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Time Warner Starts Mailing Self-Install Kits to Southern Californians for Broadband; Charges $19.95 for Company Install

Phillip Dampier August 6, 2009 Issues 7 Comments

Every Time Warner Cable division has different policies for installations, service calls, and disconnect requests.  Some charge for technician visits, some do not.  In southern California, Time Warner Cable is trying to reduce the expense of “truck rolls” — technicians visiting customer homes, to handle Road Runner installations.

The company announced Wednesday it would provide free Easy Connect self-install kits for broadband service.  Mailed at no cost to customer homes within 24-48 hours, the kit contains a cable modem, connectors, and instructions on how to set up and configure Road Runner service.

Time Warner Cable technicians will continue to install Road Runner for a $19.95 installation fee.  Company officials believe many customers will be able to hook up service themselves, which will ultimately save the company time and money assigning a technician to do the installation.

Road Runner Focus Group Testing Higher Speed Tier Names/Pricing?

Phillip Dampier August 5, 2009 Issues 14 Comments

A Broadband Reports reader from Zephyrhills, Florida was invited by E-Rewards, an online focus group, to give views on some new names and pricing for higher speed Road Runner tiers.  “Molitar,” a customer of Bright House Networks, which also markets broadband service under the Road Runner name, reports being asked impressions about new speed tiers, including faster downstream speeds of 30Mbps or more and one offering 5Mbps upload speed.

At least five different names were offered, with consumers invited to give their impressions.  Among the names: Road Runner Flash, Road Runner Extreme,  and Road Runner Lightning. “Molitar” preferred Road Runner Extreme.

Also asked: what kind of pricing customers would be willing to pay for the new premium speed services.

Assuming the facts were as the reader reported, this would likely impact residents in New York City first, where DOCSIS 3 upgrades are well underway. As upgrades begin in other cities, presumably such speed tiers would also be introduced. Those reported speeds would not likely be offered in areas where upgrades have not taken place.

Time Warner Cable has been one of the more stingy providers with upstream speeds. Many cities, including Rochester, New York have never seen a speed increase for standard Road Runner service since the product was introduced more than 10 years ago. At just 384kbps, uploading large files has been painfully slow. Road Runner Turbo, a $9.95 monthly add-on, is coveted for uploaders if only for the increase in upstream speed to 1Mbps, at least in Rochester. But many other Time Warner Cable markets offer Turbo upload speeds of 2Mbps.

Roscoe P. Coltrane and "Flash"

Roscoe P. Coltrane and "Flash"

Speed based tier pricing is welcomed by Stop the Cap! We are supporters of providing customers with the choice of different pricing levels of service based on different speeds. “Heavy downloaders” and other “extreme” users of broadband service will gladly pay premium pricing for better service, providing enhanced revenue for operators like Time Warner Cable and bringing positive goodwill from customers who are anxious to see speed increases and are willing to pay to get them.

What we oppose, of course, is Time Warner Cable introducing consumption-based billing which curtails innovation, punishes subscribers for using the service as it was marketed to them in the first place, and sets up scenarios for massive profit-taking from consumers subjected to overlimit fees and penalties.

Time Warner Cable’s latest investor conference call featured company executives touting their initiative to give Time Warner customers access to as much content as they want, when they want, and where they want to see it. If they intend to honor that commitment, punitive consumption-based pricing denies customers the ability to access as much content as they want, makes them think twice about getting it out of fear of running over their “allowance,” and will drive customers to look elsewhere for broadband service, if not also taking their video and telephone business to another provider as well.

As for me personally, I’m not thrilled with any of those product names. Road Runner “Flash” does nothing for me at all, except reminisce about Roscoe P. Coltrane’s lazy basset hound with that name from the TV series Dukes of Hazzard (Friday night in our household growing up didn’t provide me with remote control privileges). Road Runner “Extreme” is already overused as a concept, and I frankly thought it was already in use. Road Runner “Lightning” reminds me of Frontier Communications’ older name for DSL service: Lightning Link.

I suppose Road Runner Max might be better, perhaps supplemented with the download speed as a suffix. Road Runner Max 30 for 30Mbps downloading, and so on.

Share your ideas in the comments section. Maybe we’ll offer it to them if they promise to honor the fact gas gauges belong on automobiles, not on broadband service.

