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The 5 Cable & Phone Companies Intentionally Sabotaging Your Use of the Internet

Phillip Dampier May 6, 2014 AT&T, Broadband "Shortage", Broadband Speed, Charter Spectrum, Comcast/Xfinity, Competition, Consumer News, Cox, Net Neutrality, Online Video, Verizon Comments Off on The 5 Cable & Phone Companies Intentionally Sabotaging Your Use of the Internet
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Level 3’s global network: Orange lines represent Level 3-owned infrastructure, yellow lines show leased or co-owned connections.

Five of the largest Internet Service Providers in the country are intentionally sabotaging your use of the Internet by allowing their network connections to degrade unless they receive extra compensation from content companies they often directly compete with.

Mark Taylor, vice president of content and media for Level 3, wrote a lengthy primer on how Internet providers exchange traffic with each other across a vast global network. While clients of Level 3 are likely to have few problems exchanging traffic back and forth across Level 3’s global network, vital interconnections with other providers that make sure everyone can communicate with everyone else on the Internet are occasional trouble spots.

Every provider has different options to reach other providers, but favor those offering the most direct route possible to minimize “hops” between networks, which slow down the connection and increase the risk of service interruptions. These connections are often arranged through peering agreements. Level 3 has 51 peers, minimized in number to keep traffic moving as efficiently as possible.

This oversaturated port in Dallas cannot handle all the traffic trying to pass through it, so Internet packets are often dropped and traffic speeds are slowed.

This oversaturated port in Dallas cannot handle all the traffic trying to pass through it, so Internet packets are often dropped and traffic speeds are slowed.

Taylor writes most peering arrangements were informal agreements between engineers and did not involve any money changing hands. Today, 48 of the 51 Level 3 peering agreements don’t involve compensation. In fact, Level 3 refuses to pay “arbitrary charges to add interconnection capacity.” Taylor feels such upgrades are a matter of routine and are not costly for either party.

Peering agreements have been a very successful part of the Internet experience, even if end users remain completely in the dark about how Internet traffic moves around the world. In the view of many, customers don’t need to know and shouldn’t care, because their monthly Internet bill more than covers the cost of transporting data back and forth.

Because of ongoing upgrades the average utilization of Level 3’s connections is around 36 percent of capacity — busy enough to justify keeping the connection and providing spare capacity for days when Internet traffic explodes during breaking news or over the holidays.

csat-1024x635However, Taylor says more than a year ago, something suddenly changed at five U.S. Internet Service Providers. They stopped periodic upgrades and allowed some of their connections to become increasingly busy with traffic. Today, six of Level 3’s 51 peer connections are now 90 percent saturated with traffic for several hours a day, which causes traffic to degrade or get lost.

“[The] congestion [has become] permanent, has been in place for well over a year and […] our peer refuses to augment capacity,” Taylor wrote. “They are deliberately harming the service they deliver to their paying customers. They are not allowing us to fulfill the requests their customers make for content.”

Taylor adds all but one of the affected connections are U.S. consumer broadband networks with a dominant or exclusive market share. Where competition exists, no provider allows their Internet connections to degrade, said Taylor.

Taylor won’t directly name the offenders, but he left an easy-to-follow trail:

“The companies with the congested peering interconnects also happen to rank dead last in customer satisfaction across all industries in the U.S.,” Taylor wrote. “Not only dead last, but by a massive statistical margin of almost three standard deviations.”

Taylor footnotes the source for his rankings, the American Consumer Satisfaction Index. The five worse providers listed for consumer satisfaction:

  • Comcast
  • Time Warner Cable
  • Charter Communications
  • Cox Communications
  • Verizon

AT&T has also made noises about insisting on compensation for its own network upgrades, blaming Netflix traffic.

level3In fact, Netflix traffic seems to be a common point of contention among Internet Service Providers that also sell their own television packages. They now insist the streaming video provider establish direct, paid connections with their networks. Level 3 is affected because it carries a substantial amount of traffic on behalf of Netflix.

Ultimately, the debate is about who pays for network upgrades to keep up with traffic growth. Taylor says Level 3’s cost to add an extra 10Gbps port would be between $10-20 thousand dollars, spare change for multi-billion dollar Americans cable and phone companies. Normally, competition would never allow a traffic dispute like this interfere with a customer’s usage experience. Angry customers would simply switch providers. But the lack of competition prevents this from happening in the United States, leaving customers in the middle.

This leaves Taylor with a question: “Shouldn’t a broadband consumer network with near monopoly control over their customers be expected, if not obligated, to deliver a better experience than this?”

