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California Public Hearing on Charter-Time Warner Cable Merger is Tonight; Stop the Cap! Will Be There

cpucCalifornians will have their chance to speak out about the proposed merger of Charter Communications and Time Warner Cable at a public hearing in Los Angeles tonight before an administrative law judge working for the California Public Utilities Commission (CPUC).

California will be the last major state capable of killing the transaction should the CPUC reject the merger on the grounds of it not being in the public interest. New York regulators approved the merger, but only with a lengthy list of conditions designed to improve service for New York residents.

Stop the Cap! will be represented at the hearing tonight by Matt Friedman, who will help us improve our vigilance of cable and phone companies serving the west coast. Friedman has done an incredible job exposing the sham of usage caps and compulsory usage-based pricing in his written testimony, which will be published here after being filed with the CPUC. As with most CPUC public hearings, we expect speakers will only be given a few minutes at most to state their views on the merger. As we did in New York, Stop the Cap! will oppose it on the grounds it is not in the public interest.

charter twcWe remain suspicious about Charter’s commitment to not impose usage caps or usage pricing for only three years. Most consumers will not see much of a change in the broadband marketplace over the next few years. Charter can afford to wait 36 short months before potentially slapping on usage caps/billing — after winning additional regulatory approval to buy out even more companies. While the CEO of Time Warner Cable will walk away with over $100 million in golden parachute benefits if he successfully sells Time Warner Cable, we anticipate most customers will win a higher bill.

Friedman will share our ongoing concerns that Charter’s offer is less impressive than Time Warner Cable’s own Maxx upgrade initiative, which will deliver 300Mbps service for the price Time Warner Cable customers currently pay for 50Mbps. Time Warner Cable’s $14.99 budget Internet service is also on Charter’s chopping block, to be replaced with an entry-level tier offering 60Mbps for about $60 a month — four times more expensive. In short, the only honest reason to allow this deal to succeed is if we want to further enrich Time Warner Cable executives and shareholders while customers take all the risks of higher bills, worse service, and usage caps starting in 2019, with few if any other options.

Also planning to attend are Common Cause, Free Press, and the National Hispanic Media Coalition, which all argue allowing this deal to succeed sets up America for a national virtual duopoly between Comcast and Charter, with just two companies controlling the majority of broadband connections in the United States.

The CPUC could reject the merger outright or approve it, usually with conditions. While we remain opposed to the merger, should the CPUC ultimately make a different decision, we are advocating:

  • A ban on compulsory usage caps or usage pricing. An affordable, unlimited option broadband tier should always be available, at prices comparable to what consumers pay today for Internet service.
  • Charter should be forced to commit to upgrading its entire service area in California to an equal level of service offered by Time Warner Cable Maxx.
  • Charter should be required to keep Time Warner Cable’s affordable, no-contract/no-requirement $14.99 Everyday Low Price Internet plan and boost its speed.
  • Most-favored state status for California, automatically giving California consumers the benefits won from conditions imposed by regulators in other states.
  • …and other consumer-targeted service improvements.

If you are in Los Angeles and want to attend or possibly share your own views with the CPUC, the hearing is open to the public:

Location: Junipero Serra State Office Building – Auditorium (Carmel Room)  — 320 West 4th Street, Los Angeles
Time: The meeting starts at 6:00pm

Wall Street: Usage Caps Are an Important Weapon in Fight Over Cord-Cutting

charter v dishA behind the scenes struggle between DISH Networks and Charter Communications over DISH’s online video service Sling TV has led to an admission by a Wall Street analyst that “usage-based billing” is an important tool for stifling over-the-top online video competition.

On Dec. 21, DISH’s legal team sent a letter to the FCC complaining about Charter’s attempts to “address” the competitive threat of Sling TV, DISH’s online video alternative to cable television.

“Charter’s laser-like focus on Sling TV shows that it views Sling TV as a serious competitive threat rather than a benign interest,” wrote DISH’s attorneys. “Charter is focused on protecting its video subscriber base rather than enhancing the broadband Internet experience for its subscribers. Charter’s documents further reveal thinly veiled complaints to programmers about making their programming available to Sling TV and other [online video] products.”

