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Charter Considering Pulling the Plug on Time Warner’s IntelligentHome Security Service

Phillip Dampier June 16, 2016 Charter Spectrum, Competition, Consumer News 4 Comments
intelligenthome

Perhaps not for long.

Time Warner Cable customers who spent hundreds or thousands of dollars in security equipment and add-ons may be left with nothing but their 18-month contract as Charter Communications considers pulling the plug on Time Warner’s IntelligentHome security service.

DSL Reports appears to have the exclusive story this morning that insiders familiar with the company’s business operations are claiming IntelligentHome may be one of the first casualties of the giant merger between Charter, Time Warner Cable, and Bright House.

As Stop the Cap! reported earlier this morning, Charter executives are performing a top-to-bottom analysis looking to wring cost savings out of the merger deal. The result will likely be the elimination of anything seen as duplicating Charter Spectrum’s own suite of products and services or going beyond Charter’s philosophy of focusing on “core services.” That could be bad news for Time Warner Cable employees managing or supporting non-conforming services as well, and at least some could be headed for the unemployment office.

A strong clue the days of IntelligentHome may be numbered is word employees are now supposed to keep it a secret:

While the source states that no formal shutdown of the service has been announced, sales and service employees are being told to no longer mention the service in call conversations or presentations with customers. The source also states that “rumblings by managers” suggests the service may not be long for this world.

Should Time Warner Cable shutter the service, the insider states that could be trouble for the customers that recently shelled out significant amounts of money for IntelligentHome hardware.

“What is particularly concerning is that many customers are in 18 month contracts and have purchased hundreds or even thousands of dollars in equipment,” states the insider.

baseIf Time Warner does shutter the service, customers will likely be released from their contracts penalty-free, but they may also be stuck with useless equipment they can’t use with another alarm system.

Cable operators have dabbled in the home security business since the 1970s, but many early attempts were scrapped after waves of consolidation orphaned a variety of incompatible technologies with new owners that had little interest in maintaining the service. The insatiable quest for higher Average Revenue Per User (ARPU) has pushed the cable industry to find more ancillary services that could boost cable bills and keep Wall Street happy. They tried music services like Music Choice and DMX, home video game services, broadband for telecommuters, and eventually returned to home security.

Time Warner Cable first launched IntelligentHome in 2011. It immediately threatened traditional home security services from companies like ADT because IntelligentHome could manage easy remote access to control home security settings, lighting, and thermostats from a computer, tablet, or smartphone. Customers upgrading to a video-capable system could even stream camera video over the Internet through a live feed. A tablet-like touchscreen control enhanced the experience with access to current weather, news, and traffic.

icontrol

Icontrol manages the software platform that powers Time Warner’s IntelligentHome, along with home security services offered by a number of other cable operators.

Time Warner Cable did not develop IntelligentHome exclusively in-house. Most large cable operators rely on connected home security system software solutions powered by a platform developed by Icontrol.

extrasCharter Communications is one of only a few cable companies that have shown no interest in selling home security services (Cablevision is another). In 2013, it dismissed any interest in getting into the business, telling Reuters it preferred to concentrate on its “core business.” Nothing seems to have changed. As of this year, the only security protection Charter offers customers is antivirus software for their computers.

An exit from IntelligentHome could also have a major impact on Time Warner Cable’s owned-and-operated CSAA 5-Diamond Rated Emergency Response Center, which answers when it detects a break-in or when a customer hits a panic button.

Most estimates put the number of customers paying for IntelligentHome at less than 100,000 nationwide, but that select group is likely to have a substantial buy-in to the service and would definitely feel its loss.

Although Time Warner Cable advertises IntelligentHome at prices starting between $35-40 a month, that doesn’t afford much protection. Customer can choose between packages of different equipment bundles that range from $99.99 to $199.99. A la carte equipment is also available. A very basic entry-level system packages a tablet-like controller with protection for only two doors or windows and one motion detector. That might be suitable for an apartment, but homeowners often upgrade to cover more potential entry points. As a result, IntelligentHome has proven a tough sell for customers already confronted by cable bills that often approach or exceed $200 a month, before the alarm service is added.

