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Time Warner Cable, CBS Down to the Wire on Contract Renewal Dispute

Phillip Dampier July 29, 2013 Consumer News, Public Policy & Gov't, Video Comments Off on Time Warner Cable, CBS Down to the Wire on Contract Renewal Dispute

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Within the hour viewers in New York, Los Angeles, and Dallas will know whether Time Warner Cable and CBS have managed to reach an agreement on retransmission consent, agree to further extend talks, or choose to pull the plug on CBS affiliates in the three cities, and a handful of independent stations with it.

Negotiations are said to be tense and down to the wire, with a weekend extension expiring at 5pm ET this afternoon. Time Warner Cable customers nationwide could experience the loss of Showtime if Time Warner Cable decides to drop the pay movie channel as a negotiating tactic.

CBS’ Les Moonves confirmed this afternoon the two sides remained at odds over the exact amount the cable operator will pay per viewer for CBS-owned local stations in the three cities. If an agreement is not reached, Time Warner Cable is likely to drop the channels this afternoon.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Bloomberg Will CBS Lose its Place on the TV Dial 7-29-13.flv[/flv]

Bloomberg News reports late this afternoon the two sides have still not reached an agreement and unless another extension is approved, CBS will be off the cable dial in New York, Dallas, and Los Angeles. (5 minutes)

twcThe cable operator upped the stakes late Friday reportedly threatening that if CBS does get removed, it will give up its coveted channel positions on Time Warner Cable indefinitely. In New York, WCBS occupies channel 2. In Los Angeles, KCBS is also on channel 2 and its sister station KCAL is on channel 9. In Dallas, KTVT is on Time Warner Cable channel 11. Low channel numbers have significant financial value to programmers, because it makes finding channels easier. Jeff Zucker from CNN has already expressed an interest is taking over channel 2 for CNN.

The dispute comes at the same time Time Warner Cable is notifying customers of rate increases on broadband and cable modem rentals. CBS is expected to recommend Time Warner customers switch to a competitor or watch shows online, presumably over TWC’s broadband service.

In Wisconsin, another retransmission consent fight with Journal Broadcast Group caused the cable company to drop those stations from its lineup. Among the stations affected in Wisconsin:  WTMJ-TV (Channel 4) in Milwaukee and WGBA-TV in Green Bay, which carry Packer pre-season games, and WACY-TV in Appleton, which carries Spanish language pre-season broadcasts.

Ellis

Ellis

State Senate president Mike Ellis (R-Neenah) wrote a letter to the cable company insisting that it give rebates to customers affected by the blackout.

“It is clear your customers are no longer receiving the service they are paying for,” Ellis wrote in a letter to the company last Friday.

But Time Warner Cable made it clear subscribers are not entitled to refunds when stations disappear from its lineup:

Stations “are sold as a package of channels. We change our programming packages from time to time, including by adding new networks to the lineup. It is not our practice to issue credits for individual networks that are offered in a package.”

In New York, City Council Speaker Christine Quinn has asked CBS and Time Warner Cable to keep the stations up and running on cable until the negotiations are resolved. If they don’t Quinn has threatened to hold an oversight hearing on the matter, although her power to affect the two companies is very limited.

[flv width=”534″ height=”320″]http://www.phillipdampier.com/video/NY1 Quinn Says Dont Interrupt Video 7-29-13.mp4[/flv]

NY1 reports on New York City mayoral candidate Christine Quinn’s request that CBS and Time Warner keep WCBS on the cable dial until the dispute can be resolved.  (1 minute)

Time Warner Cable Introduces New 30GB Usage-Capped Billing Plan in Rochester, N.Y.

twc logoIn addition to an August broadband rate increase for western New York’s Time Warner Cable customers, those in Rochester will also be among the first to experience a new 30GB usage-capped billing option for broadband service.

The subject of usage-based billing is a major sore spot for customers in the Flower City, who joined forces with customers in Greensboro, N.C., and San Antonio and Austin, Tex. to force the cable company to shelve a mandatory usage billing scheme announced in 2009. Stop the Cap! was in the middle of that fight, although this group was founded after Frontier Communications proposed a 5GB usage cap the summer before.

Time Warner Cable CEO Glenn Britt personally promised Sen. Charles Schumer (D-N.Y) that the cable company would yank its planned experiment with usage caps and consumption-based billing after it became clear Rochester and other cities were being singled out where Verizon FiOS would never offer competition, making it seem Time Warner was taking advantage of a lack of broadband competition to charge dramatically higher prices.