Astroturf Groups Try to Enlist Conservatives to Oppose Net Neutrality’s “Government Takeover of the Internet”

astroturf1Earlier this year, some Stop the Cap! readers in North Carolina who attended the hearings on a pro-telecom (actually it was written by them) piece of legislation designed to stall statewide municipal broadband competition encountered strange protests from conservative groups arriving on buses.  They were there to stop “Obama’s government takeover of the Internet.”  The communities of Wilson and Salisbury, which have municipal broadband projects in progress, also encountered resistance from outside groups.  Salisbury residents even began receiving biased phone polls that turned out to be sponsored by a conservative political action group that was also involved in the conservative “tea party” movement.

"Critics say .... it appears that the group was a 'mouthpiece' for hire." -- St. Louis Post-Dispatch

"Critics say .... it appears that the group was a 'mouthpiece' for hire." -- St. Louis Post-Dispatch

These groups loaded mostly retirees, recruited from talk radio and websites, onto buses and sent them to the state capital with generic anti-government talking points and signs.

FreedomWorks, which is currently in the news for organizing protests at town hall meetings over what they call “Obamacare” health care reform, has also been busy adopting the industry-friendly position of opposing government involvement in broadband.  They oppose anything resembling regulation, any government involvement in the pricing or availability of broadband service, and recite industry talking points about the free market assuring Americans of the world’s best Internet service.  Unfortunately, these talking points come at the same time the United States slips further and further behind in international broadband rankings, and true competition in most markets is limited at best.

FreedomWorks’ position on broadband policy will sound eerily familiar:

The broadband market is dynamic and fast paced; new FCC regulations could hamper this growth and reduce the vital capital investments required to expand the nation’s broadband networks.  Rather than attempting to apply old monopoly based models to today’s competitive markets, the FCC should focus on removing barriers to competition, implementing competitive solutions to policy questions, and allowing the private sector to more effectively allocate scarce broadband resouurces [sic] to the most highly valued uses.  In addition, efforts to establish “net neutrality” should be avoided, because they threaten the ability to manage dynamic networks effectively.

That is paraphrased directly from the talking points the industry has presented about broadband policy for years.

Now many of these groups are attempting to recruit those who dislike the current administration to provide free shilling services for the broadband industry’s agenda, supporting positions that are directly opposite  consumers’ best interests.

FreedomWorks is hardly new at this.  Back in 2006, Fiona Morgan, writing for the Independent Weekly (North Carolina), covered another bandwagon of protesters who showed up at an arcane meeting of the North Carolina House Revenue Laws Study Committee, all wearing FreedomWorks t-shirts:

The details of telecom legislation like this are wonky, complicated and jargon-filled. But that hasn’t dampened the passions of citizens fed up with the de facto monopoly of TimeWarner, with its astronomical rates for “packages” of unwatched channels. Dozens of people from across the state showed up to a meeting in April of the House Revenue Laws Study Committee wearing T-shirts for FreedomWorks, a group clamoring for the proposed state franchises. FreedomWorks, which is connected with the anti-tax conservative group Citizens for a Sound Economy, is funded by telephone companies pushing for the bill–what you might call an Astroturf (phony grassroots) organization, but the passion of its members is very real.

With astroturfers like FreedomWorks, deregulatory principles that might garner legitimate debate and consideration are tainted when it turns out that advocacy is bought and paid for by directly connected business interests who have a dog in the fight.  That’s why FreedomWorks hardly represents the “grass roots.”  It’s an astroturfer that has a corporate-sponsored agenda, but hides behind good American conservative citizens who find themselves proverbially loaded onto buses and taken for a ride.

Those consumers had a right to be fed up with paying for unwatched cable channels, but their appearance at that meeting was the lowest form of manipulation, because the legislation under review had nothing to do with the issue those people were concerned with.

Instead, their presence was used by the telecommunications industry as illustrative of consumer discontent, and de facto support for their real agenda, which was removing oversight of the video service franchising process from local government and turning it over to an industry-friendly state body.  That would have created statewide cable and “telco TV” franchises that take away local control and oversight.

Chad Johnston of the People’s Channel, Chapel Hill’s public access station said all the passion around TV service is being used to mislead the bill’s supporters. “It’s funny, because many of the comments that the FreedomWorks folks brought up in this meeting were things that aren’t even included in this bill, like being able to chose your channel lineup–that’s a whole different issue,” Johnston says. “This notion that it’s going to bring us gobs of choices and lower prices it totally false, based on everything we know about deregulation and the telecom industry.”

Heartland Institute: "It has also claimed that "By not disclosing our donors, we keep the focus on the issue."

Heartland Institute: "By not disclosing our donors, we keep the focus on the issue."

