Home » Consumer News » Recent Articles:

AT&T Customers Brace for Big Disney Blackout — ABC Stations, ESPN, Disney Channel All At Risk

Phillip Dampier September 10, 2019 AT&T, Competition, Consumer News, DirecTV Now, Online Video 2 Comments

The Walt Disney Co., is warning AT&T U-verse, TV Now, and DirecTV customers that a blackout of Disney-owned ABC stations, ESPN, Freeform, and the Disney Channel is imminent because AT&T has not yet agreed on renewal terms.

If an agreement is not signed before the end of the month, AT&T video customers across the country are looking at a third major programming blackout this year.

“The Disney owned networks and stations have agreements in place with all of the major video providers in DirecTV and AT&T video territories, including Comcast, Verizon FiOS, Cox, Optimum, Frontier and others, and we have a strong track record of successfully reaching multi-year agreements with these and other TV providers,” the company said in a statement. “Unfortunately, so far AT&T has refused to reach a fair, market-based agreement with us, despite the fact that the terms we are seeking are in line with recent marketplace deals we have reached with other distributors.”

The last contract renewal DirecTV signed with Disney was in late 2014. It is likely AT&T’s acquisition of DirecTV allowed the company to combine its U-verse and streaming agreements with the much larger contract with the satellite TV company, with AT&T’s combined carriage agreement likely to expire on Sept. 30, 2019.

AT&T has spent much of 2019 playing hardball with programmers, willing to let their contracts expire and blackout affected stations and networks. Earlier this year, customers lost access to local TV stations owned by CBS, Nexstar, and a handful of local stations under contract with Sinclair Broadcasting. Customers also lost access to the Altitude Sports and Entertainment Network, a regional sports channel, at the end of August. In some cases, it took several weeks to reach a negotiated settlement with local station owners.

It seems likely Walt Disney will find a similar level of intransigence with AT&T’s negotiating team. AT&T is already preparing its customers for a potential protracted fight and blackout.

“We’re disappointed to see The Walt Disney Co. put their viewers into the middle of negotiations. We are on the side of consumer choice and value and want to keep Disney channels and owned-and-operated local ABC stations in eight cities in our customers’ lineups,” AT&T said in a statement. “We hope to avoid any interruption to the services some of our customers care about. Our goal is always to deliver the content our customers want at a value that also makes sense to them. We’ll continue to fight for that here and appreciate their patience while we work this matter out.”

Any blackout would impact Disney-owned and operated ABC affiliates, including:

  • WABC-TV 7 New York
  • KABC-TV 7 Los Angeles
  • WTVD-TV 11 Raleigh-Durham, N.C.
  • KGO-TV 7 San Francisco
  • KTRK-TV 13 Houston
  • KFSN-TV 30 Fresno, Calif.
  • WLS-TV 7 Chicago
  • WPVI-TV 6 Philadelphia

Altice Launches Altice Mobile: $20 Unlimited Plan for Optimum/Suddenlink Customers, $30 All Others

Phillip Dampier September 5, 2019 Altice USA, Competition, Consumer News, Wireless Broadband 18 Comments

Altice USA today launched its nationwide mobile phone service, offering “lifetime unlimited talk, text, and data” for $20 a month for existing Optimum and Suddenlink customers, $30 a month for non-customers.

Altice has agreements with Sprint and AT&T to host its wireless service on both provider’s 4G LTE networks when customers are outside the range of a suitable Wi-Fi network. Altice’s plan is designed with pricing simplicity — $20 per line, up to five lines per account. A $10 activation fee may apply and prices do not include taxes, fees, and surcharges. The plan provides:

  • unlimited data, text, and talk nationwide (up to 50 GB data usage per month, after which speed is subject to throttling to 128 kbps for the rest of the billing cycle),
  • unlimited mobile hotspot (speed limited to 600 kbps),
  • unlimited video streaming (streaming video will play “at DVD 480p quality”),
  • unlimited international text and talk from the U.S. to more than 35 countries, including Canada, Mexico, Dominican Republic, Israel, most of Europe, and more, and,
  • unlimited data, text and talk while traveling abroad in those same countries.

Altice discloses customers connected to 4G LTE service should expect download speeds of 6-8 Mbps and upload speeds of 2-3 Mbps with “round-trip latency of less than 100 ms.” If you connect to a 4G LTE Advanced cell tower, customers can expect faster download speed of 12-30 Mbps. Altice does not allow customers to connect to 3G service and does not support 5G service at this time.

