Home » Consumer News » Recent Articles:

Time Warner Cable’s Teeny-Tiny Fine Print Makes Redeeming Rebates Difficult

Phillip Dampier March 18, 2014 Consumer News, Editorial & Site News Comments Off on Time Warner Cable’s Teeny-Tiny Fine Print Makes Redeeming Rebates Difficult
Good luck reading the fine print.

Good luck reading the fine print.

A Texas Time Warner Cable customer has discovered the fine art of cable company fine print, and it only cost her the Samsung Galaxy Note tablet promised in return for upgrading her cable package.

Sherry Buffington of Farmers Branch learned first hand that 1/16th of an inch print has but one purpose — to take away the promised tablet worth $399.

Time Warner Cable ran the tablet promotion nationwide over the holidays. Buffington wanted to know she would qualify before upgrading her service, so she called Time Warner Cable and got confirmation. She upgraded her service on the spot.

Weeks later, no tablet and no answers from Time Warner Cable. It took the Dallas Morning News’ Watchdog reporter to finally pry some answers out of the cable company.

Time Warner Cable’s position was finally made clear: No tablet for Ms. Buffington; she did not qualify for the offer because she didn’t pay attention to the fine print. It turns out customers have to switch to a specific bundled package to qualify for the promotion. Customers who simply upgraded service more often than not did not qualify for the promised tablet.

But Buffington still got something after her ordeal. It turns out Time Warner likes to keep recordings of customer calls indefinitely. A supervisor was able to pull the months-old recording of the call between Buffington and the customer service representative who promised she qualified for the tablet even though Time Warner now insists she does not. The cable company offered Buffington a $300 credit on her next bill to set things right.

Consumer advocates warn customers to take special care reviewing the fine print attached to most promotional offers and follow instructions precisely to qualify. But Watchdog Dave Lieber said Time Warner really went beyond the pale with the “disgustingly small” fine print he found completely unreadable.

Lieber’s inability to read the terms and conditions did not faze Melissa C. Sorola, TWC’s director of public relations. She reminded him the requirements are “stated three times in the documents.”

twc“Yes, that’s true,” wrote Lieber. “But it was in 1/16 of an inch everywhere. I don’t find that acceptable. Do you?”

Texas’ competing electric companies are held to a different standard. They have to produce their fine print in no smaller than 10-point type in paragraphs that do not exceed 250 words. Time Warner’s is half that size.

Customers rejected for rebates or promotions should file complaints with both the Better Business Bureau and their state’s Attorney General. This usually triggers a contact from an executive customer service agent to settle the matter. If you made a good faith effort to comply with the rebate, you should be able to receive a service credit equal to the amount or value of the rebate. Do not insist on receiving the promotional item or gift card, which is usually handled by a third-party fulfillment company.

Liberty Media Loses Interest in Sirius/XM; Turns Focus to Consolidating U.S. Cable Industry Instead

Phillip Dampier March 18, 2014 Competition, Consumer News, Liberty/UPC Comments Off on Liberty Media Loses Interest in Sirius/XM; Turns Focus to Consolidating U.S. Cable Industry Instead
Liberty Global logo 2012

Liberty Media is building an acquisition fund.

John Malone’s Liberty Media has lost interest in acquiring full ownership of satellite radio provider Sirius/XM as it turns its attention to re-entering the U.S. cable industry.

Malone’s company has a 53% controlling interest in the satellite radio service but had announced its intention to acquire 100% of the $23 billion venture. Analysts predicted Liberty planned to use Sirius/XM as an integral asset to help acquire financing to buy Time Warner Cable. But after Comcast suddenly announced its intention to acquire its fellow cable operator, Malone has decided he needed a bigger, more stable presence in the cable industry.

Liberty Media will create two new tracking stock groups for its interests — Liberty Media Group and Liberty Broadband Group. Liberty Media will hold Sirius/XM and a range of Liberty-controlled content companies. Liberty Broadband will be the new home for Liberty’s 25% ownership interest in Charter Communications as well as its future cable-related transactions.

