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N.Y. Congressman Introduces Bill Forcing Cable Companies to Reveal Real Internet Speeds, Pricing

Brindisi, as he appeared in an ad slamming Charter Spectrum in the summer of 2018.

Rep. Anthony Brindisi (D-N.Y.) today introduced a bill in Congress to force cable operators fined by a state telecommunications regulator to publicly reveal the actual performance of their internet services, subscriber counts, and a complete price listing including all fees and surcharges.

The Transparency for Cable Consumers Act comes in response to New York’s experiences with Charter Communications, which was fined for failing to meet its commitments under a 2016 merger agreement allowing Charter to acquire Time Warner Cable. Brindisi made the cable company’s performance a core issue in his 2018 campaign, brazenly buying commercial time on Spectrum cable systems for 30-second ads slamming the cable company.

“I’ve heard from thousands of Upstate New Yorkers who are sick and tired of dealing with frequent rate hikes, poor customer service, and failed promises,” said Brindisi. “This is more than just an inconvenience. For families on fixed incomes, an unexpected rate hike could wreck their budget. And for people in rural communities, crawling internet speeds can take away their connection to jobs, health care, information, and important online services. When a company enters into an agreement, it should be required to hold up its part of the bargain.  We can’t keep giving these companies a free pass. If we don’t hold them accountable, nothing will change.”

Brindisi has bristled over the New York State Public Service Commission’s decision to repeatedly extend the deadline given to Charter to file an orderly exit plan winding down its cable operations in the state. The most recent extension was approved on Wednesday, now giving Charter Communications until April 5, 2019 to appeal the Commission’s decision and until May 9, 2019 to file its six-month exit plan.

Brindisi complains Spectrum is being allowed to linger even as consumers continue to contact his office with complaints about frequent rate hikes, slow internet speeds, and poor customer service. His December 2018 letter to the PSC asking the Commission to stop giving Charter additional time extensions has gone unanswered, according to Brindisi.

Brindisi’s bill attempts to walk a fine line around the federal government’s wholesale deregulation of the cable industry. Various deregulation measures stripped federal, state, and local officials of most of their powers to oversee the internet and Voice over IP telephone service. Cable television remains subject to some local oversight and regulation, but not in all areas. Many states also have so-called “state franchise” laws in place, which gives blanket authority for cable operators to offer cable television in the state without seeking a separate agreement with each community.

The Transparency for Cable Consumers Act, would require a cable or internet company to disclose information about its operations if it is fined by a state regulator:

  • The number of cable and broadband internet customers in each county;
  • The average cable bill and broadband internet bill amounts in each county;
  • A full accounting of all fees charged customers in each county; and
  • The average broadband internet speeds delivered in each county.

Rep. Anthony Brindisi (D-N.Y.) appeared on the House floor this afternoon to introduce the Transparency for Cable Consumers Act. (1:18)

Democrats Unveil New Net Neutrality Bill Restoring 2015 Openness Rules

House Speaker Nancy Pelosi, with fellow Senate Democrats and FCC Commissioner Jessica Rosenworcel (upper left corner), speaks at the announcement of a new bill that would codify net neutrality as federal law.

Democrats in Congress this morning unveiled a new bill that would effectively reinstate the 2015 Open Internet rules repealed under the Trump Administration’s Republican-dominated Federal Communications Commission.

The new bill, “Save the Internet Act of 2019,” was hailed by House Speaker Nancy Pelosi (D-Calif.) as a “pillar of economic opportunity” for the digital 21st century information economy and a bill that will stop internet service providers from raising broadband prices even higher.

“A full 86% of Americans oppose the Trump assault on net neutrality including 82% of Republicans,” Pelosi said at an announcement ceremony held in Washington this morning. “With the Save the Internet Act, Democrats are honoring the will of the people and restore the protections that do this — stop unjust discriminatory practices by ISPs that try to throttle the public’s browsing speed, block your internet access, and increase your costs. This is about freedom, this is about cost.”

FCC Chairman Ajit Pai announced his intention to repeal net neutrality in 2017, and despite tens of millions of letters protesting that decision, Pai began rolling back net neutrality rules last year.

The three-page bill was co-sponsored by 46 Democrats in the U.S. Senate. It codifies the language from the FCC’s 2015 Open Internet rules as a standalone federal law, no longer subject to reinterpretation or dismissal by the FCC. A companion bill is expected to be introduced in the House on Friday.

