Home » Data Caps » Recent Articles:

Charter’s Bottom of the Barrel Customer Ratings Didn’t Hurt Ex-CEO’s $20 Million Payday

Lovett – Paid nearly double his 2010 salary for even worse results.

The man hired specifically to improve dismal customer satisfaction ratings for Charter Communications has walked away from the company with more than $20 million in pay in 2011 after just over two years at the helm, even as the company’s ratings grew worse.

Michael Lovett assumed the CEO position at Charter after the company emerged from Chapter 11 bankruptcy in November, 2009. Lovett was charged with cleaning up the company’s lousy reputation for customer service, service quality, and pricing.

He resigned this past February leaving Charter with an even poorer customer satisfaction rating. Now a filing with the Securities & Exchange Commission discloses he walked away with $1.3 million in salary and $19.24 million in bonuses, golden parachutes, stock awards, and other resignation-related benefits — almost double the pay he received in 2010.

Charter is legendary for billing errors, disinterested customer service representatives, Internet Overcharging schemes that limit broadband consumption, poor quality repair and installation work, and inadequate infrastructure.

In July, 2011 Atlantic magazine named Charter the 5th most-hated company in America, and only received a satisfaction rating of 59/100 in the American Customer Satisfaction Index.

This year, the “don’t care bears” of cable did even worse — achieving the rank of 3rd most-hated company in America, stiffing customers with bait and switch promotions customers never received, even shoddier customer service and dodgy billing practices.

“I’d rather have AT&T, and that should tell you something,” shares Thom, a Charter customer in St. Louis. “You can’t believe how bad a cable company can be until you’ve dealt with Charter. You have a better chance of being dealt with fairly in a mob-run casino.”

“Shareholders must be among the dumbest people in America to watch this company flush more than $30 million down Lovett’s bank account for two years and accomplishing the amazing task of actually making things worse,” Thom writes. “He’s proof that throwing money at a problem does not work, no matter how many press releases Charter puts out.”

Charter is now being run by an ex-executive from Cablevision Industries, who has spent his tenure luring other Cablevision mid and high level executives to join him at Charter. President and CEO Tom Rutledge, chief operating officer John Bickham, and chief marketing officer Jonathan Hargis — former Cablevision executives now show up for work at a New York office Charter opened specifically for them.

“Nothing ever changes at Charter,” says Thom. “Instead of spending money actually improving service, they’re opening new executive suites in expensive New York just so the top brass need not slum it here in St. Louis. It’s good to know they have their priorities straight.”

The Better Business Bureau has processed more than 5,000 customer complaints against Charter in the past three years, most eventually resolved through Charter’s executive escalation office in Simpsonville, S.C.

Charter Communications reported a net loss of $94 million in the first quarter ended March 31.

Verizon Wireless’ In-Store Support Hell – Crossed Signals, Mixed Messages, Long Wait

You gotta love Verizon’s $30 upgrade fee to provide customers with the level of service and support they have come to expect. I’d rather deal with “no credit, no refunds, no checks” CricKet.

Verizon Wireless customers pay a $30 “upgrade fee” when purchasing new equipment with a new two-year contract, ostensibly to “provide customers with the level of service and support they have come to expect.”

After losing more than an hour of my life yesterday afternoon inside a Verizon Wireless store, I am here to tell you it isn’t worth it.

For the second time in seven months, Verizon Wireless has taught me they specialize in keeping customers waiting, giving them conflicting information, and proving the employees should be availing themselves of the “Wireless Workshops, online educational tools, and consultations with experts who provide advice and guidance on devices that are more sophisticated than ever.”

The latest nightmare began with an upgrade to Samsung’s Galaxy S3 that arrived with two 4G SIM cards that were initially declared useless-on-arrival. Despite early assurances that a customer service representative should be able to manage the activation of the phones without loss of our coveted unlimited data plan, it turned out a visit to a local Verizon Wireless store was recommended to swap out the 4G SIM cards enclosed in the box as part of a slightly-complicated activation.