In the highly redacted filing, Dish suggested Charter was making thinly veiled threats to Disney and Scripps Networks over their willingness to allow their content to be included on Sling TV. DISH has complained to the FCC the cable company was attempting to undermine the new competitor.

A sample from DISH lawyer's highly-redacted submission to the FCC shows much of this fight is occurring out of public view.

A sample from DISH lawyer’s highly redacted submission to the FCC shows much of this fight is occurring out of public view.

On Thursday, the FCC also received an ex parte filing alerting the public that Time Warner (Entertainment) and HBO executives privately met with FCC staff last week, at their invitation, telling them Charter was likely threatening other programmers with unspecified action if they continued to allow their programming to appear on Sling TV.

In that meeting, HBO executives suggested “New Charter” — the combination of Charter Cable, Time Warner Cable, and Bright House Networks — “would be inclined to take action directed at programmers” if services like Sling TV continued to grow. Those threats seem to have been confirmed by Charter CEO Thomas Rutledge, who warned the company would take ‘competitive action’ against programmers selling content to the competition.

In the past, several cable executives have hinted that allowing wider distribution of cable networks over competitors’ networks or direct-to-consumer would dilute the value of those networks to cable operators. That would likely lead to demands for reduced prices when cable networks sought contract renewal. Some cable companies might also drop those networks altogether, arguing customers can get them elsewhere. Either retaliatory move would cut viewer numbers, which in turn would force networks to charge less for advertising.

That the FCC would invite further discussions on the issue of online video competition has some on Wall Street concerned about the prospects of Charter winning approval to buy Time Warner Cable and Bright House.

On Friday, BTIG analyst Richard Greenfield wrote investors, wondering if “we should be less confident in deal approval than we currently are.” With both the Justice Department and the Obama Administration pushing hard for competitive online alternatives to cable television, the FCC may be worried allowing New Charter to have 25-30 percent of the broadband market. With broadband a prerequisite for signing up for services like Sling TV, Rutledge’s “competitive action” could dissuade consumers from choosing online video instead of cable television.

New Street Research analyst Jonathan Chaplin admitted one of Charter’s strongest potential weapons against online video competitors is usage-based Internet billing. That Charter has committed to avoiding usage pricing for the next three years would seem to delay any attempt by Charter to deploy usage caps and usage pricing to stop online competition.

But three years may also not be long to wait, especially if the current “cap-free” commitment helps win merger approval. Chaplin believes Charter’s current commitment to not impose usage caps weakens DISH’s argument, but it could be the subject of special conditions from regulators if the deal is ultimately approved.

The topic appears to be sensitive enough to have provoked Charter to push back hard against DISH and Time Warner (Entertainment) in a blog post published last Friday afternoon.

We are happy to report that the vast majority of stakeholders are pleased with the merger and excited about New Charter.  It’s no surprise, though, that there are some who seek to use the regulatory review process to extract concessions or conditions that further their business goals.  Following the well-worn play book, to achieve that goal, they must first try to discredit the merger, but their allegations are often not based on the facts. For example, charges by Dish and Time Warner’s HBO that New Charter will harm Online Video Distributors simply do not make sense. As we have demonstrated, there is no more OVD-friendly provider than Charter, with our slowest speed at 60Mbps, no data caps, no usage-based billing, no annual contracts and no modem fees. Additionally, we’ve committed that New Charter will offering settlement-free peering to Internet companies, which means we will continue to invest in interconnection to avoid congestion. Netflix CEO Reed Hastings, a supporter of the transaction, stated “the key thing about the Charter deal is it’s all Internet companies that benefit — us, Hulu, Amazon, HBO Now — so that we can all compete for consumers’ affection.”

