Viacom, which owns cable networks including Comedy Central, Nickelodeon, MTV, BET, and TV Land, will launch a cheap non-sports bundle of entertainment cable networks viewable online for $10-20 a month this year.

Viacom has lost basic cable viewers at an accelerating rate as cable operators drop their networks or repackage them in more expensive basic tiers as Viacom raises wholesale rates cable companies pay to carry the channels.

Viacom CEO Bob Bakish talked about the new service this morning at the J.P. Morgan Global Technology, Media and Telecom Conference in Boston. Bakish said most of the current “skinny cable TV” bundles were priced at around $40 a month, which is too expensive to attract “cord-never millennials” that frequently don’t subscribe to cable television.

“The transformational opportunity is to bring in a new entry segment at a much lower price point,” Bakish said. The cable industry needs “a path to bring in someone who wants high-quality entertainment” but has no interest in expensive sports networks.

That is why Bakish wants to create a cheap entertainment-oriented bundle of networks that omits sports-related channels. But Bakish has also repeatedly stressed he has no intention of giving consumers a comprehensive online alternative to traditional cable TV, telling investors Viacom is “not creating inexpensive opportunities to serve as an alternative.”

Bloomberg News reported Viacom was talking to Discovery and AMC Networks about participating in the new service. The only complication may be a backlash from sports programmers like Walt Disney’s ESPN and 21st Century Fox, Inc., which have contracts requiring providers to include the sports networks in their most popular bundles. Some contracts even limit how many customers are permitted to sign up for a sports-free TV package, according to Michael Nathanson, an analyst at MoffettNathanson LLC.

“It’s meant to dissuade distributors from doing something like this,” Nathanson told Bloomberg. “The issue is how many subscribers they can have before the legal questions appear.”

Bakish may also be trying to remind cable and satellite companies that Viacom can always go direct-to-consumers if operators banish Viacom’s networks off the cable dial or move them to a more expensive tier, although there is no guarantee the new service will bundle all of Viacom’s networks.

Viacom has seen its relationships with cable and satellite providers deteriorate over the last few years under prior management. Some smaller cable companies including Cable One dropped Viacom channels from their cable systems over cost issues in 2014, and many more subscribers have seen Viacom networks temporarily dropped as a result of contract renewal disputes. Bakish has made repairing relations with cable and satellite customers a priority since taking over as CEO in December, but he still has a way to go.

Recently, Charter Communications moved Viacom networks out of its Select basic cable TV package and moved them to its most expensive Gold package for new customers. With only a minority of customers signed up for Gold service, Viacom networks could eventually lose millions of viewers as Time Warner Cable and Bright House customers adopt Spectrum packages in the next few years. If those customers do not subscribe to Gold or refuse to pay extra for a “digipak” of Gold’s basic channels without the premium networks, they will lose access to Viacom channels when they change TV plans.

That issue also concerns Wall Street analysts who believe it could eventually erode Viacom’s viewer base. Bakish made certain to tell investors Viacom was not surrendering to Charter’s “re-tiering.”

“We firmly don’t believe they have the rights to do that,” Bakish said. “We’ve been in discussions with them. We’ve got to get that resolved.”

If it is resolved, those networks may again be available to Select TV customers.

Viacom, AMC, and Discovery are partnering up to offer a $10-20 entertainment-only package on streaming basic cable networks for consumers, as this Bloomberg News story reports. (2:58)

Charter Communications this afternoon submitted its annual update to the New York Public Service Commission, a condition of its approved merger with Time Warner Cable.

The cable company argues the merger has already delivered substantial pro-consumer benefits, including faster internet speeds, a low-income broadband program, no loss of New York jobs, and more upgrades to come.

Some highlights for customers in New York State:

All-Digital Conversion

• The handful of Charter legacy cable systems in New York have already been converted to all-digital service.
• Former Time Warner Cable systems in New York City, Syracuse, and the Hudson Valley are now all-digital.
• Albany will be converted to all-digital service in late 2017.
• Rochester and Buffalo will be converted to all-digital service in early 2018.