Walking into the Pittsford, N.Y. Verizon store brought a feeling of trepidation when I realized my friend “the Verizon Wireless Welcome Kiosk” that I had been signing in at during previous visits was now missing. Instead, the store manager, armed with an Apple iPad, registered me for the inevitable queue of customers waiting for assistance.

“The wait should be around 15 minutes,” the store manager promised.

Nearly 30 minutes later, as I watched what seemed to be the only employee not on break deal with Ms. I-Don’t-Know-and-I-Can’t-Decide, the store manager returned to ask why I bothered to show up in-store to activate phones I could have managed online or by phone.

“Because I was told to,” I explained. “I have two phones that require new SIM cards and special attention to ensure I don’t lose my unlimited data plan.”

“Well, you have to activate them first,” came the reply.

That was news to me, of course, when a Verizon Wireless phone representative an hour earlier warned me specifically not to activate the phones and let a store customer service representative handle everything.

“Please don’t even attempt to activate the phones because I have had customers doing that all day who forfeited their unlimited data plans when they tried,” urged the phone representative. “You need to bring everything to the store and make sure they do it for you because I don’t want you inconvenienced.”

Good intentions, but reality always intrudes.

Phillip “Kill Me Now” Dampier

By now, 35 minutes into my 15-minute wait, several additional frustrated customers trickled in, all with the same phone. One found he couldn’t activate it even when he tried. Another needed his assigned a different number. Again, the store manager insisted the customers activate their phones before approaching a store employee.

As I wearily watched Ms. Indecision -still- taking up the time of the employee that was going to serve me next, I heard other customers casually griping about upgrade fees, the new Share Everything plan, and Verizon’s idea of customer service these days. The consensus: Verizon was shaking down their customers for more cash and also punishing people forced to walk into a store to resolve a problem. Pittsford is one of Rochester’s wealthiest suburbs, and even here customers were tapped out.

I have literally been here before. Back in December, at the same store, a remarkably unhelpful Verizon Wireless employee insisted the problems with my last phone, intermittent they might be, were not his problem if he could not exactly duplicate it while I waited. Since he did not have time to try (but had at least 15 minutes to chat up a young lady that preceded me about his holiday pie-making experiences), I was on my own, just as my warranty was set to expire.

He no longer works there.

As each new customer arrived on this remarkably warmer July day, the store manager warned the wait was growing longer and longer. He didn’t mention the customer -still- at the counter contemplating this or that and holding up the entire free market wireless economy in the process.

At this point, I was advised I could activate my phones by dialing *228 and I’d be all set. Only a year earlier, a Verizon employee told me 4G LTE customers should burn their fingers with a cigarette lighter if they ever felt the urge to try, because it would “scramble the SIM card forever.” True or false, I felt burned already.

I decided instead to call Verizon Wireless customer service, ironically, from inside the Verizon Wireless store that was supposed to be giving me “the level of service and support I have come to expect.”

“Due to (incredibly) high call volumes, your wait (is likely to be until the snow flies before someone will pick up your call).”

I then realize there are two other customers doing precisely the same thing I am, which probably explained those high call volumes.

Mr. Store Manager returned to ask if I had activated my phones yet. I explained I could not get through, but was bemused to notice the phones had now powered up with messages indicating they were in the process of activating themselves.

An hour into my 15 minute wait…

“That’s because you had your phones turned on,” came the odd explanation. “You have to turn the phones off before you call customer service.”

“I don’t think so, I seem to recall my Samsung Droid Charge activated itself in a similar fashion,” I replied.

“No, that isn’t how it works.”

Two minutes later, the phones activated themselves. I’m not certain I’ll ever know exactly why, especially after being told I had dud 4G SIM cards. But I also found it ironic that even a confused customer like myself, now dying in my personal Verizon hell, seemed to know more than the people working there, and I didn’t even take that Wireless Workshop.

Regardless, I was elated that stage of my trial had come to an end. Now I only had to have an employee swap those SIM cards out to assign the phones to the proper phone numbers. Then I could escape my excellent customer experience for good.

