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Charter/Spectrum: We’ll Offer Gigabit Speed Nationwide by the End of 2018

Spectrum markets where gigabit speed is already available.

Charter Communications is accelerating the deployment of the next generation cable broadband standard DOCSIS 3.1 so that it can offer almost every customer gigabit download speed by the end of this year.

“We plan to be 1 Gbps everywhere and marketing 1 Gbps everywhere this year, which is [also includes] taking up a significant portion of our business to minimum speeds of 200 Mbps at the same price we were charging for 60 Mbps a year ago,” said Thomas Rutledge, CEO of Charter Communications, on a Feb. 2 investor conference call. “And we plan to do that as quickly as we can, but because of the all-digital rollout and some of the other operational issues we have, we haven’t fully planned out [200 Mbps speed for] the whole country yet.”

Charter’s biggest challenge is expected to be swapping legacy modems inadequate for the task of delivering 200 Mbps and higher speeds to residential customers. Many Charter customers are still using modems originally provided by Time Warner Cable and Bright House Networks, generally considered adequate for supporting top speeds only between 50-100 Mbps. But Charter is planning to offer faster internet speeds to position itself as a viable broadband competitor in markets where fiber competitors have poached subscribers and the future threat of 5G speeds up to 1 Gbps are on the horizon. That could require a substantial modem exchange program, especially in cities that were never upgraded to Time Warner Cable Maxx before Charter acquired Time Warner Cable.

Charter’s migration for Time Warner Cable/Bright House customers continues, while Charter Legacy markets stall

In 2017, Charter intentionally focused most of its time and money integrating its acquired Time Warner Cable and Bright House Networks customers into Charter’s billing, provisioning, service, and retention systems. This came, Rutledge admitted, at the expense of long-time Charter customers who saw new product launches and upgrades delayed because of the ongoing integration effort.

It will take until 2019 to fully integrate all of Charter’s customers onto a single platform that will no longer distinguish if a customer was a long-standing Charter customer or a former TWC or BH subscriber.

Customers willing to abandon their legacy Time Warner Cable or Bright House plans in favor of a Spectrum plan are also dragging their feet. As of the end of 2017, 51% of TWC and Bright House customers were still sticking with their original plan, refusing to switch to Spectrum pricing and packaging. As customers face Spectrum’s new plans, some are canceling service. Time Warner Cable residential video customers dropped by 2.5% over 2017. Charter Legacy customers dropped by 1%, while legacy Bright House customers declined by 0.5%.

Legacy Charter areas saw subscribers running out of patience. The company lost 10,000 video customers in the last quarter versus a gain of 20,000 customers a year ago. Company officials blame the complications associated with absorbing millions of acquired customers for the results.

“In 2016 and 2017, we delayed a number of new product launches through the integration, particularly at legacy Charter within our fundamental structured operating model and business rules now in place, we will more aggressively launch new products nationwide,” said Rutledge.

Charter is also spending a considerable amount of its financial resources buying back its stock. During the fourth quarter, Charter accelerated its buyback program repurchasing 13.5 million shares in Charter Holdings stock totaling $4.7 billion at an average price of $347 per share. For all of 2017, Charter bought back $13.2 billion worth of its own stock.

Digital television conversions drag on…

Charter did not restart its digital television conversion program until June of 2017, and 30% of Time Warner Cable and 50% of Bright House Networks customers are still watching analog cable television as a result. Company officials promise digital conversion will be completed nationwide by the end of this year, the first step the company will take to make dramatic broadband speed increases possible.

“Our video products in those markets will improve,” Rutledge said. “Internet speeds will increase further and all-digital will drive more efficient operations in the field including electronic disconnects, self-installation and a reduction of unauthorized connections.”

Among the most significant improvements is the introduction of the Worldbox set-top box, which will be available nationwide by the end of 2018, but generally only to new video customers. The new box runs faster and is less expensive than the traditional set-top box, and better integrates on-demand and streaming video services.

Worldbox will also highlight Spectrum’s new Spectrum Guide, an improved on-screen program guide and content portal. The new guide will also include support for third-party streaming services like Netflix.

Charter has also begun to deploy an improved Wi-Fi router known as Wave 2, which claims to offer faster speeds and better signals throughout a customer’s home. Availability is reportedly spotty, but improving.

