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Time Warner Cable Loses 15% of Their Analog Cable Customers; News on Broadband Caps, Pricing

Time Warner Cable has lost between 10-15 percent of their analog cable television customers over the past year, according to Time Warner Cable president and chief operating officer Rob Marcus.

Speaking at this morning’s Goldman Sachs Communacopia Conference, Marcus noted the economic downturn has continued to cost the cable operator “single play” subscribers. Marcus noted that roughly 60 percent of the cable company’s customers are now on discounted or retention plans, and the company has no plans to reduce aggressive retention offers and promotions in the immediate future. Time Warner Cable will also exercise caution when customer promotions expire, an allusion to the company’s practice of gradually resetting rates to retail prices over an extended period of time to avoid antagonizing customers into switching providers.

Marcus acknowledged broadband is now a key service for Time Warner Cable, one that the company will continue to exploit to drive earnings. Some investors have complained Time Warner has only managed an increase of 2-3 percent in Average Revenue Per User (ARPU) for broadband, a key metric for Wall Street. Marcus was asked why Time Warner, with its superior market share over telephone companies, was not “exercising the price lever a little bit more” in a marketplace lacking serious competition.

Marcus

“I think it is fair to say that as the utility of the [broadband] product increases in customers’ minds, their willingness to pay for it (assuming they are able) goes up, so I think it stands to reason that we can continue to increase rates on high speed data,” Marcus said.

But even more important to Time Warner Cable is its differentiated broadband speed tiers, which the company is refining to pick up additional revenue and price-resistant customers. Broadband usage caps will be a part of that equation.

Marcus confirmed that Time Warner Cable will provide unlimited broadband packages to its premium tier customers, but will introduce usage-limited service on its budget tiers. Currently, the company only imposes a usage cap of 5GB on its Internet Essentials package, which offers a $5 discount off regular prices. But Marcus seemed to acknowledge that the company plans to experiment further with additional limits.

“We are going to deliver very fast speeds, unlimited consumption, and now mobile capability via our Wi-Fi network to those customers who demand it and are willing to pay premium prices for those tiers of service,” Marcus said. “At the other end of the spectrum we are going to have budget products as we do today that offer lower speeds, more limited consumption like our Internet Essentials product, and those probably won’t have access to our Wi-Fi hotspots. We think that is the best way to drive revenue and profitability.”

Marcus also told investors the company was working on the next generation of the company’s electronic program guide, which he said will be cloud-based. Time Warner Cable continues to signal it is willing to work with third party set top box manufacturers to let customers dump traditional set top boxes, but only so long as Time Warner Cable gets the credit in the minds of customers. The company is also working on rolling out video-on-demand for its online video apps.

Comcast Tinkers With New 600GB Cap for Super Premium Broadband Customers

Phillip Dampier September 18, 2012 Broadband Speed, Comcast/Xfinity, Data Caps Comments Off on Comcast Tinkers With New 600GB Cap for Super Premium Broadband Customers

Unfortunately, your usage allowance does not reach Xfinity.

Comcast has introduced more generous usage allowances for some of their premium broadband customers who pay for lightning fast speeds and do not appreciate a one-size-fits-all usage cap.

Broadband Reports has reliable information the rollout of more generous caps, starting in Tucson on Oct. 1, will eventually make their way to other Comcast cities. The newly available caps vary according to the broadband tier chosen by customers:

  • Economy: 300 GB
  • Economy Plus: 300 GB
  • Internet Essentials: 300 GB
  • Performance Starter: 300 GB
  • Performance: 300 GB
  • Blast: 350 GB
  • Extreme 50: 450 GB
  • Extreme 105: 600 GB

Well, that answers that.

Karl Bode says he is unsure what the cap will be (or if there is one) on Comcast’s newest 305Mbps speed tier, not yet available in Tucson. Comcast’s usage caps only apply to residential service. Customers who refuse to tolerate limits have often switched to one of Comcast’s business broadband tiers, which come uncapped.

Customers who exceed their allowance will pay a price AT&T seems to have successfully introduced as the de facto overlimit fee for American broadband consumers: $10 for each 50GB increment over the limit.

Customers will receive an in-browser notice when they reach their limit. Comcast has a ‘three strikes and you’re out $10‘-policy — giving customers three free “courtesy passes” if they happen to exceed their allowance and do not want to pay an overlimit fee. After that, the fee will be automatically billed.

While some Time Warner Cable customers are drooling at Comcast’s regularly increasing speeds (TWC’s top speed is currently 50/5Mbps), a significant number say not having a usage cap is worth the trade-off.

“Comcast can keep their higher speeds you can’t really use with their usage caps,” shares Stop the Cap! reader Will Pryzinski. “I’m more than happy with 50Mbps from Time Warner so long as the usage limit ripoff stays far away.”

AT&T Faces Net Neutrality Complaint from Public Interest Groups Over FaceTime Blocking

Free Press’ campaign against AT&T’s Net Neutrality violation (click image for further information)

When AT&T customers take delivery of their new iPhone 5 or install Apple’s latest iOS 6 software update, the popular video conferencing app FaceTime will become available to the company’s mobile broadband customers for the first time, if they agree to switch their service to one of AT&T’s new, often more-costly “Mobile Share” plans.