In 2009, Time Warner Cable planned to implement mandatory usage pricing starting in Rochester, N.Y., Greensboro, N.C., and San Antonio and Austin, Tex.

In 2009, Time Warner Cable planned mandatory broadband usage pricing starting in Rochester, N.Y., Greensboro, N.C., and San Antonio and Austin, Tex.

But Britt has never stopped believing in usage pricing, and Time Warner has since switched to a more gradual introduction of the pricing scheme, this time offering discounts to customers that agree to limit their Internet usage.

Time Warner’s current usage billing plan offers a meager $5 discount to those who limit consumption to less than 5GB per month. That plan was originally introduced in Texas and Time Warner Cable employees confidentially tell Stop the Cap! it has attracted almost no interest from customers.

Now Time Warner Cable plans to introduce a second usage limited plan, with a yet to be disclosed discount for subscribers who keep Internet usage under 30GB a month.

“Those who use the Internet for e-mail or to surf the web need not pay the same rates as those who download games and the like,” said company spokesperson Joli Plucknette-Farmen.

As far as we can tell, the 30GB capped plan is new for Time Warner Cable and Rochester will be among the first communities to experience it. Unless the company chooses to more aggressively discount both the 5GB and 30GB plans, we expect few customers will take Time Warner Cable up on their offer.

For now, Time Warner says the usage capped plans are optional and that flat rate Internet service will continue. But company executives have not said for how long or what the company might choose to eventually charge for unlimited broadband usage.

Britt has stressed repeatedly he wants customers to get re-educated to accept “a usage component as part of broadband pricing.” But customers may not accept that, particularly considering the cable company already enjoys a 95% gross margin on flat rate broadband service.

Frontier Communications Wins Rate Deregulation in Washington State

Phillip Dampier July 24, 2013 Competition, Frontier, Public Policy & Gov't Comments Off on Frontier Communications Wins Rate Deregulation in Washington State

frontierFrontier Communications Northwest, Inc., has won an end to rate regulation, arguing sufficient competition exists between telecom companies in Washington State to make the oversight unnecessary.

The Washington State Utilities and Transportation Commission approved the request this week, adding it would allow more pricing flexibility for Frontier services in the state.

“Washington’s competitive classification statute requires that we examine the conditions in the marketplace to determine the level of regulation necessary to ensure that consumers have access to telecommunications services at fair, just and reasonable rates, terms, and conditions,” UTC commissioners said in the written order. “If alternative providers of telecommunications services exist and the company no longer serves a significant captive customer base, we will substantially reduce historic regulation, particularly economic regulation, in favor of the disciplines of an effectively competitive marketplace.

Although the majority of Washington is served by CenturyLink, which acquired the assets of Qwest, Frontier has 321,000 customers in Redmond, Kirkland, Everett, Bothell, Woodinville, and other smaller communities. Most of Frontier’s customers were acquired from Verizon Northwest in 2010 after the company exited the landline business in the state.

Frontier must still adhere to Washington’s consumer protection laws. Customers with unresolved problems with Frontier services, including its adopted FiOS fiber network, can call the Commission’s HelpLine at 1-888-333-9882.

Ohio Residents Use an Average of 52GB of Data Each Month; Nearly Double 2012 Rate

Phillip Dampier July 24, 2013 AT&T, Competition, Data Caps, Editorial & Site News, Public Policy & Gov't, Rural Broadband, Verizon, Wireless Broadband Comments Off on Ohio Residents Use an Average of 52GB of Data Each Month; Nearly Double 2012 Rate
Phillip "What's $520 a month between friends" Dampier

Phillip “What’s $520 a month between friends” Dampier

The average Ohio household consumes 52 gigabytes of data per month — the equivalent of more than five million emails or surfing the Internet for about 100 hours monthly — up from 28GB in 2012.

Demand for broadband and mobile communications continues to skyrocket as consumers in urban Ohio dump traditional landline phone service at an accelerating rate.

Since 2000, the industry group Ohio Telecom Association reports 64 percent of landlines have disappeared in the state since peaking in 2000. An additional 6-10 percent continue to cut the cord every year, either when elderly customers pass away or when consumers decide to switch to a wireless, cable telephone, or a broadband Voice over IP alternative like Vonage.

