full lineup of basic cable channels for just under $60.  If your family loves sports, has kids, and needs news channels, sticking with the digital cable package is actually cheaper than MyTV Choice.  That’s because the latter will require a $44.95 base package, plus three theme packs for an additional $30 a month.

Comcast denies their experimental a-la-carte package has anything to do with cord-cutting Internet viewers.

“It’s more or less responding to feedback from customers that they want more choice,” Comcast spokesman Bill Ferry told the Post & Courier.

While Ferry and others argue the pay-per-channel is not economically feasible, Christopher C. King, a telecom analyst for Stifel Nicolaus in Baltimore told the newspaper that is the trend.

“Certainly the industry’s moving more toward an a la carte model,” King said.

Theme-packs are not a new concept for some pay television viewers.  In the 1980s and 1990s, consumers owning large 6-to-12 foot satellite dishes routinely encountered the channel bouquet concept.  Customers would purchase a basic package and then select from a dozen or more mini-tiers, usually made up of networks owned by one company.  Want TBS and TNT?  Turner Broadcasting sold an add-on with those two channels.  Wanted a superstation package?  Channels uplinked by cable companies like TCI from Denver could be purchased as a small package.  So could stations like WSBK in Boston, WWOR and WPIX in New York, KTVT in Dallas and KTLA in Los Angeles.

Comcast has “simplified” things with a much smaller set of choices.  But that also dramatically limits any potential savings.

The concept of a-la-carte cable horrifies cable companies and their Wall Street shareholders, because a true “pay-per-channel” offer would dramatically cut the average revenue earned per subscriber if customers took a hatchet to the bloated channel packages most customers receive today.

Cable operators have resisted the concept because every channel would have to be encrypted to sell individually, billing would become more complicated, and the business model of niche-oriented networks supported by more popular fare would end.  That’s why programmers hate the idea as well.  While A&E, TNT, and CNN would have no trouble surviving, networks like Current TV, TV One, Hallmark, Cloo, and LOGO probably would not.

More importantly, many subscribers might find savings elusive from a-la-carte, because the most expensive cable programming networks also happen to be among the most popular.  ESPN and Fox News Channel, for example, have dramatically increased their rates to cable companies, who helpfully pass them along to you.  But if cable operators suddenly stripped those networks out of basic packages, while leaving the much cheaper networks together in broad-based theme packages like “lifestyle and entertainment,” subscribers may howl in protest or accuse the cable operator of playing politics.

It gets even harder when the cable companies selling the big packages of channels customers never watch also happen to own some of the networks found within those packages.  Comcast shareholders may not like the cable side of the business kicking lucrative NBC-owned and operated cable networks like The Weather Channel, USA, E!, Cloo, and other owned networks to a-la-carte Siberia.  Every cable subscriber pays for Cloo and E! today.  How many will choose to pay for those networks under an “a-la-carte” model is an open question.

Only two cable operators have expressed an interest in switching to a true, a-la-carte model to date — Suddenlink and Mediacom — both small, regional players that have no programming interests and lack sufficient buying power to score the kinds of discounts available to companies like Comcast and Time Warner Cable — discounts they can have if they agree to keep as many channels bundled in one digital cable package as possible.

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