Broadband Speed Upgrades

• As of March 14, 2017 all Charter customers in New York can subscribe to at least 100Mbps service. ($105/mo, $199 setup fee)
• Charter has been actively rebuilding its Chatham system in Columbia and Rensselaer counties to provide broadband service. Project completion dates: In Rensselaer County, Berlin and Petersburgh expected to be done by the end of the third quarter 2017. In Columbia County, construction is scheduled to begin in May 2017, with a target completion date set for the end of first quarter 2018.

Cable Expansion

Since the last build-out update was filed on February 17, 2017, Charter has completed build-out to an additional 5,039 passings and has now completed build-out to a total of 15,164 passings across 56 counties and approximately 1,018 municipalities. Major areas of completed passings include, but are not limited to, the following:

• Albany County for approximately 1,330 passings, including the Village of Menands, Towns of Colonie, Cohoes, Bethlehem, Voorheesville, Selkirk, and New Scotland, and the City of Albany.
• Broome County for approximately 151 passings, including areas such as the Barker, Binghamton, Conklin, Endicott, Lisle, Marathon, Vestal, and Whitney Point.
• Cortland County for approximately 154 passings, including areas such as the Towns of Cincinnatus, Cortland, Cortlandville, Homer, Virgil, and Truxton.
• Erie County for approximately 2,029 passings, including areas such as the Towns of Amherst, Boston, Clarence, Colden, East Concord, Depew, Grand Island, Holland, Orchard Park, Derby, Lancaster, Eden, Springville, Williamsville, West Seneca, and the City of Buffalo.
• Genesee County for approximately 157 passings, including areas such as the Towns of Batavia, Elba, and Alexander.
• Kings County for approximately 390 passings in Brooklyn.
• Livingston County for approximately 196 passings, including areas such as the Towns of Honeoye Falls and Dansville.
• Monroe County for approximately 1,797 passings, including areas such as the City of Rochester, Town of Perinton, Greece, Penfield, North Chili, Webster, Pittsford, Ontario, Spencerport, and Gates.
• New York County for approximately 575 passings in the City of New York.
• Niagara County for approximately 297 passings, including areas such as the Towns of Cambria, Lockport, Lewiston, Niagara Falls, Newfane, North Tonawanda, Sanborn, Pendleton, Youngstown, and Wilson.
• Oneida County for approximately 221 passings, including areas such as the Towns of Utica, Rome, Clinton, Camden, Cassville, and Marcy.
• Onondaga County for approximately 787 passings, including areas such as the City of Syracuse, Village of Camillus, and Towns of Cicero, Baldwinsville, Liverpool, Chittenago, Clay, Homer, Manlius, and Marcellus.
• Ontario County for approximately 442 passings, including areas such as the Towns of Clifton Springs, Canandaigua, Phelps, and Victor.
• Orange County for approximately 429 passings, including areas such as the Towns of New Windsor, Middletown, Salisbury Mills, Montgomery, Goshen and Woodbourne.
• Oswego County for approximately 146 passings, including areas such as the Towns of Pulaski, Fulton, Parish, Albion, Altmar, Camden, and Central Square.
• Rensselaer County for approximately 376 passings, including areas such as the Towns of Castleton on Hudson, Cropseyville, Brunswick, Hoosick Falls, Nassau, Johnsonville, Sand Lake, East Greenbush, and Wyantskill, the City of Rensselaer, and the City of Troy.
• Saratoga County for approximately 1,854 passings, including the Towns of Milton, Stillwater, Clifton Park, Ballston Lake, Ballston Spa, Halfmoon, Round Lake, Mechanicville, Malta, Waterford, and Wilton, and the City of Saratoga Springs.
• Schenectady County for approximately 218 passings, including areas such as the Village of Delanson, Towns of Esperance, Niskayuna, Duanesburg, Glenville, and Rotterdam, and Burnt Hills, and the City of Schenectady.
• Schoharie County for approximately 106 passings, including areas such as the Towns of Middleburgh, Cobleskill, Jefferson, and Schoharie.
• St. Lawrence County for approximately 171 passings, including areas such as the Towns of Canton, Massena, Potsdam, and Gouverneur.
• Sullivan County for approximately 639 passings, including the Towns of Fallsburg, Liberty, Monticello, Victor, Thompson, Loch Sheldrake, Swan Lake, Bethel, and White Lake, and the Villages of Woodridge and Wurtsboro.
• Tompkins County for approximately 303 passings, including areas such as the Towns of Ithaca, Slaterville Springs, Groton, and Newfield, and the City of Ithaca.
• Ulster County for approximately 537 passings, including the Towns of Accord, Hurly, Rochester, Ulster, Kerhonkson, New Paltz, Greenfield Park, Woodstock, and Saugerties, and the City of Kingston.
• Warren County for approximately 107 passings, including areas such as the Towns of Lake George, Warrensburg, Queensbury, and Glens Falls.
• Wayne County for approximately 192 passings, including the Towns of Palmyra, Ontario, Macedon, Walworth, Newark, Sodus, and Williamson.