N.Y. Approves Charter-Time Warner Merger; Stop the Cap!’s Impact on Deal Conditions

charter twc bhConditions recommended by Stop the Cap! to protect New York consumers after a merger of Charter Communications and Time Warner Cable are expected to cost the two cable companies almost one billion dollars and will guarantee statewide adoption of Time Warner Cable’s Maxx upgrade, guaranteeing all customers receive speed upgrades ranging from 60-300Mbps.

On Friday, the N.Y. Public Service Commission announced its conditional approval of the merger transaction, but only if Charter agrees to a series of wide-ranging conditions to guarantee that New York customers receive tangible benefits as a result of the merger:

The Commission agrees that in order for the proposed merger to be in the public interest, the Petitioners must agree to make concrete and enforceable commitments to modernize their cable system and services, expand access, address the digital divide and improve customer service. To this end, we find that with the acceptance by the Petitioners of the enforceable conditions, as discussed in the body of this Order and Appendix A, the proposed merger is in the public interest. These conditions are designed to help ensure a near ubiquitous world-class communications network that meets the needs of all New Yorkers. Absent acceptance of these conditions, the public interest standard cannot be met, and the petition for transaction approval is denied.

Stop the Cap! was quoted and footnoted extensively in the PSC order. We provided the PSC with insight beyond the public relations machine of Charter and Time Warner Cable. We exposed the fact Charter’s promised service improvements were actually more modest than what Time Warner Cable has undertaken on its own through its Maxx upgrade program. We educated regulators about the inadequacy of Charter’s initial commitment to offer low-cost Internet access for low-income families. We questioned the consumer benefits of certain upgrades that could actually increase costs for consumers because of additional equipment fees. We alerted the PSC that Charter would discontinue Time Warner’s affordable $14.99 Internet offer. We strongly recommended the PSC consider making rural broadband expansion a part of this transaction. We also sought additional protections from any future compulsory usage caps or usage-based billing.

special reportAlthough Stop the Cap! was opposed to the transaction from the outset, doubting it was in the public interest, we recognized the chances for approval were greater than the Comcast-TWC merger that was eventually withdrawn. Therefore, we made it a priority to outline multiple conditions we felt should be imposed on Charter if the deal was to be approved.

Our constituency is ordinary consumers and ratepayers. Too often these kinds of mergers are approved with token conditions that only benefit minority or special interests, favored non-profit or government entities, or those with vested business interests (programmers, equipment manufacturers, etc.) It was important to us that any approval bring something beyond free Internet service for schools or community centers, agreements to continue carrying certain cable networks, or a temporary discount or low value coupon that ends up in the mailboxes of customers a year or two from now.

We know what Time Warner Cable customers in New York want: better service, faster speeds, no data caps, no gotcha fees, affordable Internet options, and job protection.

It appears New York regulators understand that as well and intend to force Charter to offer customers a better deal.

Despite publicly saying little about the merger, just a few hours after the PSC’s decision, Gov. Andrew Cuomo’s office issued a press release taking credit for the merger conditions and unveiling the “tenth signature proposal of his 2016 agenda: dramatically expanding and improving access to high-speed Internet in communities statewide.” Once again, the governor will try to entice providers like Time Warner Cable, Frontier Communications, and Verizon to expand rural broadband in New York using public dollars.

Although lacking a catchy title, the “New New York Broadband Program” includes a $500 million solicitation for private sector partners to subsidize rural broadband expansion with state dollars. The key goals of the 2016 program include:

  • stcAccess to broadband at speeds of at least 100Mbps; 25Mbps in the most remote areas of the State.
  • Public-private partnerships with a required 50 percent match in private sector investment targeted across the program.
  • Priority for projects that improve broadband Internet access in unserved areas, libraries and educational opportunity centers.
  • Applications will be chosen through a “reverse-auction” process, which will award funding to bidders seeking the lowest State investment.
  • Auctions to be held within each Regional Economic Development Council region to ensure statewide allocations of funding.

Much of the funding from earlier years ended up going to Time Warner Cable for modest expansion of its cable service, especially in eastern upstate New York. Likely applicants in 2016 include Time Warner Cable, Frontier Communications, community-owned/co-op broadband providers and rural wireless ISPs. Verizon and Cablevision are unlikely to apply.

