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Patrick Drahi’s “Public Interest” Flim-Flam: CWA Opposes Altice-Cablevision Merger

3634flimThe Communications Workers of America today filed comments with the Federal Communications Commission opposing the proposed sale of Cablevision to Patrick Drahi’s Altice NV, arguing the claimed public interest benefits are illusory.

The CWA, which represents some of Cablevision’s workers in Brooklyn, took a hard look at Altice’s merger proposal and the $8.6 billion in debt Altice will take on to close the deal and called it dangerous, resulting in “considerable harm with no offsetting concrete, verifiable benefits for consumers, workers, and communities.”

“Altice’s track record in France and Portugal clearly shows the danger this deal poses to Cablevision’s customers and employees,” said Dennis Trainor, vice president of Communications Workers of America District 1. “Altice takes on too much debt, outsources as much work as possible and then downsizes its workforce. Customers get worse service and employees lose their job. Unless Altice makes commitments to protect customer service and Cablevision employees, the FCC should reject this deal.”

The CWA is also concerned about the disparity between what Altice is telling regulators and what the company is saying to Wall Street.

Altice’s Public Interest Statement, which outlines the benefits to the public of the proposed transaction, stands out for its lack of specificity. In fact, the application’s only concrete commitments are vague promises to bring Altice’s “expertise” and access to capital for Cablevision’s use. Altice also promises to upgrade Cablevision’s IT systems, including customer care, service, and billing systems, and alluded it would expand Cablevision’s fiber optics deeper into its network, but comes short of promising a direct fiber to the home connection. In fact, the only promised benefit of pushing fiber further out would be “the removal or reduction from the network of coaxial RF amplifiers, which consume substantial electricity and can be the cause of difficult-to-detect service outages (RF amplifier failures).”

“Deeper fiber deployment would enable Cablevision to reduce its power costs and to further improve network reliability, resulting, in turn, in a greater ability to invest further in the network and improved service delivery to subscribers,” Altice dubiously claimed.

cwa_logoMany of Altice’s claims appeared “disingenuous and misleading” to the CWA. From the CWA’s filing:

To finance its $17.7 billion acquisition of Cablevision, Altice is taking on $8.6 billion in new debt, which when added to Cablevision’s already heavy debt load of $5.9 billion, will leave the new Cablevision with a total net debt of $14.5 billion.  Given the high cost of the new debt financing, the annual interest payments needed to finance the $8.6 billion in new debt amount to $654 million on top of Cablevision’s current interest payments of $559 million for a total of $1.2 billion in annual interest payments at the new Cablevision, representing a full 112 percent increase in Cablevision debt. The new interest payment ($654 million) plus Altice’s announced $ 1.05 billion in cuts means that the new Cablevision will have $1.7 billion less cash available to spend on the network and service.

“Altice’s business model, the one that it has used to fuel its explosive global growth, requires the acquired company – in this instance, Cablevision — to finance its own acquisition and to provide cash to the parent for future acquisitions,” the CWA argues. “Altice chief financial officer Dennis Okhuijsen explained the capital structure of post-transaction Cablevision: ‘[W]e’re not going to lever up the existing business. This is a stand-alone capital structure, so we’re levering up the target for Cablevision….’”

altice debtTranslation: Cablevision alone is responsible for the debt Altice raised to pay for Cablevision. Or, as Altice explained to investors in its third quarter 2015 earnings report, the parent company operates its various subsidiaries as “distinct credit silos in Europe and the U.S.”

Altice CEO Patrick Drahi’s business formula is always the same. To raise money to help offset the mountain of debt dumped on the acquired company, Altice’s designated managers helicopter in to the acquired company to begin slashing expenses and find money it can send to Altice headquarters to help fill its coffers to acquire even more companies. French telecom giant Numericable-SFR, while on the road to losing one million customers in just one year, was preoccupied borrowing nearly $2 billion, not to improve the company’s service, but rather to pay Altice a special dividend to help pay down the huge amount of debt Altice incurred when it bought the 60 percent stake in the French mobile and cable company it did not already own.