Ed. Note: Nothing precludes Charter from including new housing developments and similar projects in these numbers where it would have provided service regardless of the Order from the PSC.

The Availability of Time Warner Cable’s Unrestricted $14.99 Everyday Low Price Internet Tier

Charter has continued to offer new subscribers in TWC’s New York territory the TWC standalone Everyday Low Price $14.99 broadband service, at speeds no less than those being offered at the time of the merger order, and will continue to offer this to new subscribers for up to two years after close (until May 17, 2018). Any customer is qualified to subscribe to this service, which provides around 2Mbps of internet speed.

Ed. Note: This service is not advertised or mentioned in any way on Charter/TWC’s marketing website and many Stop the Cap! readers in New York have told us Charter sales representatives have repeatedly told them the service is not available, so this claim is in dispute.

Existing customers with the Everyday Low Price tier at the time of closing will be allowed to retain this product for a minimum of three years, which the Commission has set to “run concurrently with the two-year period in which Charter must continue to offer the service to new customers.” New subscribers will be able to retain the product until at least May 17, 2019.

$14.99 Low Income Broadband Service “Spectrum Internet Assist”

First available in the Plattsburgh area in November, 2016, Spectrum Internet Assist has now expanded to former Time Warner Cable territories in New York.

For $14.99 a month, qualified customers get 30/4Mbps broadband service. Wi-Fi service is available for an extra $5 a month. Customers must qualify for at least one of these low-income benefit programs:

• The National School Lunch Program (NSLP); free or reduced cost lunch
• The Community Eligibility Provision (CEP) of the NSLP
• Supplemental Security Income (SSI) ( ≥ age 65 only)

(Programs that do not qualify include: Social Security Disability (SSD), Social Security Disability Insurance (SSDI), and Social Security Retirement and Survivor Benefits are different from Supplemental Security Income (SSI) and do NOT meet eligibility requirements.)

Improved Customer Service

Charter is required to invest a minimum of $50 million in service improvement programs for the specific benefit of New York operations.

A former Time Warner Cable call center.

Much of this money was apparently spent on a new national Spanish language call center based outside of New York.

A large proportion of the rest of Charter’s investment was spent on changing signs on Time Warner Cable stores and rebranding them as Spectrum, deploying new self-service apps and services Charter would have released on its own regardless of this requirement to reduce expensive customer service contacts, and moving towards customer self-install kits instead of sending out a cable technician to cut Charter’s own costs.

Charter has already spent money on rebranding its service trucks and buying more of them to not send to your house if they can avoid it.