Senate Minority Leader Chuck Schumer (D-N.Y.) implored Senate Republicans to get on board with Democrats to support the re-establishment of a level playing field on the internet, criticizing their lack of support during last year’s effort to resurrect net neutrality.

“Unfortunately, all but three Senate Republicans voted on behalf of the special interests,” Schumer said, noting the measure still passed the Senate in 2018 but ultimately was shelved by the then-Republican controlled House. “So now we have a Democratic House, and Republicans will have a second chance — there are second chances — to right the Trump Administration’s wrong.”

Net neutrality has faced multiple legal challenges and intense lobbying by the telecommunications industry, especially by large cable and phone companies that generally oppose the concept, claiming it would impede management of their networks and block the creation of new innovative services that could deliver extra bandwidth on demand. Telecom companies also complain content providers like Netflix unfairly utilize their networks without fair compensation.

House Speaker Nancy Pelosi and her fellow Senate Democrats introduce the Save the Internet Act of 2019, a bill re-establishing net neutrality as federal law. (31:35)

 

Verizon Says Its 5G Home Broadband Will Only Be for Urban Areas

Verizon, the country’s leading provider of millimeter wave 5G wireless broadband, is promising to expand service nationwide, but admits it will only service urban areas where the economics of small cell/fiber network infrastructure makes economic sense.

At the Mobile World Congress conference in Barcelona, Spain, Verizon’s vice president of technology planning told PC that when it launches its mobile 5G network later this spring, home wireless internet service will come along for the ride.

“It is one network, based on 5G, supporting multiple use cases,” Verizon’s Adam Koeppe said. “Enterprise, small/medium business, consumer, mobility, fixed. When the 5G network is built, you have a fixed and mobile play that’s basically native to the deployment you’re doing.”

That means Verizon’s millimeter wave 5G network is designed to be shared by everyone and everything, including businesses, residential customers, cell phone users on the go, Internet of Things applications like smart meters and intelligent traffic systems, and more. But that network will not be everywhere Verizon or Verizon Wireless currently provides service.

“Our deployments of millimeter wave are focused on urban centers. It’s where the people are, where the consumption is,” Koeppe said.

Verizon faces significant costs building out its 5G wireless network in areas where it does not already offer FiOS fiber to the home service. Verizon’s 5G network is dependent on a fiber optic-fed network of small cells placed on top of utility and light poles at least every few city blocks. That means Verizon is most likely to get a reasonable return on its investment placing its 5G network in urban downtown areas and high wireless traffic suburban zones, such as around event venues, large shopping centers and entertainment districts. The company has chosen to deploy 5G in some residential areas, but only within large city limits. So far, it has generally steered clear of residential suburbs in favor of older gentrified city neighborhoods with plenty of closely-spaced multi-dwelling apartments, condos, and homes, as well as in urban centers with converted lofts or apartments.

Koeppe

Rural areas are definitely off Verizon’s list because the millimeter waves Verizon prefers to use do not travel very far, making it very expensive to deploy the technology to serve a relatively small number of customers.

Other carriers are not committing to large scale 5G deployments either.

At a debate held earlier today at Georgetown Law’s Institute for Technology Law & Policy, former FCC commissioner Mignon Clyburn, now a paid lobbyist for T-Mobile, warned that unless T-Mobile was allowed to merge with Sprint, its deployment of 5G will only happen in “very limited areas.”

Sprint has plans to introduce its own flavor of 5G, which won’t use millimeter wave frequencies, by June in nine U.S. cities. T-Mobile has talked about deploying 5G on existing large cell towers, which means one tower will serve many more customers than Verizon’s small cells. But with more customers sharing that bandwidth, the effective speed customers will see is likely to be only incrementally better than T-Mobile’s existing 4G LTE network. AT&T is initially moving in the same direction as T-Mobile, meaning many customers will be sharing the same bandwidth. That may explain why AT&T’s current 5G hotspot service plan also comes with a 15 GB data cap.

Verizon says its millimeter wave network will, by geography and design, limit the number of people sharing each small cell, making data caps unnecessary for its 5G fixed wireless home broadband replacement, which delivers download speeds of around 300 Mbps on average.

“We engineer the network to give the customer what they need when they need it, and the results speak for themselves,” Koeppe said.

Verizon is already selling its 5G service in limited areas for $50 a month to Verizon Wireless customers, $70 a month for non-customers. There are no data caps or speed throttles.

