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Frontier Says Its New $500 Installation Fee Prices Customers “In,” Even As They Flee to Comcast

Phillip Dampier March 9, 2011 Comcast/Xfinity, Competition, Frontier Comments Off on Frontier Says Its New $500 Installation Fee Prices Customers “In,” Even As They Flee to Comcast

Stop the Cap! has learned Comcast has had to beef up its call center staff to process orders for new and returning customers fleeing Frontier Communication’s rate increases for its fiber optic FiOS service, acquired from Verizon as part of a sale of landlines.

A source inside Comcast tells us the company has been busy welcoming back many customers in the Pacific Northwest who are canceling their Frontier FiOS service after learning about $30 monthly rate hikes for its fiber television service.

“We are adding call positions, diverting some orders to other customer service centers, and trying to accommodate a  jam-packed schedule of upcoming service installations all over the region as Frontier customers’ contracts expire,” our source tells us.

Frontier officially introduced its $500 installation fee Monday which many would-be customers consider absurd.

“I couldn’t believe reports were true about the installation price, so I called Frontier myself and even the customer service agent was incredulous over it,” Cate writes from his home in Oregon.  “We were actually both laughing about how ludicrous a $500 installation fee was for cable service.”

Cate tells us Frontier’s customer service representative admitted the company wasn’t expecting much new business with a steep entry fee like that.

“What it looks like to me is that they’re trying to price people out,” Newberg City Manager Dan Danicic told the Newberg Graphic.

Steven Crosby, senior vice president for Frontier never misses an opportunity to put a positive spin on a negative story.  He told the newspaper — to the contrary — the all-new $500 installation fee will help “price Frontier in,” noting each hookup costs the company $800.

Comcast, on the other hand, normally installs service for $28-40, but our source tells us the company often waives the installation fee upon request.  DirecTV and Dish also offer free installation with a contract.

“Sitting inside Comcast, everyone is talking about Frontier’s bungling and wondering whether this company is purposely trying to drive themselves out of business,” says our source.  “Even if you are not a FiOS customer, would you do business with a company that raises rates 40 percent or more and instantly raises installation fees to $500?  What will they do to their other customers?”

“Frontier: Not a winner.  Duh.”

Comcast Boosting Number of Speed Tiers in DOCSIS 3 Markets, Will Top Out at 105Mbps

Phillip Dampier February 23, 2011 Broadband Speed, Comcast/Xfinity, Data Caps 6 Comments

Comcast is increasing the number of speed tiers available to broadband customers in markets where DOCSIS 3 broadband upgrades have been completed.  The new options are part of the company’s effort to rebrand its product line under the Xfinity name.

Broadband Reports notes the new speed choices come with different price points depending on regional competition and service bundling.  The Economy Plus tier is also only offered to customers calling to complain about high broadband pricing, and may not be available everywhere.  The company’s highest speed tier will be available in about half of their markets by the summer.

All plans are subject to the company’s 250GB usage cap.

Economy – 1.5 Mbps downstream, 384 kbps upstream
Economy Plus – 3 Mbps downstream, 768kbps upstream
Performance Starter – 6 Mbps downstream, 1 Mbps upstream
Performance – 15 Mbps downstream, 2 Mbps upstream
Blast – 25 Mbps downstream, 4 Mbps upstream
Extreme – 50 Mbps downstream, 10 Mbps upstream
Extreme 105 – 105 Mbps downstream, 20 Mbps upstream

Say Hello to Kabletown: The NBC-Comcast Merger is Complete

Phillip Dampier February 3, 2011 Comcast/Xfinity, Editorial & Site News, Video 1 Comment

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/Kabletown.flv[/flv]

Liz Lemon and Jack Donaghy greet Kabletown — an oblique reference to Comcast — in this clip from NBC’s ’30 Rock.’  (Adult Language) (1 minute)

When Providers Oversell the Network: Paying for 10Mbps Service, Getting 1.2Mbps Instead

"It's like night and day."

Tim pays Time Warner Cable around $45 a month for 10/1Mbps service.  Jake pays Comcast $35 a month for 12/2Mbps service.  Neither reader of Stop the Cap! actually receives those speeds once the sun goes down, however.

Jake, who lives in a neighborhood near Philadelphia populated by loads of college students watches his download speed plummet to 4Mbps in the evening, even lower on weekends.  Tim, a reader in the North Ponds Park region of Webster, N.Y., does even worse — 1.2Mbps evenings and weekends.

Neither reader is alone.  The disparity in marketed speeds vs. actual speeds reveals the truth about cable modem technology — if not properly managed, congestion can bring the broadband party to a sudden halt (or at least rebuffering.)

