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Charter Cable Ponders Joining Comcast Selling Service on Amazon.com (to Scathing Reviews)

amazonCharter Communications is in talks with Amazon.com about joining Comcast to pitch cable service to the online retailer’s giant customer base.

Unlike Comcast, a Charter spokesperson told the Wall Street Journal the company wasn’t necessarily ready to jump in with both feet and was undecided.

One reason for that apparent reluctance may be the scathing reviews Amazon customers are writing about Comcast, which as of today has managed 1.2 out of 5 stars with 452 published reviews. Comcast probably rates even lower because most of the 5-star reviews are purely tongue-in-cheek:

  • 5 Stars for Being Soulless Corporate Demons. Comcast feeds on the weak. In all seriousness, they are awful…. Anything for a profit….
  • Hitler highly recommends Comcast: Adolf Hitler was quoted saying this about Comcast: “Beeindruckend, das ist böse.” Rough translation: “Wow, that’s evil.”
  • Trump Should Send Them To China: Amazing, amazing product that would do very well in China.

The “one star” reviews, which represent more than 95% of the reviews, are decidedly less charitable:

  • Having Comcast has been the worst experience of my life. You are better off with anything else: FiOS, Google Fiber, Carrier Pigeon, anything.
  • I’m getting third world internet service at top dollar prices which go up if I’m stupid enough to remain a customer.
  • Jumping into Comcast is like jumping into a pool, only the pool isn’t filled with water; it’s filled with lies, stress, hate and death.
  • Capitalism at its scummiest.
  • Worst company on planet – Comcast is proof there is NO god…only chaos.
  • False advertising, hidden fees, incompetent customer service…and that’s just for starters!
  • Burn in hell!
  • Investing with Bernie Madoff would be better choice.
  • Dealing with this company is akin to having your fingernails removed with pliers on a regular basis.
  • Worse than that burning feeling when urinating.

But the reviews weren’t all bad.

“The speeds and services in my area are awesome,” wrote Tracey Fobia. “Xfinity is a game changer.”

A quick Google search revealed Mr. Fobia (coincidentally) is employed by Comcast as a facilities supervisor.

amazon comcast

Comcast’s head of its cable division Neil Smit hoped Amazon’s reputation for excellent customer service might rub off on Comcast. To test that premise, Comcast is trying something new only for Amazon customers – delivering something approaching tolerable customer service:

A Comcast spokesman said it has set aside customer call centers in Tucson, Ariz., and Spokane, Wash., employing about 90 representatives trained just to receive inquiries about Comcast sales made through Amazon. The customer representatives’ goal is to “answer your call in 60 seconds or less,” with no waiting, according to Amazon’s landing page.

The Amazon site provides an easy link to help customers know how to “avoid leasing fees” by buying their own compatible modems and Wi-Fi routers. The site also promises that people can cancel Comcast subscriptions within 30 days or select a no-term contract to downgrade or disconnect whenever they wish.

“We’re partnering with a company that’s so good at the customer experience — I think that’s really what excites me,” Smit told the Wall Street Journal.

Amazon receives a commission for each Comcast sale, according to the newspaper, but based on the hostility of the reviews, it isn’t likely Amazon has earned enough to buy anyone lunch.

Tenn. Press Outraged By Charter’s Offer of Free Airtime for Politicians Protecting Cable Monopoly

Phillip Dampier March 22, 2016 Charter Spectrum, Community Networks, Competition, Consumer News, Editorial & Site News, Public Policy & Gov't, Rural Broadband Comments Off on Tenn. Press Outraged By Charter’s Offer of Free Airtime for Politicians Protecting Cable Monopoly
Rep. Calfee

Rep. Calfee

“The sheer audacity of Charter Communications’ offer of free airtime to legislators following the defeat of a broadband access bill is breathtaking,” wrote the editors of the Knoxville News Sentinel in a heated editorial this week. “The spectacle of lawmakers accepting the offer would be revolting.”

The newspaper was responding to the optics of Charter Communications’ generous offer of free airtime for politicians willing to record “public service announcements” just a day after the Tennessee House Business & Utilities Subcommittee killed a bill that would have allowed public utilities to expand fiber broadband service outside of their current electric service area. If that bill became law, it had the potential of giving Charter the formidable competition AT&T, Frontier Communications, and CenturyLink have failed to deliver in Tennessee.