Despite the governor’s efforts, most New York homes and businesses will be more affected by the Charter-Time Warner Cable merger, if it wins federal approval.

Gov. Cuomo

Gov. Cuomo

The Public Service Commission took its role very seriously, issuing a 93-page decision that took recommendations from consumer groups including Stop the Cap! very seriously. It did not share the industry’s belief that telecommunications providers in New York are heavily competitive.

“Time Warner serves close to 50% of New York State and we have a legitimate interest in ensuring that, when a company of this size provides customers with a service so affected by the public interest, as is communications, that real benefits accrue to consumers as a result of a given transaction,” the PSC wrote.

The PSC had an easier time sorting through comments about this merger, which generated considerably less interest than Comcast’s failed attempt to buy Time Warner.

“Generally, comments supporting the proposed transaction assert that, among other things, the merger will create jobs and provide better products at more affordable rates,” the PSC concluded in its ruling. “Those opposing the transaction state that the merger will inevitably lead to higher rates and potential data caps on broadband services in the future.”

The PSC took a very skeptical approach to Charter’s promised benefits, often finding them vague, questionable, or likely to have occurred with or without Charter’s involvement.

new-yorkFor example, the PSC questioned Charter’s promised network investments and upgrades:

Petitioners, however, decline to specify where in the national footprint of Charter, TWC and BHN these investments will be made or to identify the decisional factors to be used to channel these capital resources to specific areas or customers. There is no analysis to indicate that a reasonable proportion of these investments will be to systems in New York or for the benefit of New York customers. Similarly, there is no proposal by the Petitioners to describe the specific commitments that are being made or the specific enforcement mechanisms that would be used in the event the Petitioners’ implementation fell short of their commitments. Further, in order for these investments to be characterized as part of a net public benefit, Staff concludes, and we agree, that Petitioners would have to establish that these investments would not have been made in the absence of the proposed merger.

In the absence of a demonstration that there is “a tangible commitment to make new investments or invest beyond Time Warner’s current capital investment budgets,” it is difficult to characterize these capital expenditures as a certain benefit to New York customers or a satisfaction of the public interest under the New York statutes.

One of Stop the Cap!’s core arguments in our comments to the PSC was that Charter’s upgrade commitments were not particularly meaningful because Time Warner Cable was gradually upgrading its own systems to a level of service superior to what Charter plans to offer. The PSC clearly understood this and our warning that Charter’s commitments lacked specificity:

Public Benefit Assessment Staff and several commenters suggest that the proposed merger, as described in the Joint Petition and Petitioners’ Reply Comments, does not have sufficient net benefits to warrant a finding that the transaction is in the public interest. We concur. Many of the asserted benefits from the proposed transaction are events triggered by actions taken independently from the merger, and others are likely to be undertaken by TWC in any event, should the merger not be approved. Further, many asserted benefits are only described on a national scale and there is no way to determine if the investments or expenditures will occur in New York. Similarly, many of the projected benefits are described in terms that are too indefinite to permit us to assume that the benefits will occur as described to make a meaningful contribution to the transaction’s net benefits.

Time Warner Cable Maxx speed improvements.

Time Warner Cable Maxx speed improvements.

As a result, the PSC has looked more closely at Time Warner Cable’s Maxx program to be the benchmark for New York, not Charter’s proposed upgrades. They have adopted our recommendation that every Time Warner Cable customer in New York get the same kind of service upgrade residents in New York City enjoy today.

Another argument made by Stop the Cap! dealt with affordable Internet access. Time Warner Cable’s Everyday Low Price Internet ($14.99/mo for 2Mbps) is not fast, but it is affordable and free of the kind of revenue-protecting pre-conditions usually placed on Internet access for the poor. Time Warner’s plan is available to every customer at any time with no restrictions or contracts. In contrast, Charter’s originally proposed affordable Internet program required participants have school-age children, enroll only in the late summer, not have current cable broadband service (or be willing to forego it for 60 days), and not have any prior balance. As with Comcast, pre-conditions like this limit participation. The PSC agreed and now customers will be able to keep their more affordable Internet plans without jumping through artificial hoops launched by Charter.

