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Frontier Expanding Vantage TV; Applying for Video Franchises in New York and Ohio

Phillip Dampier July 18, 2016 Competition, Consumer News, Frontier Comments Off on Frontier Expanding Vantage TV; Applying for Video Franchises in New York and Ohio

vantage tvIf you live in parts of the Hudson Valley (N.Y.) or Ohio where Frontier Communications provides phone service, Vantage TV may be coming to your neighborhood soon.

Frontier’s cable television solution for customers still served by its legacy copper wire telephone network appears to be an IPTV service similar to AT&T’s U-verse. Vantage TV is already available to around 200,000 Connecticut customers served by Frontier, inherited from AT&T. Frontier also offers Vantage in Durham, N.C. and has applied for a statewide video franchise in Ohio (granting authority to offer service anywhere in the state it chooses) and another to serve Middletown, N.Y., a community of 28,000 in the Hudson Valley.

Frontier claims over the next four years it will offer Vantage in as many as 40 of its markets, many still served by legacy copper wiring. That represents about three million homes. After a second phase of buildouts, Frontier claims it will to provide video service to about half of the 8.5 million homes in its service area.

In late June, Frontier applied for a video franchise agreement in Middletown, where it expects to compete against Charter Communications (formerly Time Warner Cable). It will be the first time Frontier offers video service in New York.

frontier new logoVantage TV offers up to 300 channels typically bundled with phone and internet service. Customers are provided a “total-home DVR” with 1TB of storage that can record up to six shows at the same time and played back on up to four wireless cable boxes attached to different televisions. An upgraded version 3.0 of Ericsson’s Mediaroom platform offers advanced set-top box features like improved visual search and the ability to watch up to four channels at once in a mosaic. Another feature lets customers bring up a small video screen showing another channel, useful if you are channel surfing during an ad break.

Multichannel News interviewed several Frontier executives about the service, which the company is confident will give it a competitive video product to market to customers. Until Frontier bought AT&T’s Connecticut customers (and its U-verse fiber-to-the-neighborhood system), its only experience selling cable television came from its acquisition of Verizon FiOS systems serving Fort Wayne, Ind., and parts of Oregon and Washington. Frontier quickly learned the value of Verizon’s volume discounts for video programming, which it lost soon after acquiring the systems. In 2011, customers faced massive price hikes for video service and an unusual effort to convince them to switch to satellite TV instead — quite a downgrade from fiber to the home service.

middletownConnecticut, in contrast, is served with a mix of fiber and old copper wiring that has been in place for decades, since the days the state was served by the independent Southern New England Telephone Company. Learning how to deliver reasonable video quality over copper wires in Connecticut gave Frontier experience to go ahead with targeted upgrades that can boost broadband speeds and deliver HD video over an internet connection as low as 2.6Mbps in other states.

In short, Frontier’s business plan for video may work if it can keep network expansion and technology costs as low as possible. Video programming costs are likely to be another matter, however. As programming costs increase in contract renewals, some cable operators are playing hardball and dropping channels that get too expensive for comfort. But many of those channel drops alienate customers. Frontier appears to be following an opposite formula — making sure potential customers know they are still carrying networks the cable operator in the area dropped. Comcast dropped Yankees regional sports channel YES, but Frontier still offers it to its Connecticut customers and goes out of its way to promote its availability.

Hallmark Channel and Hallmark Movies & Mysteries — two networks popular with older viewers who are among the most loyal to cable television, got the axe in 2010 on AT&T U-verse in Connecticut. After Frontier acquired the Connecticut system, it put the two networks back on the lineup.

The more customers Frontier can show it has at the negotiating table, the better position Frontier is in to secure discounts for the video programming it carries. Volume, volume, volume makes all the difference when competing against giant cable conglomerates like Comcast and Charter. Even if Frontier finds it eventually has to drop overpriced channels, it has a much more friendly relationship with over-the-top online video services like Netflix to offer customers as an alternative. Vantage customers can find Netflix’s main menu as a traditional TV channel on the Vantage lineup, allowing subscribers to choose any Netflix show to watch on their television. In the future, Frontier might offer customers other network’s apps as well, making it easy to stream on demand video without having to use a Roku or other similar device.