Charter also reported it will spend a portion of that mandatory investment on opening a new Charter Cable Store in Washington Heights, in a “culturally diverse neighborhood in the northern portion of the New York City borough of Manhattan.” Almost all the staff will be bi-lingual.

And to deal with the long lines at Charter’s cable stores, an upgraded queuing system will be bought to allow customers to check-in to “a virtual line.”

Next year, it will spend money on a new on-screen cable guide.

Reducing Customer Complaints

Now more than ever, dissatisfied former Time Warner Cable customers can have a major impact on Charter’s ability to achieve a real reduction in the number of complaints filed by New Yorkers with the PSC. Charter is required to show a 17.5% reduction in complaints over 2014 numbers and a 35% reduction by 2020.

All Charter can report for now is that “the company is making major investments in various customer service initiatives which may have a positive impact on these complaint rates in the future.”

If you are unhappy with your service, filing a PSC complaint may get much greater attention than ever before because it threatens Charter’s ability to meet the terms of its agreement with the state, and could get the company fined.

Data Caps

While former FCC Chairman Thomas Wheeler managed to get up to a seven-year commitment from Charter not to impose data caps on residential customers, Charter has deleted that reference in its annual update to New York regulators, perhaps with the assumption current FCC Chairman Ajit Pai can be relied on to eventually eliminate that pro-consumer benefit of the transaction.

For New Yorkers, Charter will only guarantee it will not introduce data caps on its broadband service for the next three years, ending May 17, 2019. In other states, should the FCC eliminate the data cap ban included in Charter’s merger agreement, the company can apply data caps immediately.

Who you voted for in the last presidential election could make all the difference between having data caps and not having data caps in 2020.

Charter Communications customers that fall past-due on their cable bills can expect a personal visit from a contractor looking for payment or your cable equipment if you refuse to pay and get disconnected.

Spectrum’s designated “door collector” in several states is Makotek, which claimed in a Craigslist ad recruiting new workers that it “is contracted by Spectrum to handle non-pay work orders for their entire New York footprint. We are now hiring for our office in all areas in Central N.Y.”

While its recruiting and training videos emphasize its workers should be polite and professional, the firm prominently displays a shark in its logo.

“Door collectors” are usually sent by cable operators after service is disconnected from the office for non-payment. Their mission is to collect past-due payments anyway possible, even if it takes a post-dated check. A training video emphasizes the psychology employed by door collectors to get paid or retrieve the company’s equipment from customers who won’t or can’t bring their account current.

Employees are advised to park their truck near a utility pole to send an impression permanent service disconnection is imminent. They are also advised to repeatedly return to a customer’s home to find someone authorized to cut them a check or make a credit card payment. The training video details how to respond to the myriad of excuses customers can give for not paying, and what to do when a customer becomes irate. At all times, employees are told to stay focused on one thing: payment in full.

Makotek is not the only door collector employed by the cable industry. Boxco manages door collections for Comcast and its help wanted ad suggests the caliber of candidates it apparently attracts:

REQUIREMENTS- If you have worked Comcast, you know the drill. ** Excellent Verbal Communication skills – SPANISH SPEAKING is a plus! **Weekdays til 9pm and Saturday work hours ** NO FELONY or Aggravated Misdemeanor Conviction in past 10 Years ** Pass yearly or on demand Drug Screen ** YOU WILL NOT ENTER ANY HOME WITHOUT AN ADULT PRESENT ** Clean Cut Appearance with friendly attitude. ** Presentable Car or Late Model Truck/Van in good running condition ** Active Cell Phone-(with Text Messaging)

Here is how Makotek trains its workers to rescue past-due cable accounts. Take away message: They have already heard every excuse. (18:03)

Just days before the finalizing of the acquisition of Time Warner Cable by Charter Communications, customers in Central New York were a week away from the completion of Time Warner Cable’s Maxx upgrade program targeting Syracuse and other communities in the region. But once Charter took over, all upgrades were put on hold, leaving some customers with Maxx speeds of 300Mbps while others languished with top speeds of 50Mbps.

