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FCC Introduces New Consumer Complaint Center; Will Forward Your Sad Story… Back to the Cable Company

Phillip Dampier January 6, 2015 Consumer News, Public Policy & Gov't 2 Comments
Lily Tomlin as Ernestine the telephone operator.

Lily Tomlin as Ernestine the telephone operator.

The Federal Communications Commission has mildly beefed up its largely toothless cable complaint hotline with a brand new consumer online complaint center that guarantees to forward submitted angergrams back to your telephone or cable company within one business day.

As Congress largely deregulated cable and competing local telephone exchange carriers and put them out of reach of most federal and state oversight, the FCC has largely been left acting as a concierge – managing and forwarding consumer complaints received on its 1-888-CALL-FCC hotline. Now it has an online complaint center to keep the toll-free number company.

The new FCC website is a one-stop place to file complaints about cable, phone, and other telecom companies and has been simplified to make it easier to understand – a welcome change from the nearly impenetrable Electronic Comment Filing System that dates back to the Clinton Administration.

But in reality, there isn’t much the FCC can actually do to enforce any action in your favor. So if your complaint deals with any of these issues, it is technically outside of the FCC’s jurisdiction:

  • Burial of telephone or cable wires
  • No dial tone to local phone service
  • Stand-alone satellite TV billing, rates and programming
  • Installation of non-bundled service
  • Stand-alone cable TV service, rates and programming (not including basic tier)
  • Internet services, rates, and billing

Despite the limitations, most cable and telephone companies assign executive-level customer service agents and supervisors to manage complaints forwarded from state or federal regulators that could give them headaches later on. That will get you a more empowered representative that can make things happen that “Miss Raisin” in the provider’s Philippines-based call center cannot.

The FCC also gets to track and monitor both the complaints received from consumers and the response from your provider. That can help the FCC identify hot-button issues that need more attention and uncover bad actors that might need special scrutiny, especially if those companies later seek approval for their merger deal or have other business before the FCC.

So far, the largest number of complaints received are about relentless telemarketing robocalls. Since telemarketers have discovered the Federal Trade Commission’s Do Not Call Registry and accompanying enforcement is more “bark” than actual “bite,” an increasing number are ignoring the law with little or no consequences.

The FCC’s disclaimer on such matters does not exactly leave providers quaking in their boots:

We do not resolve individual complaints on these issues. However, the collective data we receive helps us keep a pulse on what consumers are experiencing, may lead to investigations and serves as a deterrent to the companies we regulate.

Time Warner Cable Using Tax Dollars to Expand Broadband for Benefit of Wealthy Rural New Yorkers

broadband yes

Broadband Yes

Time Warner Cable is spending taxpayer dollars received from New Yorkers to expand cable service in rural areas of the state, but primarily for the benefit of affluent residents — some that have sought cable and broadband service for their rural estates and vacation homes for years.

An analysis of publicly-available data by the New York Public Utility Law Project (PULP) from an earlier $5.3 million state rural broadband expansion grant paid to Time Warner Cable found that 73 percent of the money was spent extending cable service in zip codes where median incomes are significantly higher than surrounding areas that remain unserved. Time Warner Cable is relying on New York taxpayers to cover about 75% of the construction costs.

PULP’s Gerald Norlander has spent months seeking more information about how Time Warner Cable and its presumptive new owner Comcast collectively plan to address rural broadband issues in the state, but Time Warner Cable has fought to keep most of its plans secret, including projects funded in part by taxpayers.

Broadband No

Broadband No

Norlander’s current research included an analysis of 53 rural expansion projects that were included in the last round of broadband grant awards. He found Time Warner interested in expanding in affluent communities like Grafton in Rensselaer County. The part of the community targeted for expansion has a 10% higher median income than the rest of the county.

In a letter to the state’s Public Service Commission, Norlander argues Time Warner Cable’s desire to keep its rural broadband plans a secret may run contrary to New York’s universal broadband service goal to bring broadband to every customer that wants the service.

Targeting service on more affluent areas can result in higher revenue as wealthy customers are more likely to choose deluxe packages of services and are unlikely to fall behind paying their bills. But such decisions can also become politically untenable when a seasonal resident can access cable service for their six bedroom summer home while middle-income residents with school children up the road cannot.