But there was Ms. Should-I-or-Shouldn’t-I, still tying up the growing line (the wait had now grown to perhaps an hour for customers entering the store… at their own risk.)

Suddenly, an employee miraculously returned from break and I was finally helped.

“You want insurance on these phone, right?”

“No.”

“But you have 14 days to change your mind.”

“No.”

“Which phone do you want on which number.”

“Since the phones are precisely the same, it does not matter to me.”

Those were the days.

Long pause.

The employee kept dropping below the counter to deal with an interminable number of snake-long thermal cash-register-like receipts that kept spitting out of the printer whenever he did anything on the slowly-responding computer.

After another 15 minutes, the new 4G SIM cards were in.

“Now let me show you some of the cool new features on your phone, but first enter your name and password.”

I compromised by entering my name and password but suggested we skip the training course. Besides, my personal lease renting space inside the store (and my new 2-year contract) was likely to expire before I would finally get out of there.

“We have some nice new cases to show you to protect your phones.”

“No thanks.” Now I am questioning why I bought the phones in the first place.

“Okay, now it is time to restore your apps.”

Kill me now.

As soon as the phones were up and running, back into the boxes they went, and polite thank-yous were delivered to all concerned. I then busted out of the store, more than an hour after my promised 15-minute wait, like a prisoner escaping Attica. Sure I realize I am not “free at last,” stuck on a new contract with Verizon for another two years, but I can do my time standing on my head so long as I can avoid ever dealing with another Verizon Wireless store… and keep my unlimited data.

They should pay me $30 to go through upgrading anything with them. Oh wait, just a year or so ago they did — $100 as part of Verizon’s long-gone “New Every Two” program… exorcised right along with their budget-minded voice calling options, unlimited data, and text plans suitable for the occasional text here and there. In their place, the all-new, super exciting $90 Share Everything plan… including $50 for a “generous” 1GB data allowance.

Thanks Verizon Wireless!

Time Warner Cable’s Installation Price: $50, $20, or Zero… It Depends

Phillip Dampier July 10, 2012 Competition, Consumer News, Data Caps, Editorial & Site News Comments Off on Time Warner Cable’s Installation Price: $50, $20, or Zero… It Depends

Stop the Cap! reader Joanne wants to see the back of Frontier Communications’ DSL service so she headed to Time Warner Cable to get information about their broadband pricing. Things quickly got confusing when she opened a chat session with a support representative over exactly what the cable company was charging for service and installation. We’re going to participate after the fact (our comments are in blue):

Joanne: I am looking at basic Internet service at $19.95 per month.

TWC: Great choice!

STC: Did anyone think the representative would say anything different no matter what level of service Joanne wanted?

TWC: What kind of questions do you have regarding this one?

Joanne: Is installation included at no charge?

TWC: Not actually there is an installation of 49.99 but you can get a very special discount of $19.99, but if you are not able to pay that you can always get the recurring method of payment or auto payment and you can get free installation!

STC: What?

Joanne: Which is it – 49.99, 19.99 or zero?

TWC: I mean once you order the service we will make a discount of 19.99 for the installation, but if you want you can select the auto payment and you will get free installation.

STC: Joanne should have asked at this point for TWC to waive the installation fee so she need not reach for a bottle of Tylenol and decoder ring to figure all this out. 

Joanne: By auto payment, do you mean automatic via my checking account?

TWC: Yes, or credit or debit card as well.

STC: Joanne could also set up automatic billing on a credit card nearly set to expire and then just drop back to regular billing if she was uncomfortable with Time Warner automatically sipping money out of her accounts. 

Joanne: What is the total including taxes for this plan, per month?

TWC: $19.99 + 2.50 if you need a modem and $2 or $2.50 taxes. No more than that.

STC: Of course she needs a modem. But if Joanne plans to stick around with Time Warner, she might want to buy one herself and avoid the modem rental fee altogether. Why pay that forever?

TWC: Once they process the order you will be getting an email with all the details about it!