GOPHarmony: Three Leading Republicans Announce Support for Comcast-TWC Merger

Paul

Paul

Three important Republican lawmakers have announced their support of Comcast’s $45 billion acquisition of Time Warner Cable, claiming the combined entity will not affect competition in the cable or broadband market.

Sens. Rand Paul of Kentucky, Lindsay Graham of South Carolina, and Rep. Blake Farenthold of Texas told Newsmax TV’s Steve Malzberg the cable merger does not seem to be a monopoly.

“One of the good things about the Internet … is there’s such of diversity of opinion and so many places to get opinion that all the old-fashioned rules on merger and acquisitions in media really have become outdated,” Paul said. “[There are] so many places to look for a viewpoint … [so] I’m just not much on having the government get involved. Most of the time the government gets involved because another competitor doesn’t like it and that competitor is usually an enormous competitor…. So for the most part, I would let [these] mergers occur.”

Graham

Graham

South Carolina’s Lindsay Graham agreed with Paul. Despite the fact South Carolina is now dominated by Comcast and Time Warner Cable, turning the two companies into one does not pose any problem for Graham.

“There’s no competition between Time Warner and Comcast in a cable market, so you’re not creating a monopoly,” Graham said. “There’s competition with satellite, with phone companies, with all kind of things.”

Farenthold expressed concern about “left-leaning” Comcast, owner of NBC and MSNBC, getting larger but cannot oppose the merger on those grounds alone.

Farenthold

Farenthold

“You can’t not approve a merger because you don’t like the companies’ politics. That’s just not right,” Farenthold told Newsmax. “The issue is, is it going to create a monopoly? Well, Time Warner and Comcast don’t compete in any markets or maybe very few markets.”

Two of the lawmakers received contributions from Comcast’s political action committee:

  • Graham: $13,500
  • Farenthold: $2,000

Comcast’s Top Lobbyist Grabs $1.6 Million in Stock Sale; Still Has Shares Worth $7.7 Million

Phillip Dampier May 5, 2014 Comcast/Xfinity, Consumer News Comments Off on Comcast’s Top Lobbyist Grabs $1.6 Million in Stock Sale; Still Has Shares Worth $7.7 Million
Cohen

Cohen

Comcast’s top lobbyist and executive vice president is more than one million dollars richer after unloading 31,011 shares of Comcast stock.

David Cohen, a familiar face to those following Congressional hearings on the Comcast-Time Warner Cable merger, sold some of his shares last Thursday for an average price of $51.81 each, bringing him $1,606,679.91 in proceeds. Despite the sale, Cohen still owns 148,765 shares of Comcast worth $7.7 million.

Comcast opened this week at 52.03 on Monday. The stock had a 52-week low of $38.75 and a 52-week high of $55.28.

Cohen’s pay package for 2013:

  • Salary: $1,365,140
  • Restricted stock awards: $3,481,575
  • All other compensation: $1,264,243
  • Stock Option awards: $2,763,200
  • Non-equity incentive plan compensation: $3,003,308
  • Change in pension value and nonqualified deferred compensation earnings: $2,079,985
  • Total Compensation: $13,957,451

Philadelphia Customers Launch Revolt Against Comcast’s 15-Year Franchise Renewal

cap comcastComcast customers in Philadelphia are organizing to stop the cable company from winning a 15-year franchise renewal to continue providing service in the city unless the cable operator changes its ways after years of rate increases and poor customer service.

CAP Comcast! argues Comcast is not paying its fair share and is not a good corporate citizen in the city.

“Comcast has outsized power in a Philadelphia still suffering under economic crisis,” says the group. While the company charges some of the highest cable rates in the country, it has successfully earned $64 billion in revenue and an extremely low corporate tax bill.

“During the last franchise negotiation, Philadelphia elected officials and appointed leaders secured important resources for our city, including funds for public access television, and about $17 million a year for Philadelphia’s general fund,” said Bryan Mercer, co-executive director at Media Mobilizing Project. “But since that time, Philadelphia has shuttered over 20 schools and slashed services that our communities need.  Comcast pays less than 4% in corporate tax revenue, in a state where the average is almost 10%. And they’re getting $40 million in subsidies for their new planned building. If Comcast wants a chance to profit from our communities, Philadelphia should ensure Comcast pays their fair share, or invite other communications companies to serve our city.”

