Lost more customers than it gained for the first time.

Phone companies depending on DSL to keep them in the broadband business are in growing trouble, unless they lack a nearby cable competitor. Subscriber numbers from nine different major phone and cable companies over the summer of 2012 show cable broadband continues to grow as customers cancel DSL service from their local phone company. But for rural customers, DSL often remains the only option. That leaves rural providers like Frontier, Windstream, and CenturyLink in better standing than larger companies like AT&T and Verizon.

Phone Companies

• AT&T‘s U-verse service is the only thing keeping AT&T broadband numbers on the rise. AT&T added 553,000 new U-verse customers during the summer and now serves 6.5 million customers on its fiber-to-the-neighborhood network. AT&T continues to lose DSL customers, primarily to local cable competitors.
• CenturyLink, Inc. has been upgrading its DSL service in several areas to better compete with cable broadband, and is also deploying a fiber-to-the-neighborhood service in select cities. The network upgrades are helping, bringing the company 18,000 new broadband customers. CenturyLink currently serves 5.76 million Internet customers nationwide.
• Frontier Communications has lost broadband customers in its larger service areas, mostly to cable, but those losses have been offset by its DSL expansion in rural areas that have never had broadband before. But the company only managed to add just under 6,000 new broadband customers during the last quarter, serving 1.78 million customers across the country.
• Verizon Communications: Verizon was willing to turn away potential DSL customers for the first time, as it discontinued selling DSL to those who don’t want Verizon landline service. That, and pervasive cable competition, meant Verizon only picked up 2,000 new DSL customers this quarter — the worst showing in four years. Verizon FiOS’ recent price hikes also cost the company some growth for its fiber to the home service,  but still earning a respectable 134,000 new customers (5.1 million total). Time Warner Cable, Cablevision, and Comcast have all managed to win back FiOS customers with attractive discount offers.
• Windstream Corp. faces cable competition in a number of its semi-rural service areas, and its DSL service has not been able to keep up with the growing speeds available to cable broadband subscribers. For the first time, Windstream reported it lost more customers than it added, losing 2,200 DSL subscribers. Windstream still has 1.36 million customers signed up for its broadband service.

Cablevision has won back some of its former customers who went with Verizon FiOS but do not like the recent rate hikes.

Cable Companies

• Cablevision, which serves mostly suburban New York City, New Jersey, and Connecticut added 25,000 new high speed customers, many coming back to the cable company from Verizon. Cablevision serves a relatively small geographic area, but a densely populated one. Nearly 3 million broadband customers have remained loyal to the cable company.
• Charter Cable picked up 37,000 new broadband customers, a number fleeing phone company DSL for Charter’s higher speed broadband services. Charter serves 3.8 million broadband customers.
• Comcast added 156,000 new customers to its roster of 18.7 million Internet customers, again mostly from former DSL customers.
• Time Warner Cable expanded with 59,000 new high speed customers, primarily from DSL disconnects. Time Warner provides service for 10.8 million broadband customers.

Faster

Frontier Communications customers in selected communities will be able to receive faster Internet speeds by the end of the year because of network upgrades.

In late July, Frontier president and chief operating officer Daniel J. McCarthy announced the company was refocusing investment on improving the broadband experience for its customers, mostly serviced by ADSL.

Frontier’s rural customers primarily receive broadband service at real-world speeds of 768kbps-3Mbps. At least 74% of those customers will be able to sign up for speeds of 6Mbps by the end of the year. In more urban areas, 51% of customers will be able to sign up for 12Mbps, 42% for 20Mbps. Business customers in selected areas can qualify for speeds up to 40Mbps.

The upgrades will not come for free, however. Customers will pay more for higher speeds.

McCarthy

Frontier Max (3Mbps in rural areas, 6Mbps in urban areas) starts at $34.99 per month. Customers can move up to the next speed tier for an additional $10 per month. For example, a Frontier Max customer can move up to Ultra service (10-12Mbps) for $44.99, or Frontier Ultimate (20-25Mbps) for $55.99 per month. Once customers upgrade to a premium speed level, the modem rental fee (up to $6.99 a month) is reportedly eliminated.