In an election year, anything that gives politicians exposure to voters is worth its weight in gold, which is why taxpayer-sponsored “newsletters” and “voter updates” fill voters’ mailboxes a few months before Election Day. Charter’s plan to saturate subscribers with dubious “PSAs with Politicians” during ad breaks is harder to ignore than another piece of campaign junk mail destined for the recycle bin.

Rep. Daniel

Rep. Daniel

Charter’s vague explanation it was going to offer the airtime before the Subcommittee vote only makes the scandal worse, because it means lawmakers were given advance notice they could be as well-recognized as Henry “The Fonz” Winkler selling reverse mortgages, circus animals and cheerleaders drumming up business for local car dealerships, and kids night at the local family restaurant — all too common tenants of the “local ad insertion” space cable companies get to make more money (or in this case win/reward influence) on the side.

But Charter’s plan appears to be backfiring, drawing unwanted attention on a cable operator Tennessee loves to hate. But more importantly, it gave the Knoxville press an opportunity to remind voters who the real villains of competition are: Republican Reps. Kent Calfee of Kingston and Martin Daniel of Knoxville — two local lawmakers on the Subcommittee voting with Charter, AT&T, and Comcast against their constituents pleading for more cable competition.

news sentinelThe local hero? Rep. Art Swann (R-Maryville) who voted yes (e-mail him a thank you note). He predicts the bill will be back.

The News Sentinel regards the love affair between Charter and lawmakers as compelling as a lunch date with Limburger cheese:

Actually, the stench emanating from the Capitol would indicate something worse than just bad appearances. Tempting lawmakers with free airtime during an election year — even if the commercial technically would not be a campaign ad — is like waving a treat above the snout of an obedient dog.

Charter has not commented on the matter, but its offer certainly gives at least the appearance of trading airtime for votes; surely legislators know better than to take him up on the offer. Tennesseans must hold lawmakers accountable if they do.

Readers can start by telling Reps. Calfee and Daniel they are watching them very closely on this issue and expect them to support public utility broadband expansion when the issue comes before them next time:

Rep. Kent Calfee
301 6th Avenue North
Suite 219 War Memorial Bldg.
Nashville, TN 37243
Phone: (615) 741-7658
Fax: (615) 253-0163
[email protected]
Rep. Martin Daniel
301 6th Avenue North
Suite 109 War Memorial Bldg.
Nashville, TN 37243
Phone: (615) 741-2287
Fax: (615) 253-0348
[email protected]

Stop the Cap! Joins 21 Other Consumer Groups Asking FCC to Block Charter-Time Warner Cable Merger

charter twc bhOn Monday, Stop the Cap! joined 21 other public interest organizations in sending a joint letter urging the Federal Communications Commission to deny Charter’s bid to take over Time Warner Cable and Bright House Networks. Late last week, the Wall Street Journal reported that FCC Chairman Tom Wheeler may be planning to circulate a draft order approving the $90 billion merger.

The Center for Media Justice, CREDO Action, Daily Kos, Demand Progress, Free Press and Presente.org were among the media justice, Internet rights and public interest groups calling on the FCC to reject this deal, which would create a national broadband duopoly.

Together, Charter and Comcast would control nearly two-thirds of the nation’s high-speed broadband subscribers and would offer service to nearly 80 percent of U.S. households. The letter notes that this substantial increase in market power, coupled with Charter’s $66 billion in debt, would give the company both the incentive and the heightened ability to raise prices at will. This would broaden the digital divide, hitting low-income communities the hardest.

Stop the Cap! earlier filed objections to the merger with the FCC and in two states seen as critical to the deal – New York and California. In our view, no cable merger has ever resulted in better service or lower prices for consumers. Such deals deliver handsome sums to executives and shareholders while saddling customers with relentless rate hikes and no improvement in service. Charter’s history is troubling and its ability to meet its financial obligations while saddled in debt is dubious. Charter declared bankruptcy in 2009, after accumulating $21.7 billion in debt accumulated from years of mergers and consolidation efforts. As credit markets tightened up, Charter’s ability to manage its debt fell apart. Now the company is back to its old modus operandi, piling up debt buying Time Warner Cable — a much larger operation, and trying to combine it with Bright House Networks, another cable operator prominent in Florida.

Earlier this year, several of the signers delivered petitions to the FCC from more than 300,000 Americans opposing the merger, and thousands have called the agency in recent days to weigh in against the deal. Political leaders including Senate Democratic Leader Harry Reid have spoken out about the merger’s many harms.