Comcast Says It Will Spend $100M on Chicago, But Not Before Capping Internet Usage

comcast cartoonComcast announced last week it will invest $100 million in fiber optic and coaxial cable to expand its network for businesses and residents across the Chicago region, but not before it slaps a usage cap on Chicagoland internet users forced to join its compulsory data cap “trial.”

Beginning Aug. 1,  customers who exceed 1 terabyte of data usage per month will face a nasty overlimit fee of $10 for each 50GB of additional usage they rack up over the course of a billing cycle. Customers who want to keep the unlimited broadband plan they have today can, if they are willing to pay an extra $50 a month.

Comcast’s PR department has christened the incoming data cap the “Terabyte Internet Experience,” suggesting customers will now have the privilege of using up to 1,000GB each month without facing extra charges. But the plan customers have until the end of this month already allows that, and more, without facing overlimit fees that will top out at $200 a month.

Customers like Greg believe Comcast has a different agenda imposing data caps.

“We’ll teach those cord cutters a lesson,” he wrote. “We’re going to get your money one way or another. Comcast is just greedy, they want to extort as much money as they can from people. I’m paying $90 for internet, with the option to charge more based on their conditions. Remember when consumers had options?”

Other residents looking for an opt-out of the “trial” are out of luck.

comcast“Got the email this week we get to be part of this data cap ‘trial,'” shared another customer. “How lucky are we? And what do we get for being part of this trial? Absolutely nothing! And can we opt out of this trial? Heck no!”

Comcast claims almost nobody will be impacted by the terabyte cap, predicting as few as 1% of their customers reach that level of usage. But 25% of Comcast customers nationwide have now received email and other notifications about a data cap plan “trial” Comcast has spent time, money, and resources trying to explain and implement in a growing number of cities in their service area. Many ask if so few are affected, why make the effort?

The FCC received 11,812 complaints about Comcast in 2015, mostly about its data cap trials. That is at least 5,000 more complaints than AT&T, Verizon, and Time Warner Cable received combined. That would seem to indicate a significant percentage of Comcast customers are concerned about data caps, even if they are not among the “1%” Comcast now claims will be affected by caps.

Comcast’s plan to invest $100 million in Chicago, primarily on fiber expansion, may not placate customers who do not appreciate their internet usage being capped at the same time Comcast’s network capacity continues to increase. Most of the upgrades may be targeted to benefit Comcast’s business customers. The expansion will string 50 miles of fiber cable across seven square miles of downtown Chicago, including the Loop, River North, and River West. Additional expansion will target the city’s Back of the Yards and Bridgeport neighborhoods at in the Peterson-Pulaski business district near O’Hare.

Comcast claims the upgrade will expand internet, video, voice, and home security/automation services for residential customers. They will just need to make sure not to use them too much.

FCC’s Wheeler to Consumers: Contract Dispute TV Blackout? You’re On Your Own

Wheeler

Wheeler

The Federal Communications Commission has decided it won’t get too involved in the increasing number of contract renewal disputes between TV networks and cable TV providers, and has refused to issue new rules governing what represents “good faith negotiations” in disputes that take channels off the lineup.

“Based on the staff’s careful review of the record, it is clear that more rules in this area are not what we need at this point,” said FCC chairman Thomas Wheeler. “It is hard to get more inclusive than to review the ‘totality of circumstances.’  To start picking and choosing, in part, could limit future inquiries.”

