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Houston TV Station Tells the Story of Internet Overcharging in 2 Minutes

Phillip Dampier July 4, 2011 AT&T, Comcast/Xfinity, Data Caps, Online Video, Video Comments Off on Houston TV Station Tells the Story of Internet Overcharging in 2 Minutes

[flv width=”360″ height=”290″]http://www.phillipdampier.com/video/KRIV Houston Know Your Homes Internet Limit 6-29-11.mp4[/flv]

So you’re ready to switch from cable or satellite TV to Internet-only video? Beware: many Internet providers limit how much you can download from websites like Netflix or Hulu.  Isn’t that exactly the point?  KRIV-TV in Houston investigates.  (2 minutes)

Time Warner Cable Officially Unveils DOCSIS 3 Upgrades in San Antonio; Hill Country Residents Yawn

Phillip Dampier June 30, 2011 Broadband Speed, Competition, Data Caps, GVTC Communications, Rural Broadband Comments Off on Time Warner Cable Officially Unveils DOCSIS 3 Upgrades in San Antonio; Hill Country Residents Yawn

Despite a soft launch weeks earlier, Time Warner Cable officially began selling faster broadband packages in San Antonio Tuesday.

Made possible by DOCSIS 3 upgrades (and not by “Time Warner’s fiber optic network” to quote one San Antonio news outlet), the cable company will now sell 30/5Mbps service for $20 above the current price of Standard Service.  Customers looking for more speed can spend a lot more to get it — $99.95 a month buys you 50/5Mbps service, although the sting seems less if you bundle all of your Time Warner services through their $199 Signature Home package, which includes digital cable, broadband, and phone service.  Signature Home includes 50/5Mbps as part of the package.

About 70 percent of the San Antonio market can get the new speeds immediately.  The rest will be upgraded by September.

The upgrades are seen with some amusement by customers of GVTC, a former telephone cooperative that today provides fiber to the home service in parts of the Texas Hill Country and other rural areas to the north of San Antonio.  They recently received speed upgrades from 40Mbps to 80Mbps downstream and 20Mbps upstream as part of a comparably-priced triple play package.  GVTC’s truly fiber optic system was built to accommodate broadband usage growth.

“Consumers obviously enjoy streaming video and downloading HD movies, but these applications use a lot of bandwidth and can slow down other Internet devices in your household,” CEO Ritchie Sorrells said. “The reality is bandwidth consumption will continue to increase. We’re once again ahead of the curve with our 80 Mbps connection, and this tier will be popular with the growing number of households that realize they have a need for speed.”

One thing GVTC customers don’t need and won’t get is the kind of consumption billing Time Warner Cable is reconsidering for their customers in San Antonio and the rest of the country.

The Broadband Revolution is Postponed; Why America’s Duopoly is Holding Us Back

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/Engadget Broadband in Europe.flv[/flv]

Rick Karr at Engadget delivers a sweeping indictment of America’s broadband duopoly in a special video presentation that explores Europe’s leapfrog advancements in broadband penetration, speed, and pricing.  It’s all made possible by technology policy.  In Europe, open access is guaranteed.  In the United States, telecommunications companies won the right to keep competitors off their networks.  The result is a staggering decline in America’s broadband ranking, now below Portugal and Italy.  So what happened to let Europe spring ahead of the United States?  Government regulation.

The game-changer in the United Kingdom and the Netherlands has been government regulators who have forced more competition in the market for broadband.

The market in the UK used to be much like ours here in the U.S.: British homes had two options for broadband service: the incumbent telephone company British Telecom (BT), or a cable provider. Prices were high, service was slow, and, as I mentioned above, Britain was falling behind its European neighbors in international rankings of broadband service.

The solution, the British government decided, was more competition: If consumers had more options when it came to broadband service, regulators reasoned, prices would fall and speeds would increase. A duopoly of telephone and cable service wasn’t enough. “You need to find the third lever,” says Peter Black, who was the UK government’s top broadband regulator from 2004 to 2008.

Starting around 2000, the government required BT to allow other broadband providers to use its lines to deliver service. That’s known as “local loop unbundling” — other providers could lease the loops of copper that runs from the telephone company office to homes and back and set up their own servers and routers in BT facilities.

