Wheeler

Federal Communications Commission chairman Tom Wheeler personally called the chief executives of some of America’s largest cable operators, including Charter Communications and Time Warner Cable, to reassure them that the agency does not object to future cable industry consolidation.

Wheeler said any new merger deal would be assessed on its own merits, and cable executives should not assume the agency is against future cable mergers just because it objected to the Comcast/Time Warner Cable deal.

The Wall Street Journal reports Wheeler sought to “clear the air” in response to industry hand-wringing over whether future buyouts and acquisitions could get passed the FCC. Wheeler reassured executives they were over-reading the commission’s intent.

Wheeler did suggest he would like to see more competition among cable companies, an idea that has been dead on arrival since the cable industry began colluding to agree to stay out of each other’s territories two decades ago. Although Wheeler would like to see competition increased by cable operators competing head to head for customers, it is much more likely the industry will seek further consolidation to reduce the prospect of competition, not increase it.

The larger the cable operator, the greater the economy of scale — especially for cable programming costs. A potential new entrant would likely be discouraged from entering the business, discovering it had no prospect of getting cable programming at prices comparable to what the largest cable operators pay.

The New Jersey Board of Public Utilities (BPU) unanimously approved an agreement this week exempting Verizon from most basic landline service regulations, prompting immediate outrage from consumer, senior and labor groups who predict it will lead to rate increases and deteriorating service.

The agreement removes pricing oversight regulations for residential basic telephone service, single-line business telephone service, nonrecurring charges for residential service connection and installation, and residential directory assistance services. That will allow Verizon to charge whatever the market will bear after a transition period. While that may not be a big problem for cell phone users and those who have dropped Verizon for cable company phone service or a broadband-powered Voice over IP alternative, it will leave rural New Jersey residents vulnerable if Verizon abuses its pricing privileges in areas where there are no alternatives.

“Today’s back room deal is bad for seniors, bad for workers at Verizon, and bad for the millions of businesses and homes that rely on affordable, reliable phone service,” said Seth Hahn, the CWA’s New Jersey legislative and political director. “In fact, it’s bad for everyone in New Jersey except Verizon. Something changed between 2011 when Governor Christie said seniors need protections and now I fear it’s the hundreds of thousands of dollars Verizon has funneled to various entities to help Christie’s political ambitions.”

Under the new deal, Verizon will cap its current basic residential rate of $16.45 for what it calls a five-year transition period. Verizon can increase the cost by only $6 during the first five years. After that, the sky is the limit.

Landline service quality – disconnected.

The change is likely to push many of New Jersey’s 100,000 remaining landline customers to competitive alternatives which often cost considerably less, but those with medical conditions, rural residents and seniors will likely be trapped using Verizon’s copper wire landline service indefinitely.

It’s the second major victory for Verizon. Last March, the Christie Administration let Verizon off the hook with no penalties for reneging on its commitment to wire 100% of New Jersey with fiber optics by 2010. New Jersey ratepayers paid as much as $15 billion in surcharges and higher rates for a statewide fiber network that was supposed to reach every home and business. Verizon kept the money and many parts of New Jersey never got the promised upgrades. Now those areas still using decades-old copper wiring are likely to experience an increase in service problems as Verizon continues to decrease its budget to maintain landline infrastructure.

Local officials, particularly those in rural counties, were angry the BPU approved a deregulation measure that will leave consumers exposed to deteriorating service as Verizon focuses on its more lucrative wireless business.

“Who will protect the public interest now,” Greg Facemyer, a councilman in Hopewell Township, Cumberland County told The Star-Ledger by email. “This is a sad day for the senior citizens, students and farmers in small underserved communities like Hopewell Township. Where do New Jersey residents turn when their phones don’t work. This is a clear public safety issue. Spotty wireless coverage is not a reliable alternative to Verizon’s statutory obligation to New Jersey residents.”

Stefanie Brand, director of the New Jersey Rate Counsel saw the vote as a rush to Verizon’s business and profit agendas.

“I am certainly disheartened that they didn’t at least allow more time,” Brand said. “I think the public has a lot to say about this and I thought it would have been a good idea to have the public’s input.”

Verizon says it is the only telecom company in New Jersey subject to the outdated regulations now being dropped. The company says its competitors have done business without price regulations and oversight and have an unfair advantage.