Time Warner has attempted to change the marketing of IntelligentHome to emphasize more of its home automation and monitoring features, and routinely offers a $200 gift card to entice new customers. But it may not have worked enough to interest Charter, which shows every sign it wants to simplify the cable bundle, not clutter it up with extras. The insider told DSL Reports he hoped Charter would find a way to manage existing customers and not abandon them should the service be discontinued. If not, tens of thousands of Charter customers will have bought a lot of equipment with nothing to show for it.

DSL Reports stresses no final decision has been made.

Opponent of EPB Fiber Expansion: Get ‘Innovative’ Satellite Internet Instead

Phillip Dampier June 15, 2016 AT&T, Audio, Broadband Speed, Charter Spectrum, Comcast/Xfinity, Community Networks, Competition, Consumer News, EPB Fiber, Public Policy & Gov't, Rural Broadband Comments Off on Opponent of EPB Fiber Expansion: Get ‘Innovative’ Satellite Internet Instead
Cleveland's monument in the downtown district. (Image: City of Cleveland)

Cleveland’s monument in the downtown district. (Image: City of Cleveland)

AT&T, Comcast, and Charter have surrounded the city of Cleveland, Tenn., (population 42,774) for more than 20 years, yet after all that time, there are still many homes in the area that have no better than dial-up Internet access..

An effort to extend municipal utility EPB’s fiber to the home service into the community just northeast of Chattanooga on Interstate 75, has run into organized political opposition campaign, part-sponsored by two of the three communications companies serving the area.

Tennessee state Reps. Dan Howell and Kevin Brooks, both Cleveland-area Republicans, understand the implications. With AT&T, Comcast, and Charter resolute about not expanding their coverage areas anytime soon, the only chance Cleveland has of winning world-class broadband anytime in the reasonable future is through EPB, which has already offered to extend service to at least 1,000 customers in rural Bradley County in as little as three months. Most of those customers now rely on dial-up Internet services, because no broadband is available. Reps. Howell and Brooks are trying to get the the red tape out of the way so EPB can proceed, but the Tennessee legislature hasn’t budged.

EPB provides municipal power, broadband, television, and telephone service for residents in Chattanooga, Tennessee

EPB provides municipal power, broadband, television, and telephone service for residents in Chattanooga, Tennessee

There is a substantial difference between 30kbps dial-up and 100Mbps — one of the “budget” Internet tiers available from EPB. But some Tennessee lawmakers and corporate-backed special interest groups don’t care. To them, stopping public broadband expansion is a bigger priority, and they have attempted to stall, block, or prohibit municipal broadband, just to protect the current phone and cable companies that are among their generous contributors.

In 2010, Chattanooga became the first in America to enjoy gigabit residential broadband speed not because of AT&T, Comcast, or Charter, but because of the publicly owned electric company, EPB. So what’s the problem with that? The fact EPB spent $320 million on the fiber optic network — about $100 million of that coming from a federal grant — keeps some conservatives, corporate executives, and telecom shareholders up at night. They object to the public funding of broadband, calling it unfair competition for the two incumbent cable companies and one phone company, which have their own “privately funded” networks.

Republican Rep. Mike Carter, who serves Ooltewah, thinks that’s a lot of nonsense. He notes AT&T and other providers already receive government funding to service outlying areas that no other providers dare to tread for a lack of return on their investment.

cleveland_tn“[What] convinces me to back expansion of the EPB of Chattanooga is the fact that they received $111 million in stimulus funds, and in the next five years AT&T alone will receive $156 million of your money [in government funding] assessed every month on your bill to provide 10/4-gigabit service in those areas,” Carter explained to the Chattanooga Times-Free Press. “If the EPB’s $111 million matching grant somehow disqualifies those benefits going to my constituents, how do I explain to them that AT&T is receiving non-matching funds?”

“The issue then became, if it is necessary to create the world’s fastest Internet system, why would EPB not offer that for economic growth in its service area?” Carter continued. ” After I heard the story of the [gig’s] creation and realized that the money had already been spent, I asked myself if I would allow a firmly held principle of no competition with private enterprise by government to deny my constituents and neighbors the incredible benefits.”