Joanne: Thanks, but I prefer to know the details BEFORE I sign up. If I wanted to sign up for two years, or three, could I do that at the 19.95 rate?

TWC: No, it is 12 month promotions with no contract.

STC: Just threaten to leave after the 12 months are up and watch it get extended for another year. By the way, can you say “offshore chat support center?” 

Joanne: What is the current full rate for basic service per month?

TWC: As we do not have a contract involved we do not handle prices after the promo expiration, what we have is a promotional time that will be for 12 month that way we will be always sure you as our customer are taking advantage of the earliest and best promotion by the time your promotion is about to expire!

STC: (banging head on desk)

Joanne: So you can’t tell me what the current full rate is as of today, for your current customers?

STC: Apparently not. More than two minutes passed before Joanne finally asked if the representative was still there.

TWC: Yes, I’m checking into that. Just a moment please. […] That would be 29.99 + 2.50 + taxes.

Joanne also learned there are no usage caps, for now anyway.

Our recommendations is to call Time Warner Cable by phone for anything more complex than a service credit request or address change. The time and unnecessary confusion that is saved could be your own.

Former FCC Commissioner Michael Copps Blasts Data Caps: Scarcity-based Broadband

Copps

Former FCC commissioner Michael Copps thinks usage caps are all about raking in additional profits while cutting back on upgrades while claiming there is a broadband “shortage.” In remarks published on the Benton Foundation website entitled “Hoodwinked,” Copps lets loose on his frustration with the nation’s Internet Service Providers and government regulators who allow them to dictate America’s broadband development:

“Sorry,” the big companies tell us. “You consumers are such data hogs gobbling up the spectrum that we’ve got to ration what you get and charge you more for it.”

While price differentials between those who consume a little data and others who consume a lot may be part of the conversation eventually, we shouldn’t even be considering that at this stage of the game. There is just too much evidence that the big broadband providers operate a scarcity-based plan that works really well for their quarterly reports, but one that would be up-ended if they went out and invested in the increased broadband capacity consumers will need.

Broadband strategist Blair Levin put it well in a recent speech: “When it comes to the wireline access network, instead of talking about upgrades, we are talking about caps and tiers. Instead of talking about investment for growth, we are talking about harvesting for dividends.”

Make no mistake: America is not going to have the telecommunications infrastructure its future so urgently needs without a national commitment, public as well as private, to increase our broadband performance by orders of magnitude. We cannot harvest our future without planting the seeds for our future. It’s something we need to talk about—before the land goes barren.

Suddenlink’s Magical Mystery Meter: Records 12GB of Usage Even During Power Outage

Easy as counting in the dark.

Suddenlink customers in West Virginia who have been dealing with the aftereffects of a damaging derecho for a week found a nasty little surprise from their cable company when the lights cut back on — gigabytes of usage recorded on the company’s suspect “usage meter,” despite the fact customers were without power for up to a week.

Broadband Reports readers have begun to check back in after extended downtime to report Suddenlink is racking up usage whether customers are using their broadband connection or not:

  • “Tylr” reports he was without power for two days but Suddenlink’s usage meter kept the party going, recording 12GB of phantom usage during the two days the customer was without service;
  • “Jdmm72” found exactly the same thing, shocked to discover he racked up 10.8GB of usage on a day when he and his fellow neighbors in Nitro, W.V., were completely in the dark.

Suddenlink’s usage meter is not verified by any third-party or government agency to ensure its reliability and the company is under no obligation to change this policy. But customers are expected to cover any overlimit fees Suddenlink imposes for “exceeding your allowance.”

Does the company need the extra money? Not really, according to Suddenlink president and CEO Jerry Kent, who earlier admitted the days of expensive system upgrades were over and it was now time to rake in profits:

“I think one of the things people don’t realize [relates to] the question of capital intensity and having to keep spending to keep up with capacity,” Kent said. “Those days are basically over, and you are seeing significant free cash flow generated from the cable operators as our capital expenditures continue to come down.”

Search This Site:

Contributions:

Recent Comments:

Your Account:

Stop the Cap!