“Something smells at the New Jersey Board of Public Utilities and it’s not May flowers,” responded Daniel Benson, a representative of the 14th district of the New Jersey General Assembly. “At a time when Verizon isn’t maintaining its infrastructure, as evidenced by service declines throughout New Jersey, I don’t believe further deregulation is a sensible policy response. If the agreement is approved, many will be left defenseless to Verizon’s demands and get hit directly where it hurts — their pocketbooks. To add insult to injury, no public hearings are scheduled — those affected can’t even voice concerns on how changes would affect them.”

Bright House Networks customers in central Florida are not excited by the news Charter Communications is still pursuing Bright House Networks, and both companies recently agreed to extend the deadline by 30 days for a final deal to be placed on the table.

Charter had bid $10.4 billion to acquire Bright House, which serves customers mostly in the south, including the cities of Tampa and Orlando.

“We look forward to completing the transaction as planned, and our teams are working together to make that happen,” Charter chief executive Tom Rutledge said. Reuters had recently reported Bright House was preparing to “abandon” the Charter deal, believing it was better off with sn existing cooperation agreement with Time Warner Cable.

If it works properly

Comcast has blamed its customer for the failure of its home security system to detect a break in and alert police before intruders terrorized and tortured their son.

Last fall, Stop the Cap! told readers about the plight of the Rawat family, in Kirkland, Wash., who depended on home security services provided by Comcast and now wished they didn’t.

In November 2013, police say Vincent Sisounong and Blessing Gainey planned a home invasion to steal vehicles, electronics, and money from the family. To achieve their plan, the 21 and 19-year old had to defeat Comcast’s Xfinity Home security system. According to a lawsuit now being heard in a bench trial this week, the two men didn’t have to do anything because the system never worked properly.

After entering the Rawat home, the two planned to find the family’s 18-year old son Deep and “chop off one of his arms and legs with various cutting tools” as an intimidation tactic. The attack started in Deep’s bedroom. The two men dragged him to the basement, where Sisounong instructed Gainey to hack at Rawat’s leg down to the bone, and then stabbed Rawat himself. Court documents said Sisounong told detectives that he wanted the victim to “fight for his life,” and when asked if the experience was enjoyable, he said, “yeah.”

Sisounong (L) and Gainey (R)

For nearly half an hour, the struggle between the two intruders and Deep continued inside the home and finally ended when the intruders walked out the door. At no time did Comcast’s security system sound. The family had to ask neighbors to call police.

Comcast quickly blamed the family for not installing and using its system properly, despite the fact its installation was planned and performed by a Comcast subcontractor.

This week, the torture victim and his parents, Leena and Manoj Rawat, argued that Comcast and its contractor Pioneer Cable Contractors, Inc. improperly installed the Xfinity Home system. A recommendation from the installer placed the system’s motion detector in the basement, where it provided no protection when the family was home. The installer allegedly told the family they did not need window sensors because the motion detector was a suitable alternative. Although window sensors are usually constantly monitored, motion detectors are not when a family is home to prevent false alarms.

“This advice runs counter to every standard in the industry,” Rawat family attorney Ken Friedman argued during his opening arguments Monday. “The system as set up was useless, or in some cases worse than useless, because it provided a false sense of security.”

Friedman is also fighting to overcome Comcast’s terms and conditions, which require customers to protect Comcast’s interests above their own at all times, even when the company is found negligent. To emphasize the point, Comcast places it in bold, extra-large capital lettering:

Comcast’s security contract lets the company walk away from responsibility for almost everything.

YOUR DUTY TO PROTECT/INDEMNIFY THE COMPANY APPLIES EVEN IN THE CASE OF THE COMPANY’S OWN NEGLIGENCE.

“If their argument is to be accepted, they could put in empty black boxes throughout the house and say, ‘That’s your system.’ And then something goes wrong, and they say, ‘We never promised you it would work,’” said Friedman.

A better option?

The Rawat’s lawsuit alleges negligence, breach of contract and express and implied warranties, and a violation of the Washington Consumer Protection Act.

Comcast’s response is that their alarm system was never at fault.

“The malicious attack by the two criminals was motivated by pure evil and warrants every last second of punishment that they receive,” Comcast attorney Timothy Pastore said. “However, what happened to Deep Rawat is not the result of anything that Comcast or Pioneer did or did not do.”

Pastore claimed the family specifically ordered the alarm as it was installed, and it was working properly. The fault lied with the family because they failed to arm the system’s motion detectors by setting it to the “away” mode while they were asleep.

But if they had done as Pastore suggested, the motion sensor would have sounded the alarm if any family member moved around inside the home. The window sensors were designed to work at all times and would not sound unless a window was opened or broken. For added security and peace of mind, you can click here to visit Maverick Windows for free consultation and expert guidance in choosing the ideal windows for your home.