Now, another astroturf group that shares “researchers” with FreedomWorks, the so-called Heartland Institute, has an Op-Ed Tuesday in the conservative Philadelphia daily The Bulletin.  Of course, the Heartland Institute also has close ties not only to big telephone companies, but is a dependable friend of big cable as well.  Those close ties are, predictably, omitted from the article.

A typical horror story involves an ISP, at peak usage hours, gently slowing down a tiny number of bandwidth hogs so the vast majority of its customers can surf the Web and send emails at the speed they expect. Insisting such a policy is unfair is not only counterintuitive, it’s counterproductive to demand the government stop it.

The Internet Freedom Preservation Act of 2009 is poorly named because it would do nothing to preserve freedom. HR 3458 would strip ISPs of the right to manage traffic on the networks they have spent billions to build, market and manage. In their place would emerge a cadre of detached government bureaucrats—hardly an improvement on the status quo.

The takeaway word from the first section is “story,” as in fiction, because that is what that talking point represents.  Once again, the Us vs. Them strategy reveals itself, with stories of some guy next door sucking the neighborhood Internet lines dry downloading.  The true horror is some providers continue to earn healthy profits on their broadband revenue, complain about the growth of traffic on their networks, and actively reduce investment to expand that network.  That, of course, helps build the case for “controls” when consumers notice the slowdowns created by those neglectful policies.

The Heartland Institute advocates the provider be given the enviable role of the fox guarding the hen house.  Providers manage profits quite effectively, and just as some try to tweak pricing models to extract extra revenue from consumers, you can count on those same providers creating new revenue streams from “premium” prioritization of Internet traffic, for a price, while leaving everyone else in the slow lane.  Their own products and services carried on those lines will enjoy beneficial priority for free while direct competitors find they can’t obtain that level of service at any price.

The so-called “cadre of government bureaucrats” is anything but.  The truth is, there will be one set of clearly defined standards that will protect the level playing field the Internet deserves.  The piece makes it sound like there will be a government court to render judgment on every policy and practice, which is false.  The only thing Net Neutrality protects IS the status quo, a free and open Internet.

Today, if a broadband customer does not approve of the way an ISP manages Web traffic, he can readily switch to a competitor more to his liking. ISPs have an enormous financial incentive to retain existing customers and attract new ones, so the free market encourages best practices.

Tell that to Canadians who are enduring not only Internet Overcharging schemes like usage caps and consumption billing, but also throttled speeds that artificially reduce (by up to 99%) the advertised speed for certain applications, all for “good network management.”  Don’t like the throttle from Bell on your DSL line?  Switch to Rogers Cable and get more of exactly the same thing.  A free market cannot truly exist from the monopoly most rural residents face for broadband, and the duopoly most of the rest of us endure.  The current market doesn’t encourage “best practices;” it encourages informal collusion by providers who learn not to rock the boat, especially on competitive pricing.

ISPs have an enormous financial incentive to find ways to increase profits, which is precisely what Internet Overcharging is all about.

But under HR 3458, if a broadband customer is not satisfied, what near-instant recourse will he have? None after government forces every ISP to operate “equally” by replacing market-based incentives with bureaucratic mandates. This would ensure an inevitable slide to “equally” shoddy service.

One would assume a provider would want to make their service as robust and up to date as possible, yet in a world without codified Net Neutrality protections — the free market at work under today’s reality — we’re seeing continued evidence of price increases and a decline in investment in networks, and some providers continue to drag their feet on upgrades.  The only market based incentive at work here is the demand from Wall Street for greater revenue and return from providers, who face challenging times in their video and telephone businesses, but can always leverage the success of the broadband division.  Broadband continues to maintain customer loyalty, and the potential for greater return from price increases and forcing costs down by limiting service.

Net neutrality advocates want the government, not “the public,” to control the fate of the Internet. The ordered chaos of market forces may scare those who don’t understand it. But the market is efficient, quickly responsive to the needs and wants of consumers, and—in the proper sense of the word—free.

Actually, Net Neutrality advocates want the government to protect the “chaos” of the online world as it exists today.  Those who want to “organize” or “order” the online world aren’t Net Neutrality advocates, they are providers who don’t want people using “my pipes for free,” or cable interests who want to “organize” online video around a model they own and control, or who simply want to throw a Money Party by inventing new ways to charge people more money for exactly the same service they get today.