Bloomberg: Frontier Preparing to Sell Its Florida, Texas, and California Service Areas

Phillip Dampier February 5, 2018 Consumer News, Frontier 7 Comments

Frontier Communications, mired in $18 billion in debt, is preparing to sell a package of landline assets in California, Texas, and Florida the company acquired just two years ago in a $10.5 billion deal.

A Bloomberg News report indicated the sale is part of an effort to boost available funds and repair a damaged business plan that has left the company with a massive debt load and an ongoing departure of customers unhappy with Frontier’s products and services.

Frontier has posted falling revenue for the last five consecutive quarters and the company has spent much of 2017 attempting to borrow more money and refinance the debt it already has, accumulated in part from its acquisitions of sold-off wireline assets owned by AT&T (Connecticut) and Verizon (multiple states).

Frontier has a poor record of successfully transferring customers to the company’s billing and backend systems, which has often caused service disruptions and billing errors. Bad publicity followed Frontier in Texas, Florida and California where the company acquired 3.7 million new voice lines, 2.2 million broadband customers, and 1.2 million FiOS accounts.

What makes Frontier’s properties in those three states valuable is the widespread availability of fiber-to-the-home service. Potential buyers, including private equity firms and other non-traditional bidders, see a future in providing valuable fiber backhaul connectivity to forthcoming 5G wireless networks, which require fiber connections deep into neighborhoods to connect small cell technology with the provider’s network.

Bloomberg reports the assets are likely to be split up and sold in parts, instead of a single package. That could mean Frontier will sell off each state independently or the split could be based on technology, with fiber assets sold separately from Frontier’s acquired copper wire networks in the three states. Frontier may have trouble finding buyers for legacy copper service areas that have never been upgraded with fiber optic service. Frontier is also increasingly unlikely to upgrade those areas itself.

Comcast Grabs $1,000 from Checking Account of Non-Subscribing North Dakota Resident

Phillip Dampier February 1, 2018 Comcast/Xfinity, Consumer News, Video 6 Comments

Comcast took more than $1,000 out of a West Fargo, N.D., resident’s checking account, despite the fact she isn’t a customer and Comcast doesn’t offer cable service in North Dakota.

Becky Phelps is stuck in limbo after the cable giant took the money and is now dragging its feet refunding it, according to a report by Valley News Live. Customer service has proven itself unhelpful because Phelps cannot produce a Comcast account number she never had.

“They kept asking for an account number and I was like, ‘I don’t have an account with you guys. Why am I being charged?’,” said Phelps. The customer service agent quickly disconnects the call after that, leaving Phelps frustrated and out a lot of money. “That money was set for other bills. It’s made it really tough for us because we’ve had to dig into what savings we have, just to cover those differences.”

Her bank has run into a similar brick wall with Comcast reversing the charge, despite the fact the cable company now willingly admits her debit card information was probably stolen.

Comcast claims it has referred the matter to its fraud team, but little has happened since.

Banks strongly recommend if you see unauthorized purchases on your account, call the bank immediately and initiate a chargeback. Because Phelps’ debit card number was compromised, funds were immediately removed from her checking account. If the purchases appeared on a credit card, a customer service representative could start a chargeback and advise you not to pay the disputed amount. But it gets more complicated with debit cards because Comcast already has Phelps’ money.

Valley News Live reports Comcast stole $1,000 out of her checking account for cable service she does not have in a state Comcast does not serve. (2:44)

Frontier’s Massive 911 Failure Across Florida’s West Coast; Admits It Had No Backup

Phillip Dampier February 1, 2018 Consumer News, Frontier, Public Policy & Gov't, Video 7 Comments

Several Bay Area counties in western Florida were without 911 service for several hours Wednesday after two failures at Frontier Communications left residents without any way to call for help.

There first outage began around midnight and the second started at around 10am Wednesday morning. Both outages took about two hours each to troubleshoot and repair.

Local officials criticized Frontier for service disruptions that had the potential for disaster for residents across the area.

“It’s definitely frustrating, yes,” said Jacob Saur, Manatee County Emergency Communications Center chief. “The main concern is if someone is needing help from first responders and they can’t get that help, then, we have a big problem.”

Frontier’s 911 system is supposed to run over two different networks to provide redundancy in case of an outage. But that didn’t happen. Instead, the company mistakenly connected its two networks together, with no backup workaround.

