Just weeks after FairPoint Communications and union workers settled a prolonged strike involving more than 1,700 workers that began last October, shareholders are demanding the company sell itself and exit the business.

Investors are reacting negatively to today’s news that FairPoint’s quarterly losses accelerated during the 131-day strike to $136.3 million as the company spent an extra $73.6 million on temporary replacement workers and defending itself in strike-related negotiations.

Since FairPoint declared bankruptcy reorganization in 2011, the company has continued to post losses each year since, and those losses show no signs of ending. The company today abandoned issuing guidance on its future earnings for the rest of 2015, claiming it was uncertain of the impact of the strike on its future revenue.

They could ask customers like John Bouchard in Robbinston, Maine, who canceled after becoming fed up with FairPoint’s impotent customer service department, unable to resolve service problems during the strike.

Bouchard told the Associated Press after his FairPoint DSL service went out, he set up an installation appointment with the cable company and had to leave his home office and drive through a snowstorm to find Internet access while Time Warner Cable caught up with the demand for new service installations.

“It’s very frustrating,” he said.

FairPoint’s unionized workers returning to the job openly worried about the state of FairPoint’s network after a hard winter and how inexperienced temporary workers maintained the facilities while they were on strike.

Multiple press reports documented instances of shoddy repair work from the temporary workers, including some safety hazards.

“We have to win back the confidence of our customers,” said Adam Frederickson, a FairPoint worker in Nashua, N.H.

Barry Sine, an analyst who follows FairPoint for Drexel Hamilton, a New York-based brokerage, said he believes it will take 30 to 45 days for the company’s workforce to restore service quality to pre-strike levels. But by then, thousands of customers are likely to have switched providers.

North Carolina-based FairPoint disagreed that the problems were serious. “The FairPoint network performed exceptionally during the work stoppage and our well-trained and qualified contract workforce provided superb support of that network,” said company spokeswoman Angelynne Amores Beaudry.

Sine believes FairPoint would have been a prime target for acquisition earlier if it were not for its legacy workforce costs, which include benefits the company just successfully cut in the labor contract that ended the strike. With the strike now behind the company, investors believe now is the time FairPoint should sell itself to maximize shareholder value.

“Shareholders are beating the drums; they want to sell this company now,” said Sine. “The unions, there’s no love lost with this management team. The unions would like a new owner as well.”

Union leaders sense the company is already quietly getting the books in order for a sale.

Don Trementozzi, president of the Communications Workers of America Local 1400 in Portsmouth, N.H. told the AP the company seemed fixated on improving its books instead of focusing on customers.

“The brand has put a sour taste in the mouths of customers,” he said. “We’re going to go back to work and do everything we can to make this company profitable. But the brand, the name, suffered greatly in this. I don’t know if you can recover without a sale.”

In any sale, FairPoint executives and shareholders are likely to win the most. FairPoint workers, already challenged by significant benefit cuts, could face pressure from new owners to further reduce pay and benefits. FairPoint would likely sell for $25-30 a share, or around $780 million. But a buyer would also have to assume nearly a billion dollars in prior debt from a company that has never managed to post a quarterly profit since emerging from bankruptcy.

The most likely buyer would be Frontier Communications, already solidly established in the northeastern United States. But it may be too preoccupied with its recent $10 billion acquisition of Verizon landlines in Florida, California, and Texas to consider another acquisition. The next likely buyer would be Arkansas-based Windstream, followed by CenturyLink.

FairPoint’s president of Maine operations dismissed the speculation about FairPoint’s future, claiming it is focused on growing the business, not selling it.

“We have a responsibility to our customers, to our shareholders. We need to run the company as profitably as we can, to provide the best service that we can provide. That’s what we do,” he said. The union’s contention that FairPoint fought to cut worker benefits just to make itself attractive to buyers “is a stretch,” he said.