To keep Altice afloat, Drahi’s business strategy requires a steady supply of company acquisitions to deliver the increased cash flows Altice needs to finance its debt. The CWA warned regulators Altice may require Cablevision to spend its cash flow to help Drahi acquire other companies in the future, further reducing the amount of money Cablevision needs to attract and keep subscribers.

To make the deal a long term success, Altice-Cablevision will either have to cut its return to shareholders, raise its prices, and/or slash expenses and jobs. Past experience with Altice shows shareholders come first, which means company management will likely preside over a harvest of Cablevision’s assets to meet the expectations of Wall Street banks and investors. Customers will feel the cuts from the reduction in service and slowed investments and upgrades.

At the same time Altice was promising the FCC it would continue Cablevision’s “first in class” level of service, the company was telling Wall Street it was planning cuts to the bone. Among Altice’s already-proposed cuts for Cablevision:

  • Capital expense: $150 million cut
  • Network and Operations: $ 315 million cut
  • Customer operations: $135 million cut
  • Sales and marketing: $45 million cut
  • Eliminate duplicative functions and “public company” costs: $135 million cut
  • Other unspecified cuts: $135 million cuts.

dilbert-budget-cuts

The impact of these cuts shift costs onto others, argues the CWA, including making the acquired firm pay for its own demise, making the workforce pay through job loss and reduced compensation, making customers pay through deteriorating service, and making suppliers become Drahi’s bankers by delaying payments.

The CWA says customers will also pay for the privilege of getting declining service.

“In Israel, the cable provider Hot Telecommunications has raised prices multiple times since it was bought by Altice, including a cable rate increase of 20 percent in 2014 and the attempt to raise prices again this year,” the CWA argues. “The top Israeli cable regulator called the price hike ‘greed for its own sake’ which was not justified based on the company’s profit margins.”

In the United States, nobody oversees cable pricing.

“In summary, the experience in France, Portugal, Israel, and elsewhere provides concrete evidence that the Altice business model – one that it plans to replicate with its Cablevision acquisition – does not serve the public interest,” concludes the CWA. “Making an acquired company pay off massive debt load with service-impacting cost cutting has serious and negative consequences for customers, suppliers, communities, and workers. The lesson from France is clear: cutting to the bone leads to massive customer defection. It is not a business model that will benefit the people of New York, Connecticut, and New Jersey.”

Get Your Service Credit for Time Warner Cable’s Latest Outage(s)

Phillip Dampier December 7, 2015 Consumer News 2 Comments

twcTime Warner Cable customers should not have to pay for service when an outage makes it unavailable, but like most cable and phone companies you will not get a service credit without asking.

Stop the Cap! decided to test Time Warner Cable’s responsiveness to a request for two recent outages — one widespread and one local:

Cyber Monday Slowdown: Although Time Warner Cable claimed an outage on Nov. 30 only affected a few thousand customers, evidence from websites like Down Detector found the cable operator’s broadband service slowing to a crawl early Monday morning after midnight eastern time, eventually failing completely for some overnight. Problems multiplied on Monday afternoon in the midwest, particularly in states like Ohio and Kentucky where Internet service was disrupted on one of the busiest online shopping days of the year.

Western NY Football Sunday Fadeout: In western New York, Time Warner Cable’s service collapsed right in the middle of Sunday’s Buffalo Bills game against the Houston Texans. Messing with a televised football game approaches a criminal offense in many communities across the country, and angry fans burned up Time Warner’s phone lines with complaints about the service outage, which took out television service for about an hour, particularly in Rochester.

Neither interruption will result in automatic rebates to affected customers. Instead, Time Warner will grant a service credit of one day of service for each reported outage when customers ask.