Liberty Broadband Group is expected to start with more than $3 billion it can spend to acquire other cable operators, but analysts expect that amount to grow exponentially as investors seek financial opportunities from Malone’s efforts to consolidate the U.S. cable industry into three or four companies. Malone will need a large acquisition fund to target operators including Cox Communications, Cablevision, SuddenLink, Cable ONE, Mediacom, and other smaller companies.

British Newspapers Giving Away Six Months of Free Broadband

Phillip Dampier March 18, 2014 British Telecom, Competition, Consumer News 2 Comments

free broadbandWhile broadband prices in North America now typically exceed $50 a month, competition in the United Kingdom has brought Internet access pricing down to as low as zero as part of a promotion between BT — Britain’s largest telecom company and Northern & Shell, a newspaper publisher and owner of Channel 5.

Readers of the Daily Star and Daily Express found a four page pullout this week offering six months of free, unlimited use 16Mbps BT broadband service. After six months, the price rises to a discounted rate of $26.50 a month.

Those taking advantage of the offer also get free access to sports channel BT Sport. Readers take advantage of the offer by phoning a toll-free 0800 number or visiting the BT website with offer codes published in the newspapers.

In Britain, newspaper publishers struggling to hold readership are increasingly launching marketing campaigns that bundle broadband, television, and newspaper service into a discounted bundle package. The offers are an effort to stem declines in readership of printed newspapers and can be moderately effective if the price is right.

 

LA to Time Warner Cable: What Did You Do With Our $10 Million Dollars?

Phillip Dampier March 17, 2014 Consumer News, Public Policy & Gov't Comments Off on LA to Time Warner Cable: What Did You Do With Our $10 Million Dollars?

moneyLos Angeles has filed a $10 million lawsuit accusing Time Warner Cable of skimming off money owed to the city as part of its franchise fee agreement with the cable operator.

The Los Angeles Times reports Time Warner has been allegedly stiffing the city for years when money was desperately needed to help ease budget problems during the Great Recession.

“Time Warner owes L.A.’s taxpayers millions of dollars for the privilege of having its franchise,” city attorney Michael Feuer said during a City Hall news conference announcing the lawsuit. “This is a day where we are standing up and saying enough is enough.”

The 24-page lawsuit claims despite earning more than $500 million a year from Los Angeles-area customers, Time Warner blatantly refused to live up to its obligations to the city by not paying $2.5 million in franchise fees and public, education and governmental channel fees in 2008 and 2009 and an additional $7.2 million in fees in 2010 and 2011. The city contends that once in 2008 and again in 2011, Time Warner Cable withheld more than $5 million in fees the city said it was owed. The company finally paid a portion of the disputed fees, Feuer said, but then subtracted the same amount from its franchise fee payment, resulting in another underpayment, reports the newspaper.

timewarner twcThe city has negotiated with the cable company over the dispute for some time, to no effect.

“The negotiations haven’t been fruitful and we have to do something about that,” Feuer said. “Time Warner pocketed the money from its subscribers and then did not turn it over to the city of Los Angeles.”

The cable company will soon pocket more than 6% more revenue from customers across Southern California after announcing its rate hike for 2014.

Time Warner Cable contends the lawsuit is without merit.

New Jersey’s Fiber Ripoff: Verizon Walks Away from Fiber Upgrades Customers Already Paid For

Bait and switch broadband

Bait and switch broadband

Since 1991, Verizon telephone customers in New Jersey have paid at least $15 billion in surcharges for a promised high-speed broadband network that would reach every home in the state by 2010. But now critics charge Verizon diverted much of that money to shareholder dividend payouts and building infrastructure for its highly profitable wireless network, leaving almost half the state with slow speed DSL or no broadband at all.