[flv]http://www.phillipdampier.com/video/WFFF Burlington FairPoint Workers React to Tentative Deal 2-24-15.mp4[/flv]

A FairPoint employee tells WFFF-TV in Burlington, Vt. how declining service may have finally forced FairPoint to the bargaining table with a proposal workers could accept.  (2:51)

April 18, 2016: This article is retained for archival purposes and is now out of date. Please click here to read the 2016 Guide.

September 29, 2015: Time Warner Cable has apparently changed how they handle customers looking for a better deal. Social media representatives on Twitter and Facebook are no longer authorized to help customers with customer retention plans. Therefore, you will need to negotiate by phone with a customer retention specialist. While less convenient than using social media to negotiate, we will walk you through the steps and let you know what to expect when you call, so you can cut through the nonsense and be confident of securing the best deal for you and your family.

Step One: Read the article below. Most of the information in it is still valid and will be important in the negotiating process. Since this article was first written in March 2015, we have also learned it can be difficult to negotiate a better retention deal if you already have one. But once you receive a rate adjustment letter letting you know your current promotion is expiring, you can reject their “special offer” to extend the promotion at a higher rate and may even win an extension of the promotion you started with.

Step Two: Instead of using social media, you will call 1-800-892-4357 and say “cancel service” when the automated system asks what you are calling about. From there, your call will be forwarded to a customer retention call center.

Step Three: You will be asked why you are canceling service. You want to emphasize “it costs too much” and you have “found a better deal” elsewhere. You should expect the representative to start negotiations by attempting to downgrade your current service to save money. Do not play this game. Politely tell the representative you are not interested in a reduction in your services because you can get the same or better from the competition… at a lower price. Keep reminding them your concern is over the cost of the service, nothing else. Don’t get sidetracked talking about service problems or poor customer service. Address those issues at the end of the call.

Next, the representative is likely to first pitch a minor promotional offer with minimal savings. If you read the article below, you already know what you want is a deal comparable to what new customers receive. The key phrase to use is, “is this the best you can do for me?” Remind them that the phone company is ready to sign you up with a new customer promotion very similar to what Time Warner Cable offers their new customers. You want something closer to that. They will remind you their website promotions typically do not include equipment, which is why their offer will usually be higher than what is on the website. You can let them know you understand that, but the competitor’s deal is still cheaper. Up the urgency by letting them know you have already scheduled an installation with their competitor, but your spouse convinced you to give Time Warner one last chance to save your business. If they can find you a good deal, you will stay with Time Warner.

In the end, these days expect a good deal to be at or less than $100 for a double play package and at or less than $130 for a triple play package, after all taxes and fees. These prices assume you subscribe to cable television, have upgraded Turbo, Extreme, or Ultimate speed Internet, have one DVR box in the home with no premium movie channels, and you own your own cable modem. The variability in cost usually has to do with the Internet speed you choose and how much equipment you have in your home. The less of both, the cheaper the price. If your offer is in this ballpark, it’s probably a good one.

The customer retention representatives have a list of valid promotions they can pitch current customers, but it is important to remember they usually cannot customize a specific deal to precisely fit your existing service. Do not insist on this — you will limit your potential savings. If you are friendly and willing to be flexible, there may be a great double-play or triple-play deal that upgrades your broadband service or includes a phone line, whether you need the service or not, for a very attractive price. Remember that you can also negotiate for a faster Internet plan, a better DVR, or discounted movie channels, if those things interest you. If your number and theirs is pretty close, you can also propose a one-time credit to split the difference and seal the deal. Time Warner is likely to be more amenable offering you a better deal that also upgrades your service. 

Broadband-only customers have the least negotiating power and you should expect to pay no less than the prevailing new customer rate, which may or may not be extended when the promotion expires. Your best option if an extension is not available is to flip to Earthlink on Time Warner Cable, which offers identical quality service (no Time Warner e-mail address, however) at promotional prices usually the same or lower than what Time Warner offers its customers. The switch can be done over the phone. When the Earthlink promotion expires, you qualify to return to Time Warner broadband at the new customer price.