Both are examples of “overselling,” the practice of piling too many customers onto too small a broadband pipe.  If nobody is using the connection in the neighborhood, speeds are great.  But as students get out of class and mom and dad get home from work, everyone wants to be online.  Soon enough, the pipeline gets filled and speeds drop as the network tries to accommodate everyone.

Most cable companies use fiber optics to bring a limited amount of bandwidth into individual areas of their network.  Some might cover the better part of a town, others only a few city blocks.  Every customer in the area shares that bandwidth.  Cable companies monitor these connections looking for signs they are becoming overcongested during peak usage times.  When those alarms start sounding consistently, companies are supposed to upgrade the area (or divide it up) to keep broadband service working close to advertised speeds.

But some companies are waiting until broadband service becomes practically unusable before spending the money to upgrade their networks.

“I knew they were overselling this area when I noticed downloads speeds fell off the cliff, but the upload speed was near normal,” Jake writes. “The time of day also tells the story.  Starting after 4pm, speeds begin to drop and become downright terrible after dinner and on weekends.  Sunday night is always the worst.”

It’s a similar story in west Webster, near Lake Ontario, where neighborhoods several miles apart all watch their Road Runner speeds slow to a crawl.

“Browsing is slow, downloads are painfully slow, latency is very high and streaming any sort of video online is impossible,” Robert, another Webster resident, told Time Warner Cable (and us).  “I have been a customer since 1998 and for me to not even be able to download at a 1 Megabit speed when this service is supposed to be 10 megs (and more with PowerBoost) is inexcusable.”

The problem of overselling is also common in larger cities like New York and Philadelphia, where some neighborhoods endure “broadband” speeds that resemble “dial-up” when customers pile on the network.

“Comcast says they never see a problem and have repeated that to me over and over, even when they send a truck out,” Jake tells Stop the Cap! “Of course, their truck rolls in the daytime when there isn’t a problem.”

Time Warner customers in eastern Monroe County have been told the cable company is well aware of the congestion problems, and technicians dispatched to area homes candidly admit the company has not kept up with the growth of new housing developments.  Several customers have asked for, and won, several months of service credits for broadband they simply cannot use.

Tim says the entire affair has left him with doubts about Time Warner’s reputation to provide quality broadband service.

“At one time, I considered myself a candidate to upgrade to Time Warner wideband when it became available,” he tells us. “My thinking on that has changed and I am looking into viable alternatives to Time Warner. Money has become of less importance to me than principle, and I may end up with a higher cost solution than staying with Time Warner.”

Ground Zero Bandwidth: The impacted area of Webster, N.Y.

With our encouragement, these customers (among others) have filed complaints with the Better Business Bureau and have tried to get attention focused on their neighborhoods.

A broadband speed test in Webster, N.Y.

A representative of Time Warner today told Robert the company has confirmed Webster has a problem and it is being worked on, but no specific date has been offered when things will return to normal.  He received a credit for one month of service.

Jake wants answers about how a company the size of Comcast can ignore a problem of this magnitude.

“Is it really about the money,” he asks.  “This company just bought NBC and doesn’t have the resources to sell Internet service that at least comes close to the speeds they advertise?”

Stop the Cap! advises customers with speed problems to make your feelings known.  The squeaky wheel gets the upgrade.  Start with customer service and work your way up.  Demand service credits, an in-person repair visit to check your lines, and then escalate complaints to supervisors and social media networks like Twitter and Facebook.  Also consider contacting local media “consumer reporters,” and file complaints with the Better Business Bureau.  Sooner or later, a manager will escalate your case to a department that is empowered to authorize upgrades without red tape.

Considering the enormous amount of revenue earned from selling broadband service, it is only fair to expect you will have access to something close to the speeds offered when you signed up.

Comcast’s Cable-ization of the Internet Could Be On the Way, Warn Critics

[flv width=”480″ height=”290″]http://www.phillipdampier.com/video/WFMZ Allentown Comcast NBC Universal Merger May Impact Comcast Customers 1-19-11.flv[/flv]

Now that the FCC has given the green light to Comcast’s merger with NBC-Universal, the headquarters of Comcast is moving to 30 Rockefeller Plaza in New York City.

While Comcast is moving on up, customers’ bills may soon follow.

Critics warn Comcast’s standing as the leading Internet Service Provider combined with its unprecedented power over programming could change the face of broadband Internet, particularly where online video is involved.

Comcast’s efforts to protect its cable business could lead to additional fees for broadband customers who seek to use the Internet to watch programming they used to get on cable-TV.

WFMZ-TV in Allentown, not too far from Comcast’s old headquarters in Philadelphia, reports.  (2 minutes)

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