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Time Warner Cable Boosting Basic Broadband Speed from 3 to 6Mbps

Phillip Dampier November 12, 2014 Broadband Speed, Competition, Consumer News 1 Comment

Time Warner Cable is in the process of upgrading “Basic” broadband tier ($30-40 a month) customers from 3 to 6/1Mbps at no extra charge. You may have the upgraded speeds even if you haven’t received e-mail from Time Warner Cable yet. Follow the instructions below and check your speed:

basic speed

(Image courtesy: Rachel Barnhart)

A merger with Comcast will see Time Warner Cable customers forced to downgrade back to 3Mbps for Comcast’s basic “Economy Plus” service ($39.95/mo) or pay a higher Internet bill for Comcast’s 6Mbps Performance Starter plan ($49.95/mo). An $8 a month modem rental fee also applies, likely to rise to $10 by early 2015.

AT&T Blackmails America: No (Phony) Fiber Upgrades Until You Kill Net Neutrality

Phillip Dampier November 12, 2014 AT&T, Consumer News, Net Neutrality, Public Policy & Gov't 1 Comment

ransomAT&T is putting its gigabit fiber network upgrades on hold as long as President Barack Obama continues to insist on robust Net Neutrality for American broadband.

AT&T Randall Stephenson told Wall Street investors attending this morning’s Wells Fargo Technology, Media, and Telecom Conference that the current state of “uncertainty” created after President Obama delivered remarks Monday in favor of strong Net Neutrality protections makes any investment in fiber upgrades too risky to continue.

“We can’t go out and just invest that kind of money deploying fiber to 100 cities […] not knowing under what rules that investment will be governed,” Stephenson said, excluding the two million customers already upgraded under AT&T’s Project VIP, AT&T’s effort to boost its wireless infrastructure in rural areas and upgrade U-verse to handle incrementally faster broadband speeds. “We have to just put a stop on those kinds of investments that we are doing today.”

But Stephenson’s accusation that the president’s strong support for Net Neutrality is responsible for putting AT&T’s plans on hold ignores the financial realities that have been a part of AT&T’s proposed upgrades since the company first announced them in April 2014.

Construction of Verizon’s fiber to the home FiOS network required significantly enhanced spending for several years, much to the consternation of Wall Street, that frequently criticized the project as too costly. In contrast, there have been few complaints about AT&T’s much larger 100 city fiber project because financial reports show no significant spending increases or large-scale capex investments by AT&T. In fact, on Friday — three days before the president made his remarks on Net Neutrality — AT&T announced investment cuts of at least $3 billion for 2015.

Stop the Cap! has reported AT&T’s fiber upgrades lack appropriate financial support and will require billions in increased investments to offer more than a handful of demonstration projects limited to new housing developments and multi-dwelling units where construction costs are considerably lower.

Stephenson admitted that most of the company’s Project VIP upgrade effort is now nearly complete, allowing the company to return to “normal” spending levels seen when major upgrades are not underway.

“You say okay, here has been the [increased spending in the budget], those projects are finished, we spiked it,” Stephenson said. “Now we’re bringing it down to a more normal rate.”

Stephenson reminded investors that they will see a dramatic savings in investment spending starting late this year.

“Just the cost [to AT&T over the last few years of Project VIP and] to be putting away this much investment, [it has been] a big operating expense block […] that we have been dragging through the last three years as we did all these buildouts,” said Stephenson. “You will see in 2014 the fourth quarter that [level of] capex start to tail off.”

Net Neutrality Freakout: Wall Street Popping Prozac, GOP Furious, Big ISPs, Allies Shocked and Appalled

Phillip Dampier November 11, 2014 Competition, Consumer News, Data Caps, Editorial & Site News, Net Neutrality, Public Policy & Gov't, Video Comments Off on Net Neutrality Freakout: Wall Street Popping Prozac, GOP Furious, Big ISPs, Allies Shocked and Appalled

President Barack Obama’s strong commitment to robust Net Neutrality protections for the Internet has created a nightmare scenario for Net Neutrality opponents who can no longer count on an ex-telecom industry lobbyist now in charge at the Federal Communications Commission to take care of their business interests with watered down, damage-controlled, net-protection-in-name-only.