Time Warner Cable Wants to Keep Its Taxpayer Subsidized Rural Broadband Expansion a Secret

rural cableTime Warner Cable has appealed to the Secretary of the New York Department of Public Service to keep information about taxpayer-subsidized broadband expansion projects in New York a secret.

The case is part of a series of ongoing requests for disclosure of information about the proposed merger of Comcast and Time Warner Cable under New York’s Freedom of Information Law.

Several public interest groups are requesting copies of documents submitted to the state Public Service Commission that the two cable operators have repeatedly asserted should remain confidential. Gerald Norlander from the Public Utility Law Project has been seeking details about how the two companies plan to address New York’s rural broadband dilemma before any decision about the merger is made by state regulators. Norlander requested copies of documents that include details about Time Warner’s taxpayer-subsidized rural broadband expansion under the auspices of Gov. Cuomo’s Connect NY program. Time Warner wants to keep the information confidential, citing competitive concerns.

New York Administrative Law Judge David L. Prestemon ruled earlier this month that while Time Warner could maintain secrecy in the early stages of its proposed expansion efforts, once the company disclosed details about a project in a public filing with state or local officials, confidentiality should be lifted.

shhPrestemon rejected efforts by Time Warner Cable to maintain confidentiality even after news of one broadband expansion project was reported by Albany-area media outlets. Prestemon added that public regulatory filings submitted by the company as a project commences effectively places information about it in the public domain.

Counsel for Time Warner Cable rejected that assertion, claiming information found in certain regulatory filings or in a newspaper article lacks the granularity sought by Time Warner’s competitors.

“Simply because physical construction begins on a project does not mean that the public or competitors would be aware of who is completing the project, the geographic extent of the project, the number of passings, or the estimated completion date,” argued Maureen O. Helmer and Laura L. Mona in an appeal filed by Time Warner’s legal team at Hiscock & Barclay, LLP. “This information would be difficult and costly for a competitor to compile, such that disclosure would significantly harm Time Warner Cable’s competitive advantage.”

The attorneys revealed Time Warner Cable’s use of subcontractors is already helping shield the company from having expansion projects become public knowledge:

Time Warner Cable typically uses subcontractors to complete the physical construction. Therefore, the vehicles used to construct the build-out are often not Time Warner Cable owned vehicles. While Time Warner Cable generally requires contractors to display signs stating “Contractor for Time Warner Cable,” the existence of construction vehicles on the side of a road would not convey to an average member of the public or a competitor that Time Warner Cable was engaged in construction of new facilities, as opposed to repair, maintenance, or some other activity. In similar fashion, if a Time Warner Cable vehicle was present on the side of a road, it would not mean that a new build-out was being constructed as the vehicle could be performing any number of tasks that would not be known to the public.

Norlander’s group is concerned Comcast intends to combine Time Warner Cable’s systems in New York and could focus entirely on large urban markets while potentially abandoning rural customers to maximize revenue.

This is the third time Time Warner Cable has appealed one of Judge Prestemon’s rulings on this subject.

Some Fla. Lawmakers Fed-Up With Industry-Friendly Public Service Comm. That Grants Corporate Wishes

Phillip Dampier December 8, 2014 Consumer News, Public Policy & Gov't, Video Comments Off on Some Fla. Lawmakers Fed-Up With Industry-Friendly Public Service Comm. That Grants Corporate Wishes

corrupt pscFlorida’s Public Service Commission is charged with overseeing the state’s utility companies on behalf of the public interest, but some Florida lawmakers complain the regulator is corrupt, obsessed with fulfilling corporate wish lists and doing political favors for some of the state’s most powerful utilities and state legislators.

State Representative Chris Sprowls (R–District 65) and State Senator John Legg (R–District 17) have jointly filed legislation to reform Florida’s Public Service Commission (PSC). The two lawmakers joined consumer advocates in the state that complain the regulator has abandoned any pretense of representing consumers and today acts more like a consultant to facilitate corporate objectives in the state. The two lawmakers say their new bill is designed to send a strong message the PSC needs to be more reflective of the people they are supposed to serve.

