AT&T to Rural America

While Verizon leverages its 4G LTE wireless network as a rural broadband solution, AT&T shows no signs of sharing Big Red’s enthusiasm (and investment).

In fact, while AT&T celebrates the end of its U-verse fiber-to-the-neighborhood expansion and admits it has no answer to America’s rural broadband problem, the always excellent DSL Prime by Dave Burstein reports AT&T is mulling a sale of its rural DSL operations to a third party provider, essentially letting the new owner(s) deal with the rural broadband problem:

[AT&T] is “doing a rapid tech evaluation” of whether they can upgrade their DSL + wireless to “a competitive broadband product.” But Randall “doesn’t see a solution.” If that’s confirmed, “we’re looking for others who might want the properties.” […] It’s unclear if any of the “rural carriers” – Century, Frontier, Windstream – have the financial ability to make an attractive offer. If operators can’t raise the money, [AT&T] would need to make a financial transaction.

Verizon has sold off its entire “wireline” (landline infrastructure and business) operation in smaller, rural states — often properties it acquired years earlier from GTE — to focus on more lucrative urban markets.  AT&T could either spinoff its broadband operation to a third party to run or follow Verizon and sell off entire rural service areas not already upgraded for AT&T’s more modern U-verse.

Likely buyers include FairPoint Communications, Frontier Communications, CenturyLink, and Windstream — all independent traditional landline operators trying to focus on less-competitive rural markets pitching DSL broadband service.

AT&T has shown little interest investing in rural service areas located primarily in the southern and central United States.  As Karl Bode writes on Broadband Reports, AT&T is on record stating that they can’t find an “economically viable” way to upgrade these users, despite a looming increase in faster and less expensive last mile DSL technologies.

As AT&T has sought to redefine itself as a wireless company, the buildout of its wireless network could bring AT&T to also eventually pitch 4G wireless Internet service to its former DSL customers.  But like Verizon, those plans would likely include severely usage-capped service, while leaving its traditional DSL product starved for investment.

Last week’s shocking development that Cablevision, a major cable operator in greater New York City, New Jersey and Connecticut is not going to raise rates in 2012 is bad news for other cable operators itching to raise rates once again this year.

Cablevision’s decision was made as the company continues to battle Verizon FiOS, the phone company’s fiber-to-home-service across its service area.  Verizon has been playing hardball with Time Warner Cable, Comcast, and Cablevision in its metro New York service area, offering up to $500 in rebates to sign new customers.  That level of vicious competition has been great for consumers, but lousy for Wall Street.

Investors were not pleased with Cablevision’s pass on rate hikes and its intention to invest a lot more in system upgrades than originally planned.  Wall Street loves increased revenue and hates it when companies spend it on their customers.

With all of this competition breaking out, Comcast and Time Warner Cable may be more than a little uncomfortable sitting down at an antitrust hearing later this month to discuss their new agreement with Verizon to cross-market cable and mobile service.  In return for the cable industry signaling they will never compete with Verizon’s mobile phone offering, Verizon has generously purchased the cable industry’s leftover spectrum and agreed to pitch cable TV subscriptions to Verizon Wireless customers.  With this new “non-aggression treaty,” will there still be a need to offer $500 gift cards and cut-rate prices to attract new customers?  Consumer groups think not.

A greater percentage of Cablevision’s service area is served by Verizon’s fiber network than either Time Warner Cable or Comcast.  Competition is forcing Cablevision to rethink the usual cable industry plan for financial success — force channels customers don’t want and raise rates up to 5% a year to pay for the “increased costs of doing business.”  Consumers are fed up with $150 monthly cable bills and will take Verizon up on an offer than cuts rates $50 a month and hands over up to $500 just for saying “yes” to FiOS.

Readers: Please find our 2015 Guide to Getting a Better Deal from Time Warner Cable here. You will find the latest negotiating strategies and deal information in that updated article. 

Time Warner Cable just won’t let you say goodbye, if they can help it.

A year ago, your editor fought for a better deal from the cable company that has served him since the 1980s.  With a tough economy and downsizing, paying a cable bill that was approaching $175 a month in early 2011 for ‘all their best’ was simply no longer an option.  Time Warner Cable’s customer retentions office responded with a promotion that slashed the bill to just $88.44 for Turbo Internet, cable-TV, and unlimited “digital phone” service with nationwide calling.  Incidental charges included leasing a whole house DVR ($7.04), a second cable box ($6.84), $1 for “digital programming” and $0.34 for the remote control.

When the cable operator introduced DOCSIS 3 broadband speed upgrades, an additional $20 a month brought 30/5Mbps speeds.  The total — $123.66 (before taxes and fees).  That’s a whole lot less for a great deal more service.

When the promotion ended in February, the rate shot back up to $160, but $7.95 of that was for a year of Showtime at a special promotional price.  Showtime was destined for the cancel corner anyway (we didn’t watch more than two hours of anything on Showtime in the last year), but even without it, the rate increase was on the steep side.

So we complained.

Unlike last year, which resulted in considerable confusion and arguing back and forth with different representatives to find the best deal, this year we let Time Warner’s social media representatives do the hard work for us.  Within 24 hours, our rate for all of the same services, plus a special promotion that includes HBO, Cinemax, Showtime, and The Movie Channel at no additional charge, brought the bill down even lower than we managed last year: $102.33 a month for a year.  That includes the 30/5Mbps Road Runner Extreme, Whole House DVR, and one extra cable box.  It doesn’t include taxes and fees, which typically add another $6.50 to the bill.