If you find you are dealing with a difficult or intransigent representative, thank them for their time, hang up and call back in a few hours and try again. Expect to spend about 30 minutes before calling reviewing your current bill, cross-matching it with the closest new customer promotion on Time Warner’s website, and reviewing what the phone company is currently selling that most closely matches your existing service. Expect the call to Time Warner will take up to 30 minutes, including hold time. The dreaded negotiation over price should take less than 10 minutes. The rest of the time will be spent looking up your account and reviewing what kinds of offers are available to you. Have your bill and the new customer offers from TWC and the phone company in front of you while you talk, so you can refer back to them if necessary. You never have to commit to a deal immediately. If you want to think about it, ask for the representative to note your account with the offer he or she made and ask their name so you can refer back to that conversation when you call back. 

The original article follows below…

In 2012, Stop the Cap! helped thousands of readers slash their Time Warner cable bills by more than $50 a month with less than 10 minutes of effort. This year, it will take you longer to read this article than it will to get a better deal from Time Warner Cable.

Many of our readers have contacted us to let us know their promotional rate has expired and have sought help scoring more savings from Time Warner Cable. This year, we decided to enlist the help of Stop the Cap! volunteers who are also Time Warner Cable customers to see what kind of savings we could negotiate from the cable company that dominates much of the northeast, Texas, southern California, and parts of the midwest. We’re happy to report even greater savings (more than $700 annually for some) are there for the asking. Even better, it took some of us less than five minutes to win a better deal and by using social media, we never had to argue with anyone — great news if you don’t like negotiating on the phone.

Our volunteers for this effort came from Rochester, N.Y. (myself), Greensboro, N.C.,  Flower Mound, Tex., Los Angeles, Calif., and Portland, Maine. Two of us are triple play customers with 50/5Mbps broadband, Preferred TV (the 200+ channel package), and Time Warner home phone service. Two others are double play customers with Preferred TV and 30/5Mbps service, and our volunteer in Portland is a broadband-only customer.

We used three methods to contact Time Warner to discuss our current bills:

• Calling Time Warner Cable’s office and asking for a lower rate or to cancel service;
• Tweeting a message to Time Warner threatening to change providers;
• Posting a complaint about our cable bill on the company’s Facebook page.

Dealing with customer churn – the rate of customers coming and going – is always a concern at cable companies. New customer promotions are costly and often include a cash rebate. It is much less expensive for Time Warner to lower the bills of current customers than trying to win back wayward ex-customers with promotions later on. The company maintains several specialized customer retention call centers around the country that pay employees around $14 an hour + a bonus for each customer they keep. Employees are trained to deal with hostile callers and pleas for lower bills by escalating unresolved service problems to technical specialists, issuing service credits, and cutting rates.

But telephone retention specialists also have an incentive to cut back on your package before they cut the price. Just as we found three years ago, the two volunteers that phoned for a better deal were significantly less happy with the outcome than those who relied on social media.

“Their ‘review’ of my package quickly turned into an interrogation about whether I needed this movie channel or that Internet speed,” said Stop the Cap! volunteer Denise, who insisted on a better deal or her next phone call would be to sign up for service from Verizon. “Before they talk price, they want you to cut back on services.”

Cerise, a broadband-only customer in Portland had the same experience.

“I wanted a better deal than the $60 I am paying them for 15Mbps Internet-only service and they wanted to cut my speed to 6Mbps before we would even talk price,” Cerise said. “They knew my only other choice was DSL from FairPoint.”

My experience with Twitter was even easier than it was three years ago. Time Warner acceded to my request for a better deal in a message left on my voicemail: a rate cut of $63 a month with no change in service. I never had to speak with anyone and the new rate has already been applied to my account.

Sam, a triple play customer in Los Angeles took a phone call from Time Warner after his wife blasted the company on its Facebook page about a “new special promotional rate” that was “neither special or promotional” in her eyes.

“Their letter in the mail makes it sound like they are doing you a favor, but it’s really just the dead-end road back to paying normal prices.”

Time Warner Cable promotions run typically 12 or 24 months, after which the company mails a letter inviting you to experience a new “promotional rate” reset to a higher price, but not one that will usually deliver bill shock. A year after that less generous promotion expires, in most cases rates reset to regular pricing.