Justin Owen, president and CEO of the Beacon Center of Tennessee, is dismissive of Carter’s willingness to bend his principles. In his view, those without Internet access have other options instead of getting EPB Fiber on the public dime.

Owen

Owen

“You can get satellite Internet,” said Owen, who added that governments that invest in fiber technology could be “left behind by disruptive innovation,” which in his mind could be satellite Internet. Satellite customers would disagree.

“Horrible, horrible, horrible, and more horrible,” wrote Trey from another Cleveland — this time in Texas. “Speeds are consistently less than 2Mbps and they advertise up to 12. Try a cell phone booster and use that before resorting to satellite Internet.”

Hundreds of customers shared similar stories about their experience with satellite Internet, and they don’t believe it will be disruptive to anything except their bank account.

Owen and his group have not revealed many details about where its funding comes from, but the group is a member of the State Policy Network, which receives financial support from AT&T, Time Warner Cable, Verizon and Comcast. The group’s former leader, Drew Johnson, was also a former opinion page columnist at the Times-Free Press and used column space to criticize EPB and other issues that ran contrary to AT&T’s agenda in Tennessee.

Despite support from the Chattanooga area’s Republican delegation, many legislators from outside the area remain firmly in support of the telecom companies and their wish to limit or destroy community broadband projects like EPB, claiming they are redundant or are based on faulty business plans likely to fail. But while Comcast used to dismiss EPB’s gigabit service as unnecessary and AT&T considered gigabit speeds overkill, both companies are now racing to deploy their own gigabit networks in Chattanooga to compete.

The residents of Cleveland without broadband today probably won’t have it tomorrow or anytime soon. Many are hoping the Tennessee legislature will relent and let EPB solve their broadband issues once and for all. Cleveland resident Aaron Alldaffer is trying to help gin up interest in a renewed legislative push for EPB Fiber expansion with a Change.org petition.

The BBC World Service Global Business program visited Chattanooga in May 2016 to explore EPB Fiber and discuss its implications. (29 minutes)

You must remain on this page to hear the clip, or you can download the clip and listen later.

Jesse Jackson Compares Set Top Box Competition to Bull Connor’s Fire Hoses

Bull Connor was Birmingham, Ala.'s notorious Commissioner of Public Safety

Bull Connor was Birmingham, Ala.’s notorious Commissioner of Public Safety in the 1950’s and 1960’s.

In an astonishing guest editorial published by USA TODAY, Rev. Jesse Jackson evoked imagery of the 1960s civil rights movement as a backdrop to claim the Federal Communication Commission’s plan to promote an open, competitive market for set-top boxes was racist.

“National news coverage of the snarling dogs, water hoses and church bombings in the American South were the catalysts to exposing the ugly truths of racism and bigotry in the 1960s. Local news outlets gave new meaning to what the struggle looked like for people on its front lines,” wrote Jackson. “That is why a new proposal at the Federal Communications Commission (FCC) to regulate TV ‘set top boxes’ has raised so much concern.”

That “concern” has come almost entirely from the cable and telco-TV industry and their allies, which have compared the potential breakup of a lucrative cable TV equipment monopoly to anti-Americanism, minority television genocide, an invitation to piracy and a pathway for total world domination by Google.

In April, we reported the rhetoric surrounding the proposal, which would create an open standard allowing any manufacturer to make and sell their own set-top box, had already taken Hyperbole Hill. But Rev. Jackson’s latest guest editorial rockets the ridiculousness of the cable industry’s opposition into the stratosphere.

Jackson claims (wrongly) the proposal will lead third-party manufacturers to segregate minority television content, apparently in a way that resembles life in rural Mississippi in 1962. It evokes dreams of hordes of Google vans roaming across the southern countryside looking for trouble by stripping networks like Revolt and Vme TV of their ad revenue and copyright protection. It just isn’t true. But one line in Jackson’s commentary does prove revealing — noting all these terrible events could all take place “without any compensation.”

