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Comcast Laid Off Hundreds Before Christmas and Kept it Quiet With Non-Disclosure Agreements

Phillip Dampier January 4, 2018 Comcast/Xfinity, Public Policy & Gov't 6 Comments

Two weeks before Christmas and on the cusp of passage of the Republican-sponsored corporate tax cuts that promised better pay and more jobs for workers, Comcast fired at least 500 door-to-door sales employees and required them to sign non-disclosure agreements in return for a severance package.

Managers, supervisors, and direct sales staff in Chicago, Florida, and across Comcast’s Central division — including the midwest and southeastern U.S., were abruptly terminated around Dec. 15, according to documents obtained by the Philadelphia Inquirer.

Most of the workers trudged door to door in neighborhoods and apartment complexes selling Comcast services to residential customers. Comcast has attempted to keep the layoffs quiet by requiring laid off workers to sign a non-disclosure agreement if they want a severance package. After being confronted by the newspaper, a Comcast spokesperson confirmed the layoffs.

“The Central Division is creating a new territory-based sales model that will connect more closely with residential prospects and customers in their communities,” Comcast spokeswoman Jennifer Moyer said Thursday. “By giving highly trained sales professionals direct responsibility for entire neighborhoods, we can provide a better experience for those who are interested in our services, during and after the sale.”

Because the layoffs only affect some of Comcast’s regional divisions, additional job cuts could be forthcoming if the company adopts its new sales model nationwide.

The Philadelphia Inquirer could not identify affected employees because Comcast required laid-off workers to sign Non Disclosure Agreements (NDAs).

Embittered employees are upset having to remain anonymous talking about their jobs disappearing just before Christmas. Comcast also gets to avoid paying the fired workers its heavily promoted $1,000 bonus because Comcast conveniently eliminated their positions shortly before announcing the bonus.

The Trump Administration promoted the corporate tax cut as a Christmas gift to the middle class, claiming it would inspire companies to add jobs and boost worker pay. At Comcast, the tax cut will provide hundreds of millions in tax savings annually that are expected to be mostly returned to shareholders. Corporate executives are also expected to benefit through significantly higher bonuses tied to the increased cash on hand from tax savings and the higher value of Comcast’s stock. Comcast has made no commitments about hiring new workers, but did claim it would invest up to $50 billion in its company’s operations, which is roughly comparable to what Comcast traditionally spent before the tax cuts were announced.

According to the newspaper, it seems Comcast treated its shocked workers with about as much sensitivity as it gives its customers:

Rumors of an employee cutback among the sales people at Comcast had been percolating for weeks. But the disclosure of the terminations came as a shock when the employees were called into a company meeting in the southeastern U.S. in mid-December.

They were told that a new Comcast direct sales system requires fewer bodies “and as of today everyone in this room does not have a job anymore,” the terminated Comcast employee said.

One employee kept holding his head and saying “I can’t believe it. I can’t believe it.” Another worried about how to find new health-care coverage. A third employee was close to purchasing a new home and feared the personal income hit.

Comcast direct sales employees earned $50,000 to $100,000 through a low base salary and commissions, the terminated employee said. The commissions ranged between roughly $75 for a new Internet Plus customer to $350 for a new customer who ordered a triple-play package with home security, the former employee said.

“I don’t know how you do this right before Christmas.”

Mother Of All Service Outages: Liberty Cable Promises Puerto Rico Full Restoration in Mid-2018

Liberty Cablevision of Puerto Rico has estimated it will take as long as June of this year to fully restore cable and broadband service to Puerto Rico.

It has been over 100 days since Hurricane Maria devastated Puerto Rico and the U.S. Virgin Islands. At least 45% of Puerto Rico remains without any electricity, and the U.S. Army Corps of Engineers estimates it will take until May to fully restore power — eight months after the hurricane hit.

The island’s well-publicized power scandal with a politically-connected contractor also involves a decrepit utility, likely corruption in contract awards, incompetent management, and political interference from conservative groups who want to privatize the island’s utility and sell off its assets to corporate interests and entrepreneurs competing to turn the island into an experimental laboratory for renewable energy sources. All contribute to a slowdown in power recovery because no plan has adequate backing and sufficient resources to quickly bring power back online. Instead, mutual aid assistance from U.S. utilities is gradually rebuilding and strengthening the island’s existing power grid.

Liberty Cable’s original service area.

Liberty Cablevision claims many of its outages are power-related. When power is restored, their service will return as well. But many of their former customers will not. More than 140,000 Puerto Ricans have left since the storm hit Sept. 20 and some experts estimate more than 300,000 more could leave in the next two years. That’s on top of a similar number that have already left over the last decade as a result of the perpetual economic crisis on the U.S. island territory of 3.4 million.