How to Negotiate

Because our experiences consistently found that interacting with Time Warner’s social media team is more effective at winning the best possible deal, we again strongly recommend you do not call Time Warner looking for a better deal. Instead, engage them through Twitter or Facebook. But before that happens, get organized:

1. Visit Time Warner Cable’s current plans and promotions web page. Your goal is to note the current promotions available and find the package that most closely resembles the services you have now. You can get a current copy of your Time Warner bill from the My Services section of Time Warner’s website.

Second, visit the competition. Check your phone company for any promotional offers for services like U-verse or FiOS, or satellite television promotions many telephone companies bundle with DSL. Familiarize yourself with the packages you would consider signing up for and jot down the prices.

Third, be flexible. The best promotional deals go to those who sign up for Time Warner Cable’s triple play packages. If you are a double play customer, adding phone service may actually cost you less on certain promotions than the best double play offers, even if you never use the phone line. If you have landline service from the phone company, Time Warner’s triple play offers will certainly save you in the long run, because unlimited long distance and local calling can often be added for as little as $10 a month. You can also consider switching to Ooma, a top-rated landline provider that works over your broadband connection and costs as little as $5 a month.

Fourth, ask about free or discounted upgrades to your existing service. Time Warner Cable has several attractive promotions for services that many customers dismiss as too expensive. Whole House DVR lets you watch DVR recordings on other televisions in the home. Some promotions add this feature for just a few dollars extra a month — less than maintaining two DVRs in the home. Also consider a broadband speed upgrade to 30/5 or 50/5Mbps. Attractive promotions are usually available for these as well.

Fifth, be willing to drop premium movie channels before you start negotiations. Time Warner raised the price of add-on HBO to $16.99 in January and other premium channels typically cost around $13 a month each. You are better off dropping them before negotiating for a better deal. After your new deal is in place, you can visit Time Warner’s website and add back the premiums you want at new promotional prices:

• A 12-month premium promotional package combining HBO, Cinemax, Starz, and Showtime runs $29.99 a month and can be ordered online;
• HBO, Cinemax, Showtime, and Starz can be had a-la-carte for $9.99 a month each for one year (The Movie Channel is inexplicably not included and costs $15.99/mo — you won’t miss it) and you may also qualify for a $50 rebate by adding Starz before March 31, 2015.

Finally, unless you live in a Time Warner Cable Maxx city (New York, Los Angeles, Austin, Kansas City, etc.), it usually doesn’t pay to negotiate over modem rental fees. Time Warner has waived modem fees in certain cases in Los Angeles, but we recommend you invest in buying your own modem and be rid of the modem rental fee  for good. If you are not in a Maxx market, we still recommend the Motorola SB6141, which will work at speeds up to 100Mbps on Time Warner’s network. If Maxx is coming to your area and you want even faster speeds, we recommend the ARRIS/Motorola SB6183 ($130+). It is approved to work at 300Mbps speeds in Maxx-upgraded areas.

Now you are ready to reach out!

Sign up for a Twitter account.

Once registered and logged in, click the button that appears like a quill pen at the upper right corner of your screen and a new window will appear where you can compose a message of 140 characters or less. You will address your message to @TWC_Help (note the underscore – you can cut and paste that address into your message or use Twitter’s search function – type in TWC and you should be able to find and select it there). Here is a sample Tweet we came up with, but you can compose your own, of course:

After clicking the Tweet button, your message will be read by Time Warner’s social media team. Sometime later, you will receive a response asking for your contact information and account number. This should be sent in a private “Direct Message,” not as an open Tweet:

 

Time Warner should call you back within the next three days. If you do not receive a reply to your Tweet, send another one during regular business hours. They may have missed your first message.

You can also try Facebook to lodge your rate protest.

Visit the Time Warner Cable Facebook page and find the box (as shown highlighted below) where you can write a public message on the page.