Altice claims its mobile plan can save customers up to $600 per year for one line, and up to $1,100 per year for households and families with five lines. It is also the first cable mobile plan that will accept non-customers, at a higher price. Non-Optimum or Suddenlink customers (or current customers who discontinue cable service or who fall seriously past due on their accounts) will pay $30 a line, a $10 premium.

Altice claims its mobile network welcomes customers bringing their own devices, and offers an online compatibility checker. But an FAQ claims Altice Mobile is currently only able to support iPhone for Bring Your Own Phone service. It must be iPhone SE, 6 or newer, and operate iOS 12.2 or above.

In contrast, Comcast and Charter both accept a wider range of devices and rely on Verizon Wireless’ 4G LTE network, but at a price of $12-14/GB or $45/month for unlimited talk, text, and data. Those two cable companies only sell mobile service to customers subscribed to their home broadband services.

Southern California Getting 200 Mbps Standard Internet from Charter Spectrum

Phillip Dampier September 4, 2019 Broadband Speed, Charter Spectrum, Consumer News, Video Comments Off on Southern California Getting 200 Mbps Standard Internet from Charter Spectrum

Spectrum customers in Southern California are gradually getting a free upgrade to 200 Mbps — twice the usual Standard speed, starting with new customers.

Spectrum has been running commercials in the region promoting the company’s new entry-level internet speed of 200 Mbps, along with a free cable modem and no data caps. The current new customer promotion offers $44.99/mo for internet service for 12 months, or a package of TV and internet for $89.98 a month for 12 months (which does not include equipment fees or the significant Broadcast TV Fee, which will add at least $20 more to the TV side of your bill).

Some current customers in legacy Time Warner Cable areas are successfully getting the speed upgrade by asking customer service to re-provision their cable modem. Others are finding the new speed after briefly unplugging their modem, while others are still waiting for any upgrade at all. It is clear the company is soft-launching the speed upgrade and is taking some time before publicly announcing it to all of their existing broadband customers in the area.

About 45% of Charter Spectrum’s footprint supports 200 Mbps as the entry level internet speed, mostly in AT&T landline service areas in the Midwest. Charter has not said when the rest of their service areas will get the free upgrade, but considering the company is about to raise internet prices, bringing faster speeds soon might make the price hike sting a little less.

Spectrum is running this advertisement in Southern California, promoting 200 Mbps internet service. (0:59)

India Getting 100 Mbps Fiber-to-the-Home Service for Under $10/Month

Jio founder Mukesh Ambani formally announces the launch of Jio Fiber.

Starting Thursday, the first 500,000 of over 15 million Indians pre-registered for service will begin receiving fiber to the home broadband at speeds starting at 100 Mbps, bundled with free unlimited voice calling for under $10 per month.

Jio Giga Fiber will eventually serve more than 20 million Indian homes and businesses in over 1,600 communities, charging a fraction of the prices charged by North American cable and phone companies, and expects to remain profitable by selling extra services, including unlimited global calling plans and television service, to Indian consumers. To sweeten the deal, customers that commit to a year of service will receive a 4K LED TV and set-top box for free.

Jio has already laid over 186,000 miles of optical fiber and has an existing base of 500,000 trial customers across India that have been testing the service.

Jio is India’s largest wireless provider, with over 323 million subscribers, making it the third largest mobile operator in the world. It is also one the newest, having launched wireless service in late 2015 over an expansive 4G LTE network. The company was founded by Mukesh Dhirubhai Ambani, one of Asia’s wealthiest men. His vision is to make telecommunications services affordable and available to the largest number of people possible, with an emphasis on making entry-level plans usable and affordable. His presence in the Indian telecom market has caused the same marketplace disruption T-Mobile has caused in the U.S.

Jio’s chief competitor, the state-owned BSNL telephone company, is rumored to be negotiating with several of India’s independent cable and internet providers to offer a competing joint bundle of TV, landline, and broadband services over optical fiber at prices under $9.75/month.

If both companies are successful, Indians will have access to some of the cheapest internet service in the world. 

Jio Fiber is designed to provide India with fiber broadband service as good or better than what is available in the United States and Canada, for a much cheaper price. Ambani noted the average broadband speed in the U.S. is now 90 Mbps, but Jio Fiber will beat that with plans starting at 100 Mbps. He has successfully navigated around skeptical investors by putting up more than $30 billion of his firm’s own money to back the telecom venture, instead of returning that money to shareholders in the form of dividend payouts and share buybacks. He can raise even more cash by selling and leasing back Jio’s extensive network of wireless cell sites.