Liberty is rebuilding significant parts of their network, spending millions to replace damaged coaxial cable with fiber optics, especially in areas closest to the eye of the hurricane where damage was greatest.

Liberty Global, controlled in part by cable magnate John Malone, this week completed spinning off Liberty Cablevision of Puerto Rico to Liberty Latin America, a new independent, publicly traded company. Included in the spinoff are Cable & Wireless Communications, a familiar telecom company serving Caribbean islands, parts of Latin America and the African island nation of the Seychelles, and VTR – Chile’s largest cable company.

A portable cell site

Cellular/Cable/Telephone

As of Dec. 29, 11.0% of Puerto Rico’s cell sites remain out of service. One county, Vieques, has greater than 50% of its cell sites out of service.

Satellite Cells on Light Trucks (COLTs) have been deployed in Aguadilla, Arecibo, Cayey, Coamo Sur, Fajardo, Guayama, Manati, Mayaguez Mesa, San German, Vega Baja, and Yauco and Terrestrial Cells on Wheels (COWs)/COLTs in Humacao, Quebradillas, Rio Grande, and Utuado.

U.S. Virgin Islands: Overall, 20.5% of cell sites are out of service. 50% of cell sites in St. John are out of service.

The FCC has received reports that large percentages of consumers are without either cable services or wireline service. While the companies have been actively restoring service, the majority of their customers do not have service because commercial power is not yet available in their respective areas. In Puerto Rico, there are no major telecom switches still affected.

Broadcast Stations

When broadcast stations are listed as “suspected to be out of service,” the statement is based on field scanning of relevant bands. Stations listed may be operating on reduced power or on a reduced schedule.

Television

Puerto Rico

  • 5 TV stations are confirmed operational (WKAQ, WIPR, WNJX, WTIN, WORO)
  • 2 TV stations are suspected to be out of service (WIPM, WELU)
  • 70 TV stations have been issued Special Temporary Authority to be offline
  • 30 TV stations have unconfirmed status

U.S. Virgin Islands

  • 14 TV stations have been issued Special Temporary Authority to be offline
  • 2 TV stations have unconfirmed status

AM Radio

Puerto Rico

  • 42 AM radio stations are confirmed operational (WA2X, WABA, WALO, WAPA, WBMJ, WCMN, WCGB, WCPR, WDEP, WENA, WEXS, WGDL, WI2X, WI2X, WI3X, WIAC, WIPR, WISO, WKAQ, WKFE, WKJB, WKUM, WLEO, WLEY, WMDD, WMNT, WMSW, WOIZ, WOQI, WORA, WPAB, WPPC, WPRA, WPRP, WSKN, WSOL, WTIL, WUNO, WUPR, WVJP, WXEW, WYEL)
  • 8 AM radio stations are suspected to be out of service (W227, WJDZ, WNVE, WVQR, WYAS, WZCA, WZMT, WZOL)
  • 21 AM radio stations are confirmed out of service by the Puerto Rican Broadcast Association (WBQN, WCMA, WDNO, WEGA, WFAB, WGIT, WHOY, WIBS, WIDA, WISA, WIVV, WJIT, WKVM, WLRP, WNEL, WNIK, WOLA, WOSO, WQBS, WRSJ, WUKQ)
  • 1 AM radio station has unconfirmed status
  • 2 AM radio stations have been issued Special Temporary Authority to be offline

U.S. Virgin Islands

  • 2 AM radio stations are confirmed operational (WSTA, WUVI)
  • 2 AM radio stations are suspected to be out of service (WDHP, WSTX)
  • 1 AM radio station has unconfirmed status

FM Radio

Puerto Rico

  • 55 FM radio stations are confirmed operational (WAEL-FM, WCAD, WCMN-FM, WCMNFM3, WCMN-FM6, WEGM, WERR, WERR-FM1, WERR-FM2, WERR-FM3, WFDT, WFID, WIDI, WIRI, WIVA-FM, WKAQ-FM, WKAQ-FM1, WKAQ-FM2, WLUZ, WMAA-LP, WMEG, WMIO, WNNV, WNRT, WNRT-FM1, WNRT-FM2, WNVM, WODA, WORO, WOYE, WPRM-FM, WPUC-FM, WPUC-FM1, WQML, WRIO, WRRH, WRTU, WRXD, WTOK-FM, WTOKFM2, WTPM, WTPM-FM1, WVDJ-LP, WVIE, WVIS, WVJP-FM, WVJP-FM2, WXYX, WXYXFM1, WXYX-FM2, WZAR, WZIN, WZNT, WZNT-FM1, WZOL)
  • 8 FM radio stations are suspected to be out of service (W227CV, WJDZ, WNVE, WVQR, WYAS, WZCA, WZMT, WZOL-FM3)
  • 17 FM radio stations are confirmed out of service by the Puerto Rican Broadcast Association (WCAD-FM1, WCAD-FM2, WCRP, WELX, WIDA-FM, WIOA, WIOA-FM1, WIOC, WNIK-FM, WQBS-FM, WQBS-FM1, WUKQ-FM, WUKQ-FM1, WXHD, WXLX, WYQE, WZET)
  • 3 FM stations have been issued Special Temporary Authority to be offline
  • 28 FM radio stations have unconfirmed status