“Too many Washington insiders have given up on challenging this deal despite its serious harms,” said Free Press policy director Matt Wood. “Instead of forecasting its chances for approval, the groups signing this letter will keep fighting to block this merger, along with the guaranteed price increases it would foist on people and communities who can least afford it.

“If Charter gets this merger approved, nothing will stop it from raising its rates for high-speed broadband and video customers who have nowhere else to turn. Temporary promises and weak conditions aren’t going to preserve competition and choice in the long run, and they’re not going to do anything to stop these price hikes. The FCC is charged with promoting the public interest, and there’s no way in which this merger benefits the public. Higher prices and fewer choices won’t help anyone but the companies pitching this bad bargain.”

“If its takeover of Time Warner Cable goes through, Charter will have a broadband footprint as big as Comcast’s,” said Demand Progress executive director David Segal. “This would turn an industry that’s already too concentrated into a duopoly, paving the way for higher rates today and the eventual formation of a new cross-sector behemoth that controls content production and delivery.

“Americans increasingly understand that corporate concentration is jacking up prices and lowering quality for all sorts of basic goods and services. At a hearing of a Senate antitrust subcommittee this month, lawmakers made it clear that they see companies that are allegedly too big to fix in many industries, not just the banking sector. This FCC must now decide whether it wants to stem the swelling tide of concentration, or enable these monopolies.”

Free Press and Stop the Cap! contributed elements of this story.

Usage Caps/Metered Billing Has a New Name: the Usage Economy

Phillip Dampier March 9, 2016 Data Caps, Editorial & Site News 1 Comment

LogiSenseWhen reviewing your latest Comcast cable bill with overlimit fees on it (or a $30-35 upcharge to buy their insurance plan to keep extra fees off your bill), did you realize you are part of the Usage Economy?

With some Internet Service Providers and most wireless companies rushing to monetize your Internet usage (while also jacking up the price of service), a cottage industry of software and engineering “solutions”-developers have emerged to grab a piece of Monetize Pie.

This week LogiSense Corporation celebrated itself for another deployment of its EngageIP usage and rating platform. Granted, many of its customers are using it for business class services, but we enjoyed the word salad LogiSense created about the future of usage monetizing schemes that too often effectively gouge customers:

LogiSense enables enterprises to power the Usage Economy: The dynamic convergence of subscription- and usage-based billing models, allowing service providers to monetize in real-time any triggered event in the connected world to gain significant competitive advantages. Today’s usage economy is a highly complex environment with a matrixed ecosystem of consumers and providers generating transactions that require metering, measurement and monetization. EngageIP’s real-time rating, charging, billing and customer care capabilities enable providers to monetize any subscription, over any medium and from any provider. The system transforms clients’ business practices by empowering rapid turn up of new services, enabling innovation and new revenue streams thus ensuring longevity and relevance in a rapidly evolving market.

FairPoint’s ‘Moosepoop’: Abdicating Its Responsibilities One Customer at a Time

Phillip Dampier: One customer calls FairPoint's deregulation logic "moosepoop."

Phillip Dampier: One customer calls FairPoint’s deregulation logic “moosepoop.”

In 2007, Verizon Communications announced it was selling its landline telephone network in Northern New England to FairPoint Communications, a North Carolina-based independent telephone company. Now, nearly a decade (and one bankruptcy) later, FairPoint wants to back out of its commitments.

In 2015, FairPoint stepped up its push for deregulation, writing its own draft legislative bills that would gradually end its obligation to serve as a “carrier of last resort,” which guarantees phone service to any customer that wants it.

The company’s lobbyists produced the self-written LD 1302, introduced last year in Maine with the ironic name: “An Act To Increase Competition and Ensure a Robust Information and Telecommunications Market.” The bill is a gift to FairPoint, allowing it to abdicate responsibilities telephone companies have adhered to for over 100 years:

  • The bill removes the requirement that FairPoint maintain uninterrupted voice service during a power failure, either through battery backup or electric current;
  • Guarantees FairPoint not be required to offer provider of last resort service without its express consent, eliminating Universal Service requirements;
  • Eliminates a requirement FairPoint offer service in any area where another provider also claims coverage of at least 94% of households;
  • Eventually forbids the Public Utilities Commission from requiring contributions to the state Universal Service Fund and forbids the PUC from spending that money to subsidize rural telephone rates.

opinionSuch legislation strips consumers of any assumption they can get affordable, high quality landline service and would allow FairPoint to mothball significant segments of its network (and the customers that depend on it), telling the disconnected to use a cell phone provider instead.