Frontier’s upgrades are based on adopting more advanced forms of DSL technology. Most Frontier customers currently receive ADSL service — one of the oldest and slowest forms of DSL. Frontier is managing to boost speeds by bonding multiple DSL connections together, switching to ADSL 2+, or upgrading to VDSL technology. The company is also broadening its fiber middle mile network, which can reduce the length of copper wiring between the company’s central offices and customer homes, improving potential speeds.

Customers who do not change their level of service may still receive some benefits from area upgrades, as actual speeds come closer to matching those advertised by the company.

In some areas, customers will receive telemarketing calls announcing newly available speed options. But customers can also call 1-800-921-81o1 to find out what is currently available.

Stop the Cap! recommends proceeding carefully when considering a plan change. Be sure to ask about all terms and conditions, including installation/upgrade fees, modem rental fee (if any), contract terms, and whether any additional services are required (Frontier may attempt to sell an added-cost online backup service, home networking equipment, or technical support services you may not need).

YNN provides 24/7 local news coverage on individual channels in Buffalo, Rochester, Syracuse, and Albany.

Time Warner Cable has placed its owned and operated news channels – including YNN, NY1 News, NY1 Noticias, and News 14 Carolina – behind a TV Everywhere pay wall, requiring a video subscription with the cable operator to access anything beyond the latest news headlines:

The expanded video content includes a new web-only weather forecast, plus expanded long-form news interviews and extended on-location footage. In the future, Time Warner Cable TV subscribers will also be able to comment on our articles and receive e-mail alerts for top news stories.

In order to access our full, enhanced site, Time Warner Cable customers must sign in to YNN.com using their Time Warner Cable username and password – the same ID used to access TWC’s online bill pay service, stream TV shows from WatchESPN and HBO GO, access the TWC TV mobile apps, and use Remote DVR manager, Phone Manager and other TWC services.

This ID is free of charge to all TWC TV subscribers, and there is no additional charge for the enhanced website content. However, TWC subscribers with only high-speed data or phone service will need to upgrade to a video subscription to be able to fully access the upgraded site.

Customers can find their current account number on their latest Time Warner Cable paper or online bill. Viewing first requires an online account (available on TWC’s Registration Page by entering your e-mail address and following the registration instructions.)

YNN and other Time Warner Cable news sites used to offer video content for all site visitors. The change is part of Time Warner’s TV Everywhere project, designed to enhance the value of cable television subscriptions by offering accompanying enhanced web content — streamed video, live access, and on-demand video — over the company’s broadband service.

CNN faces another challenge to its declining brand as Clear Channel Outdoor Holdings prepares to launch a competing network, viewable only in airports.

Since 1992, CNN has dominated airport televisions with its CNN Airport Network, a live channel showing a custom-programmed feed of CNN that assures it will never televise graphic video coverage of commercial air accidents or incidents to its viewers.

CNN makes its money selling advertising opportunities on the channel, which it claims is seen by nearly 248 million air passengers yearly in more than 40 airports for an average of 47 minutes each.

But much like CNN’s declining ratings, airport travelers have increasingly tuned out the channel, preferring to spend their waiting time with their own mobile devices. As the times have changed, Clear Channel has proposed that airport viewing change with it.

The media conglomerate announced this week it is unveiling a new TV service for airports that will air programming from major television networks and cable channels. With more than 100 content deals signed thus far, ClearVision intends to give CNN a run for advertiser money.

Toby Sturek, Clear Channel’s head of airports, told Reuters the company is in discussions with about 20 mostly medium-sized airports to host the new service. ClearVision has already signed Raleigh-Durham International, where CNN Airport Network is not seen. ClearVision will launch in that North Carolina airport this November.

Sturek said airport owners want a variety of programming to show waiting passengers, and CNN no longer cuts it with advertisers, which he says have shown little interest in supporting CNN’s venture. Sturek says they simply do not see the value of advertising on the airport channel. Still, industry insiders estimate CNN Airport Network earns the Time Warner-owned news channel at least $10 million annually.

ClearVision intends to challenge CNN’s dominance by giving viewers a greater range of programming, and starting next spring, its viewing monitors will also act as Wi-Fi hotspots, letting mobile devices connect and stream the same content for free to enhance a personal viewing experience. Because the service will be available over Wi-Fi, viewers will avoid eating away their monthly data allowance with wireless providers.

Eventually, ClearVision intends to serve up multiple channels of video content. Sturek says that will allow one viewer to watch the latest business news headlines while another watches “America’s Got Talent.”