Jackson

Jackson

This is the diamond in the rough of this near-senseless editorial. Like most things in the world of Big Telecom public policy, it’s all about the money. Jackson’s Rainbow PUSH Coalition apparently isn’t what it used to be. Originally created to promote civil rights and diversity, the organization these days is just as likely to promote Big Telecom mergers and its public policy agenda, usually in exchange for contributions to Jackson’s groups, although such quid-pro-quo is always hotly denied. Therefore, we shall call them monetary “coincidences.” His coincidental association with Comcast, AT&T, Verizon and others runs back more than a decade:

  • Bell Atlantic (later Verizon) coincidentally donated $1 million to Jackson and his groups. In 1999, Jackson coincidentally endorsed the merger of GTE and Bell Atlantic into a new entity known as Verizon, which coincidentally pledged $300,000 to Jackson annually through the year 2002;
  • In 1998 Jackson was strongly opposed to the merger of SBC and Ameritech (which would later emerge as AT&T), suggesting it was anti-democratic. After the two companies donated $500,000 to Jackson’s Citizenship Education Fund (given a dubious rating by Charity Navigator), Jackson coincidentally did a complete 180, praising the merger. It didn’t hurt that Ameritech coincidentally sold part of its cellular business to Georgetown Partners, owned coincidentally by one of Jackson’s closest friends.
  • Not to be left out, AT&T coincidentally donated $425,000 to Jackson’s Citizenship Education Fund in 1999, right after Jackson coincidentally withdrew his opposition to the merger of AT&T and TCI Cable (later sold to Comcast).
  • Jackson coincidentally has maintained a regular presence in proceedings involving Comcast’s various business dealings, particularly its merger with NBCUniversal, which it coincidentally endorsed as “pro-consumer.”

bullhoseJackson mentioned his views have the support of certain other civil rights organization including the National Urban League and the League of United Latin American Citizens (LULAC), two groups Stop the Cap! has written about extensively regarding their ongoing committed support of Big Telecom mergers, deregulation, and other public policy agendas. They don’t work for free — substantial contributions and other compensation from those same companies head into the coffers of both groups. LULAC counts AT&T, Comcast, Cox, the National Cable & Telecommunications Association, Time Warner Cable and Verizon as members of their “corporate alliance.” None of those companies support the FCC’s plan to open up the set-top box marketplace.

Jackson cheapens the legacy of the civil rights movement in his efforts to draw comparisons between the horrible atrocities of the past with the fat equipment profits the cable industry is counting on in the future.

His views are also simply provably wrong. Jackson’s claim that the government was somehow responsible for the destruction of local multicultural newspapers at a time when the entire newspaper industry continues to struggle against online media is ludicrous. His myopic view that the elimination of a minority tax certificate program is the reason minorities don’t own many radio and television stations today ignores the fact many former minority owners cashed out and sold those stations (at a massive profit) after the Clinton Administration deregulated the industry in the late 1990s, which lead to a massive wave of ownership consolidation. Finding individuals, minority or otherwise, that still own local radio and television stations isn’t as easy as it once was.

opinionJackson and his supporters are wasting their time fighting to preserve the dying concept of the 500-channel linear TV marketplace. Consumers, minorities included, are not clamoring for more minority networks littering the cable dial that spend much of their broadcast day airing program length commercials and reruns of Good Times or The Cosby Show. Many of these networks only add to the growing cost of cable TV. Viewers want on-demand access to quality original programming they can actually find and watch.

We’d also remind Jackson minorities also pay the outrageous price of set-top box rentals, something Jackson and his organization should be sensitive about. Busting the set-top box monopoly means every American will pay lower rates for this equipment. We do understand it won’t help Jackson’s bank account, or those of other civil rights groups that kowtow to their corporate friends, but who exactly do they represent?

Daring to suggest that this debate has anything to do with Bull Connor’s outrageous behavior in Birmingham, Ala. in 1963, where Connor ordered the city fire department to turn fire hoses on peaceful civil rights protesters and attacked them with police dogs, tarnishes the reputation of Jackson and his group and demonstrates just how desperate the cable industry is getting trying to credibly defend a monopoly. Jackson should withdraw those remarks.

Verizon: Forget About FiOS, We’re Moving to a Broadband Wireless World

Who needs FiOS when you can get 5G wireless service with a data plan?