“The Public Service Commission should serve the public good.  While millions of Floridians are left in the dark – or fleeced by companies like Duke Energy – the PSC continues to turn a blind eye,” said Representative Sprowls.  “These meaningful first steps will add some diversity and accountability to the PSC as we work on other reforms that will fundamentally alter the culture of the PSC.”

In recent years, the agency has reviewed proposals to end local oversight of cell tower placement, allowing AT&T and other carriers first choice of tower locations that work best for the companies, even if it creates visual pollution for nearby residents.

Last year, the Public Service Commission “compromised” with Duke Energy Florida, Inc. and saddled Floridians with $3.2 billion of the costs of shuttering one nuclear power plant and canceling another on the drawing boards. Duke’s shareholders were only on the hook for the first $295 million in costs associated with the Crystal River plant, while ratepayers covered more than ten times that amount.

The Commission also approved a sweeping series of rate increases for Florida Power & Light that will cause electric rates to soar across FPL’s service area, despite being informed that less than 1% of FPL customers supported the rate plan. In December 2012, FPL was granted a $350 million increase, but the deal also included increases of $236 million in 2014 and $217.9 million in 2016.

pscFlorida’s Public Counsel called the rate increases “abusive” and complained the PSC violated its due process when, despite the public counsel’s objections, it “abandoned” proceedings in which the public counsel had raised objections to FPL’s original petition and instead pursued approval of a settlement proposal from the utility that ultimately was agreed to by only a group of commercial customers.

This year, at the behest of the state’s largest energy companies, the Commission is rolling back energy efficiency goals originally proposed by the utilities themselves and is expected to kill a solar energy rebate program that has been a target of the American Legislative Exchange Council (ALEC). Energy companies complain their rights are being violated by policies that require them to buy excess solar generated power from residential customers. In some states, homeowners attempting to install solar panels have received legal threats from utilities warning they would take the homeowners to court if the solar installation continued. In Florida, utility companies complain residential solar power is a nuisance.

“We want to bring on more renewables, but we also want to make sure the cost of electricity stays reasonable,” said Randy Wheeless, a spokesman for Duke Energy Corp., which serves customers in the Carolinas, the Midwest and Florida. Duke Energy has no objections to solar-generated power it collects itself.

Furthermore, the transition to solar energy is not as daunting as it might seem. There are numerous resources available to guide you through the process. One such resource that I found particularly helpful is https://www.instagroup-homes.co.uk/solar-power/installing-solar-energy/. It’s filled with practical advice and insights.

One of the fiercest critics of Florida’s PSC is its former chair, Nancy Argenziano, who served a single two-year term while utilities complained about her pro-consumer voting record. She was not reappointed for a second term.

“I’ve never seen anything so corrupt as the PSC,” said Argenziano. “It’s the most corrupt place I have ever seen in my life, and that is someone coming from the House and Senate.”

Former PSC chairwoman Nancy Argenziano called Florida's current PSC "corrupt."

Former PSC chairwoman Nancy Argenziano calls Florida’s current PSC corrupt. (Image: Saint Petersburg Blog)

Argenziano blames Republican Gov. Rick Scott and several pro-business legislators for the corruption. According to Argenziano, the pressure to cave to the utilities’ demands came almost immediately after she joined the agency.

“After the third month,” she said, “I was at the PSC, the threats came in from the legislature to do as they say. l’m not going to sit there as a puppet head for some legislator.”

She has no love for lobbyists either, at one point sending a 25-pound box of manure to a lobbyist with whom she clashed on a nursing home bill.

Mike Fasano, the Pasco tax collector and a former state representative and senator, is also a critic of the PSC saying, “Unfortunately, the Public Service Commission and the Florida Legislature are bought and paid for by the utilities of Florida.”

Since the Scott Administration was voted into office, campaign contributions from electric utilities have flooded in to the point where Fasano believes the PSC now exists as a rubber stamp for the utilities.

“They can get away with it because they have paid for, they’ve bought and paid for the Florida Public Service Commission and the Florida Legislature and unfortunately the present governor,” said Fasano.