The days of rural New Yorkers being quoted $20,000 to install Time Warner Cable service are also going to be a thing of the past. In addition to a commitment to pay for line extensions reaching 145,000 unserved or underserved customers, Charter is now required to work with New York’s Broadband 4 All program to receive supplementary funding, as available, to complete service extensions to eventually reach every customer that lives within a franchise area and wants cable service.

There are several other benefits outlined below that make this a better (although not great) deal, at least for New Yorkers. If any other state regulator manages to get an even better deal for that state’s residents, New Yorkers will automatically benefit because of a “most favored state clause” in the PSC’s order, which requires Charter to share those benefits with New York residents.

ny pscAll in all, the New York State Public Service Commission has lived up to its reputation as a consumer-protective body that is responsive to the needs of the public. This is in great contrast to many other states where regulators seem themselves as a business facilitator (and occasionally come directly from the businesses being regulated). In these states, the merger won approval with few, in any, preconditions.

We were delighted to have been extensively quoted and footnoted in the PSC’s order, having proven our case the Charter-Time Warner deal didn’t offer very much for New York. But we’re not happy the PSC punted on data caps. While recognizing they are a concern, the PSC seemed satisfied a three-year guarantee of no data caps was adequate. We disagree. As an increasing number of Comcast customers can attest, data caps are anti-competitive, anti-consumer, and unnecessary. Whatever benefits faster speeds can deliver can be easily curtailed by a data cap. So can online video competition. With much of upstate New York totally dependent on a single provider – Time Warner or Charter – for broadband speeds above 10Mbps, there is plenty of room for mischief that would otherwise be controlled by competitive forces. The PSC saw fit to avoid using its power of approval to get creative on keeping flat rate Internet affordable and available. That is a mistake we predict will be back to haunt us in the future.

Here are the specific conditions, most advocated by Stop the Cap!, that Charter Communications must agree to as a condition of the deal’s approval in New York:

Rural Broadband Access [$355 Million Value]

In addition to the goals accomplished by Gov. Cuomo’s New New York Broadband Program, Charter must agree to unilaterally build-out its network to reach an additional 145,000 “unserved” and “underserved” homes and businesses within four years. This will be an easy target for Charter to reach because the PSC defines “underserved” as any home with less than 100Mbps service. That represents much of upstate New York bypassed by TWC Maxx, so a speed upgrade in just one upstate city will achieve this requirement.

However, the PSC also included a second condition. Subject to the final terms and conditions of the Broadband 4 All Program being comparable to the Connect New York Program, Charter will be required to bid for Broadband 4 All Program funding to offer line extensions to any remaining unserved and underserved home across its entire New York service territory, which means every New Yorker within a cable franchise service area that wants service will be able to get it without being quoted tens of thousands of dollars for construction costs.

This will finally help would-be customers like Stop the Cap! reader Jesse Walser in Jamesville who has tried to get wired broadband in his home for over a decade. Verizon won’t upgrade its network and Time Warner Cable quoted him between $5,900 and $26,000 for installation of a line extension to reach his home.

All Digital Cable System Upgrade

Charter must convert their existing New York systems to an all-digital network (including upgrading the Columbia County Charter cable system to enable broadband communications) capable of delivering faster broadband speeds.

In Columbia County, residents are currently better served by smaller local providers. Both Germantown Telephone and Mid-Hudson Cable offer high-speed access throughout their territories. Berkshire Telephone has almost 100% DSL coverage, and Taconic Telephone has expanded DSL service to much of their huge service territory. Frontier Communications offers some DSL in southern Columbia County. The biggest problem providers are Verizon, which has no plans for DSL service in the area, and Charter Cable, which still runs a basic cable television-only system in the county.

In New York, Charter now provides cable television and other communication services to a relatively small number of customers, from two cable system clusters in and around Plattsburgh (14,000 customers) and Columbia County (2,500 customers). Plattsburgh gets television, phone and broadband service from Charter, but Columbia County is still served by a now-ancient, cable television only system.