The quickest way we found to snare credits (which turned out to amount to $8.16 for us — hardly an insignificant amount) was to use Time Warner’s online chat system.

Here’s how:

  1. Login to your account at: https://myservices.timewarnercable.com/
  2. Look for the Chat button on the right side of your screen and select it
  3. What we wrote: “We are writing to request service credits for the service outages on Nov. 30 and Dec. 6.”
  4. What they wrote: “I have applied credit on your account for two days of $8.16. It will be reflected in your next bill.”

The entire process from start to finish took just over five minutes.

Arizona Voters Put Cable Lobbyist in Charge of Telecom Oversight Agency; Scandal Ensues

Susan Bitter Smith

Susan Bitter Smith

To say Susan Bitter Smith is beholden to Arizona’s cable industry would be an understatement.

In addition to purportedly representing the citizens of Arizona on regulated utility matters, Bitter Smith is one of the state’s most powerful cable industry lobbyists, earning a salary that consumes 40 percent of the annual budget of the Southwest Cable Communications Association, which represents most cable operators in Arizona, New Mexico, and Nevada.

Despite clear ties to the telecommunications industry Bitter Smith has no intention of ending, in 2012 she ran for the chair of the Arizona Corporation Commission (ACC) — the state body that oversees and regulates phone, cable, and power utilities. Unlike many other states that appoint commissioners, Arizona voters elect them to office. Giving voters a direct election is written into the state constitution, and was designed to limit potential corporate influence and favoritism. Unfortunately for voters, the 2012 election cycle preoccupied by a presidential race and a rare open Senate seat left the mainstream media little time or interest exploring the backgrounds of candidates for the telecom regulator.

Bitter Smith never exactly hid her business relationship with Arizona’s largest cable companies, notably Cox Communications, the cable operator that dominates Phoenix. But she routinely downplayed the obvious conflict of interest, claiming the ACC dealt with regulated utilities, and cable companies were mostly deregulated. The Arizona Republic offered few insights into Bitter Smith’s background, failing to disclose her lobbying connections in their voter recommendations. Instead, the newspaper wrote a single sentence about Bitter Smith’s campaign in its editorial endorsements for the 2012 election: “Bitter Smith enjoys a great reputation as a strong-willed partisan, which seems a difficult fit for the Corporation Commission, at least as compared with the competition.”

bitter smith campaignPartisanship was exactly what a lot of voters apparently wanted, however, because the vote swung decidedly Republican in large parts of Arizona in the 2012 election. The turnout in Maricopa County, the largest in Arizona, was strongly anti-Obama and voters seemed content voting the party line down the ballot. Incumbents like Democrat Paul Newman did not exactly win an endorsement from the Republic either. The newspaper called him a “fierce and provocative partisan.”

“It is difficult to fathom work getting done at the commission with a microphone anywhere within Newman’s reach,” the newspaper added. The other Democratic incumbent, Susan Kennedy, was dismissed as an on-the-job trainee by the newspaper.

Broadband Issues Overshadowed by Arizona’s Solar Energy Debate

For most in Arizona, the 2012 election at the ACC was much more about energy issues than high cable bills and dreadful broadband. That year, investment in solar energy was the hot topic and it made the election of business-friendly candidates a high priority for the existing power-generating utilities and their friends at the American Legislative Exchange Council (ALEC). Both could claim a major victory if a state ready-made for solar renewable energy turned its back for the sake of incumbent fossil fuel power generators.

alec-logo-smBitter Smith was never a member of ALEC, not having been a state legislator, but many of her fellow Republicans serving on the ACC were, and some were not shy claiming the Obama Administration’s pro-solar energy policies were “reckless and dangerous.” ALEC and utility companies oppose requirements that mandate the purchase of excess power generated from solar and wind customers at market rates and also want to introduce surcharges for customers relying on solar energy. Their fear: if a large percentage of sun-rich Arizonans installed solar panels, revenue for the investor-owned utilities could plummet.