Some telephone companies, particularly AT&T and Verizon, argue the ongoing loss of landlines means the service is becoming technically obsolete — a justification to drop old copper phone networks in rural areas in favor of wireless and switching to fiber-fed IP networks like U-verse in urban and suburban areas. But copper landlines do more than just connect telephone calls.

Broadband usage statistics suggest rural customers in Ohio could find their Internet bills exploding if AT&T succeeds in forcing those customers, least likely to face competition from cable providers, to the company’s highly profitable wireless network.

AT&T currently sells rural landline customers DSL service starting at $14.95 a month. A usage cap of 150GB per month technically applies, but remains unenforced.

Customers switched to AT&T wireless service will pay much more for much less.

dataconnectAT&T’s DataConnect plan, suitable for fixed wireless home use, starts at $50 a month and includes a usage allowance of 5GB per month. With the average Ohio resident now consuming 52GB a month, switching to wireless broadband is a real budget-buster. AT&T’s overlimit fee is $10/GB, so the average resident would face a monthly Internet bill of $520 a month this year. Assuming usage growth continues at the same pace, in 2014, AT&T customers will need to write a check for around $780 a month.

Ohio’s broadband and wireless usage statistics are familiar because they echo the rest of the country. According to Connect Ohio, wireless-only residents are 81 percent urban or suburban, where cell networks provide the best reception; 84 percent are under age 44; 58 percent have a college education; and 63 percent earn more than $25,000 annually.

Those affected by a forced transition to a wireless-only solution are least financially equipped to handle it.

“The least likely to convert to a wireless-only solution would be an older, rural, less educated, lower-income individual,” said Stu Johnson, executive director of Connect Ohio. “Those are probably also the most expensive copper customers.”

Comcast Cable Guy Sentenced to Life on Rape-Murder Charge; “Every Woman’s Nightmare”

Phillip Dampier July 23, 2013 Comcast/Xfinity, Consumer News, Public Policy & Gov't, Video Comments Off on Comcast Cable Guy Sentenced to Life on Rape-Murder Charge; “Every Woman’s Nightmare”
Triplett

Triplett

Anthony Triplett used his job as a Comcast subcontractor to hunt for unsuspecting female victims while installing cable service — customers he would later return to rape and strangle.

On Friday, a Cook County judge sentenced the murderer to life in prison.

Judge Kevin Sheehan agreed with prosecutors who called Triplett both a sociopath and a psychopath, treating his victims with all the reverence of a used facial tissue.

Sheehan said Triplett’s defense was ludicrous, calling it a “wicked web of lies.”

“You were dancing like an ant on a sugar cube,” Sheehan said.

Triplett was found guilty of raping and strangling 23-year old Polish immigrant Urszula Sakowska,  whose lifeless body was found in a bathtub inside her Chicago-area home back in 2006.

Triplett is also facing charges in the death of 39-year old Janice Ordidge, a Comcast customer in Hyde Park.

Victims’ families say Comcast has a lot to answer for after subcontracting cable work out to Premier Cable Communications, a third-party company accused of maintaining shoddy hiring practices. Comcast is under scrutiny for doing nothing to stop Triplett after being informed he was being questioned by police in the death of Ordidge.

comcasticBoth Comcast and Premier are being sued for allowing Triplett to continue working, which lead to his encounter with Sakowska.

Assistant State’s Attorney Brian Sexton said Triplett “obviously could not help himself” from committing the sexual assaults and killings.

“This is the most dangerous individual you will ever see in this courtroom — and that’s saying a lot for 26th Street,” Sexton told the judge, calling Triplett “every woman’s nightmare.”

“This is who you killed!” he shouted at Triplett while holding a photo of Sakowska.

Sakowska’s fiancé, Grzegorz Magiera, said he will never recover from her loss, which would have never happened had she not called Comcast.

“I can still see her in our house, smell her and feel her warm embrace,” Magiera said in a victim impact statement read by prosecutors. “My life will never be the same as it was before. No one will ever be able to replace my Urszula. She was my one and only. She was my angel.”

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/WLS Chicago Comcast Killer Sentenced to Life 7-19-13.mp4[/flv]

WLS reports Comcast-contracted cable repairman Anthony Triplett was found guilty of rape and murder and is yet to face murder charges in a second case. Triplett used his “house calls for Comcast” as a hunting ground for female victims. (2 minutes)

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