Among the group’s key arguments:

  • The company earned over $64 billion in revenues in 2013, while they lobbied to stop hundreds of thousands of Philadelphians from getting access to paid sick days;
  • Comcast joined Governor Corbett and the Chamber of Commerce on a push to shutter and privatize Philly’s public schools;
  • The ratio of CEO pay to average employee pay at Comcast is 370:1;
  • And they pay little in a city and state that needs much — a nationwide corporate-income tax rate of only 3.4% in a state where our average rate is 9.99%.

“Comcast accesses our streets – our public rights of way – to sell cable and other services in Philadelphia,” said Hannah Sassaman, policy director at Media Mobilizing Project. “At the same time, they are earning huge profits here and nationally, and planning to merge with Time-Warner Cable.  Comcast has lobbied to stop City Council from passing bills that would expand paid sick days to hundreds of thousands of workers who don’t have them, and their executives have raised hundreds of thousands of dollars for Governor Corbett, who has cut over a billion dollars from Pennsylvania education.

CAP Comcast! is asking for a five-year rate freeze for Comcast services while increasing broadband speeds and access to all Philadelphians. It also seeks fair treatment for Public, Educational, and Government access channels, expanded affordable Internet access without pre-conditions, involvement in solving local community problems, support of worker rights, and an end to passing along the cost of the franchise fee to customers.

The group has a petition on its website.

[flv]http://www.phillipdampier.com/video/Comcast Tell Comcast to Pay Its Fair Share 5-2014.mp4[/flv]

CAP Comcast! produced this video introducing its campaign to prevent another 15 year franchise for Comcast in Philadelphia unless the company changes its ways. (2:51)

Comcast Technician Drills Through Customer’s Air Conditioner; Company Drags Feet on Repairs

Phillip Dampier May 5, 2014 Comcast/Xfinity, Consumer News Comments Off on Comcast Technician Drills Through Customer’s Air Conditioner; Company Drags Feet on Repairs

band aidAll Jim Frey wanted from Comcast was cable service for his new home in Joliet, Ill. Instead, the installer ruined his home’s air conditioning system and then passed the buck to Comcast, keeping Frey waiting more than a month for a resolution. Regular maintenance is essential to keep your home cool, so make sure to get the right hvac services. If you need air conditioning service or AC repair, then get in touch with Ambrose Air in Orlando. You may also want to consider specific regional needs like Indianapolis heating repair service for comprehensive home comfort solutions. It’s important that you know how to tell if furnace ignitor is bad so that you can contact an expert to fix it immediately. IF you’re from Hawaii, you may contact air conditioning repair service in Kailua, HI.

Frey suspected there might be trouble as soon as the installer pulled out his oversized drill.

“He had a bit that was well over a foot long that he was using,” Frey said of the April 1 incident. “I don’t know why he would need a bit that long because the walls aren’t that thick.”

While installing a phone jack, the installer explained he thought he hit a stud inside the wall but instead of pausing to investigate, he just kept on drilling… right through Frey’s air conditioner, seriously damaging its expensive condensing unit.

"Time to install a phone jack."

“Time to install a phone jack.”

After apologizing, the technician took pictures of the damage and left Frey with the names and numbers of his two supervisors.

Frey told the Chicago Tribune’s Troubleshooter that Comcast initially seemed less than engaged in addressing the problem, telling Frey to find and call area repair shops and produce at least two estimates for the repairs. When Frey informed Comcast some of the repair companies charged an upfront fee of up to $90 to visit Frey’s home and offer a quote, the cable company balked at paying the bill and told Frey they would handle it themselves.

Only they didn’t.

Three weeks later, Frey learned from a repair company he consulted on his own that the repairs would cost $2,500, or he could buy a new air conditioner for $2,200-2,700. Comcast’s supervisors refused to commit to either option, leaving Frey to start over with Comcast’s customer service line, where he was given a ticket number and a brush-off.

“They keep telling me they are waiting on their contractor,” Frey said. “I don’t understand why it is taking so long to get someone to even estimate the damage and put together a plan. It won’t be long before hot weather is upon us and I am stuck. I just want some money for the repair and I will get it done if needed. I understand they want to save a little money, but all they want to do is put a Band-Aid on this thing and hope I’ll go away.”

Frey took his problem to the Chicago Tribune’s Problem Solver, who in turn contacted a Comcast spokesperson.

The following day, a technician, from a renowned AC installation company, arrived at Frey’s house with a new air conditioner, telling Frey it was a higher-efficiency unit than his damaged one.

Somebody also mentioned to Mr. Frey that whether it’s regular maintenance, tune-up, or replacement and repair services, he gets nothing but the best from these cooling service professionals here!

“We sincerely apologize to Mr. Frey for the damage to his air-conditioning unit and the delay in inspecting it,” added a Comcast spokesman.

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