Until now, FaceTime has been limited to Wi-Fi use only, but objections from wireless carriers and some technical limitations kept the popular app from working over 3G or 4G wireless networks.

AT&T’s decision to block the FaceTime app unless a customer changes their current mobile plan has sparked a notification from three public interest groups that they intend to file a formal Net Neutrality complaint against AT&T.

“AT&T’s decision to block FaceTime unless a customer pays for voice and text minutes she doesn’t need is a clear violation of the FCC’s Open Internet rules,” said Free Press policy director Matt Wood. “It’s particularly outrageous that AT&T is requiring this for iPad users, given that this device isn’t even capable of making voice calls. AT&T’s actions are incredibly harmful to all of its customers, including the deaf, immigrant families and others with relatives overseas, who depend on mobile video apps to communicate with friends and family.”

Free Press is joined in the forthcoming complaint by Public Knowledge and the New America Foundation’s Open Technology Institute.

“AT&T’s decision to block mobile FaceTime on many data plans is a direct contradiction of the Commission’s Open Internet rules for mobile providers,” said Sarah Morris, policy counsel for the New America Foundation’s Open Technology Institute. “For those rules to actually protect consumers and allow them to choose the services they use, the Commission must act quickly in reviewing complaints before it.”

AT&T earlier responded claiming they still allow the app to work over Wi-Fi (yours or theirs), so it cannot be a Net Neutrality violation. The company has spent an increasing amount of energy trying to convince regulators that wireless networks, including Wi-Fi, are largely equivalent. So long as a customer can access an app on one of them, there is no violation according to AT&T.

The company also claimed that since FaceTime comes pre-installed on phones, it is exempted from Net Neutrality regulations.

Whether the FCC will believe arguments that access over Wi-Fi is suitable enough to escape scrutiny for blocking an app on AT&T’s own 3G and 4G networks is open to debate.

The Obama Administration’s FCC has taken a lukewarm approach on Net Neutrality, adopting a compromise that is being attacked in court by MetroPCS and Verizon Wireless and considered insufficient protection by most consumer groups.

AT&T’s Apple iPhone 5 Customers Can Keep “Unlimited Data” Plans

Phillip Dampier September 17, 2012 AT&T, Broadband Speed, Consumer News, Data Caps, Editorial & Site News, Sprint, Verizon, Wireless Broadband Comments Off on AT&T’s Apple iPhone 5 Customers Can Keep “Unlimited Data” Plans

AT&T customers upgrading to Apple’s newest iPhone will be able to keep their grandfathered unlimited data plan and purchase the phone at discounted prices starting at $199, with a new two-year contract.

AT&T’s definition of “unlimited” has, for at least a year, actually meant up to 3GB of usage before throttling your 3G speeds to something comparable to dial-up Internet. But with the iPhone 5 ready to run on AT&T’s higher capacity 4G network, the company is increasing the limit to 5GB per month.

AT&T has been working hard to hold onto its significant base of iPhone owners, who have endured dropped calls and slow data in many cities for the last several years.

Customers planning to leave AT&T will find a considerably less-friendly attitude at Verizon Wireless, where new customers are compelled to sign up for a Share Everything plan that starts with just 1GB of usage per month.

Sprint is retaining its unlimited smartphone data plan with no hidden limits or speed throttles, but Sprint’s overburdened 3G network is not known for fast and reliable speed, and the company’s aging 4G Clearwire WiMAX network cannot perform as well as Sprint’s forthcoming LTE counterpart, which has only appeared in a handful of cities so far.

The iPhone 5 will be the first Apple phone ready to take advantage of 4G LTE speeds, which could give those new networks a real workout as millions of new iPhone owners pile on.

Rogers’ Challenges Athletes to Beat Its Download Speeds, But People Don’t Have Usage Caps

Rogers is serving up its Ultimate Internet service, with speeds up to 150/10Mbps, by challenging some of Canada’s biggest athletes to try and beat the company’s broadband speeds.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Rogers Ultimate Bundle Challenge.flv[/flv]

Tennis Pro Milos Raonic: For Milos’ challenge, we set up a tennis court in a Toronto warehouse, with a “play” button target at one end.  We challenged Milos to serve the ball and hit the target to play a song, faster than we could download it using Rogers Ultimate Internet. Let’s not forget Milos is well known for his powerful serve, reaching 250 km/hr. He has also served more aces than any other player so far in 2012. Does Rogers Ultimate Internet have a chance against a champion like Milos?  (1 minute)

Apparently more often than not, judging from Rogers’ video. But one thing Raonic has going for him, as a human being, is no usage cap. As our loyal reader Alex points out, Rogers’ Ultimate Internet only includes a downright piddly 250GB a month, which is quite a little for customers paying just shy of $123 a month for Internet access. Rogers slaps a $0.50/GB overlimit fee on this tier, with a maximum of $100.

That leaves super-premium customers feeling like they can take Rogers’ screaming fast Internet service on a 15-lane highway with a 250kph speed limit for around five kilometers before hitting the toll booth.

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