The attacks on President Obama’s convictions began almost immediately after his video was published on whitehouse.gov with Sen. Ted Cruz’s declaration that Net Neutrality was Obamacare for the Internet, a statement that may have played well with his Texas tea party base, but was quickly parodied on social media:

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Hal Singer from the ironically named Progressive Policy Institute opined that President Obama’s decision to declare real Net Neutrality would likely lead to the new majority of Republicans to completely defund the agency in retaliation. PPI is strongly opposed to Net Neutrality and many other consumer protection measures and represents the interests of the George W. Bush wing of the Democratic Party, which consists of about six people (and Harold Ford, Jr. probably wishes he was one of them.)

net neutrality fee“We are stunned,” Michael Powell, a former FCC chairman who is now president of the National Cable & Telecommunications Association, said in an e-mail to Bloomberg reporters. After six years of supine oversight of giant telecommunications companies from former FCC chairman Julius “Data caps are innovative” Genachowski and the installation of an ex cable and wireless industry lobbyist as chief regulator of the country’s telecommunications industry, AT&T, Verizon and Comcast have faced few challenges to their regulatory wish lists.

The Washington Post “Innovations” editorial page proved once again the Post is now the leading publication neocons and pro-business conservatives keep hidden under their mattresses next to the Wall Street Journal for those private moments. WaPo devoted news space to a hack editorial from Larry Downes, who turned up in Congress earlier this summer to cheerlead the merger of AT&T and DirecTV and has vociferously opposed Net Neutrality since at least 2011.

In his generally fact-challenged piece, Downes proclaims the Obama Administration was seeking nothing less than to saddle the Internet with oppressive outdated regulations written in 1934, that the courts threw out earlier hybrid/compromise Net Neutrality regulations simply because they lacked the words “commercially unreasonable,”  and that implementing Net Neutrality would destroy investment in the world’s leading cable, mobile, and fiber networks.

Downes does not get out much, because other countries as diverse as South Korea, Lithuania, Bulgaria, Japan and Singapore have long since passed the United States, with much of Europe poised to follow their lead. Some of them even enforce Net Neutrality and the sky failed to collapse as a result. Broadband life is good in Bucharest.

Nothing about the Obama Administration’s proposal for Net Neutrality would do anything beyond preserving the Internet as we know and love it and judges told the FCC’s attorneys they had no authority to impose Net Neutrality under the freak flawed framework established by Michael Powell, former FCC chairman-turned cable industry lobbyist.

Downes also laims he is shocked, shocked I tell you to discover the FCC isn’t immune to political pressure from the White House and other Beltway forces. Except he is one of those Beltway forces.

The Post was content disclosing that Downes was simply a co-author of “Big Bang Disruption:  Strategy in the Age of Devastating Innovation” (Portfolio 2014) and the project director at the harmless-sounding Georgetown Center for Business and Public Policy.

If you suspected Downes was just a tad closer to the industry he often advocates for than the newspaper was letting on, you would be right.

net neutrality comicIn fact, Downes is a “fellow” at the Bell Mason Group, a corporate advisory firm “passionate about partnering with forward-thinking corporate venturing and innovation executives, […] helping clients build risk-reduced, impactful programs and overcome corporate antibodies and obstacles [and deliver] measurable value.”

Net Neutrality is an example of one of those “risky corporate obstacles” to total monopoly control that could deliver Big Telecom companies “measurable value.” Among Downes’ past clients is a tiny phone company named AT&T, but you wouldn’t know it from Bell Mason’s well-scrubbed website. Too bad for them archive.org took a snapshot of an earlier version of his bio, revealing his less-than-arm’s-length relationship with AT&T.

None of this is apparently pertinent to the editors of the Washington Post. Disclosing Downes’ co-authorship of a far-less germane book one critic called a “big bang disappointment” was more than enough.

Bloomberg News avoided the hopelessly unbelievable talking points about Internet takeovers and concluded President Obama threw his FCC chairman under the bus. But even that conclusion originated from the conservative, anti-Net Neutrality group the Heritage Foundation, quoted in the piece:

“He threw Tom Wheeler under the bus,” said James Gattuso, a senior research fellow at the Heritage Foundation, a Washington-based policy group. Obama’s strong stance makes it harder for Wheeler to reach a compromise among proponents of regulation, Gattuso said.

Except proponents of Net Neutrality are tired of compromises that favor ungrateful telecom companies that routinely sue even the most minor consumer protections out of existence. Wheeler was rumored to be proposing yet another compromise as late as last week, one that would protect deep-pocketed content companies but leave consumers open to further abuse from high cost fast lanes and speed throttles.

Various tea party groups ginned up with claims of an imminent Obama socialist takeover of the Internet, Maoist censorship and protectionist rate regulation took to the comment sections of various news pieces and wrote comments like this:

“I don’t want government control that would force private companies not to control what I can see on the Internet.” 

riskyFor public policy mavens that claim Net Neutrality is a solution in search of a problem, countering Wall Street’s decisive view that Net Neutrality is a disaster for plans of revenue boosting schemes are harder to counter.