A growing number of disputes over the rising cost of video programming frustrate pay-TV customers who find strident messages about nasty programmers or greedy providers blocking their favorite channels after contract renewal talks fail. Cable operators, sensitive about cord-cutting, want to keep price hikes down. Wall Street and shareholders expect growing revenue from charging providers for access to programming, which has become a major revenue source for most. Wheeler wrote Congress had good intentions to put a stop to contract disputes that eventually affected the public:

Congress, in Section 325 of the Communications Act, sought to reduce the likelihood that TV viewers would face this roadblock. The law requires broadcasters and multichannel video programming distributors (MVPDs) to negotiate for retransmission consent in good faith. Congress gave the Commission the authority to keep an eye on these negotiations, and our rules include a two-part framework to determine whether broadcasters and MVPDs are negotiating in good faith.

  • First, the Commission has established a list of nine objective standards, the violation of which is considered a per se breach of the good faith negotiation obligation.
  • Second, even if the specific standards are met, the Commission may consider whether, based on the totality of the circumstances, a party failed to negotiate retransmission consent in good faith.

In the recent STELA Reauthorization Act of 2014 (STELAR), Congress expressed concern about the harm consumers suffer when negotiations fail and sought-after broadcast programming is blacked out on their pay TV service. STELAR directed the Commission to initiate a rulemaking to consider possible revisions to our “totality of the circumstances” test.

Everyone has a different opinion of what represents “good faith” and many of these disputes quickly get acrimonious. Or worse. Take the one-month-and-counting little hatefest between Tribune Media and DISH Network also known as Satan’s Mother-in-Law v. the Zika virus. Tribune blacked out DISH customers’ access to 42 local channels in 33 markets, including WGN Chicago, WPIX New York and KTLA Los Angeles back in June. Many are major network-affiliated over the air stations. The dispute, as usual, is over money. Tribune wants DISH to bundle WGN America, a low-rated basic cable network, with its Tribune-owned stations, as a condition for renewal.

dish dispute

WGN America has little to do with WGN-TV, the over-the-air independent former superstation based in Chicago. As of late 2014, WGN America runs a vastly different schedule of syndicated sitcoms, drama series and feature films, and some first-run original television series produced exclusively for the channel. Long gone are local, syndicated, or sports shows that a viewer in Chicago would see watching channel 9 over-the-air. As a result, viewership of WGN America is 20% less than the former WGN-TV, and dropping. Many of the shows on WGN America also turn up on other cable channels, making the network a questionable addition to the lineup.

WGN America, not your father's Channel 9 from Chicago.

WGN America, not your father’s Channel 9 from Chicago.

DISH obviously has no interest in WGN America, but Tribune’s negotiators told them they better get interested, because WGN America will come along for the ride, part of any renewal for the over-the-air stations Tribune owns.

DISH is in no hurry to negotiate over the summer months, when shows are repeats and folks are on vacation. Many expect that will change once football season nears. But the battle continues anyway.

A new low was reached a few weeks ago when a frustrated Rev. Jesse Jackson claimed in an open letter that DISH’s refusal to negotiate was racist, in part because the blackout affected the show Underground, chronicling the Underground Railroad system that helped slaves escape to the northern free states.

“Is DISH using the same kind of math with ratings that the old south employed when enacting laws that counted African-Americans as three-fifths of a man?” wrote Jackson in a letter released by his Rainbow Push Coalition. “For far too long African-Americans have been underrepresented and unfavorably portrayed on television, silencing the significant contributions they have made to this country. Underground is a crucial part of a brand-new day of diversity on television that sheds a bright light on the bravery, ingenuity and power of the African-American experience, and is being used as teachable moments in homes and history classes around the nation at a time when we need it most.”.

Jackson

Jackson

DISH avoided taking the bait, responding, “We are skeptical that Rev. Jackson is truly interested in finding a fair deal for DISH customers.”

The FCC isn’t apparently interested in putting a line in the water either, steering clear of the controversy and allowing programmers and networks to continue to work things out with each other while customers watch repeating barker channels claiming none of this is the fault of their provider.

Wheeler points out he is aware of the DISH/Tribune dispute, but isn’t exactly rushing to end it.