Based on the plans of all four major U.S. carriers, consumers should only expect scattered rollouts of 5G this year, and only in certain neighborhoods at first. It will take several years to build out the different iterations of 5G technology, with millimeter wave taking the longest to expand because of infrastructure and potential permitting issues.

Comcast Brings Back “Free” Unlimited Data, If You Rent Their $15 Hardware

Phillip Dampier March 4, 2019 Comcast/Xfinity, Consumer News, Data Caps 10 Comments

Comcast is giving some of its customers a way to get back unlimited data for their home broadband connection without having to spend an extra $50 for an unlimited data add-on.

The cable operator is offering customers in parts of its Central Division its xFi Advanced Gateway — a combination cable modem and router — that comes bundled with unlimited data, xFi Advanced Security, and a Home Wi-Fi Assessment for an extra $15 a month. That amounts to $4 a month more than the cost of renting Comcast’s traditional xFi Gateway buys and also buys you a return ticket to unlimited internet service.

 

Comcast has also offered some new customers unlimited service in time-limited promotions, but this seems to be permanent, assuming Comcast offers it in your area.

The xFi Advanced Gateway with unlimited data appears to have quietly launched last fall, but so far it has not expanded to Comcast service areas outside of its Central U.S. division, which includes (Heartland) Michigan, Indiana, Kentucky and Arkansas, (Big South) Alabama, Arkansas, Georgia, Louisiana, Mississippi, South Carolina, Tennessee, and Virginia, plus the state of Florida and the greater Chicago area. Comcast says it has 17 states in its Central Division, but we could not find a definitive list that includes the three other states not listed here.

Interested customers will have to contact Comcast to determine if their area qualifies for this offer.

If you are a Comcast customer already paying an extra $50 a month for unlimited data, this could save you a considerable amount of money, assuming you live in a qualified area and don’t mind using their gateway.

Frontier: Losing Customers While Raising Prices; Company Loses $643 Million in 2018

Phillip Dampier February 28, 2019 Competition, Consumer News, Frontier 7 Comments

In the last three months of 2018, Frontier Communications reported it said goodbye to 67,000 broadband customers, lost $643 million in revenue year-over-year, and had to write down the value of its assets and business by $241 million, as the company struggles with a deteriorating copper wire network in many states where it operates.

But Wall Street was pleased the company’s latest quarterly results were not worse, and helped lift Frontier’s stock from $2.42 to $2.96 this afternoon, still down considerably from the $125 a share price the company commanded just four years ago.

Frontier’s fourth quarter 2018 financial results arrived the same week Windstream, another independent telephone company, declared Chapter 11 bankruptcy reorganization. Life is rough for the nation’s legacy telephone companies, especially those that have continued to depend on copper wire infrastructure that, in some cases, was attached to poles during the Johnson or Nixon Administrations.

Frontier Communications CEO Dan McCarthy is the telephone company’s version of Sears’ former CEO Edward Lampert. Perpetually optimistic, McCarthy has been embarked on a long-term ‘transformation’ strategy at Frontier, to wring additional profit out of the business that provides service to customers in 29 states. Much of that effort has been focused on cost-cutting measures, including layoffs of 1,560 workers last year, a sale of wireless towers, and various plans to make business operations more efficient, delivering mixed results.

McCarthy

Frontier’s efforts to improve customer service have been hampered by the quality and pricing of its services, which can bring complaints from customers, many who eventually depart. Frontier’s overall health continues to decline, financially gaining mostly through rate increases and new hidden fees and surcharges. In fact, much of Frontier’s latest revenue improvements come almost entirely from charging customers more for the same service.

McCarthy calls it ‘cost recovery’ and ‘steady-state pricing.’

“One of the things that we’ve been focused on really for the better part of two years is …. taking advantage of pricing opportunities [and] recovering content costs — really dealing with customers moving from promotional pricing to steady-state pricing, and then offering different opportunities for customers both from a speed and package perspective,” McCarthy said Tuesday. “The quarter really was about us targeting customers very selectively and really trying to improve customer lifetime value.”

By “selectively,” McCarthy means being willing to let promotion-seeking customers go and being less amenable to customers trying to negotiate for a lower bill. The result, so far, is 103,000 service disconnects over the past three months and 379,000 fewer customers over the past year. A good number of those customers were subscribed to Frontier FiOS fiber to the home service, but still left for a cable company or competing fiber provider, often because Frontier kept raising their bill.

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