Who needs FiOS when you can get 5G wireless service with a data plan?

Fran Shammo has a message for Verizon customers and investors: fiber optic broadband is so… yesterday. Your millennial kids aren’t interested in gigabit speed, unlimited use Internet in the home. They want to watch most of their content on a smartphone and spend more on usage-capped wireless plans.

Shammo is Verizon’s money man – the chief financial officer and prognosticator of the great Internet future.

Like his boss, CEO Lowell McAdam, Frammo has his feet firmly planted in the direction of Verizon Wireless, the phone company’s top moneymaker. If one ever wondered why Verizon Communications has let FiOS expansion wither on the vine, Mr. McAdam and Mr. Shammo would be the two to speak with.

This week, Shammo doubled down on his pro-wireless rhetoric while attending the Bank of America Merrill Lynch 2016 Media, Communications & Entertainment Conference — one of many regular gathering spots for Wall Street analysts and investors. He left little doubt about the direction Verizon was headed in.

Shammo

Shammo

“As we look at the world if you will, and we look at our ecosystem, […] the world is moving to a broadband wireless world,” Shammo told the audience. “Now, I am really – when I say world, I am really talking the U.S., right. So, but I do think the world is moving to a wireless world.”

In Shammo’s view, the vast majority of people want to consume content, including entertainment, over a 4G LTE (or future 5G) wireless network on a portable device tied to a data plan. Shammo predicted wireless usage will surpass DSL, cable broadband, and even FiOS consumption in 3-5 years. If he’s right, that means a mountain of money for Verizon and its investors, as consumers will easily have to spend over $100 a month just on a data plan sufficient to cope with Shammo’s predicted usage curve. In fact, your future Verizon Wireless bill will likely rival what you pay for cable television, broadband, and phone service together.

Millennials don’t want fiber, they want wireless data plans

Shammo argued millennials are driving the transition to wireless, claiming they already watch most of their entertainment over smartphones and tablets, not home broadband or linear TV. His view is the rest of us are soon to follow. Shammo claims those under 30 are turning down cable television and disconnecting their home broadband service because they prefer wireless. Others wonder if it is more a matter of being able to afford both. A 2013 survey by Pew data found 84% of households making more than $54,000 have broadband. That number drops to 54% when annual household incomes are lower than $30,000 per year. But those income-challenged millennials don’t always forego Internet access — some rely on their wireless smartphone to access online content instead.

A microcell

A microcell

Verizon Wireless may be banking on the same kind of “hard choice” many made about their landline service. Pay for a landline and a mobile phone, or just keep mobile and disconnect the home phone to save money. Usage growth curves may soon force a choice about increasing your data plan or keeping broadband service at home. Shammo is betting most need Verizon Wireless more.

Verizon FiOS is really about network densification of our 4G LTE network

Shammo continued to frame its FiOS network as “east coast-centric” and almost a piece of nostalgia. The recent decision to expand FiOS in Boston is not based on a renewed belief in the future of fiber, Shammo admitted, it is being done primarily to lay the infrastructure needed to densify Verizon’s existing LTE wireless network in metro Boston to better manage increased wireless usage. Shammo’s spending priorities couldn’t be clearer.

“Obviously, we said, we would build up Boston now, because it makes sense from a LTE perspective,” Shammo said. “We can spend $300 million over the next three years to make that more palatable to expand FIOS. So we will continue to expand that broadband connection via fiber where it makes financial sense for us.”

verizon 5gIn other words, it is much easier to justify capital expenses of $300 million on network expansion to Wall Street if you explain it’s primarily for the high-profit wireless side of the business, not to give customers an alternative to Time Warner Cable or Comcast. FiOS powers cell sites as well as much smaller microcells and short-distance antennas designed to manage usage in high traffic neighborhoods.

Shammo also believes Verizon must not just be a ‘dumb wireless’ connection. Controlling and distributing content is also critically important, and Shammo is still a big believer in Verizon’s ho-hum GO90 platform, which compared to Hulu and Netflix couldn’t draw flies.