Against that backdrop, Bitter Smith’s close relationship with Cox Cable went unnoticed while the media focused their attention on incumbent Republican commissioner Bob Stump – dubbed by some “Trash Burner Bob” for successfully pushing approval of a permit for a 13 megawatt trash burning plant in West Phoenix. Despite a reputation for pollution, Stump sold trash burning as a better renewable energy source for Arizona than solar energy. Waste hauling companies were delighted. The campaign met with less opposition than some expected, in part because anonymous voting guides turned up conflating solar panels as fire hazards that were difficult to extinguish, exposed users to dangerous chemicals, and constituted a hazard to firefighters whose ‘neurons may be blocked‘ when they approached solar panel fires, allegedly caused by electricity inside the panel.

Trash Burning Bob Stump

“Trash Burner Bob” Stump

Newcomer Robert Burns also won his election to the ACC that same year. His time at the Commission has also been rocky. This year, he faces an ethics complaint for remaining a registered lobbyist with the Arizona Telecommunications and Information Council, a group funded by the state’s largest telecom companies. After the complaint was filed, Burns claimed it was all a mistake. He later asked the group’s attorney to send a letter to the Arizona Secretary of State’s office requesting his lobbying connection be removed.

Some critics of the Commission have tolerated Burns’ alleged ethical lapse because he has demonstrated some independence from the energy companies he helps oversee.

Burns has argued the Arizona Public Service Company (APS) – a large investor-owned utility – must disclose how much it spent in campaign contributions and lobbying efforts to get its preferred candidates elected to the Corporation Commission. His demand for disclosure comes at the same time his fellow commissioner Stump is being investigated for exchanging text messages with APS officials during the 2014 election. Critics suggest he may have been illegally coordinating the campaigns of two of his closest allies — Tommy Forese and Doug Little. Both won seats on the ACC that year and have maintained a strong alliance with Stump, much to the chagrin of good government bloggers, who frequently refer to all three collectively as “Tommy Little Stump.”

Steve Muratore, editor of the Arizona Eagletarian, calls all three “shameless,” as they tirelessly fight to stop any investigation that could force open APS’ books to reveal what money, if any, was spent to help get both into office.

Utility giant APS will approach the Arizona Corporation Commission to win a 400% rate hike on special fees for solar panel users.

Utility giant APS will approach the Arizona Corporation Commission to win a 400% rate hike on special fees for solar panel users.

Forese claims the regulator has no business examining APS’ books.

“Commissioners attempting to influence elections in their official capacity through this relationship [as a result of their constitutional authority] would exceed the bounds of their constitutional mandate over public service corporations,” Forese argues.

While the political soap operas play out, in 2013, APA delivered its first Commission-approved blow against solar power, winning permission to apply a surcharge averaging $5 a month for using solar panels to generate electricity. APC successfully argued solar customers cheat other utility ratepayers by not contributing enough to the utility’s fixed costs.

This year, APC is seeking a 400%+ rate increase, proposing a surcharge averaging $21 a month for using solar panels. Customers served by the Salt River Project in Tempe faced even more onerous charges from that utility — a $50 a month fee for using solar panels. The new fees have effectively stopped residential solar power expansion in that utility’s territory, with the approval of ACC commissioners.

Flying Under the Radar

In the context of these other controversies, Bitter Smith’s own apparent conflicts of interest have largely flown under the radar from 2012 until earlier this year. Federal cable deregulation laws limit the Arizona regulator’s oversight of cable companies like Cox, Cable One, and Comcast. That has given Bitter Smith a defense for serving as both a lobbyist and a regulator. Corporation-Commission-signShe claims she only lobbies for the cable television and broadband services sold by cable companies like Cox Communications and abstains from consideration of cases such as those involving Cox’s digital phone service, which is still subject to some regulatory scrutiny. Bitter Smith also claims it is easy to tell where the ethical line falls because companies like Cox run different aspects of its business under a variety of affiliated subsidiaries.