In the early 1990s, Verizon’s predecessor — Bell Atlantic — launched “Opportunity New Jersey,” a plan promising the state it would have the first 100% fiber telecommunications network in the country. In return, the company enjoyed more than two decades of generous tax breaks and collected various surcharges from customers to finance network construction. But a review of Verizon’s promises vs. reality suggest the company has reneged on the deal it signed with the state back when Bill Clinton was beginning his first term as president.

Verizon promised at least 75 percent of New Jersey would have a fiber service by 1996 offering 384 television channels and 45/45Mbps broadband service for $40 a month. The network would be open to competitors and be deployed without regard to income or its potential customer base.

The state suspected trouble as far back as 1997, when the Division of the Ratepayer Advocate with the New Jersey Board of Regulatory Commissioners blasted the company’s progress five years into the project:

Bell Atlantic-New Jersey (BA-NJ) has over-earned, underspent and inequitably deployed advanced telecommunications technology to business customers, while largely neglecting schools and libraries, low-income and residential ratepayers and consumers in Urban Enterprise Zones as well as urban and rural areas.

Verizon's wired success story

By 2006, New Jersey was being introduced to FiOS, which some believed was part of Verizon’s commitment to the state. But a decade after Verizon’s target dates, customers were still waiting for FiOS video service, the maximum broadband speeds offered at that point were 30/5Mbps and the cost of the package ranged from $180-200 a month. Most of Verizon’s FiOS deployments were in the northern half of the state, leaving southern New Jersey with few, if any service improvements.

Despite Verizon’s repeated failures to meet its target dates, that same year New Jersey made life even easier for the phone company by passing a statewide video franchise law allowing Verizon to bypass negotiating with each town and city regarding its video services and instead run FiOS TV as it pleases anywhere in the state. The company argued a statewide video franchise would allow for more rapid deployment of Verizon’s fiber network. In reality, the company was falling further and further behind. By 2013, when Verizon sought renewal of its statewide franchise, Verizon only offered FiOS TV to 352 of the 526 communities hoping for service. At least 174 communities still waiting for FiOS are likely never going to get the fiber service, despite paying Verizon’s surcharges for more than 20 years. Verizon suspended its FiOS expansion project more than two years ago.

Bait and Switch Broadband

From promises of a cutting edge fiber future to good-enough DSL....

From promises of a cutting edge fiber future to good-enough DSL.

Despite early commitments of providing New Jersey with advanced fiber broadband speeds unheard of elsewhere in the country in the 1990s, Verizon changed its tune when it became clear the company wanted to prioritize investment in its more lucrative wireless network. Instead of a commitment of 45/45Mbps, providing basic DSL broadband at any speed was now seen as adequate. Verizon spokesman Lee Gierczynski told both Newsweek and the Inquirer the company never promised a statewide deployment of FiOS.

“Nobody knew what FiOS was 20 years ago,” Gierczynski said. “It wasn’t until 2004 when FiOS came on the scene.”

Forget about that commitment for 45/45Mbps speed as well.

“It didn’t say a minimum of 45mbps,” Gierczynski said, “it just says ‘up to’.”

That means DSL service will be a part of southern New Jersey for the near future. Customers unimpressed with the 5Mbps DSL service they get from Verizon can always pay substantially more for access to Verizon Wireless’ usage capped LTE 4G network that Gierczynski believes can be used to download movies.

In effect, ratepayers that wrote checks to pay artificially higher phone bills to help subsidize a promised 100% fiber optic future have instead funneled working capital to Verizon Wireless’ network expansion and helped enrich shareholders with generous dividend payouts.

Opportunity New Jersey Verizon: Christie Administration Proposes Letting Verizon Off the Hook Permanently

Gov. Christie

Gov. Christie

Most victims of costly bait and switch schemes get angry and demand justice. In New Jersey, the Christie Administration believes Verizon is the victim of unreasonable expectations and has proposed a sweetheart deal to both let the company off the hook and keep the surcharges it collected from New Jersey ratepayers for the last 21 years.