As with Twitter, you want to get straight to the point and tell Time Warner you are paying too much for cable service and have a better offer from a competitor. Let them know you are willing to consider their counter-offer, if it arrives soon.

They are likely to respond asking for your account information, including the account number and PIN as shown on your monthly bill. Again, send this information privately using the Facebook Messenger. Include your best contact number.

 

Our Results

Myself – Rochester, N.Y.: Full package of every cable television channel on offer, no premiums, Whole-House DVR with five cable boxes, 50/5Mbps broadband, Unlimited Home Phone: $112/mo, down from a fading promotional price now resetting to $175 (had been gradually increasing from $110 since 2014)

Tania, Greensboro, N.C.: Double play of all cable television channels, no premiums, DVR and one traditional set-top box with 30/5Mbps broadband: Was paying $156. Offered $99 with free upgrade to 50/5Mbps and Whole House DVR; offered and declined Unlimited Home Phone for extra $10/month. This promotion essentially matched AT&T U-verse introductory pricing for comparable services with slower broadband.

Denise, Flower Mound, Tex.: Started by calling Time Warner to cancel over $175 cable bill covering all cable channels, one premium, DVR with extra set-top boxes, 50/5Mbps broadband. Representative wanted her to cancel HBO and drop Internet speed to a lower 15Mbps tier to bring price to $125 range. She threatened to call Verizon, representative told her to ‘go ahead.’ On the second attempt Denise used Twitter and representative phoned back the next day with a message her bill was instantly cut to $120 and she will receive a one time $30 inconvenience credit for the rudeness she experienced over the phone. She keeps HBO and all of her other services and was offered to call back to discuss free Whole House DVR service.

Sam, Los Angeles: Used Facebook to contact Time Warner Cable about his $215 cable bill. Sam appreciated the fact TWC Maxx had arrived in Los Angeles and boosted his broadband speed to around 200Mbps, but didn’t appreciate the $25 a month rate reset that occurred this month as his promotional rate ended. Sam has a full cable television package, three premium movie channels, fast Internet, and Home Phone Unlimited. He also has two DVR boxes, two standard cable boxes, and rented his cable modem. Sam told Time Warner he would rather spend his money with Netflix, Amazon, and Sling’s $20 cable television over the Internet package and he was prepared to cut the cord. Time Warner cut his bill instead. He’s temporarily dropping all of his premium movie channels to score a promotion of $129 a month, drop the second DVR in favor of Whole House DVR service, and he is buying his own modem. He will add back his premiums on the aforementioned $30 a month promotion, which also gives him Starz and a $50 rebate.

Cerise, Portland, Me.: Our broadband-only volunteer, Cerise had the most trouble securing a better deal. Time Warner Cable initially wouldn’t budge beyond offering the same rate new customers get for one year: $34.99/mo + modem rental fee for 15/1Mbps service. Stop the Cap! intervened before Cerise considered her alternative – 6Mbps DSL from FairPoint Communications. After we pointed out Earthlink was selling identical broadband service on Time Warner’s network for $29.95 a month for six months, Time Warner’s “no” turned into “yes” and they agreed to match that price. If they don’t match that price again next year, Cerise can make a phone call and jump ship to Earthlink for their $29.95 promotion and then jump back to Time Warner six months after that. Cerise is also buying her own modem.

Let us know about how your negotiations went in the comment section below.

Net Neutrality opponents today made hay about an underwhelming, sometimes stumbling debate performance by Tumblr founder David Karp, who was inexplicably CNBC’s go-to-guy to explain the inner machinations of the multi-billion dollar high-speed Internet connectivity business.

TechFreedom, an industry-funded libertarian-leaning group spent much of the day hounding Karp about his “painful, babbling CNBC interview.”

“Those pushing #TitleII have NO FREAKING CLUE what it means,” tweeted TechFreedom’s Berin Szoka.

BTIG Research devoted a whole page to the eight minute performance, where Karp faced interrogation by two CNBC hosts openly hostile to Net Neutrality and another that expressed profound concern the Obama Administration would over-enforce Net Neutrality under Title II regulations. CNBC is owned by Comcast, a fierce opponent of mandatory Net Neutrality.