“I summoned both parties to Washington to negotiate in coordination with Commission staff,” Wheeler wrote. “When that step failed to produce an agreement or an extension, the Media Bureau issued comprehensive information requests to both parties to enable FCC staff to determine whether they were meeting their duty to negotiate in good faith; we are reviewing their responses as I write. If that review reveals a dereliction of duty on the part of one or both parties, I will not hesitate to recommend appropriate Commission action.”

To DISH viewers, that represents a “definite maybe.”

At the end of last month DISH decided it wasn’t “good faith” when the Tribune subsidiary operating WGN America started running ads calling DISH a “dishgusting” company. Too much? Apparently so for DISH’s lawyers who filed a lawsuit.

“In a last-ditch bid to force DISH to accept its terms, DISH is informed and believes, and thereon alleges, that Tower created and broadcast, via its channels, disparaging content regarding DISH, its services and its performance,” states the complaint. “The campaign launched by Tower with these commercials cast DISH in an extremely negative light — Tower claims that DISH has not acted in good faith, that its performance and services are the worst in the industry, and even that DISH is a ‘disgusting’ company.”

Apparently, DISH maintains a disparagement clause in its old contract with Tribune, designed to stop nasty exchanges like this. Tribune called the lawsuit frivolous and the FCC today effectively called it a day.

Charter: We Won’t Screw Up Southern California Like Frontier Did With Verizon

frontier frankCharter Communications is promising its Southern California customers it won’t bungle the transition from Time Warner Cable to Charter Communications like Frontier Communications did with former Verizon customers.

“We purchased all of Time Warner Cable and Bright House Networks. With this transaction we acquired everything,” company spokesman Justin Venech said. “We’re able to take more time in the integration process and not rush to make changes.”

Charter will take up to 18 months to make its presence fully known in areas formerly served by Time Warner Cable, and then primarily under its brand name known as Spectrum.

Time Warner Cable customers will be able to keep their current service and packages even after the transition, at least for a while.

charter twcBut not all customers are happy about Charter’s slow transition plans. Customers waiting for Time Warner Cable Maxx upgrades, some already in progress, may be out of luck. Charter’s new management team put an indefinite hold on Time Warner’s more aggressive upgrade plans in favor of Charter’s much more modest commitment to offer customers two broadband speed tiers – 60 and 100Mbps over the next 18 months. Customers in the northeast and midwest have been told there are no longer any definitive dates for the introduction of Maxx, which offers free speed upgrades up to 300Mbps.

Almost all of Time Warner Cable’s executive management has been escorted out of the company’s Manhattan headquarters, severance pay and benefits in hand. In fact, Charter plans to abandon Time Warner Cable’s Manhattan headquarters altogether and shift top management to its plush Connecticut office. Most workers will be reassigned to other locations yet to be announced, some possibly upstate.

Charter has already begun repricing service and packages that will resemble Spectrum offerings, at least for new customers across Time Warner Cable and Bright House territories. The packages will not carry the Spectrum brand just yet, however.

 

 

Hillary Clinton’s Broadband/Tech Policies: Aspirational, Bureaucratic, and Often Vague

Phillip Dampier July 11, 2016 Broadband Speed, Community Networks, Competition, Data Caps, Editorial & Site News, Net Neutrality, Public Policy & Gov't, Rural Broadband, Wireless Broadband Comments Off on Hillary Clinton’s Broadband/Tech Policies: Aspirational, Bureaucratic, and Often Vague

(Editor’s Note: In keeping with the changes introduced by the latest “AP Stylebook 2016,” as much as it pains us, starting today we will refer to the “internet” in lowercase.) 

clintonThe internet.

“I have a plan for that.”

High tech jobs.

“I have a plan for that.”

Facilitate Citizen Engagement in Government Innovation.

Yes, Democratic presidential candidate Hillary Clinton has a plan for that, too. Whatever “that” is, there is essentially a four-year plan.