Arizona Attorney General Mark Brnovich was not impressed with that explanation and last week filed a Petition for Special Action to remove Bitter Smith from office for violating the state’s conflict of interest statute.

“Arizonans deserve fair and impartial regulators,” said Brnovich. “We filed this case to protect the integrity of the Commission and to restore the faith of Arizona voters in the electoral process. Arizona law clearly prohibits a Commissioner from receiving substantial compensation from companies regulated by the Commission.”

On Sept. 2, the Attorney General’s Office (AGO) launched an investigation into Bitter Smith after receiving a formal complaint against her. The AGO investigation found Bitter Smith receives over $150,000 per year for her trade association work, on top of her $79,500 salary as a Commissioner.  Arizona State Statute 40-101 prohibits Commissioners from being employed by or holding an official relationship to companies regulated by the Commission. The law also prohibits Commissioners from having a financial interest in regulated companies. Section 40-101 promotes ethics in government and prevents conflicts of interest.

“This isn’t one of these instances where this was maybe somebody skating too close to a line, or maybe somebody that had gone into a grey area. I think the law is very clear on this case,” Brnovich said.

KJZZ in Phoenix began raising questions about Bitter Smith’s apparent conflicts of interest last summer and carried this special report on Aug. 24, 2015. (7:18)

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

Bitter Smith’s Shadowy and Scrubbed “PR Firm”

More troubling for Bitter Smith’s case is the “public affairs firm” Technical Solutions, jointly run by Bitter Smith and her husband. A careful scrubbing of the firm’s website “disappeared” the detailed description of the firm’s lobbying services, which counted Bitter Smith’s presence on the Commission a major asset for would-be telecom company clients. Google’s cache resolved that dilemma. Among those taking advantage of Technical Solutions’ services are AT&T, the former wireless company Alltel, and most of the state’s largest cable operators. Bitter Smith also claimed expertise setting up astroturf “grassroots” campaigns advocating her clients’ agendas and interests, but hiding any corporate connection. She also promoted her ability to plant stories with the media for her paying clients.

This was scrubbed off the website

Scrubbed from the website, but retained by Google’s cache.

Reporters at KJZZ, a public radio station in Phoenix, have spent months following the fine line Bitter Smith has laid as a defense against conflict of interest charges.

Oopsy

Bitter Smith depends on cable and phone companies setting up different entities in name only to manage regulated and unregulated services. That means a cable company could approach the Commission under several different names, one for its phone, one for its television, and one for its broadband business. That distinction allows Bitter Smith to claim she is careful about conflicts of interest:

Bitter Smith said that, because the telecom entities are so separate, it’s OK to vote on telecom matters related to Cox, Suddenlink and other members at the commission. But she still tries not to.

“We thought about that, ‘Well, maybe just from the appearance sake it wouldn’t hurt,’” she said.

Since Bitter Smith took office in 2013, records show the commission has voted at least seven times on matters involving the telephone side of the cable association’s members.

She recused herself four of those times, such as last year when a tariff increase was approved for Cox.

But she didn’t recuse herself on three matters, which she said was accidental, including another tariff increase for Cox approved in 2013.

“Probably should have, just didn’t catch it,” she said.“It was on the consent agenda, I zoomed through.”

She also didn’t recuse herself in May from voting to rescind a $225,000-bond requirement for Mercury Voice & Data, an entity identified in public documents as doing business in Arizona as Suddenlink Communications. She said she missed that one accidentally as well.

“Suddenlink is my member, Mercury Voice & Data is not an entity that I’m familiar with,” Bitter Smith said. “If I had understood, I probably would have, you know, just for optics sake. There’s no legal reason I would need to do that but, had I understood that there was another entity that they now form with a new name, separate entity with a new name, I probably would have.”