“Reforms are needed to restore confidence in the Public Service Commission,” said Sen. Legg. “Unfortunately, people don’t feel like they’ve been dealt with fairly and that is a problem.  I applaud Representative Sprowls for his courage and leadership on making this his first bill.”

The proposed legislation:

  • Limits commissioners from serving more than two consecutive terms;
  • Amends provisions for the purpose of statewide representation on the commission;
  • Divides the state into five districts, whose boundaries align with the district courts of appeal;
  • Each member of the Public Service Commission must reside within the respective district from which they are appointed;
  • Restricts elected officials from being appointed to the Commission for 2 years after leaving office.

[flv]http://www.phillipdampier.com/video/WTSP Tamps Florida PSC called corrupt by former chair 12-4-14.flv[/flv]

WTSP in Tampa investigated the Florida PSC and uncovered a major link between utility campaign contributions and how the PSC votes. (3:24)

Cuomo: 100% of New York State Should Have Access to 100Mbps Broadband by 2018

ny broadbandNew York Gov. Andrew Cuomo has set a goal that every resident of New York State should have access to at least 100Mbps broadband no later than 2018.

The governor will kick off his latest broadband expansion effort with the launch of his $500 million broadband expansion program, dubbed the New New York Broadband Fund, a follow-up to the state’s $70 million public-private effort to expand broadband that began in 2012.

Much of the money awarded in the 2012 broadband expansion effort went to Wireless Internet Service Providers, institutional broadband networks, middle-mile fiber projects not accessible to the public, and emergency service network upgrades. Another $5.2 million was awarded to Time Warner Cable to expand broadband service to 4,114 households in the Capital, Central, Finger Lakes, Mid-Hudson, Mohawk Valley, NYC, North Country, Southern Tier and Western regions of New York State. In June, many of the top funding recipients also received honors from the governor’s office in the first annual New York State Broadband Champion Awards.

Gov. Cuomo

Gov. Cuomo

Despite the money, the 2012 effort did not make a significant dent in the pervasive problem of broadband availability in upstate New York.

While Gov. Cuomo is committed to a target speed of 100Mbps within the next four years, more than one million New York households still cannot access broadband that achieves the state minimum — 6.5Mbps. That includes 113,000 businesses.

The governor’s solution is to subsidize private businesses with more tax dollars to resolve the broadband problem, with a significant part of the next round of funding likely to reach more institutional and public safety networks off-limits to the public, middle mile network expansion that can build state-of-the-art fiber rings that do not connect to end users, and an even bigger amount handed to Time Warner Cable (or Comcast if the state approves a merger with Time Warner Cable) and rural phone companies like Frontier Communications. Much of the money awarded to last mile providers like cable and phone companies will placate those that have stubbornly refused to expand further into rural areas unless taxpayers pick up some of the expense.

“In some of these areas, there’s just not a business case for these [service] providers to build out,” said David Salway, director of the New York State Broadband Program office. “The cost far exceeds what the revenue might be for that area.”

An unintended consequence of the broadband funding effort could be taxpayers subsidizing the establishment of for-profit monopolies in rural corners of the state. Although Salway told Capital NY he wanted to make sure New Yorkers had a choice, he clarified he was referring to a choice in technology, not service providers.

twcGreenThat must come as a relief for Verizon. The state’s largest phone company has petitioned state officials in the past for a gradual mothballing of New York’s rural landline network in favor of switching customers to wireless voice and broadband over Verizon’s cellular network. Theoretically, taxpayers could end up subsidizing the demise of rural New York landlines and DSL if Verizon seeks money from the rural broadband fund to expand its wireless tower network in rural New York. Time Warner Cable almost certainly will also seek more funding, probably in excess of the average $1,264 paid to the cable company for each of the 4,114 additional connections it agreed to complete during an earlier round of funding.

While rural broadband remains an important issue in New York, the merger of Comcast and Time Warner Cable is on the front burner and Salway, like the governor, had little to say. But Salway did offer that he did not believe the merger “would reduce [access] as much as further our goal” for expansion.

Guidelines for grant recipients are expected to become available just after the governor’s State of the State presentation in January, with ground-breaking on projects likely to start by mid-summer of 2015.

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