“Given the importance of Net Neutrality and the central role played by Tumblr’s Karp in getting us to this point, we thought it was very important for everyone to watch his interview earlier today on CNBC in its entirety,” wrote Rich Greenfield, noting the “best parts” (where Karp appeared like a deer frozen by oncoming headlights) were encapsulated into an extra video clip.

Greenfield referred to a Wall Street Journal piece in February that suggested access means everything when it comes to D.C. politics:

“In a lucky coincidence, Tumblr Chief Executive David Karp, who attended the meeting in New York, found himself seated next to Mr. Obama at a fundraiser the following day hosted by investment manager Deven Parekh.

Mr. Karp told Mr. Obama about his concerns with the net-neutrality plan backed by Mr. Wheeler, according to people familiar with the conversation. Those objections were relayed to the White House aides secretly working on an alternative.”

That was sufficient for some to imply Karp was a powerful influence over the president’s sudden pronouncement last November that strong, all-encompassing Net Neutrality was the was to go.

CNBC’s hosts grilled Karp, asking him to prove a negative, set up false premises for Karp to defend, and repeatedly cut his answers off. At the same time, Karp was clearly unprepared and often did not have his facts in order.

Stop the Cap! sorts it all out.

[flv]http://www.phillipdampier.com/video/CNBC Tumblr Net Neutrality 2-24-15.flv[/flv]

Nobody’s shining moment on the Net Neutrality debate on CNBC featuring an unprepared David Karp, founder of Tumblr vs. the B-team at CNBC – lackeys with an agenda who can’t wait to interrupt. Truth comes in last place. (8:18)

CNBC Claim: “If you talk to AT&T’s Randall Stephenson, he will say right now they have more capital expenditures than any company in America … and if you turn it into a utility it will not be profitable to continue investing like that.”

Fact: AT&T does invest heavily in its network but also enjoys very healthy returns on that investment. In 2014, AT&T was expected to end the year spending about $21 billion, primarily on its highly profitable wireless network. Last week, USA Today published a list of the top 12 companies in the Standard & Poor’s 500 that boosted capital spending by 40% or more in the past 12 months and spent at least 15% of revenue on capital expenditures. AT&T was not on it. Outside of claims from telecom companies and their lobbyists, there are no plans by the FCC to turn broadband into a regulated utility.

Karp Claim: “There is a tremendous amount of throttling going on right now.”

Fact: “Throttling” is not well-defined here. There is intentional throttling among certain wireless companies, usually under the guise of “fair access policies” and usage caps, and there is throttling as a side effect of congestion in two areas: backbone connectivity among certain ISPs and wholesale traffic handlers and last mile congestion among providers, especially those offering DSL in rural areas, where multiple customers share access to a limited capacity middle mile network. There is no evidence that any significant wired providers are intentionally throttling the speeds of services except as part of a fair access policy or a purposeful lack of investment in network upgrades.

CNBC Claim: “You have a monopoly because it is really expensive to build the pipes so you have not had multiple people who will build pipes to the door.”

Fact: The capital cost required to offer wired broadband service to each home is a clear deterrent for many providers, but not an insurmountable one as Google and community-owned providers have demonstrated. The cable industry won early protection from competition in exclusive franchise agreements that calmed investor fears that the enormous cost of wiring communities for cable might not be repaid if a competition war broke out. AT&T later fought for and won statewide franchising agreements and considerable deregulation in many states where it provides U-verse, arguing regulatory burden reduction would enhance competition. But the same large cable and phone companies that achieved deregulation for themselves have lobbied heavily to regulate and banish community-owned providers from getting off the ground by encouraging the passage of restrictive state laws making such competition nearly impossible.

CNBC Question: “In general, do you think heavy-handed government regulation is a good thing or a bad thing for an industry?”

Our reply: Really?

Karp: I think a bright line rule that sort of spells out these foundational principles that we believe in… I think the Bill of Rights is a good thing… even without getting into the weeds, spelling out something like the First Amendment that says this is a truth that we believe… (cut off).

