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Comcast Awarded Golden Poo as Consumerist’s Worst Company in America for 2014

Comcast is 2014's Golden Poo award winner. (Image: Knight725)

Comcast is 2014’s Golden Poo award winner. (Image: Knight725)

Comcast eked out a narrow victory against Monsanto — the litigious-happy, genetically modified-seed company — to win top honors in the 2014 Consumerist “Worst Company in America” contest.

Comcast is a past recipient of the pro-consumer website’s Golden Poo award given to the company that most alienates its customers, winning first place in 2010 after implementing usage caps on its broadband customers, as well as runner-up status in 2008 and 2009 and third place in 2011 and 2013.

“Comcast’s win makes it only the second company to claim multiple Poos. Last year, video game biggie EA was both the first two-time winner and its first repeat champ,” reports Consumerist.

The nation’s largest cable company, Comcast managed to irritate more than any other with an arbitrary usage cap it now wants to call a “data threshold,” shoddy service, service calls that never happen, incompetent technicians that set customer homes on fire, billing errors, and inventing new profit-padding fees for almost everything.

Getting larger with the acquisition of NBC Universal did little to improve matters for customers, and one high executive cynically delayed a planned low-income discount Internet access offer to use as a carrot with the FCC to win approval of its NBC merger deal. To this day, Comcast goes out of its way to impose a number of qualifications for its Internet Essentials program to protect profits potentially harmed by customers switching to cheaper service to save money.

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Now Comcast wants to buy Time Warner Cable, the country’s second largest operator. Despite the fact there is little love from subscribers for Time Warner, many suspect Comcast will prove much worse. A merger brings the threat of a 300GB usage limit on broadband, an even higher modem rental fee, and cable television packages that are often more expensive than those from Time Warner.

Comcast’s greatest defense for its merger is that it doesn’t compete with Time Warner Cable so there are no antitrust concerns. But since the cable industry has borrowed from New York’s Five Families‘ playbook, they almost never compete anywhere in the country, preferring to divide up territories and avoid head-to-head competition.

“By Comcast’s logic, it would then be perfectly okay for Comcast to be the only cable and Internet provider in the country, since there isn’t really any competition among the players in this marketplace to begin with,” writes the Consumerist.

We say don’t give them any ideas.

Telecom Italia Seeks Advice from AT&T on How to Grab More €uros from Customers

Phillip Dampier April 7, 2014 AT&T, Broadband Speed, Competition, Data Caps, Online Video, Public Policy & Gov't, Wireless Broadband Comments Off on Telecom Italia Seeks Advice from AT&T on How to Grab More €uros from Customers

Telecom Italia wants to learn from the master of higher priced phone service: AT&T

Telecom Italia (TI) has a big problem. While AT&T charges the average American $66 a month for mobile service, competition in Italy has forced wireless prices down to $18 a month for comparable service.

TI chief executive officer Marco Patuano wants the price cutting to end and traveled to the United States to learn from AT&T how it was able to raise prices and increase customer spending with usage-capped Internet, phone and television service. His self-described “innovation trip” brought him straight to the office of AT&T CEO Randall Stephenson.

TI is trying to end years of losses and sales declines precipitated by falling prices and a growing disinterest in traditional landline service. AT&T accomplished that by boosting investment in mobile services. AT&T charged high prices for unlimited data plans until demand for data grew to the point the company could earn much more metering Internet usage. As a result, AT&T has earned a staggering $100 billion over the past decade from boosted phone bills.

Patuano

Patuano

Patuano wants to find a way to follow in AT&T’s footsteps as TI’s share price has fallen more than 70 percent over the last six years. Fierce competition from Vodafone and VimpelCom have forced prices down across Italy. With prices so low, investors have shown little interest in providing funding for wholesale upgrades to 4G wireless service. In turn, that has kept Telecom Italia from offering faster data speeds which would allow them to raise prices for service.

In North America, high wireless prices and the relative lack of competition have brought considerably better financial returns for investors. That high rate of return has attracted investment allowing providers like AT&T and Verizon Wireless to spend billions on network upgrades that have, in turn, further increased revenue at both companies. Customers benefit from the faster speeds, but also pay for the privilege with some of the highest wireless prices in the world.