“For some reason, those two pieces were combined to one network,” said Frontier spokesperson Bob Elek. “So. when that one network was touched or impacted, it took both of them down. It took the service. The problem is a strange one. Honestly, I don’t think I’ve ever seen something like this before unless there was massive network damage. So, it should be an easy one to repair and fix so it doesn’t happen again and we will definitely do it.”

The first outage was traced to routine network maintenance of CenturyLink/Level 3-owned equipment affected by a Florida road project near Clewiston. The second outage occurred because of a fiber cable cut.

Tampa Police Chief Brian Dugan can’t believe Frontier did not have a proper contingency plan in place to deal with critical 911 service.

“There will still have to be some answers on why there was no redundancy, what type of disaster recovery program there was,” Dugan told WTVT in Tampa.

Frontier claims it is moving away from copper wire routing of 911 calls and claims it will route future 911 calls through the internet.

“Using that old technology of copper wire to route 911 calls is going to go away,” said Saur. “So, we are preparing for the future by routing 911 calls through the internet. However, it takes time to get that in place.”

WTVT in Tampa reports Frontier had no backup plan for Wednesday’s 911 outage that interrupted service in multiple counties. (2:55)

What New York Counties Will Get State-Subsidized Fiber Broadband from Verizon?

Phillip Dampier February 1, 2018 Broadband Speed, Consumer News, Public Policy & Gov't, Rural Broadband, Verizon Comments Off on What New York Counties Will Get State-Subsidized Fiber Broadband from Verizon?

New York’s Broadband for All Program yesterday announced the third and final round of grant winners to expand rural internet access across the state.

Verizon Communications was the top grant recipient, winning a total of $106,642,787 in combined state, federal, and private dollars to expand internet access to 15,515 residential homes, businesses, and institutions primarily in the Capital Region, Central New York, and the North Country.

Stop the Cap! has learned these funds will be spent on fiber internet expansion, which could mean direct fiber to the home (FTTH) connections or a combination of fiber and existing copper telephone wiring (FTTN). To meet the state’s requirements, Verizon will likely have to use optical fiber as much as possible, although some advanced forms of DSL are capable of meeting minimum speed requirements.

But where exactly will Verizon start building out its network? The state’s grant program includes census block data on the exact areas where Verizon will commence upgrades or bring internet service for the first time.

By far the biggest winner of Verizon upgrades is New York’s North Country where over 1,000 Census Blocks will be wired for service.

Here is a general breakdown on where Verizon will begin working on rural broadband expansion:

Capital Region

  • 78 Census Blocks in Rensselaer County
  • 59 Census Blocks in Schenectady County
  • 132 Census Blocks in Washington County

Central New York Region

  • 196 Census Blocks in Cayuga County
  • 47 Census Blocks in Cortland County
  • 5 Census Blocks in Onondaga County

Mohawk Valley Region

  • 1 Census Block in Montgomery County

North Country Region

  • 686 Census Blocks in Clinton County
  • 203 Census Blocks in Jefferson County
  • 279 Census Blocks in St. Lawrence County

Southern Tier Region

  • 5 Census Blocks in Tompkins County

We are not well-schooled on mapping applications or integrating the data into a searchable tool or larger map (if you can, we’d love to hear from you). So for now, readers will have to search the database manually. Here are two ways to search:

Identify your Census Block ID and see if broadband improvements are coming to your area

  1. Visit this website and enter your street address.
  2. From the resulting list, click the  icon adjacent to the “Block” Geography Type, which will bring up a pop-up table containing additional information.
  3. Find the “Code” line which will show a long number like this: 1000000US300500197056002. If you Copy everything to the right of “US”, in this example 300500197056002, that represents your Census Block ID. Omit everything else (including the ‘US’).
  4. You can compare your Census Block ID number with the master list (click to download – .xlsx spreadsheet format) of New York’s third round census block winners. Just use the Search function and enter your Census Block ID number. If it matches with anything in that spreadsheet, your address is almost certainly to be serviced by Verizon (or another telecom company, as specified in the spreadsheet.)

To view coverage maps of winning Census Block IDs

  1. Download the master list (click to download – .xlsx spreadsheet format) of New York’s third round census block winners.
  2. Copy any Census Block ID listed, visit Melissa Data and paste the ID into the search box.
  3. A map of the Census Block will appear. Not all Census Blocks have homes or businesses within them and will appear undeveloped. In many cases, this means a grant winner is being given funds to develop their network to pass through one Census Block to reach other areas nearby where customers live and work.

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