Network Modernization and Speed Increases [$305 Million Value]

Charter must convert all of its systems in New York to all-digital within 30 months of the closing of the merger transaction. Charter is also required to offer broadband speeds up to 100Mbps to all customers by the end 2018 and match TWC Maxx speeds of 300Mbps by the end of 2019.

Charter’s all digital upgrade in upstate New York will facilitate faster broadband service, but it will also mean a set-top box or other similar device for every cable connected television in the home.

Broadband Affordability [$250 Million Value]

Despite Charter’s simplified menu of options (two broadband speed tiers and one video package), the PSC has required Charter to allow customers to keep their current plans, at least for the next several years:

  • Charter is required to maintain and advance its commitment to an affordable standalone Internet offering through the continuation of the Time Warner Everyday Low Price $14.99
    service throughout the Time Warner New York territory for up to two years and allow existing customers to keep the service for three years.
  • Charter is required to offer its 60Mbps standalone broadband product throughout New York at uniform national pricing. [$125 million value]
  • Charter is required to allow existing Time Warner customers to retain, without material changes that have the intent to discourage, the standalone and bundled broadband services they subscribe to at the close of the transaction for three years from the date of the closing.
  • Charter is required to provide a low-income broadband offering to eligible customers throughout its New York footprint. The PSC-ordered plan will offer 30Mbps for $14.99 a month to any household eligible for the National School Lunch Program and senior citizens 65 years and older eligible for the federal Supplemental Security Income program. No credit check shall be required and conditions requiring current broadband customers to wait 60 days to qualify and cover any past due bills have been deleted.

Customer Service [$55 Million Value]

Within two years after the close of the proposed transaction, Charter shall invest a minimum of $50 million in service improvement programs.

Charter is required to show a 35% reduction in Time Warner Cable’s 2014 cable PSC Complaint Rate by the end of 2020, with a 17.5% reduction due by the end of 2018. If they don’t achieve that, Charter must invest an additional $2.5 million in its service for each failure.

Job Protection

For the next four years, Charter cannot cut the number of customer facing jobs in New York.

AT&T Brings Back Unlimited Wireless Data Plan… If You Have U-verse TV or DirecTV

att-logo-221x300Building in protection from cord-cutting, AT&T today announced it was bringing back its unlimited data wireless plan for customers that subscribe to U-verse TV or DirecTV.

The new AT&T Unlimited Plan claims to offer unlimited data, talk and text for $100 a month. Additional smartphones are $40 per month each, with a fourth smartphone free to add at no extra charge.

“Video traffic continues to grow on our network as fast as ever because people enjoy viewing their favorite video content on their favorite devices,” said Ralph de la Vega, CEO of AT&T Mobile and Business Solutions. “And, they will get a high-quality video streaming experience from the start. No compromises in video quality.”

Except that AT&T discloses in its fine print, “After 22GB of data usage on a line in a bill cycle, for the remainder of the bill cycle AT&T may slow data speeds on that line during periods of network congestion.”

Speed throttles often affect video quality and can stall playback.

It’s the first time in five years AT&T has offered an “unlimited data” wireless option to its mobile customers. Analysts suspect the offer is designed to compete with T-Mobile’s free video streaming “BingeOn” promotion, while also protecting AT&T’s video platforms from cord-cutting. AT&T also gets an opportunity to add new video customers to its recently acquired DirecTV service, because only customers with a qualifying video subscription are allowed to buy the unlimited data plan.

AT&T is tying the unlimited data promotion to its satellite offering DirecTV, not U-verse, with a promotional satellite TV package for new video customers beginning at $19.99 per month for 12 months, with a 24 month agreement. After one year, the base TV package increases to $49.99 a month.

To bring back AT&T wireless customers that left for another carrier, AT&T is offering up to $500 in incentives when customers switch to the AT&T Unlimited Plan with an eligible trade-in and buy a new smartphone on AT&T Next. Customers who combine their U-verse or DirecTV account with AT&T Wireless on a single bill will also get an extra $10 off per month.