[flv]http://www.phillipdampier.com/video/Corporation Commissioner Is Paid Lobbyist For Same Corporations She Regulates 12-3-15.mp4[/flv]

Real News AZ talked with attorney Thomas Ryan about the ethics of serving as a Corporation Commissioner while also employed as a paid lobbyist working for the interests of the companies regulated by that Commission. (7:08)

Ryan

Ryan

Bitter Smith’s ‘oopsies‘ infuriate government watchdog and Arizona attorney Thomas Ryan, who has tangled with Arizona’s high-powered politicians before… and won.

“This will not go quietly in the night and whoever she retains will no doubt fight it tooth and nail,” Ryan said of Bitter Smith. “But the state of Arizona deserves a Corporation Commission that is not bought and paid for by the very people it’s supposed to regulate, the very industries it’s supposed to regulate.”

Ryan is particularly incensed that Bitter Smith’s apparent ethical lapses are costing Arizonans twice — taxpayers pay her nearly $80,000 salary as a Commissioner and the increasingly expensive cable and phone bills that grow as a result of some of the Commission’s pro-telecom decisions. But at least Bitter Smith is doing well, also collecting her six figure salary from the cable lobbying association she leads.

Pat Quinn, former director of the Residential Utility Consumer Office, or RUCO, which advocates for consumers at the ACC, isn’t moved by Bitter Smith’s fine line and he should know – he’s the former Arizona president of Qwest Communications (today CenturyLink).

Quinn said Bitter Smith’s explanation about the separateness of telecom entities from cable is making a “difference without a distinction.”

“While you may be able to, accounting wise, separate your expenses between what you put in phone and what you put in cable, how do you take out of your mind, ‘Oh, they’re paying me over here and we do good things for them over here, but I’m going to be fair and unbiased when I look at not only Cox on the phone side, but any of the other phone providers,’” Quinn told KJZZ.

How Bitter Smith helped kill rural community broadband in Arizona for the benefit of the state’s biggest cable companies. (6:43)

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

Killing Community Broadband to Protect Arizona Cable Profits

The clearest cut evidence of Bitter Smith’s lobbying for Arizona cable companies while claiming to represent the public interest as a commissioner came in 2013, when Bitter Smith and Cox Communications lobbyist Susan Anable tried to pressure Galen Updike, a state employee tasked with mapping broadband availability in Arizona and advocating for solutions for the 80 percent of rural communities in the state that remain broadband-challenged to this day.

In February, Bitter Smith and Anable allegedly solicited the help of state employees to kill a state contract with GovNet, a firm that had previously received $39 million in federal dollars to bring broadband to rural Arizona.

govnet

Updike said Bitter Smith trashed GovNet’s reputation, claiming the provider walked away from earlier projects leaving them incomplete.

“‘There was a better alternative,'” Updike recalls Bitter Smith telling him. “‘You’ve got existing cable companies in the area that are having now to compete against these dollars that come in from the federal government. Can you help us get rid of GovNet’s contract?’ [was the request]. It took my breath away.”

COX_RES_RGBUpdike said Bitter Smith maintained a near-constant presence at their meetings, but she had no interest in solving Arizona’s rural broadband problems.

“The only reason for Bitter Smith to be there was to talk about telecommunications policy, broadband policy,” Updike said.

Updike’s efforts to make things better for broadband in rural Arizona met constant headwinds from Bitter Smith and lobbyists for the state’s cable and phone companies.

“All the broadband providers were cherry picking — going after the high easy places to put broadband into where there’s high concentration of population dollars,” Updike said. “And basically the low population areas, the rural areas of the state of Arizona, are sucking wind. They have no possibility for it.”

bearEfforts to develop the Arizona Strategic Broadband Plan were effectively sabotaged by the cable industry, especially Cox. Bitter Smith immediately objected to the contention the cable industry could collectively offer broadband to 96 percent of the state if it chose. She claimed that was invalid. She also criticized the proposal to begin a comprehensive broadband mapping program claiming it lacked proof it would be any real ongoing benefit to anyone.