While the rest of the country clamors for better broadband, Governor Christie’s State Commission, his Attorney General’s Office and the state Consumer Rate Counsel believe that basic DSL is good enough, and making life difficult for Verizon by insisting it live up to its part of a mutual agreement just isn’t very nice.

All eyes were on incoming president of the Board of Public Utilities Dianne Solomon, wife of close Christie associate Lee Solomon. The BPU has direct authority over Verizon’s compliance with its promises to the state. But Dianne’s only apparent experience is as an official with the United States Tennis Association. Critics immediately pounced on the odd nomination, accusing the governor of using the BPU as a lucrative parking lot for political patronage. Three of the four current commissioners are all politically connected and their experience navigating telecommunications law is questionable.

Instead of demanding that Verizon be held to its commitment to the state, government officials are bending over backwards to let Verizon walk away from its promises forever.

A stipulation proposal would allow the company to shred its commitment to upgrade New Jersey with fiber optics. Instead, Verizon gets permission to discontinue service if you have any other option for service — including cable or wireless. Not only would this stipulation eliminate any hope bypassed communities have to eventually get Verizon FiOS, it would also let Verizon scrap its rural landline network and kill DSL, forcing customers to its lucrative wireless broadband product instead.

Solomon

Solomon

The agreement also eliminates any commitment Verizon had to deliver fiber-fast speeds. Instead, Verizon will be considered in good standing if it matches the slowest speed on offer from Verizon DSL.

“Broadband is defined as delivering any technology including Verizon’s 4G wireless, fiber, copper or cable, data transmission service at speeds no less than the minimum speed of Verizon New Jersey’s Digital Subscriber line (DSL) that is provided by Verizon New Jersey today.”

New Jersey customers can file comments about the proposed agreement until March 24, 2014 with the Board of Public Utilities.

We have found a good sample letter you should edit to make your own. You can e-mail the secretary directly and/or send your message to the general e-mail address: [email protected] (be sure to include “Verizon New Jersey, Docket No. TO12020155” on the Subject line):

New Jersey Board of Public Utilities
Kristi Izzo, Secretary
44 South Clinton Avenue, 9th Floor
P.O. Box 350 Trenton, NJ 08625-0350

Email: [email protected]

Re: In the Matter of Verizon New Jersey, Inc. Docket# TO 12020155

Dear Secretary Izzo:

I want to alert you to an urgent matter pending before the New Jersey Board of Public Utilities. Pursuant to a 1993 law called Opportunity New Jersey, Verizon NJ was obligated to upgrade New Jersey’s “copper wire” network by 2010. To fund the Opportunity New Jersey expansion, Verizon NJ was permitted to collect excess charges from their customers and received lucrative tax breaks from the State. These charges and tax breaks began in the 1990s and are still being collected today.

Verizon failed to meet its timeframe requirements under the Opportunity New Jersey agreement to New Jersey residents. As a result of Verizon’s failures, on March 12, 2012, the New Jersey Board of Public Utilities initiated a legal action against Verizon NJ. The Board and Verizon NJ have now entered into a proposed settlement agreement which I believe is inadequate and not in the best interests of myself and other New Jersey residents who have paid for this service that was not fully delivered.

I oppose the Board’s proposed settlement agreement and demand that The Board of Public Utilities hold Verizon to the original Opportunity New Jersey agreement which requires Verizon to expand broadband services to every customer in the State. The proposed settlement has the potential of costing myself and other residents even more money than I have already paid for the last 21 years. The Board of Public Utilities should not allow Verizon to flagrantly disregard the stipulations which are the framework for the charges and tax breaks that Verizon has enjoyed for 21 years.

I am asking the Board of Public Utilities to be my advocate and investigate where our dollars were spent and to require Verizon to give me what I was originally promised under Opportunity New Jersey agreement of 1993.

Sincerely,

[Your Name, Address, Phone Number]

Search This Site:

Contributions:

Recent Comments:

Your Account:

Stop the Cap!