It’s a formula Patuano wants to bring to the Italian market, but he needs more investment to stabilize TI’s finances. TI was the government-owned phone company until it was privatized in 1997. Despite having a massive customer base, nimble wireless competitors have outflanked the phone company and the results have been falling sales, disconnected customers, and its $37 billion in debt reduced to junk status by investor rating services. The company sold its headquarters in Milan and got rid of its Argentine subsidiary, along with suspending shareholder dividends.

att_logo“The first target now for a phone carrier is upgrading networks and transform it to a platform for high-value services,” Patuano said. “This is exactly what AT&T did and what we are calling for.”

Patuano has seen AT&T defend its turf in the wireline business by scrapping its traditional landline/DSL-only service in larger markets in favor of a hybrid fiber-copper network dubbed U-verse. Patuano is now pondering whether TI could deliver a package of phone, broadband and television service over a broadband platform. The average AT&T U-verse customer spends $170 a month on U-verse, an amount much better than $18 a month. TI could do even better than AT&T because Italy lacks many cable television providers — Italians depend on satellite television for multichannel pay television.

AT&T and TI are no strangers to one another. In 2007, AT&T attempted to buy a stake in the Italian phone company but met with a storm of objections from Italian politicians. AT&T dropped the idea soon after.

Telus Implementing Usage-Based Billing April 21; Already Raised Broadband Rates in Feb.

Phillip Dampier April 3, 2014 Canada, Data Caps, Telus Comments Off on Telus Implementing Usage-Based Billing April 21; Already Raised Broadband Rates in Feb.

Telus is notifying customers in Prince George, B.C. and surrounding areas it will begin imposing usage-based billing for Internet service effective April 21.

Despite claims that implementing usage-based charges will save customers money, nearly every Telus broadband user is already paying a higher bill because of a rate increase announced in late January.

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telus data allowance

Telus’ usage allowances range from 15GB a month for High Speed Lite users to 400GB for Telus Internet 50 users. Telus is also imposing a scaled overlimit fee system based on the total amount of excess usage. Customers face a $5 overlimit fee for up to 50GB of overuse to a maximum of $75 for 350GB and above. A typical customer with a 150GB usage allowance using 250GB would pay the usual $55/month broadband charge plus a $25 overlimit penalty, raising the price of service to $80.

Starting in June, Telus will introduce an Unlimited Internet Usage option (price not disclosed) for any of their Internet plans.

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Telus wants to fence in "data hogs" with "fairness."

Telus wants to fence in “data hogs” with “fairness.”

“It’s fair that people pay for how much they use, as you would with any other service,” Telus explained. “Our goal is to offer customers a broad spectrum of plans that meet everyone’s needs, and to get customers on the right plan for them.

“Someone who uses their basic Internet service for a bit of email, Skyping with the grandkids, and sharing photos shouldn’t pay as much as someone who games and downloads hundreds of gigabytes of videos every month,” Telus added.

Of course, every customer is already paying more after Telus raised its broadband rates on Feb. 26.

“The cost of managing, expanding and improving our network continues to rise,” Telus explained. “We’re doing our best to keep rate increases as moderate as possible, while still offering great services, flexibility and good value.”

So effectively no customer is actually saving any money with Telus’ usage-based billing. They are actually paying more today and could potentially pay much more when overlimit fees take effect later this month.

Comcast Gobbledygook: “We Don’t Have Data Caps, We Have Data Thresholds”

The Plain English Campaign's Golden Bull Award is given to companies that prefer gobbledygook over plain English.

The Plain English Campaign’s Golden Bull Award is given to companies that prefer gobbledygook over plain English.

Comcast is outraged by slanderous suggestions it has data caps on its broadband service.

In response to the scathing report from the Writers Guild of America that pleads for the FCC to block the merger of Comcast and Time Warner Cable, Comcast has accused to WGA of getting its facts wrong and being nothing more than a meddling union.