At the center of the lobbying effort backed by Cox was an argument the state should not involve itself in expanding broadband networks. Instead, it should spend its funds promoting the broadband service already available from cable operators to those not yet signed up.

Things got much worse for Updike as Republicans cemented their grip on the Corporation Commission in 2013. Updike continued to voice concerns about Bitter Smith’s conflicts of interest and was eventually taken aside and told to be quiet about the issue.

“I was told to stop poking the bear. The bear was the combination of Cox, CenturyLink and Susan Bitter Smith,” Updike told the radio station.

By May 2013, the broadband planning council’s meetings began to be mysteriously canceled. No strategic broadband plan was ever adopted. That same month, Updike was told he no longer had a job at the Arizona Department of Administration.

Henry Goldberg, and independent consultant who helped draft the never-adopted state broadband plan has little to fear from Bitter Smith, so he was frank with KJZZ.

“To me when you stop discussions of the plan, disband this council, which is supposed to advise the governor on digital policy, there’s something inappropriate going on there. Something like this is critical for the citizens of Arizona.”

House GOP Tries to Ban FCC’s Net Neutrality Enforcement; Rider Would Prohibit Oversight of Data Caps

sneakHouse Republicans are hoping a back door legislative maneuver will successfully block the Federal Communications Commission from enforcing Net Neutrality and regulating or banning data caps.

The GOP is fighting to deliver a death-blow against Net Neutrality in a rider attached to an important financial services appropriations bill. If adopted, this single sentence would effectively kill Net Neutrality enforcement and allow providers to adopt data caps and usage-based billing without any regulatory oversight from the FCC:

None of the funds made available by this Act may be used to regulate, directly or indirectly, the prices, other fees, or data caps and allowances (as such terms are described in paragraph 164 of the Report and Order on Remand, Declaratory Ruling, and Order in the matter of protecting and promoting the open Internet, adopted by the Federal Communications Commission on February 26, 2015.

The rider, in effect, makes it illegal for the FCC to protect customers upset about usage-capped Internet. It would also prevent the FCC from intervening if a provider wrongly charged overlimit fees to customers.

The spending measure is being fast-tracked through Congress and is considered a “must-pass” bill, with or without any attached riders. If legislators do not pass the omnibus measure by Dec. 11, it could result in another government shutdown.

The tactic is part of a broader move by several House Republicans to curtail the FCC’s oversight authority by threatening to dramatically cut the agency’s budget.

The anti-Net Neutrality rider has not gotten a lot of attention over the Thanksgiving holiday and was overshadowed by two other priorities of House Republicans that are getting more press attention: making it more difficult for Syrian and Iraqi refugees to resettle in the United States and a measure to strip federal funding for routine medical services performed by Planned Parenthood.

Rep. Barbara Lee (D-Calif.), a member of the House Appropriations Committee, released a statement condemning the Republicans for their “extreme agenda,” using procedural tricks to override the FCC and steamroll over nearly four million Americans that wrote the agency demanding Net Neutrality.

The Republican rider would effectively give a green light to Comcast to move forward with nationwide data caps, no longer fearing a potential FCC investigation that could eventually lead to a prohibition of compulsory usage-based billing.

Stop the Cap! urges all of our readers to visit this Free Press campaign page to get the phone number of their local representative and take five minutes to let them know you “vehemently oppose Net Neutrality riders being placed in a must-pass government-funding bill.” Tell your congressman you want the FCC’s authority left intact and you support their oversight of broadband. That is literally all you need to say.

Are Cheap Chinese Christmas Lights Killing Your Wi-Fi?

Despite the UL label, these Walmart-sold Christmas lights have been recalled in Canada for causing "unfortunate incidents." In the U.S. consumers are on their own.