“Hillary Clinton’s Initiative on Technology & Innovation” runs 15 pages and immediately reminds readers of the menu at Cheesecake Factory. There is literally something for everyone. It’s surprisingly robust for someone who professed she didn’t understand much of the email controversy she entangled herself in while serving as Secretary of State and admittedly doesn’t know how to work a fax machine. The question is, if voters choose Mrs. Clinton as the next president of the United States, how can they be sure her administration will achieve those promises, starting with a commitment to bring internet service to 100 percent of the country.

opinionBelieve it or not, there are organizations out there that track just how many of these pledges are actually kept during each administration, and surprisingly the track record is better than you might think. Politifact’s Obameter shows the Obama Administration achieved the majority of its tech policy objectives, compromised on a few others, and broke its promise on just one: Requiring companies to disclose personal information data breaches.

After almost two decades of telecommunications deregulation, President Obama turned plenty of attention to internet issues in the last two years of his second term. His de-facto enforcer turned out to be FCC Chairman Thomas Wheeler, who has been tenaciously dismantling years of an industry-fueled “trust us, we know best” regulatory policy framework partly established during the (Bill) Clinton Administration. An exception to the usual revolving door of regulators taking well paid jobs in the private sector after leaving government, Wheeler has gone the other way — leaving the private sector as a former telecom lobbyist and venture capitalist to serve as FCC chairman during Obama’s second term. He’s a huge improvement over former chairman Julius Genachowski, who was typically resolute on telecom issues until he wasn’t.

Politifact's Obameter gives high marks to President Obama for delivering on his tech issues platform.

Politifact’s Obameter gives high marks to President Obama for delivering on much of his tech issues platform.

Many progressives looking to keep or even build on Wheeler’s willingness to check telecom industry power are unsure whether Hillary Clinton will be tenacious like Sen. Elizabeth Warren or get up close and personal with big telecom companies, like former Tennessee congressman Harold Ford, Jr., who still serves as honorary chairman of the industry front group Broadband for America.

Progressives with long memories do not fondly recall the first Clinton Administration’s willingness to compromise away or abandon major policy positions it seemed steadfast on during two campaigns. After the 1992 election, Knight-Ridder Newspapers compiled a list of 160 specific commitments made by Bill Clinton. As he approached the end of his first term, the newspaper chain found Clinton managed to achieve 106 of them — a surprising 66% success rate. The reason for the perception-reality gap? Many of those commitments involved low-key, barely noticed policy changes or were originally so broadly defined as to make them achievable based on even the thinnest evidence of change.

The George W. Bush administration managed worse under a perpetual cloud of post Bush v. Gore partisanship and a change in priorities after 9/11, leading to a failure to deliver on most of his policy positions and pledges, according to CBS News. But the Bush Administration’s love of deregulation was well-apparent at the FCC during his two terms in office under FCC chairmen Michael Powell (now a top cable industry lobbyist) and Kevin Martin. Some of those deregulation policies have been reconsidered during the Obama Administration, and some voters are wondering if that will stay true should Mrs. Clinton be our next president.

Many of Clinton’s pledges on tech issues are bureaucratic crowdpleasers that have little immediate relevance or understanding outside of Washington. There are expansions in various federal programs, appointments of new federal overseers to keep a lookout for burdensome regulations on the state and local levels, and a variety of programs to expand broadband at a growing number of “anchor institutions” (not your home or business) through the use of public-private partnerships. It is worth noting many similar projects have already been up and running for at least a decade. Some of these anchor institutions cannot afford to pay the ongoing cost of getting service from these projects, and many are already served more than adequately, with capacity to spare. As we reviewed Mrs. Clinton’s tech policy positions, it also became clear the greater the scope and likely cost of any single pledge, the more vague it seemed to be, especially regarding the money required to pay for it and how its success will be measured.

America's rural broadband problem.

America’s rural broadband problem.