CNBC: I don’t see how that is an answer at all comparing this to the Bill of… I understand the Bill of Rights but… has there been a problem up to this point where you feel that people… that Net Neutrality has been violated.

Karp: We’ve had instances where companies like Comcast have tried to block whole protocols and shut off consumers access to new innovative parts of the Internet.

Fact: In 2007, Comcast installed new software or equipment on its networks that began selectively interfering with some of Comcast’s customers’ TCP/IP connections. The most widely discussed interference was with certain BitTorrent peer-to-peer (P2P) file-sharing communications, but other protocols were also affected. The case led to an effort by the FCC to introduce open Internet traffic rules in 2010 which Comcast later defeated in court. At no time did Comcast completely block access – it simply impeded it, reducing customer speeds only while using those services.

A CNBC host then challenged Karp to prove a negative on AT&T’s plans to pull back investment in its network expansion.

“How has it been disproven that he’s not actually going to pull in on his buildout of more infrastructure?”

Fact: On Nov 7, 2014 – a week before President Obama unveiled his support for strong Net Neutrality policies – AT&T announced at least $3 billion in capex reduction (or “pull in” to quote CNBC) for 2015 in a press release on its acquisition of Mexico Wireless Provider Iusacell:

AT&T’s VIP-related capital investment levels will peak in 2014, as the company has said previously. As a result, AT&T expects its 2015 capital expenditure budget for its existing businesses to be in the $18 billion range. This will bring the company’s capital spending as a percent of total revenues to the mid-teens level — consistent with its historical capital spending levels.

Even after AT&T CEO Randall Stephenson was announcing cutbacks in capex, his office was releasing press releases claiming a major expansion of AT&T’s gigabit fiber upgrades for U-verse, claims Stop the Cap! have found to be grossly exaggerated.

Stephenson made the mistake of putting the cart in front of the broadband horse, making it impossible to credibly claim he was reducing his capex budget because of a Net Neutrality policy that had not even been announced yet.

CNBC Claim: “It doesn’t mean someone will pay for it if they are losing money as a result.”

Fact: None of the providers mentioned by CNBC have lost any money provisioning broadband service. In fact, broadband is becoming the new profit center of the industry, netting higher revenue after adjustments for cost than any other part of the cable package.

Another exchange:

CNBC: “If you look at Netflix traffic, sometimes it is 80 percent of the network’s nighttime load.”

Karp: “The consumers are paying for it and Netflix is already paying for it.”

CNBC: “I am not a Netflix user and it ticks me off I have to subsidize everybody that is doing that. Why do I have to pay for that?”

Fact: The CNBC host is being disingenuous and inaccurate. Although Netflix traffic can constitute 80% of the evening traffic load, the customers accessing Netflix paid both Netflix and their ISP for that traffic. Whether or not the CNBC host uses Netflix or not is irrelevant. Assuming she is a Comcast or Time Warner Cable customer, last mile congestion that could impact her enjoyment of the Internet was never an issue under DOCSIS 2, has been rendered a non-issue under the current DOCSIS 3 standard, and will remain a non issue going forward.

The traffic dispute between Comcast and Netflix only affected Netflix viewing. The CNBC host need not subsidize Netflix or anyone else. Netflix offers free peering services and equipment to any ISP that wants it. Comcast refused to take part, demanding financial compensation instead. It then raised rates on customers anyway. Her beef is with Comcast, not Netflix.

A Manitoba university student and consumer groups who won their case against Bell’s preferential treatment of its mobile streaming video service are now being threatened with demands they personally cover Bell’s legal expenses as the phone company appeals the ruling in court.

The dispute involves Bell Mobile TV Service — a $5/mo optional add-on that allows Bell’s mobile customers to stream up to 10 hours of video programming, some of it from Bell-owned television networks like CTV, without it counting against the customer’s usage cap. Each additional hour costs $3. The service prices usage based on time, not data usage, which lets Bell stream very high quality video to customers. Competitors like Netflix do not have this option and their customers are billed based on the amount of data consumed, which is around 800 percent higher than what Bell Mobile TV charges.