Today, the UK’s broadband marketplace resembles America during dial-up Internet days, when customers could choose from a dozen or more providers and get substantial discounts or service tailored towards specific needs.  Today, that choice isn’t available from cable and phone companies.  There’s typically just one of each, and your practical choices usually end there. Thanks to Stop the Cap! reader Corey for sharing the story with us.

The video lasts 16 minutes.

Time Warner Cable CEO Glenn Britt Wins 25 Percent Raise, $2 Million Bonus

Phillip Dampier June 28, 2011 Consumer News, Data Caps 1 Comment

Here in western New York, the impact of more than two years of deep recession has delivered record high unemployment, wage freezes and cuts for many still holding onto middle class jobs.  Only now does it appear that the wage deep freeze is slowly coming to an end.

The Rochester Democrat & Chronicle notes total wages earned in the nine-county Rochester/Finger Lakes region for the first nine months of the year were up 2.2 percent over the same period in 2009, according to state Labor Department figures.

But while things are incrementally improving for worker bees, many of America’s corporate “queen bee” executives have maintained compensation packages that would leave one to believe the United States is enjoying double digit growth and a blazing economy.

CEO pay at large U.S. companies has risen from 80 times as much as rank-and-file workers made in 1970 to more than 260 times what they made in 2009.

Stock market gains — the S&P 500 index rose almost 13 percent in 2010 — and improved profitability were key reasons why many executives made more last year than they had in 2009. Of the 86 executives on the Democrat and Chronicle list for both 2009 and 2010, compensation increased for 66.

Take Time Warner Cable CEO Glenn Britt.  He spent much of June talking up raising broadband pricing on his company’s customers, many of whom live in upstate New York.  While Time Warner has faced challenging economic results in their core cable television business, one would never know it from Britt’s newest compensation package, handing him a 25 percent pay raise and another $2 million in his non-stock incentive pay.  That’s a pay package worth almost $10 million dollars.  The D&C notes four other Time Warner Cable executives listed in the company’s proxy statement made from $1.2 million to $3.8 million.

 

Updated: Rogers’ Believe It Or Not: We Will “Abolish” Usage Caps If They “Affect Users”

Phillip Dampier June 28, 2011 Canada, Data Caps, Rogers 3 Comments

Rogers Communications claims usage caps are not creating problems for customers, but if and when they do, the company says it will get rid of them.

Luiza Staniec, manager of public relations for Rogers’ Quebec and Atlantic Canada region, made that remarkable claim in an interview with the New Brunswick-based Times & Transcript.

“At this point there is a cap. It hasn’t really caused a problem,” Staniec said.  “If the cap begins to affect users online, we will abolish it.”

At issue is Netflix’s popular streaming service, which opened for business in Canada last year.  Consumers are embracing the $7.99 service which delivers unlimited streaming of the Netflix online library.  But an increasing number of customers are discovering that while they can watch as much Netflix as they’d like, Internet Service Providers like Rogers have usage limits in place to keep online viewing under control.

Netflix told investors to expect $50 million in operating losses in international business this year, in part because growth in Canada is being hampered by stingy usage limits and high priced broadband.  Once consumers get a broadband bill with overlimit fees attached, some are reconsidering their love affair with video streaming.

Staniec

Lindsey Pinto, communications representative for OpenMedia.ca, a consumer rights organization, says a regime of usage limits in place at most Canadian ISPs will ruin high bandwidth applications and services like Netflix, as consumers find them too expensive to use.

“It takes a lot of bandwidth to stream a movie or watch Netflix,” Pinto told the newspaper. “People will stop doing things that will bring them over the cap. There will be a disintegration from these services under this model.”

Staniec counters that Rogers offers higher usage cap plans (for more money) to accommodate Netflix viewing.

“If you watch a lot of movies, pick the package with the highest cap,” she says. “If you don’t watch too many, you don’t need the high cap.”

She added Rogers is willing to be flexible, adjusting caps “to suit the consumers.”

But last summer Rogers actually reduced the usage cap of its popular Extreme service plan from 95GB to just 80GB per month, one day after Netflix announced plans to enter Canada.

[Updated 5:12pm EDT — We heard from Ms. Staniec who wants readers to know she was respectfully misquoted by the reporter at the Times & Transcript:

“The correct message I conveyed was that our offer will evolve as customers needs/use evolves. The journalist added, ‘perhaps one day they will be abolished altogether.'”

Staniec would like our readers to know she herself made no statement about the issue of abolishing usage caps.]

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