In particular, Mrs. Clinton is promising to “finish the job of connecting America’s households to the internet, committing that by 2020, 100 percent of households in America will have the option of affordable broadband that delivers speeds sufficient to meet families’ needs.”

Left undefined: what is “affordable,” what speeds are “sufficient” to meet families’ needs, and what technologies will be used to deliver it. Mrs. Clinton is satisfied with “directing federal agencies to consider the full range of technologies as potential recipients—i.e., fiber, fixed wireless, and satellite—while focusing on areas that lack any fixed broadband networks currently.” In other words, doing exactly the same thing they already do today.

Satellite internet access, as it now exists, often performs much slower than the FCC’s definition of broadband – consistent download speed of 25Mbps. Most Americans subscribed to traditional DSL service don’t receive true broadband speeds either. Since satellite internet technically reaches the continental United States already, there will be plenty of ways for Mrs. Clinton to “declare victory” on this pledge without allocating the billions needed to provide quality wired or high-speed wireless broadband to still-unserved rural America.

Mrs. Clinton also proposes a new “model digital communities” grant program that will “leverage the $25 billion Infrastructure bank she plans to establish” to facilitate access to high-speed internet. Again, much of this proposal is left woefully undefined. Structured properly, this could be used to develop high-tech cities with high-speed service such as in Kansas City (Google) or Chattanooga (EPB Fiber). These could offer a road map for other communities. The problem is finding the money to build such networks. Private providers will argue they already have advanced networks that don’t require public tax dollars, so these projects are unnecessary. Local governments might admit if they don’t secure similar federal funding that “model cities” get to help cover some of the costs, they won’t proceed. Others may philosophically object to having the federal government meddling in overseeing local projects. Some others might prefer the money be simply spent to wire up rural communities that don’t have any access at all and call it a day.

Put it (almost) anywhere.

Put it (almost) anywhere.

The Clinton campaign is also sure to attract fans among the country’s wireless carriers because her campaign promises to review regulatory barriers the phone and cable companies deal with, particularly pole access, zoning and cell tower issues, streamlining small cell placement, and continued promotion of “climb/dig once” policies which encourage placing fiber and/or conduit in trenches whenever/wherever a utility performs upgrades or outdoor maintenance. Oh, and she’s for 5G spectrum allocations as well. None of this, pardon the pun, is groundbreaking either.

Clinton is more specific supporting the Obama Administration’s Net Neutrality policy, backed by Title II authority, allowing the FCC latitude to manage abusive ISP behavior in a barely competitive marketplace. But she stops well short of criticizing companies about some of their current abusive, anti-consumer policies. She has nothing to say about data caps or zero rating, pricing or poor service, and doesn’t lament the sorry state of competition in the American broadband marketplace.

Clinton’s policy positions seem to suggest the federal government will have to help multi-billion dollar phone and cable companies get over their Return On Investment anxieties by subsidizing them to encourage rural broadband or enhancing outdated infrastructure. We’d prefer a position that moves this country towards universal broadband service, even if it comes at the price of short-term profits at the nation’s top ISPs. It would be useful to see some politicians stand up and suggest Comcast and AT&T, among others, are not entirely paragons of virtue, and they need to do more to solve this pervasive problem. That is something their customers already understand. In return for the billions in profits they earn annually in a de facto duopoly, they should be willing to devote more energy towards network expansion and less on cooking up schemes like data caps/zero rating and the usual share buybacks, dividend payouts, acquisitions and executive compensation. Asking nicely doesn’t seem to work, so now it’s time to tell them.

Although we’ve been a bit tough on Mrs. Clinton, we have not forgotten her likely opponent, Donald Trump, so far lacks any coherent summary of his tech policies. We do know he opposes Net Neutrality because he believes it is an Obama-inspired “attack on the internet” in a “top-down power grab.” Trump believes Net Neutrality will somehow be used to “target conservative media.” That makes about as much sense as saying pistachio is a liberal ice cream flavor. Trump’s team has a lot of work to do before November.

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