Even Verizon CEO McAdam admitted a few weeks ago at another Wall Street conference GO90 was “a little bit overhyped.” Most of GO90’s content library is mostly short video clips targeted at millennials with short attention spans. The downside of making that your target audience is the rumor many who sampled the service early on have already forgotten about it and moved on.

Forget about congested home and on-the-go Wi-Fi and expensive fiber optics. Verizon will sell you 5G wireless (with a data plan) for everywhere.

Shammo believes the future isn’t good for Wi-Fi in the home and on-the-go. As data demands increase, he believes Wi-Fi will become slow and overcongested.

“There is a quality of service with our network that you can’t get with others,” Shammo said. “I mean, most people in this room would realize that when Wi-Fi gets clogged, quality of service goes significantly down. It’s an unmanaged network. You can’t manage that.”

Instead, Verizon will eventually deploy 5G wireless instead of FiOS in many areas without fiber optic service today. Frammo said 5G would cost Verizon a lot less than fiber, “because there is no labor to dig up your front lawn, lay in fiber, or be able to fix something.”

Shammo doesn’t believe 5G wireless will replace 4G LTE wireless, however.

“LTE will be here for a very long time and be the predominant voice, text, data platform for mobile,” Shammo said.

So instead of unlimited fiber optic broadband, Verizon plans to sell home broadband customers something closer to Wi-Fi, except with a data allowance. It’s a return to fixed wireless service.

Verizon Wireless' existing fixed wireless service is heavily usage capped and no cheap.

Verizon Wireless’ existing fixed wireless service is heavily usage capped and not cheap.

Just a few short years ago, Verizon was looking to fixed wireless as a replacement for rural DSL and landline service. Now Shammo sees the economics as favorable to push a similar service on all of its customers, except those already fitted for FiOS. That changes the dynamics on usage as well, because Verizon Wireless ditched unlimited service several years ago except for a dwindling number of customer grandfathered in on its old unlimited plan.

Current 4G LTE fixed wireless customers can expect 5-12Mbps speeds with data plan options of $60 for 10GB, $90 for 20GB, or $120 for 30GB. The 5G service would be substantially faster than Verizon’s current fixed LTE wireless service, but the company’s philosophy favoring data caps for wireless services makes it likely customers will pay much higher prices for service, higher than Verizon charges for FiOS itself.

Spring 2016: An Update and Progress Report for Our Members

stcDear Members,

We have had a very busy winter and spring here at Stop the Cap! and we thought it important to update you on our efforts.

You may have noticed a drop in new content online over the last few months, and we’ve had some inquiries about it. The primary reason for this is the additional time and energy being spent to directly connect with legislators and regulators about the issues we are concerned about. Someone recently asked me why we spend a lot of time and energy writing exposés to an audience that almost certainly already agrees with us. If supporters were the only readers here, they would have a point. Stop the Cap! is followed regularly by legislators, regulators, public policy lobbyists, consumer groups, telecom executives, and members of the media. Our content is regularly cited in books, articles, regulatory filings, and in media reports. That is why we spend a lot of time and energy documenting our positions about data caps, usage billing, Net Neutrality, and the state of broadband in the United States and Canada.

A lengthy piece appearing here can easily take more than eight hours (sometimes longer) to put together from research to final publication. We feel it is critical to make sure this information gets into the hands of those that can help make a difference, whether they visit us on the web or not. So we have made an extra effort to inform, educate, and persuade decision-makers and reporters towards our point of view, helping to counter the well-funded propaganda campaigns of Big Telecom companies that regularly distort the issues and defend the indefensible.

Four issues have gotten most of our attention over the last six months:

  1. The Charter/Time Warner Cable/Bright House merger;
  2. Data cap traps and trials (especially those from Comcast, Blue Ridge, Cox, and Suddenlink);
  3. Cablevision/Altice merger;
  4. Frontier’s acquisition of Verizon landlines and that phone company’s upgrade plans for existing customers.