U.S. Virgin Islands

  • 2 FM radio stations are confirmed operational (WVIE, WZIN)
  • 1 FM radio station is suspected to be out of service (WVIZ)
  • 1 FM radio station has been issued Special Temporary Authority to be offline
  • 19 FM radio stations have unconfirmed status

Service Problems Plague Frontier Customers in West Virginia as Company Seeks Voluntary Layoffs

Phillip Dampier January 3, 2018 Consumer News, Frontier, Rural Broadband, Video 1 Comment

An undisclosed number of Frontier Communications customers in West Virginia were without phone service during the Christmas-New Year’s Day holidays because of copper thefts and slow repair crews that did not begin repairs for up to two weeks after the outages were reported.

Hardest hit was Mingo County, where multiple copper wire thefts caused significant service outages starting Dec. 20 in Matewan, Delbarton, and Varney. Many customers were without phone service over the Christmas holiday, and some are still without service two weeks later. One of them is Arlene Gartin at the two-month old Mudders restaurant, which depends on pickup and delivery orders.

“This has devastated us,” Gartin told WSAZ-TV. “Seventy-five percent of our business was our delivery and without the calls I’m hanging on by threads.”

In Iaeger in McDowell County, residents on Coonbranch Mountain report their Frontier phone and internet services have been out of service for two weeks. Carl Shrader told WVVA-TV that service went out on Dec. 23 and remained so throughout Christmas and New Year’s Day.

Mingo County, W.V., on the Kentucky border.

“We had a windstorm come through, and up here where the church is, at the top of my driveway, it blew the power line and the telephone line down,” said Shrader. “If you get a fire around your house, and the phone lines is down, how can you notify the fire department? If you have a burglar coming in on you, how can you phone and say, ‘9-1-1, I need help! There’s a burglar here.’ You can’t!”

Cell service in this part of West Virginia is spotty, making landline service very important for many West Virginia residents who live and work around the state’s notorious mountainous terrain.

Customers affected by service outages report long hold times calling Frontier and very little information or updates about outages. Many residents report Frontier’s outages are frequent and often take a long time to fix. Some have been told Frontier’s repair crews are short-staffed and busy elsewhere.

That comes as a surprise to officials at the Communications Workers of America who confirmed Frontier announced a “voluntary” reduction in force program on Dec. 20, seeking employees willing to accept a buyout offer. If enough workers do not take Frontier up on their offer, more than 50 Bluefield-based employees and about 30 in Ashburn, Va., are at risk of being laid off.

WSAZ-TV in Huntington, W.V. reports a significant number of residents in Mingo County have been without Frontier telephone and internet service because of copper wire thefts for the last two weeks. (1:49)

WVVA-TV in Bluefield/Beckley, W.V. reports some residents waited two weeks for Frontier repair crews to show up after a windstorm. (1:49)

Verizon and Samsung Partner Up to Provide 5G Services, Starting in Sacramento

Verizon Communications has selected Samsung Electronics as a major supplier of the wireless company’s forthcoming 5G wireless service, launching first in Sacramento, Calif., in the second half of this year.

Samsung will be a major vendor supplying Verizon and its customers in Sacramento with 5G equipment, including wireless modems and routers. In 11 other cities where Verizon is testing 5G service, Ericsson AB, another 5G network vendor, has supplied much of the equipment. Samsung is currently a small player in the 5G networking business, but hopes to ramp up its business and cross-promote its smartphones and tablets with future 5G users.

Verizon’s wireless customers in Sacramento will be the first to receive invitations to switch their home broadband accounts away from AT&T, Frontier, Wave Broadband and Comcast — the four largest incumbent providers in the greater Sacramento area. Verizon claims its 5G service can support speeds up to 1Gbps. Verizon has been testing 5G service in 11 U.S. cities, but has kept pricing details to itself. The issue of data caps has been repeatedly raised and most industry analysts predict Verizon will usage cap its 5G service at around 200GB a month. Whether the company plans to offer an unlimited use plan is unknown.

Kim Young-ky, president of Samsung’s networks business, told the Wall Street Journal that 5G is a reality and it will be much more than just an upgrade from 4G service.

“The average U.S. consumer uses about five gigabytes of mobile data a month,” said Kim. But after 5G becomes more ubiquitous in the next few years, he believes consumers will eventually use closer to 100GB monthly on new services such as virtual or augmented reality programs—or even from driverless cars, the newspaper added.