The whole process was painless, and you can follow in our footsteps if you have a Twitter account:

Step One: Tweet Time Warner (Note the Twitter address has changed from @twcablehelp to @TWC_help):

The key phrase in whatever Tweet you send is to include: @TWC_help, which brings you to their social media customer service representatives.  I also “followed” @TWC_help so I could see how active they were.  During business hours, you should expect to see a reply like this within the hour:

For those new to Twitter, “DM” refers to a “direct message” — a private Tweet seen only by the intended recipient.  I finally found the menu option that allows me to send a “direct message” on Twitter’s page for Time Warner Cable:

Note the red box around the option on the top right.  By clicking that you will see a drop down menu that includes an option to “Direct Message” TWC_help.  You will want to include your Time Warner Cable account number (as seen on your bill) and include your contact phone number.

Within 24-48 hours, a senior retentions specialist should call you to negotiate a better offer for your service.  Make sure you answer those unfamiliar caller ID calls!  But before they call, visit Time Warner Cable’s website and note any currently running new customer promotions.  Also check to see if the competition is offering anything even lower.  Those prices are typically the starting point for your negotiations, and the company should have little trouble meeting them.  However, customers with a poor payment record or past due account may discover the company less willing to negotiate.  Bring account balances current before negotiating for a lower rate.

Some Time Warner Cable territories offer “price protection agreements” or term contracts that lock customers into 1-2 years of service.  Negotiating around these contracts can be difficult to impossible.

An alternative contact method is to direct e-mail Time Warner at: [email protected] (don’t forget the “.” in twcable.help).

The total time spent this year on finding a better deal that will save us $58 a month — $696 a year — about five minutes, far less than the time it took to write this article.  Give it a try and let us know in the comments what kind of deals you can negotiate.

While incumbent phone and cable operators often try to directly block community broadband projects, sometimes politics and special insider interests also get in the way.  One of our loyal readers shared a piece with us published in Fierce Telecom that outlines the trouble spots:

Gov. Bobby Jindal Blows It for Louisiana; Wife’s Foundation Heavily Supported By AT&T

Jindal's wife's charity is a recipient of AT&T money.

The U.S. Dept. of Commerce awarded $80.5 million to help drain Louisiana’s broadband swamp with a new statewide fiber network linking the most rural and poor areas of the state, including schools, libraries, hospitals, and universities.  Users could have obtained service from 10Mbps-1Gbps, but not if Jindal had his way.  He preferred AT&T (and the state’s cable operators) handle everything the same way they have traditionally handled telecommunications in the state — service in big cities and next to nothing everywhere else.  In addition to directly supporting the governor, AT&T contributes substantially to a charitable foundation founded by Jindal’s wife.

Jindal never openly blocked the project.  Instead, his administration “dithered and bickered” over the fiber network and ran the clock out.  Last October, the Commerce Department revoked the grant, leaving Louisiana’s Broadband Alliance with little more than a plan they’ll never be able to implement as long as Jindal occupies the governor’s office.  Stop the Cap! covered the mess back in November.

Public Service Commissioner Foster Campbell:

“We want to know what the heck happened; we’re the only ones in the country that dropped the ball,” Campbell said. “I meet with people in every parish, and the number one priority by far is high-speed Internet, and how do you lose $80 million coming from the federal government to do that. How do you drop the ball, and if they did drop the ball was it because someone whispered in their ears, ‘it’s going interfere with big companies?’”

AT&T-Backed Astroturf Operation Scandalizes the Mayor’s Office and Ruins A High Tech Training Program

Marks

As Stop the Cap! wrote last fall, a scandal involving AT&T and the mayor of the state capital of Florida ultimately cost the city of Tallahassee a $1.6 million dollar federal broadband grant to expand Internet access to the urban poor and train disadvantaged citizens to navigate the online world.

Mayor John Marks never bothered to inform the city he had a direct conflict of interest with the group he strongly advocated as a participant in the grant project. The Alliance for Digital Equality (ADE) is little more than an AT&T astroturf effort — a front group that did almost nothing to bring Internet access to anyone. Mayor Marks was a paid adviser.

After the media got involved, the mayor’s office hoped the whole project would just go away. And it did, along with the $1.6 million.

Wisconsin Republicans <Heart> AT&T, Even When It Means Forfeiting $23 Million for Better Broadband

Wisconsin Gov. Scott Walker is a close friend of AT&T.  So close, when the phone company was threatened with the loss of revenue earned from the institutional broadband network it leases to the state, Walker and his Republican colleagues intervened, literally turning away $23 million in government stimulus funding.  Walker alone has accepted more than $20,000 in campaign contributions from AT&T.  Stop the Cap! covered this story in detail in February 2011.

Governor Walker (R-AT&T)

The decision to return the money had a direct impact on 380 Wisconsin communities, 385 libraries, 82 schools, and countless public safety offices across the state.  Namely, being stuck with AT&T’s outdated and expensive network the state leases in successive five year contracts.  Since broadband stimulus funding requires the construction of networks designed to last 20 years, not five, Walker’s insistence on sticking with AT&T made the stimulus funding off-limits.  But what are friends for?

AT&T has historically had no trouble getting its phone calls returned by Republican state lawmakers, who have cheered most of AT&T’s proposed legislation through the state legislature.  Today, Wisconsin takes a “hands off” approach with the state’s cable and phone companies, passed a statewide franchising bill that stripped oversight away from local communities, and AT&T’s landline network faces little scrutiny in the state, especially in rural communities.

The state university is now attempting to bypass Walker with its own $37 million project, but it will never serve Wisconsin consumers.  The institutional network will target schools, hospitals and first responders.

As Fierce Telecom notes, other communities could face the loss of their stimulus funding if they do not get busy building the projects they promised.  The Rural Utilities Service, part of the U.S. Dept. of Agriculture, has put several projects on notice they could forfeit broadband stimulus funding if they fail to meet project deadlines.