FairPoint claims this is necessary to establish a more level playing ground to compete with other telecom service providers that do not have legacy obligations to fulfill. But that attitude represents “race to the bottom” thinking from a company that fully understood the implications of buying Verizon’s landline networks in a region where some customers were already dropping basic service in favor of their cell phones.

FairPoint apparently still saw value spending $2.4 billion on a network it now seems ready to partly abandon or dismantle. We suspect the “value” FairPoint saw was a comfortable duopoly in urban areas, a monopoly in most rural ones. When it botched the conversion from Verizon to itself, customers fled to the competition, dimming its prospects. The company soon declared bankruptcy reorganization, emerged from it, and is now seeking a legislative/regulatory bailout too. Regulators should say no.

fairpointLast week, even FairPoint’s CEO Paul Sunu appeared to undercut his company’s own arguments for the need of such legislation, just as the company renewed its efforts in Portland to get a new 2016 version of the deregulation bill through the Maine legislature.

“We’ve operated in and we have experience operating basically in duopolies for a long time,” Sunu told investors in last week’s quarterly results conference call. “Cable is a formidable competitor. Look, they offer a nice package and a bundle and they – in certain areas, they certainly have a speed advantage. So we recognize that and so our marketing team does a really good job of making sure that our packages are competitive and we can counter punch on a both aggregate and deconstructive pricing.”

“Our aim is not to be a low cost, per se,” Sununu added. “What we want to do is to make sure that people stay with us because we can provide a better service and a better experience and that’s really what we aim to do. And as a result, we think that we will be able to change the perception that people have of Fairpoint and our brand and be able to keep our customers with us longer.”

Paul H. Sunu

Paul H. Sunu

Of course customers may not have the option to stay if FairPoint gets its deregulation agenda through and are later left unilaterally disconnected. In fact, while Sunu argues FairPoint’s biggest marketing plus is that it can provide better service, its agenda seems to represent the opposite. AARP representatives argued seniors want and need reliable and affordable landline service. FairPoint’s proposal would eliminate assurances that such phone lines will still be there and work even when the power goes out.

At least this year, customers know if they are being targeted. FairPoint is proposing to immediately remove from “provider of last resort service” coverage in Maine from Bangor, Lewiston, Portland, South Portland, Auburn, Biddeford, Sanford, Brunswick, Scarborough, Saco, Augusta, Westbrook, Windham, Gorham, Waterville, Kennebunk, Standish, Kittery, Brewer, Cape Elizabeth, Old Orchard Beach, Yarmouth, Bath, Freeport and Belfast.

At least 10,000 customers could be affected almost immediately if the bill passes. Customers in those areas would not lose service under the plan, but prices would no longer be set by state regulators and the company could deny new connection requests.

FairPoint argues that customers disappointed by the effects of deregulation can simply switch providers.

fairpoint failure“The market determines the service quality criteria of importance to customers and the service quality levels they find acceptable,” Sarah Davis, the company’s senior director of government affairs, wrote. “To the extent service quality is deficient from the perspective of consumers, the competitive marketplace imposes its own serious penalties.”

Except FairPoint’s own CEO recognizes that marketplace is usually a duopoly, limiting customer options and the penalties to FairPoint.

Those customers still allowed to stay customers may or may not get good service from FairPoint. Another company proposal would make it hard to measure reliability by limiting the authority of state regulators to track and oversee service complaints.

Company critic and customer Mike Kiernan calls FairPoint’s legislative push “moosepoop.”

“FairPoint has been, from the outset, well aware of the issues here in New England, since they had to demonstrate that they were capable of coping with the conditions – market and otherwise – in their takeover bid from Verizon,” Kiernan writes. “Yet now we see where they are crying poverty (a poverty that they brought on themselves) by taking on the state concession that they are trying desperately to get out from under, and as soon as possible.”

Vermont Public Radio reports FairPoint wants to get rid of service quality obligations it has consistently failed to meet as part of a broad push for deregulation. (2:23)

You must remain on this page to hear the clip, or you can download the clip and listen later.

Kiernan argues FairPoint should be replaced with a solution New Englanders have been familiar with for over 200 years – a public co-op. He points to Eastern Maine Electrical Co-Op as an example of a publicly owned utility that works for its customers, not as a “corporate cheerleader.”

Despite lobbying efforts that suggest FairPoint is unnecessarily burdened by the requirements it inherited when it bought Verizon’s operations, FairPoint reported a net profit of $90 million dollars in fiscal 2015.

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