Kim expects the first 5G capable smartphones won’t appear until sometime in 2019, leaving 5G primarily as a wireless home broadband replacement during its initial rollout.

Altice Customers Lose Starz/Encore Premium Channels in First Programming Dispute of 2018

Phillip Dampier January 2, 2018 Altice USA, Competition, Consumer News, Online Video Comments Off on Altice Customers Lose Starz/Encore Premium Channels in First Programming Dispute of 2018

Altice customers woke up on New Year’s Day to discover as many as 17 Starz and Encore premium movie channels missing from their lineup, replaced with little-watched alternative networks like The Cowboy Channel and Hallmark Drama.

It is the first retransmission consent dispute of 2018, and it began as 2017 ended. Altice issued a terse statement:

As of midnight December 31, 2017, Altice USA will no longer carry Starz or StarzEncore programming directly. Despite numerous attempts by Altice USA to reach a deal with Starz for continued carriage in video packages and a la carte carriage, Starz refused all offers, including an offer to extend our current arrangement.

Customers will not get a discount on their cable bill because of the loss of the premium movie networks. Instead, Altice quickly signed carriage agreements with several replacement basic cable networks including Hallmark Drama, Sony Movies, MGM HD, HD Net Movies, Flix, and Cowboy Channel. The last network on the list seemed an odd choice for the New York City market, featuring rodeos and rural living-oriented programming. Some customers were also placated with a replacement subscription to The Movie Channel.

Customers don’t consider the six replacements adequate for the loss of more than a dozen premium-priced movie channels, including STARZ, STARZ Edge, STARZ In Black, STARZ Comedy, STARZ Cinema, STARZ Kids & Family, STARZENCORE, STARZENCORE Action, STARZENCORE Classic, STARZENCORE Black, STARZENCORE Family, STARZENCORE Suspense, STARZENCORE Westerns, STARZENCORE Español and Movie Plex channels, and some plan to downgrade or cancel service.

Altice has played hardball with programmers in the past, especially those that direct-sell their programming to consumers through online streaming. In follow-up remarks, Altice essentially told customers to go and buy Starz directly from Starz itself, and took a shot at the network claiming most of their customers don’t watch their movie channels anyway.

“We are focused on providing the best content experience for our customers and continually evaluate which channels meet their needs and preferences relative to the cost of the programming imposed by content owners,” Altice officials said in a statement. “Given that Starz is available to all consumers directly through Starz’ own over-the-top streaming service, we don’t believe it makes sense to charge all of our customers for Starz programming, particularly when their viewership is declining and the majority of our customers don’t watch Starz. We believe it is in the best interest of all our customers to replace Starz and StarzEncore programming with alternative entertainment channels that will provide a robust content experience at a great value.”

Altice did expand on what it felt were unfair terms being offered to it while consumers could get the same movies and original series for less money elsewhere:

“Since our last contract renewal, Starz began offering a direct to consumer streaming service for $8.99 per month. Given that Starz is available direct to consumer through their subscription service, we have been actively negotiating to reach a deal that makes sense for all our customers, and made numerous offers of increasing value and partnership structures.

Starz wanted an all or nothing-type deal and their insistence on terms would force us to charge customers more than what the Starz OTT product costs — that would not make sense for our customers. Given the limited viewership of Starz amongst our customer base and that consumers can get Starz directly, we believe this approach is in the best interest of all of our customers who otherwise would have seen an impact on prices due to Starz’ demands.

We have simply been seeking to do what Starz itself is doing: support a Starz a la carte product, whether through our sales channels or through their OTT service.

We have reached more than two dozen agreements over the last few months that reflect the company’s commitment to both negotiate fairly and keep costs down for customers. In addition to offers to maintain packaged distribution, we proposed extending our a la carte deal in Suddenlink to include Optimum and Starz refused – this despite the fact that Starz has a la carte only deals with other distributors. We also offered to help sell the Starz OTT service to our broadband customers and they refused. We also offered to extend our current agreements.”

Analysts say it is very uncommon for a cable company to encourage its customers to directly subscribe to a service traditionally sold by the cable operator itself. Altice sought to drive home their view that selling cable programming direct-to-consumers devalues the product for cable operators, especially if the programmer sells it directly to consumers at a lower retail price than a cable operator can can buy at the wholesale rate.

“Despite all of Altice’s assertions to the contrary, the facts in this dispute are simple. Altice wanted a drastic reduction in price that was totally inconsistent with the market and flew in the face of the record popularity of our programming,” Starz said in a statement that did not refute Altice’s cost claims.

Starz offers a 7-day free trial of its streaming app, which offers on-demand access to most titles found on Starz or Encore networks. After the free trial, the service is available for $8.99 a month or $89.99 a year, which offers a 17% discount off the monthly price. The website offers more information about supported devices and streaming policies.

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