Despite the UL label on the cord, these Walmart-sold Christmas lights have been recalled in Canada for causing “unfortunate incidents.” In the U.S. they are still on the market and consumers are on their own.

The increasing prevalence of energy-saving LED holiday lights may help reduce your energy bill this Christmas, but are probably not doing any favors to your in-home Wi-Fi.

Chinese factories that produce billions of light string sets annually often have the attitude that quality control should take a back seat to selling price, and as such many of these cheaply produced sets experience a growing number of issues the longer they are in use. This year, Canadian regulators have ordered complete recalls of holiday lights manufactured by Taizhou Hongpeng Colour Lanterns or Ningbo EGO International Co. Ltd. The sets were implicated for interference, overheating, fire, shock, toxicity, and more.

The affected lights, sold until the fall of 2015, were available across North America in dollar stores, hardware warehouses, supermarkets, and department stores. Many were sold by Loblaws, Michaels (the CELEBRATE IT series) and Walmart’s “Holiday Time” brand lights. Up north, it’s time for those lights to go after sampling and evaluation by the federal agency led to clear evidence they posed serious safety risks.

In the United States, consumers are on their own. Despite adopting new safety regulations in June, the Consumer Product Safety Commission remains satisfied with a hands-off/business-friendly approach that relies primarily on voluntary recalls that begin after consumers self-report injuries from defective products.

The CPSC does not test Christmas light sets, despite the fact seasonal and decorative lighting products have been responsible for hundreds of fire and shock-related deaths and injuries over the years. CPSC is aware of 132 fatal incidents that occurred from 1980 through 2014 which led to 258 deaths, and 1,405 nonfatal incidents associated with seasonal and decorative lighting products.

Despite clear warnings from Health Canada’s own testing, the CPSC continues to allow manufacturers to sell dangerous light sets that are now recalled in Canada.

Assuming your Christmas tree lights don’t overheat or short out, regulators are also turning their attention to a less serious problem with the light sets: their potential to create interference problems.

Wi-Fi trouble waiting to happen.

Wi-Fi trouble waiting to happen.

Ofcom, the United Kingdom’s independent telecom regulator, has seen enough reports of Wi-Fi problems tracked back to Christmas lights to issue a caution.

The problem isn’t so much with the LED bulbs. The interference problems usually develop from the cheap transformers/switched mode power supplies used to regulate voltage for certain energy-saving lights. A poor quality unshielded light set, especially those with a built-in, programmed light show, is likely to throw audible hash across the AM radio dial. But it can also interfere with Wi-Fi reception in certain cases, especially if you turn your home and yard into the equivalent of the Vegas strip.

Despite the timely holiday themed Ofcom announcement, most of the lights sold in the United States have offered negligible interference so far — typically when the wireless router is located very near a Christmas tree or a powered holiday decoration. The biggest culprit that obliterates Wi-Fi is still the microwave oven. When running, many models can wipe out reception across a home or apartment.

Other factors that can make a difference include the distance between you and your router and whether the neighbors are sharing the same Wi-Fi channel you use.

Ofcom’s advice:

Move your router away from electrical devices: Halogen lamps, electrical dimmer switches, stereo or computer speakers, Christmas lights, TVs and monitors and AC power cords have all been known to cause interference to broadband routers. It’s important to use quality key materials in modern electronics. Keep your router as far away as possible from other electrical devices as well as those which emit wireless signals such as baby monitors etc.

Move your router to a different part of your home: The walls and furniture in your house act as an obstacle to the Wi-Fi radio frequencies. Ideally routers should be kept centrally within the home and placed on a table or shelf rather than on the floor.

Try restarting your wireless router: This may automatically select a less busy Wi-Fi radio frequency.

Our advice is to consider replacing or upgrading a misbehaving router that will not hold a Wi-Fi connection even in the best of circumstances and above all, make sure you have enabled wireless security to keep uninvited guests off your network.

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