Obama’s intervention effectively kills Wheeler’s mixed plan, Paul de Sa, a senior analyst at Sanford C. Bernstein & Co. in New York, said in a note. It will be hard for the FCC, with a majority of Democrats appointed by Obama, to deviate significantly from his preference, and strong rules are likely, de Sa said.

Obama’s intervention “does not lead to price regulation of broadband,” in part because the FCC has no desire to do so, he said. Debate in Washington will intensify, with Congress holding “interminable hearings” and trying to prohibit the FCC from applying the strong rules, de Sa said.

The meaning to investors was clear: Internet profiteering plans are on indefinite hold. Comcast Corp. fell 63 cents or 1.2 percent, to $52.33 at 10:39 a.m. in New York trading, and are down as much as 5.1 percent this week. Time Warner Cable Inc. dropped $3.34, or 2.5 percent. AT&T Inc. fell 16 cents to $34.97 and Verizon Communications Inc. (VZ) fell 15 cents to $50.57.

A move to fully reclassify broadband, even if it includes “forbearance” from rate regulation, as President Obama suggested, would send investors scurrying, according to Kim Wallace, a policy analyst at Renaissance Macro Research. That is because it would cast doubt on cable and telecom companies’ abilities to generate a “sufficient return” on capital investments, which they expect to be sky high based on the limited amount of competition that exists today.

Craig Moffett, perennial cable stock booster, had the temerity to blame the latest developments on Comcast.

“The great irony is Comcast helped start this ball rolling by trying to buy Time Warner Cable in the first place,” said Moffett, an analyst at MoffettNathanson. “With the specter of possible price regulation hanging in the balance, [the question is] would Comcast still want to increase its exposure to distribution assets” in broadband.

The Wall Street press provides some salve for the chafed telecom industry high-flyer — the likely prospect of litigation tying up Net Neutrality long enough for Republicans to write new telecom laws that would lead to near-total regulatory capitulation and a free hand for providers. But investors sure hate uncertainty, so the Money Party will have to be postponed for now.

We have four illuminating news stories to share today on Net Neutrality:

[flv]http://www.phillipdampier.com/video/PBS Why is Obama weighing in on net neutrality 11-10-14.mp4[/flv]

More than 3 million commenters crashed the Federal Communications Commission website in July to weigh in on the issue of net neutrality. Now President Obama has added his strong support, directing the FCC to protect equal access to all web content. Judy Woodruff speaks with U.S. chief technology officer Megan Smith about the president’s move. (7:33)

[flv]http://www.phillipdampier.com/video/Bloomberg Ex-FCCs Furchtgott-Roth Copps Debate Net Neutrality 11-10-14.flv[/flv]

Former Federal Communications Commission members Harold Furchtgott-Roth and Michael Copps talk about President Barack Obama’s call for the “strongest possible rules” to protect the open Internet and the value of so-called net-neutrality rules. They speak with Cory Johnson on Bloomberg Television’s “Bloomberg West.” (7:00)

[flv]http://www.phillipdampier.com/video/CNN Here is why you should care about net neutrality 11-10-14.flv[/flv]

CNN explores why you should care about Net Neutrality and reminds us in a world of distorted punditry exactly what “Net Neutrality” is. (3:58)

[flv]http://www.phillipdampier.com/video/Fox Business Michael Powell Net Neutrality 11-10-14.flv[/flv]

Fox Business gives former FCC chairman Michael Powell an unchallenged platform to present his views on Net Neutrality. It becomes clear which side Fox is on when they call porn peddler Larry Flynt the quintessential Net Neutrality advocate. (5:08)

The Menace of the Unburied Line: Cable & Phone Companies Create Hazards for Homeowners

One Alabama customer found her fence the home of not one, but two artistically-managed Charter Cable lines serving her neighbors.

One Alabama customer found her fence the home of not one, but two artistically-Amanaged Charter Cable lines serving her neighbors.

All across the country, people are encountering communications wiring that belongs underground or on a utility pole, but is instead scattered on the ground or left dangling on fences or in the street. Isolated incidents or a consequence of deregulation that has left community leaders’ hands tied? Stop the Cap! investigates.

A Louisiana woman eight months pregnant is suing Cox Communications Louisiana and its contractor after tripping over an exposed cable wire in her mother’s backyard the company didn’t bother to bury.