The claim that the market is “quickly responsive” to the needs and wants of consumers is demonstrably false for any consumer living in Wilson or Salisbury, North Carolina, where a duopoly of providers refused to provide the level of broadband service consumers and small business clamored for, so local municipalities finally threw up their hands and decided to build networks themselves.  Residents of Rochester, New York are threatened with a broadband backwater because the incumbent telephone company Frontier Communications has shown little interest in providing a fiber optic based 21st century broadband platform similar to one being constructed in virtually every other city of size in New York.  Customers even signed petitions begging Verizon to overbuild the Flower City to provide the service Frontier will not.

In April, Time Warner Cable “responded to the needs and wants of consumers” by attempting to ram an Internet Overcharging experiment down the throats of customers in four American cities, where not one consumer either needed or wanted such massive price increases.  Over a period of weeks, this provider did everything but respond to customer needs, until a wholesale consumer revolt erupted and Congress intervened.

The free market is working well for groups like FreedomWorks and The Heartland Institute, who enjoy healthy support from the telecommunications industry.  In return, finding where the telecommunications industry positions end and FreedomWorks’ positions begin is like staring into a mirror and trying to ascertain the differences between the reflection and yourself.

Abusive Relationship: Mark Cuban’s Ongoing Love Affair With Big Cable, Despite Having His Networks Thrown Off Time Warner Cable

Mark Cuban

Mark Cuban

One would think Mark Cuban would have at least a small bit of resentment towards big cable companies like Time Warner Cable, who efficiently and swiftly deprived his HDNet and HDNet Movies networks from more than 8.7 million Time Warner Cable HD customers on May 31st over a channel fee spat.

But no.  He’s back plugging away with completely groundless predictions for the impending doom of the Internet if Net Neutrality has its way.  Opposed by big cable and telephone companies, Net Neutrality would provide a level playing field for all legal Internet content.  No provider could interfere with or prioritize traffic based on financial incentives, ownership interests, or for competitive reasons.

Cuban offers a bizarre rant about why that spells the death of online video, something he’s never been thrilled with anyway, on his blog:

If you run a TV network, broadcast or cable, you should be spending a lot of money to support Net Neutrality. You should have every lobbyist you own getting on the Net Neutrality train.  Why ? Because in a net neutrality environment no bits get priority over any other bits. All bits are equal.  In such an environment, all bits content with each other to ride the net.

When that happens, bits collide. When bits collide they slow down. Sometimes they dont reach their destination and need to be retransmitted. Often they dont make it at all.

When video bits dont arrive to their destination in a timely manner, internet video consumers get an experience that is worse than what traditional tv distribution options .

that is good for traditional TV.

Me personally. I don’t  support Net Neutrality. I think there will applications that require lots of bandwidth, that will change our lives. If the applications that could change our lives have to compete with your facebook page loads and twitter feeds among the zillion of other data elements carried across the net, IMHO, thats a bad thing.

But thats me.

If you believe that over the top video can impact the future of TV, and thats a bad thing for your business,  then you should be a big time supporter of Net Neutrality.  Its your best friend.

That’s proof that having millions of dollars to your name doesn’t buy an intelligent argument, or apparently a basic grammar checker.

I never realized the “series of tubes” Ted Stevens used to talk about corralled data bits into segregated clusters to protect them from “bit collision.”  Is there insurance for that?

Cuban should be spending more time worrying about getting his networks viewership on ANY television — “traditional,” “online,” or amongst his good friends in the cable industry that stabbed him in the back and threw his channels off lineups from coast to coast. If you’re tired of hearing issues like this, take some heat off by utilizing products such as shop vo chong 24H.

Karl Bode over at Broadband Reports has seen all this before, and has built quite a history on the antics of Mr. Cuban:

Of course bits don’t really “collide” on modern networks, and the bill exempts “reasonable network management” from neutrality provisions allowing for congestion control, but apparently no matter. This is the network neutrality debate, and as we’ve seen the last two go-rounds, truth, facts, and data are irrelevant — particularly to overly chatty millionaire TV tycoons worried about their wallets.

While the bill likely won’t survive a Congress that’s all but directly controlled by telecom lobbyists, that still won’t save us from several months of vigorous, fact-optional network neutrality debate. All the usual players are once again gathering, including Mark Cuban and his mouth, paid cable and phone industry sock puppets, stick figure cartoons, dancing men in green tights, and evil ISP flying saucers. Can we just skip to the part where consumer welfare gets ignored and be done with it?