The WGA writes in their filing with the FCC:

The WGAW has also joined Public Knowledge in asking the FCC to enforce the condition that Comcast not use “caps, tiers, metering, or other usage-based pricing” to treat affiliated network traffic differently from unaffiliated traffic. Comcast has violated this condition by exempting its online video service, Xfinity Streampix, from its own data caps, while the viewing of content by other, unaffiliated video services such as Netflix or YouTube would count against a user’s data cap. The violation of this merger condition is a clear threat to competition from online video distributors, and the FCC should respond by requiring Comcast to stop exempting its Streampix service from data caps.

Comcast pounced on the WGA filing, calling it inaccurate.

Comcast-Logo“We don’t have data caps — and haven’t for about two years,” said Sena Fitzmaurice, Comcast’s vice president of government communications. “We have tested data thresholds where very heavy customers can buy more if they want more — but that only affects a very small percentage of our customers in a few markets.”

Until 2012, Comcast had a uniform usage cap of 250GB a month, above which a customer risked having their broadband service suspended. In 2013, the usage allowances were back, reset at 300GB a month and rolled out to a series of expanding “test markets” that today include Huntsville and Mobile, Ala., Atlanta, Augusta and Savannah, Ga., Central Kentucky, Maine, Jackson, Miss., Knoxville and Memphis, Tenn., and Charleston, S.C.

nonsenseCustomers who exceed this allowance won’t have their broadband service suspended, they will just get a higher bill, as Comcast charges $10 for each additional 50GB of usage.

In contrast, Time Warner Cable neither has a data cap or a data threshold. Stop the Cap! made sure that didn’t happen when Time Warner attempted to impose its own usage limits back in 2009. We successfully organized protests sufficient to get Time Warner executives to back off and shelve the idea. If Comcast takes over, Time Warner Cable customers will likely eventually face Comcast’s “data thresholds,” which are a distinction without much difference. Whatever you call it, it’s a limit on how much a customer can use Comcast’s already-expensive broadband service before bad things happen.

The WGA and Comcast get along about as well as oil and water, so the back and forth is to be expected. The Writer’s Guild also fiercely opposed Comcast’s merger with NBCUniversal. But when it comes to who is playing fast and loose with the truth, it isn’t the group that writes for a living. Comcast’s doublespeak about data caps is no better than calling The Great Recession a periodic equity retreat. It isn’t fooling anyone.

Comcast Hotspot Wi-Fi Usage Will Be Tied Back to Customer’s Broadband Account

Phillip Dampier March 27, 2014 Comcast/Xfinity, Consumer News, Data Caps, Wireless Broadband Comments Off on Comcast Hotspot Wi-Fi Usage Will Be Tied Back to Customer’s Broadband Account

xfinity wifiComcast customers using the company’s growing network of Wi-Fi network hotspots will have their usage tracked to their broadband accounts, opening the door for Comcast to count wireless use against a customer’s future monthly usage allowance.

As part of a press release announcing that more than 300,000 Comcast hotspots are now available in New England, the cable company added that it is preparing to activate its Xfinity Wi-Fi Neighborhood Hotspots in the region, allowing other Comcast customers to share your Comcast Internet service over a separate Wi-Fi channel provided by your gateway. But it noted customers will need to log-in first, permitting Comcast to measure just how much of the wireless service you are using:

wifi hotXfinity WiFi Neighborhood Hotspots – In June of last year, Comcast announced its plans to create millions of WiFi access points for its customers through a neighborhood hotspot initiative. Comcast is the first major ISP in the country to deploy this innovative technology. This new initiative gives customers with Xfinity Wireless Gateways an additional “xfinitywifi” signal (or SSID) in their home that is completely separate and distinct from the private and secure home WiFi signal. Offered at no additional cost, the additional WiFi signal will allow visiting Xfinity Internet subscribers instant, easy access to fast and reliable WiFi without the need to share the home’s private network password and without an impact to the home subscriber’s speed. And since visitors sign in with their own Xfinity credentials, their usage and activities are tied back to their own accounts, not the homeowner’s.

 

Comcast is testing the reimplementation of a usage cap – now set at 300GB a month – in several cities in the southern U.S. Wireless usage could eventually also be counted against that cap.

Many of Comcast’s primary outdoor hotspots are in larger cities, such as Greater Boston. Most of the one million total hotspots Comcast hopes to activate are located in residential customers’ homes using Comcast’s Wireless Gateway.

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