Good news for those customers, at least. In a communication with the New York State Public Service Commission, Charter told regulators it intends to focus its efforts on completing those upgrades over the course of 2017. In fact, it will likely be the only region of New York targeted for speed upgrades of up to 300Mbps this year. For other upstate cities including Buffalo, Rochester, and Binghamton, Charter has upgraded its top speed to 100Mbps for those willing to pay approximately $105 a month and a one-time upgrade fee of $199.

Sometime this year, those New York communities still not able to buy 300Mbps will commence a full transition to all digital and encrypted cable television service, a prerequisite for the faster broadband speeds. Charter has a deadline of 2019 to introduce up to 300Mbps service across all areas it services in New York State. The company seems to hint it will achieve that well before the deadline, which likely means sometime in 2018.

In February, the cable company also reported it had completed building out new service to an additional 2,860 homes across 49 counties and approximately 250 municipalities. But the company is committed to expanding service to approximately 145,000 New York households, which means it has a long way to go. This week, Charter formally applied for an extension of the deadline, blaming utility pole owners for taking too long to “make-ready” utility poles for cable service and admitting it will fall short of regulator expectations.

The areas where Charter has most recently managed to complete expanded service areas include:

• Albany County for approximately 281 passings, including the Village of Menands, Towns of Colonie, Bethlehem, and New Scotland, and the City of Albany.
• Erie County for approximately 336 passings, including areas such as the Towns of Amherst, Boston, Orchard Park, Derby, and the City of Buffalo.
• Kings County for approximately 285 passings in Brooklyn.
• New York County for approximately 553 passings in the City of New York.
• Saratoga County for approximately 373 passings, including the Towns of Milton, Northumberland, Stillwater, Clifton Park, Ballston Lake, Halfmoon, and Wilton, and the City of Saratoga Springs.
• Sullivan County for approximately 84 passings, including the Towns of Fallsburg, Liberty, Victor, Thompson, and the Village of Woodridge.
• Ulster County for approximately 143 passings, including the Towns of Rochester, Ulster, and Saugerties, and the City of Kingston.
• Wayne County for approximately 78 passings, including the Towns of Macedon, Walworth, Newark, and Williamson.

AT&T has spent the last several years laying the foundation to pull the plug on its wired legacy landline service.

In preparation for a transition away from Plain Old Telephone Service (POTS), AT&T is notifying customers of a change to the residential service agreement governing home phone service. The company has added a new section entitled “Network Changes” that gives AT&T the right to temporarily suspend landline service to replace it either with AT&T’s U-verse “Voice over IP” service which may also be called as VoIP Phone Systems, or a wireless home phone alternative. The agreement requires customers to accept the transition, allow technicians to enter the customer’s home to install new equipment, and permits AT&T to use the customer’s electricity to power that equipment. If a customer refuses to grant entry, AT&T can permanently disconnect your landline phone service without recourse.

Similar contract language was introduced in other areas where wireless home phone equipment was intended to replace traditional landline service in areas where a local phone company chose not to repair or upgrade its facilities. AT&T intends to enforce the agreement in areas where it serves as the local landline phone company.

d. Network Changes.

AT&T reserves the right at any time to temporarily suspend or interrupt Services to make necessary changes in how we provide Services to your premises. We will provide advance notice of these network changes to the extent required by this Agreement, applicable law, and regulation. In some cases, such changes in how we provide Services may require a technician to be dispatched to your home to install new network equipment at your premises and transfer your service to the new network equipment in order to ensure you continue to receive such Services. The network equipment we install at your home may require the use of your electrical power for the operation of our facilities. Where a technician visit is required, if you do not allow AT&T to install the new network equipment at your premises, your telephone service may be disconnected in compliance with subsection (b) above.

(Image courtesy: “Ramsaso” of Houston, Tex.)