Ambani sees Jio’s fiber network as a foundation for marketing additional products and services. Wealthier Indians will be invited to spend up to $139 a month on gigabit internet, a deluxe TV package with over 600 TV channels, a landline with unlimited international calling, and access to popular movies on the same day titles are released in Indian theaters. Customers with premium level service will also get free subscriptions to “most” popular video streaming services available in India (excluding Netflix and Amazon Prime Video). One downside to Jio’s plan — it comes with a 100 GB monthly data cap. Those exceeding it will see their speeds reduced to 1 Mbps for the rest of the current billing period. There is no word yet about the availability of unlimited use plans at an additional cost.

Jio has been strategically planning to introduce fiber service for several years and has purchased several Indian cable companies to help manage infrastructure, installation, and a network of retail stores that will act as a sales point for Jio’s wireless and fiber services.

Jio’s Mukesh Ambani introduces India to Jio’s new fiber to the home service, which will cost under $10 a month. (6:59)

Spectrum: Go Ahead and Cancel Cable TV, We’ll Make a Fortune Selling You $70 Broadband Instead

Phillip Dampier September 3, 2019 Charter Spectrum, Competition, Consumer News 23 Comments

Charter Communications has set the stage for a Wall Street-pleasing boost in average revenue per user (ARPU) with a major broadband rate hike planned for this fall.

The rate of U.S. broadband subscriber growth slowed significantly in the second quarter of 2019, as the marketplace for internet access remains saturated and current customers are largely staying with the provider they know.

A MoffettNathanson report to investors shared by Light Reading reported subscriber growth is down from 3% during the first three months of 2019 to 2.8% over the late spring and early summer. In total, cable and phone companies added 438,000 new broadband customers in the second quarter, a significant drop from the 570,000 they added at the same time last year.

The number of new household formations continues to decline in the United States, presumably because younger Americans saddled with student loan debt are having a tougher time buying property or justifying high rent payments. Providers also believe the ongoing shift away from copper telco DSL service to cable broadband has slowed to a trickle, with those still loyal to DSL not concerned about internet speed, are happy with lower cost service, or do not have any other option. Craig Moffett, chief analyst for MoffettNathanson believes much of the growth in cable broadband at this point is coming from customers switching from services like AT&T U-verse, which still offers top speeds of under 30 Mbps in some areas. Other phone companies still relying on fiber-to-the-neighborhood service are likely also seeing customer departures triggered by recent discontinuation of video service. In most areas, cable operators are still the largest beneficiaries of provider changes. Phone companies relying on DSL continue to report broadband subscriber losses. Last year during the second quarter, phone companies lost 127,000 subscribers (a 1.1% decline). This summer, they lost 172,000 subscribers (a 1.3% decline).

With slowing cable broadband growth, companies are still under pressure to report positive quarterly results to shareholders. Without a significant number of new customers, Moffett believes operators will raise broadband prices to deliver higher revenue, especially in light of ongoing video cord-cutting. Moffett points to Charter Communications’ Spectrum in particular. Spectrum has one of the cable industry’s lowest ARPU numbers, because it does not impose cable modem rental fees or usage caps. That may explain the company’s plans to hike general internet pricing 6% starting in October, soon collecting $69.99 for Standard 100 (or 200 Mbps) service and $75.99 a month for customers bundling Standard Internet with Wi-Fi.

“The broadband increases alone would suggest significant upside to Charter ARPU estimates,” Moffett said. He also noted Charter’s plan to dramatically increase video pricing also “underscores their recent pivot towards ‘letting’ video customers leave if they want, and repricing those who remain for profitability.”

That means customers outraged by Spectrum’s cable TV rate hikes will not get much sympathy from customer retention agents. Moffett believes customers will be invited to cancel cable television service, because Charter does not make as much profit on the service as it used to, and customers will probably still keep their Spectrum internet service, which is enormously profitable for the cable operator. Customers will also pay an even higher price for standalone internet service once they stop bundling television service, increasing Charter’s profits even more.

Ironically, the more Spectrum customers drop cable TV packages, the more profit Charter can report to shareholders. Those keeping cable television won’t hurt Charter’s bottom line either. Customers that readily agree to pay more with each cable TV rate hike are statistically the least likely to complain or cancel.

Search This Site:

Contributions:

Recent Comments:

Your Account:

Stop the Cap!