In Fort Myers, Comcast connected a neighbor’s cable service in a senior living community by scattering a cable across lawns and sidewalks for nearly a year before finally burying it.

In Alabama, Charter Cable turned cable wiring into an art form, attaching multiple homeowners’ cable TV wires in artistic designs to a neighbor’s fence, and he wasn’t even a customer.

Welcome to the scourge of the unburied, exposed cable wire. Typically called a “drop” by cable installers, these lines are common in communities where a cable or phone company uses a third-party contractor to manage buried lines. Some manage them better than others.

In the northern United States, replacement drops installed during the winter months often stay on the ground until spring because the ground in frozen, but in warmer climates in the southeast, cable companies are notorious for “forgetting” about orphaned cable lines that can take weeks or months to bury, often only after intervention by a local media outlet or politician.

Chardae Nickae Melancon’s complaint claims Cox installed cable service in June, 2013 and left the cable wire exposed in the backyard. In late August, Melancon, who can take products like CBD UK, claims she tripped and fell over the wire injuring her arm, right side, and other unspecified injuries.  Her suit alleges Cox was warned the wire was installed improperly and only after her injury did Cox return to finish the job.

In Fort Myers, it took more than 11 months for Comcast to return and bury its line, snaked across lawns and sidewalks connecting several buildings in the retirement community.

Comcast left this cable lying across a sidewalk in a retirement community in Fort Myers, Fla. for 11 months.

Comcast left this cable lying across a sidewalk in a retirement community in Fort Myers, Fla. for 11 months.

“You know this [community] is 55 and older. We have got people in here that are 90 years old,” Bonnie Haines, a resident in the Pine Ridge Condo retirement community told WFTX-TV. “Could you imagine them walking or walking around that sidewalk and tripping over this, what would happen? They couldn’t see it at night. Fortunately for me I know it’s there. I’ve lived with it all this time but if somebody would come to visit an older person or something, they don’t know it’s there.”

Across the street lies another unburied Comcast cable.

“We’ve called multiple times. we’ve reported it multiple times,” said Eric Ray, the manager of the Pine Ridge Homeowners Association. “In fact, every time I see a Comcast truck in here I personally grab the driver, take him over to the spot, and he puts in a work order and takes pictures right in front of me and still no response.”

Comcast’s last reply before making the evening news:  “We’ll get to it soon.”

Twenty four hours after being a featured story on the station’s newscast, the cables were finally buried.

In Montgomery, Ala., an artistic cable installer has used one resident’s fence as the adopted home of Charter Cable’s lines. Jamie Newton, who isn’t a Charter customer, noticed an orange Charter Cable line attached to her fence one day after returning home. That was two years ago. Suddenly, an extra cable appeared, draped like Christmas tree garland.

[flv]http://www.phillipdampier.com/video/WFTX Ft Myers Residents worried about exposed cable tv wire 1-15-14.mp4[/flv]

Residents of a Ft. Myers, Fla. retirement community worry residents as old as 93 could be seriously injured if they trip over this Comcast Cable left on the sidewalk for at least 11 months. (3:00)

“At first I was surprised, and then it turned into a little bit of anger and frustration,” Newton told WSFA. “I have small children, I have friends’ children over, and the neighborhood kids come and play in my backyard. It’s not safe.”

Charter Cable is not interested because Newton is not a customer. Charter in fact recorded just one complaint from a Charter customer six months earlier, and they claimed a “glitch” was responsible for the cable not being buried.

(Image: WEWS-TV Cleveland)

(Image: WEWS-TV Cleveland)

While some customers have been encouraged to remove offending lines that cross property lines themselves, some have gotten into trouble doing so, charged with destruction of private property. The most common mistake homeowners make is cutting or displacing cables placed on or in a utility easement, which can be difficult to identify.

Some of the worst problems occur with cables that served now ex-customers. Residents complain AT&T, Comcast and Charter are not responsive to requests from non-customers to deal with abandoned wiring in disrepair. An outside line supervisor in San Francisco tells Stop the Cap! AT&T has few provisions to manage cabling no longer in service for a paying customers.

The city of Cleveland, Ohio is a prime example of how AT&T deals with unused cables. Residents reports dozens of abandoned lines snipped at head level and allowed to dangle off utility poles, eventually to fall to street level where children can handle them. Time Warner Cable was also accused of allowing cables to hang over Cleveland streets. Some are left over after demolishing vacant houses but the most frequent cause of hazardous cables is competition. When a customer cuts cable’s cord, drops a landline, or flips between providers, installation crews often cut and leave old lines swaying in the breeze or draped over sidewalks.