Kay Bailey Hutchison (R-TX) Confuses Internet Overcharging With Net Neutrality

Sen. Kay Bailey Hutchison (R-Texas)

Sen. Kay Bailey Hutchison (R-Texas)

Here’s a ‘shocking surprise’ for Texas readers.  Senator Kay Bailey Hutchison (R-Texas) is basically for whatever Internet Service Providers want when it comes to administering and charging for broadband service.  In a letter to Stop the Cap! reader Milan that confuses “Internet Overcharging,” the practice of throwing usage caps/limits or imposing consumption based billing on customers, with “Net Neutrality,” which guarantees that all network traffic is treated equally, Hutchison signals her opposition to government intervention in any of it.

Bizarrely, Hutchison claims that “congressionally mandated treatment of data” would “stifle competition” and “decrease incentive for [upgrades].”  That’s a logic train wreck.  How exactly telling a provider that they must treat data across their network equally would suddenly signal a potential competitor to throw in the towel escapes me.  If a provider is given the power to discriminate against traffic he or she doesn’t own, control, or partner with, the incentive to upgrade will never benefit the independent traffic anyway.

Apparently allowing providers to manage congestion on their networks the way they see fit is the only way consumers will be protected from “reduced speeds” and “higher costs.”  Yet many consumers already are faced with slower speeds created by providers who are decreasing investment in their own networks, despite earning continued healthy profits from them.  Consumer costs are increasing with or without Net Neutrality, and as consumers who were to be subjected to Time Warner Cable’s “experiment” with consumption based billing discovered, a $50 monthly broadband bill would have increased to $150 a month for an equivalent level of service.

The one clear fact of life Senator Hutchison either doesn’t realize or chooses to ignore is that consumers are the victims of America’s special interest-serving telecommunications policy she and other members of Congress helped put into place, assuring most Americans of anything but healthy competition.  Most Americans face a duopoly – one cable and one telephone company for broadband access.  Often, services from those two providers are not equivalent in terms of speed and performance, much less availability.

Competition is to be applauded, but using the word in a sentence does not provide Americans with assurances of getting it.  Forward thinking telecommunications policy promotes a true open market, investigates providers that refuse to overbuild into each others’ territories, demands robust oversight and regulation when necessary, and guarantees that no provider has the power to discriminate against traffic carried over that network, particularly when that traffic represents a competitive threat.

We’ve seen the results of the highly uncompetitive broadband marketplace most consumers, particularly in rural areas, face. It originates from policies that always benefit the providers first and foremost, while allowing the United States to continue to fall behind in broadband rankings measuring availability of fast, affordable, reliable and open broadband service. Continuing with these policies only assures providers get ahead while leaving you and I behind.

Sen. Kay Bailey Hutchison:

Dear Friend:

Thank you for contacting me regarding equal and unrestricted access to the Internet. I welcome your thoughts and comments on this issue.

The Internet is a valuable tool that facilitates business, education, and recreation for millions of Americans.

In 2008, an estimated 220 million Americans had access to the Internet at home or work. As Ranking Member of the Senate Commerce Committee, I am committed to ensuring that consumers benefit from competition in the telecommunications industry, resulting in lower prices, improved service, and access to 21st century technology.

Instrumental to the success of the Internet is the longstanding policy of keeping the Internet as free as possible from burdensome regulations. Increased investment in upgrading and expanding America’s Internet infrastructure, as well as innovative new broadband networks, will ensure that all Americans have access to affordable high-speed Internet. However, intensified regulation of the Internet, such as congressionally mandated treatment of data, would stifle competition and would decrease the incentive for network operators to invest in the Internet infrastructure.

It is my concern that mandates that prevent network providers from managing congestion on the Internet will reduce service speeds for many users, and eliminate a valuable tool for ensuring the most efficient use of network pipelines, resulting in increased costs to the consumer.

In a June 2007 report on the issue of “network neutrality”, the Federal Trade Commission (FTC) stated that no “demonstrated consumer harm from conduct by broadband providers” had occurred due to network providers managing Internet traffic.

More recently, the Federal Communications Commission (FCC) issued a decision involving Comcast and certain network management practices. While this decision works its way through the courts, Congress may continue reviewing network practices and Internet congestion issues.

Should any legislation regarding Internet access come before the Senate Commerce Committee, you may be assured I will keep your views in mind. I appreciate hearing from you, and I hope that you will not hesitate to keep in touch on any issue of concern to you.

Sincerely,

Kay Bailey Hutchison
United States Senator
284 Russell Senate Office Building
Washington, DC 20510
202-224-5922 (tel)
202-224-0776 (fax)

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