We’ve been successful raising important issues about the scarcity of benefits from telecom company mergers. In short, there are none of significance, unless you happen to be a Wall Street banker, a shareholder, or a company executive. The last thing an already-concentrated marketplace needs is more telecom mergers. We’re also continuing to expose just how nonsensical data caps and usage-based billing is for 21st century broadband providers. Despite claims of “fairness,” data caps are nothing more than cable-TV protectionism and the further exploitation of a broadband duopoly that makes it easy for Wall Street analysts to argue “there is room for broadband rate hikes” in North America. Stop the Cap! will continue to coordinate with other consumer groups to fight this issue, and we’ve successfully convinced at least some at the FCC that the excuses offered for data caps don’t hold water.

Dampier

Dampier

FCC chairman Tom Wheeler’s broadening of Charter’s voluntary three-year moratorium on data caps to a compulsory term as long as seven years sent a clear message to broadband providers that the jig is up — data caps are a direct threat to the emerging online video marketplace that might finally deliver serious competition to the current bloated and overpriced cable television package.

Wheeler’s actions were directly responsible for Comcast’s sudden generosity in more than tripling the usage allowance it has imposed on several markets across the south and midwest. But we won’t be happy until those compulsory data caps are gone for good.

More than 10,000 Comcast customers have already told the FCC in customer complaints that Comcast’s data caps are egregious and unfair. Considering how unresponsive Comcast has been towards its own customers that despise data caps of any kind, Comcast obviously doesn’t care what their customers think. But they care very much about what the FCC thinks about regulatory issues like data caps and set-top box monopolies. How do we know this? Because Comcast’s chief financial officer this week told the audience attending the JPMorgan Technology, Media and Telecom Broker Conference Comcast always pays attention to regulator headwinds.

“I think it’s our job to make sure we pivot and react accordingly and make sure the company thrives whatever the outcome is on some of the regulatory proposals that are out there,” said Comcast’s Mike Cavanagh. We suspect if Chairman Wheeler goes just one step further and calls on ISPs to permanently ditch data caps and usage billing, many would. We will continue to press him to do exactly that.

Stop the Cap! supports municipal and community-owned broadband providers.

Stop the Cap! supports municipal and community-owned broadband providers.

Other companies are also still making bad decisions for their customers. Besides Comcast’s ongoing abusive data cap experiment, Cox’s ongoing data cap trial in Cleveland, Ohio is completely unacceptable and has no justification. The usage allowances provided are also unacceptably stingy. Suddenlink, now owned by Altice, should not even attempt to alienate their customers, particularly as the cable conglomerate seeks new acquisition opportunities in the United States in the future. We find it telling that Altice feels justified retaining usage caps on customers in smaller communities served by Suddenlink while denying they would even think of doing the same in Cablevision territory in suburban New York City. Both Suddenlink and Cablevision have upgraded their networks to deliver faster speed service. What is Altice’s excuse about why it treats its urban and rural customers so differently? It frankly doesn’t have one. We’ll be working to convince Altice it is time for Suddenlink’s data caps to be retired for good.

We will also be turning more attention back on the issue of community broadband, which continues to be the only competitive alternative to the phone and cable companies most Americans will likely ever see. The dollar-a-holler lobbyists are still writing editorials and articles claiming “government-owned networks” are risky and/or a failure, without bothering to disclose the authors have a direct financial relationship to the phone and cable companies that don’t want the competition. We will be pressing state lawmakers to ditch municipal broadband bans and not to enact any new ones.

We will also continue to watch AT&T and Verizon — two large phone companies that continue to seek opportunities to neglect or ditch their wired services either by decommissioning rural landlines or selling parts of their service areas to companies like Frontier. AT&T specializes in bait-n-switch bills in state legislatures that promise “upgrades” in return for further deregulation and permission to switch off rural service in favor of wireless alternatives. That’s great for AT&T, but a potential life-threatening disaster for rural America.

We continue to abide by our mandate: fighting data caps and consumption billing and promoting better broadband, regardless of what company or community supplies it.

As always, thank you so much for your financial support (the donate button that sustains us entirely is to your right) and for your engagement in the fight against unfair broadband pricing and policies. Broadband is not just a nice thing to have. It is an essential utility just as important as clean water, electricity, natural gas, and telephone service.

Phillip M. Dampier
Founder & President, Stop the Cap!

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