AT&T is effectively selling its Unlimited Plan for $60 a month, double AT&T’s original rate for unlimited data of just under $30. With a video subscription pre-qualifier, customers enrolling in the plan can expect a substantial bill.

AT&T Unlimited Plan
Device Type Monthly Access Fee Per Device
1st Smartphone $100
Additional Smartphones  (Fourth line free after bill credit) + $40
Tablets + $40 (or $10 for 1GB)
Watches + $10
Basic/messaging phones + $25
Select connected devices + $10

On the mobile side, customers will be initially expected to pay up to $220 a month for four active lines. The $40 credit for the fourth smartphone only begins after two billing cycles, finally reducing the bill to $180 a month before taxes and surcharges. A required video package will range from $19.99 for a basic DirecTV plan ($49.99 in year two) to as much as $80 or more for U-verse TV, bringing a combined television and wireless bill to more than $300 a month.

Those with 4G tablets can save some money dropping the $40 unlimited data device access fee and choosing a $10 1GB data plan for tablets instead.

Time Warner Cable Quotes Rural Ky. Resident $410/Mo + 5 Yr. Contract for Broadband

green acresIf residents in rural Kentucky want Time Warner Cable to offer broadband service, they better be prepared to pay for it.

As Time Warner customers consider the company’s latest rate increases, which now include a $10 modem rental fee and an increasingly common $4.99 “Wi-Fi Fee” if you don’t use your own wireless router, there are other customers signing contracts for residential Internet service from Time Warner at prices as high as $410 a month.

Jack Prindle lives in the Big Bone community near Union, Ky., — close enough to Cincinnati to be a suburb, but rural enough to be bypassed for broadband. Two dozen of his neighbors live along a nine-tenths of a mile stretch of Big Bone Church Road, which isn’t exactly a priority for Time Warner Cable. The families have spent a decade trying to entice anyone to offer broadband Internet access. Insight Communications (Time Warner’s predecessor) and Cincinnati Bell have never shown much interest. Time Warner Cable, however, has been engaged in a type of cat and mouse game, offering service at ever-escalating prices only to change its mind at the last minute.

“Within the last year, I have signed contracts with Time Warner for Internet service starting at $300 a month, with a three-year contract, only to have them come back and raise it to $350 for five years, and then $410 a month with a commitment of five years,” Prindle wrote in the Community Recorder. “Then only to be told a month later they were not going to provide Internet. Others of the 24 have similar bizarre stories concerning Time Warner and Cincinnati Bell.”

“Prindle’s story is an example of what is wrong with rural broadband in the United States,” writes Cynthia Rawley, who shared the story with Stop the Cap! “Unchecked cable and phone companies get federal dollars and the benefit of a fake broadband map that has no relationship to reality, leaving many to believe there is no rural broadband problem to solve. But there is.”

Union, Ky.

Union, Ky.

Rawley points out the FCC’s official National Broadband Map shows the two dozen homes around Prindle are all provided 5-50Mbps broadband service by both Time Warner Cable and Cincinnati Bell, despite the fact neither offers any broadband service to anyone in the vicinity.

“Boone County Judge-executive Gary Moore wrote to inform the FCC of this error and failed to get a response,” Prindle noted. What bothers him even more is his tax dollars have paid to subsidize rural Internet service he cannot get at any price.

“Some basic research reveals that Time Warner has received millions of taxpayer dollars to provide broadband Internet in rural areas,” Prindle notes. “The commonwealth of Kentucky has given over $100 million to Internet providers alone to provide broadband Internet in rural areas alone. Opensecrets.org reports that Time Warner spent $4,950,000 in lobbying efforts of federal, state, and local governments in 2015. With this amount of money changing hands, the conspiracy theorists among us see a 20/20 episode coming.”

Prindle better have his rabbit ears ready to watch, because at the rate providers are not expanding rural broadband, he will have a long wait before being able to watch that 20/20 episode online.

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