The problem grew so pervasive in Cleveland, city officials requested telecom companies coordinate an audit of their cable networks and remove dangerous wiring before someone gets hurt. But all they can do is ask. Ohio’s sweeping telecom deregulation law stripped local authority over AT&T and Time Warner Cable. The city’s leverage is now based on creative code enforcement and embarrassing the companies in the local media.

“We don’t have any regulation for phone and cable companies and hanging wires create a hazardous situation and it’s going to have to be regulated,” said Cleveland councilman Tony Brancatelli. “One of these times it’s going to be a hot line.”

Local media reported nearly the same problem four years earlier in Cleveland, and efforts to keep up with cables left in disrepair seem to wane after the media spotlight moves on.

[flv]http://www.phillipdampier.com/video/WEWS Cleveland Neighbors worry kids will get desensitized to seeing low wires 4-3-14.mp4[/flv]

Kids are at risk if they begin to disrespect hanging utility wires. An epidemic of abandoned cable and telephone cables are dangling over Cleveland streets and deregulation means cities have to ask providers nicely to deal with the problem. (3:00)

Time Warner Cable and AT&T have also pointed fingers at each other, implying the other is more responsible for the cables left hanging:

AT&T: “We certainly welcome attention on the topic of safety and any telephone wires that look out of place. To that end, we encourage you to share with your viewers the number for our statewide repair information line: 800-572-4545. Please do call this line to report locations of telephone wires that look out of place.  While your story pointed out that many of the problem lines you saw may not have been telephone lines, we look forward to removing or repairing any that we find, that indeed belong to our company.”

Time Warner Cable: “Maintaining line clearance is something we act quickly to correct anytime we identify a potential issue. Though it is not clear who owns the wires you cite in your story, when our lines need to be adjusted, we take immediate action.  If someone comes across a line they feel maybe too low, please call us and we will respond.”

One important tip from Stop the Cap! for both your safety and avoiding legal entanglements — don’t take on the job yourself.

Municipal officials tell us readers should call a local code enforcement officer and have them investigate utility cable issues. Unresponsive companies or those creating dangerous conditions for the public can be fined and most will respond quickly to an officer’s request to manage the problem, even when deregulated.

Customers allowing the cable company to install a temporary line in their own yard should check if they are signing a total liability waiver as part of the process. Doing so can limit your leverage if the cable company doesn’t return to bury the line.

[flv]http://www.phillipdampier.com/video/WEWS City of Cleveland promises to address low hanging wires 4-7-14.mp4[/flv]

WEWS-TV in Cleveland followed up on their earlier report after getting no response from cable and phone companies and finding even more hazardous, abandoned wiring littering Cleveland. (3:15)

[flv]http://www.phillipdampier.com/video/WEWS Cleveland Major utility and cable companies meet with City of Cleveland 4-17-14.mp4[/flv]

Cleveland officials asked cable and phone companies to send representatives to coordinate action to fix the problem, but deregulation makes the effort voluntary. (2:47)

AT&T Out of In-Flight 4G LTE Air-to-Ground Wireless Data Business; Will Focus on Overseas Acquisitions

Phillip Dampier November 10, 2014 AT&T, Competition, Consumer News, Wireless Broadband Comments Off on AT&T Out of In-Flight 4G LTE Air-to-Ground Wireless Data Business; Will Focus on Overseas Acquisitions

att_logoAT&T has decided it is too risky to get into the in-flight connectivity business and has pulled the plug on a plan to launch 4G LTE air-to-ground wireless data service in the United States.

“As AT&T explores opportunities for future growth and diversification, expanding our international presence has remained an area of interest,” an AT&T spokesperson told Runway Girl Network, an air transport intelligence news service. “On Friday we announced our intent to acquire Mexico wireless company Iusacell. After a thorough review of our investment portfolio, the company decided to no longer pursue entry into the Inflight Connectivity industry.  We are focusing our capital on transformative investments, such as international and video.”

The sudden cancellation of the project came as a surprise, because AT&T had been planning an extensive network that would offer Wi-Fi to in-flight passengers and was discussing partnerships with vendors and airlines in late September.

AT&T bought Iusacell instead, for $2.5 billion. The Mexican cell carrier serves 8.6 million subscribers across 70% of Mexico. AT&T could eventually rebrand the venture as “AT&T” and market it as America’s first “North American Mobile Service,” covering over 400 million consumers and businesses in Mexico and the United States without roaming charges for AT&T customers who often travel to Mexico.

Iusacell’s network is fully compatible with AT&T’s GSM network, but lacks 4G LTE data service.

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