University of Manitoba graduate student Benjamin Klass filed a complaint with the Canadian Radio-Television and Telecommunications Commission (CRTC) in 2013 accusing Bell of violating Net Neutrality and creating an anti-competitive marketplace for online video. ​Twelve of the 43 channels available on Mobile TV — including CTV, TSN and The Movie Network — are owned by Bell Media, a subsidiary, like Bell Mobility, of the media behemoth BCE.

Klass alleged the practice was a clear violation of Canada’s laws governing broadcasting: “No Canadian carrier shall, in relation to the provision of a telecommunications service or the charging of a rate for it, unjustly discriminate or give an undue or unreasonable preference toward any person, including itself, or subject any person to an undue or unreasonable disadvantage.”

The CRTC agreed with Klass and in late January ruled in favor of Klass’ complaint, giving Bell and Quebec-based Vidéotron (which offers a similar service) until the end of April to close them down in their present form.

BCE, the parent of Bell Mobility, told the CBC it was “shocked” by the CRTC’s ruling, suspecting the complaining groups mislead regulators into thinking Bell favored its own content over others.

“There’s a hint here that the government believes Bell Mobile TV delivers only Bell Media content,” spokesman Jason Laszlo said. “They should know we offer mobile TV content from all of Canada’s leading broadcasters in English and French.”

Laszlo added Bell-owned content only comprises 20% of Bell Mobile TV programming and that the ruling would deprive more than 1.5 million current Bell Mobile TV subscribers from getting the service after the spring deadline to shut it down.

The CRTC and consumer groups argue that is beside the point.

“At its core, this decision isn’t so much about Bell or Vidéotron,” CRTC chair Jean-Pierre Blais said at a breakfast luncheon in London, Ont., in late January. “It’s about all of us and our ability to access content equally and fairly, in an open market that favours innovation and choice. The CRTC always wants to ensure ­— and this decision supports this goal ­— that Canadians have fair and reasonable access to content. It may be tempting for large vertically integrated companies to offer certain perks to their customers. But when the impetus to innovate steps on the toes of the principle of fair and open access to content, we will intervene.”

Consumer group OpenMedia says Bell’s motivation isn’t to create a level playing field or provide customers with more options for online video. It’s about artificially inflating the cost of accessing services like Netflix and other independent video companies that are innovating away from the traditional pay television package.

“Bell is doing everything in its power to make the Internet more like cable TV,” said OpenMedia campaigns manager Josh Tabish. “They want the power to pick and choose what we see by forcing competing services into a more expensive toll lane online.”

Bell’s legal strategy going forward is an homage to the one American wireless companies used for years to avoid Net Neutrality.

Bell Mobility argues that Bell Mobile TV is a broadcasting service, not a telecommunications service and therefore doesn’t fall under the jurisdiction of the Telecommunications Act.

Since the CRTC was not receptive to that argument, Bell is taking the matter to the Federal Court of Appeal, asking it to overturn the CRTC ruling and grant the company court and legal costs paid for by the Canadian consumers that brought the original complaint.

Jean-François Mezei of Pointe-Claire, Que. is among them and has been the unhappy recipient of several parcels containing “bricks of paper” from FedEx he suspects is just the beginning.

Mezei has been tweeting about ongoing developments in the case, and asked Bell, “how come you have no press release bragging about how Bell Mobility is suing individual citizens who participated in [the CRTC complaint]?”

Klass told CBC News he hasn’t yet made up his mind how to respond to the court filing, but admitted it is unnerving.

“In that regard, it really strikes me as a method of intimidation,” he said. “Right off the bat, it has a chilling effect. It appears that Bell is simply pursuing the argument, that it unsuccessfully made to the CRTC, through the court.”

[flv]http://www.phillipdampier.com/video/Dating Comcast.mp4[/flv]

Here is what life would be like if Comcast was your boyfriend… and your only choice. (2:33)