Phillip DampierMarch 18, 2013Broadband Speed, Consumer NewsComments Off on Bright House Boosts Speeds, Prices, Cable Modem Fees
Bright House Networks first boosted Internet speeds in January and is now back with a price boost.
The cable provider’s Turbo High Speed Internet increased earlier this year from 20 to 30Mbps for downloads. Its Lightning tier went up even more — from 40 to 60Mbps. Even Business Class customers saw speed increases to 70Mbps. But now prices are up as well — as much as $5 a month more for “upgraded broadband services,” a higher cable modem rental fee, and $3 more for television packages:
Standard Cable TV service is up $3, from $65 to $68 a month
Late fees are increasing by an extra $0.50;
The cable modem rental fee that used to be $2 a month has increased an additional $1.50 — now $3.50 per month.
Price increases will not affect customers on promotional offers or certain bundled service packages combining multiple services.
The fee that bugs many customers the most is the company’s modem rental fee, which applies regardless of the age of your equipment.
“I told the customer service rep that I’ve had this modem for a couple of years and it’s not like altered or improved,” Pete Dooley of Satellite Beach, Fla. told Florida Today. “She said ‘You know the economy is today. They just needed more money.’ I guess you’re just supposed to casually accept it.”
The rest of the rate increases were attributed to the cost of cable television programming.
Jeff Kagan, a cable industry analyst told the online news service cable television rates have roughly doubled over the last decade.
AT&T is giving new U-verse customers their choice of a Kindle Fire HD, Nexus 7 Tablet, SONOS PLAY:3 or Xbox 360 game console when signing up for a double-play package of Internet and either phone or television service.
The company is targeting customers planning to switch more than one service away from an existing provider. Most will likely choose U-verse broadband and television service, but any combination of telephone or TV service will qualify a customer for the gift promotion, valued at up to $350.
But customers could wait more than a year before the gift shows up.
The fine print states that customers must wait up to 34 weeks (more than half a year) after signing up before a “reward notification” arrives. At that point, customers must complete an online redemption submission and wait an extra 23 weeks for the tablet or game console to arrive, assuming the customer kept service for at least 30 days.
Customers must sign up before July 27, 2013 to qualify.
[Updated 3/19: One of our readers in the comment section quotes from an AT&T representative that their press release contained two major “typos”: It should have said 3-4 weeks and 2-3 weeks, but someone forgot to proofread.]
Verizon Wireless and AT&T could cooperate to allow both companies to build market power in the United States and abroad with a buyout of Vodafone, now a part-owner of Verizon Wireless.
The world’s second largest wireless service provider (behind China Mobile), Vodafone could be subject to an American takeover if the two largest phone companies in the United States structure the deal together.
Bank of America-Merrill analyst David Barden suggested AT&T could buy Vodafone’s international assets at an estimate price of $70 billion, allowing Verizon to buyout Vodafone’s 45 percent stake in Verizon Wireless.
Barden warned the deal would be time-consuming, and likely attract strict scrutiny from regulators both at home and abroad, but a deal would give Verizon its desired full control of its domestic wireless operation and allow AT&T to become a major global player in the wireless marketplace in Europe, Asia, Oceania, and the Middle East.
An analyst from RBC made news last week suggesting AT&T could be amenable to selling its non-core assets to raise cash, including the sale of its wireless broadcast and cell towers — money that could be used to help pay for such a deal.
AT&T spokesman Brad Burns declined to comment specifically on the speculation by RBC, but admitted, “if we wanted additional flexibility, that could be an option for us.”
“In all cases, our decisions are driven by what’s right for the company and for our shareowners, so in that sense, nothing’s off the table,” Burns said. “But any comments by analysts about potential sales are simply speculation.”
AT&T achieved record cash flows in 2012 and will likely end 2013 with $14 billion in free cash, which could be used in an acquisition strategy or returned to shareholders.
Fran Shammo, chief financial officer of Verizon, noted the company has been interested in taking full control over its wireless division for some time.
The estimated cost of buying out Vodafone’s U.S. share is around $115 billion.
Time Warner Cable has signed exclusive marketing deals with two apartment complexes on Staten Island that will give the cable company the sole right to pitch television, Internet, and phone services to residents. Aside from this, details like those crucial Digital Marketing Elements can also aid Time Warner Cable by increasing brand awareness, enhancing customer engagement, and driving subscriptions through targeted online campaigns.
Markham Gardens on the borough’s northern shore near Port Richmond and Park Lane at Seaview, a senior living community located in the Emerson Hill neighborhood, represent the first ever exclusive marketing deals the cable company has signed on Staten Island, and will probably not be the last.
The deal will not prevent Verizon’s FiOS fiber-to-the-home network from being available to residents in the future, but such marketing agreements can discourage residents from signing up with a competitor. Engaging with seo reseller uk enables you to offer high-quality SEO services without the overhead.
A growing number of apartment complexes in the country are signing exclusive marketing arrangements with cable operators in return for financial incentives. The agreements often bundle the cost of a renter’s cable service into the monthly rent or include it as a mandatory amenities fee. When a cable customer understands they are paying for cable service whether they want it or not, it makes it difficult for competitors to convince renters to pay for both cable service and services from the phone or satellite company.
Other types of marketing deals allow the cable operator to promote itself on an apartment complex website or through exclusive door-hangers or other marketing opportunities denied to competitors.
United to grow AT&T’s revenue at the expense of rural America.
The National Farmers Union has a long tradition of protecting rural farmers and defending the rural economy, but has been completely taken in by AT&T’s proposal to abandon rural wired service.
In addition to AT&T appearing in fine print as a sponsor of the National Farmers Union’s 111th Anniversary Convention, the phone company won prominent placement at the group’s annual convention to deliver a speech about AT&T’s lobbying agenda on rural broadband courtesy of Ramona Carlow, AT&T’s vice president of public policy.
AT&T sends its lobbying forces to rural agriculture events with scare stories about impending wireless shortages and doom if the Federal Communications Commission does not hand over more spectrum. In an interview with Beth Canuteson, AT&T regional vice president of external affairs, she tells Brownfield – Ag News for America AT&T will run out of spectrum in seven years. (June 26, 2012) (6 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.
The National Farmers Union joined several other rural farm groups in comments (never mentioned on the organization’s website) to the Federal Communications Commission applauding AT&T’s plan to abandon its rural “TDM” landline network:
The United States is poised for a historic transition in communications. Completing the transformation from legacy TDM-based network technology designed in the 20th century to the all-IP networks of the 21st century will allow every computer, laptop, smartphone, machine and tablet to communicate with each another and work seamlessly around the clock. These devices, connected with each other and with a host of other machines ranging from cars to thermostats via these IP-enabled networks, are changing almost every aspect of our lives in areas well beyond traditional communications. If the FCC grants AT&T’s Petition, the full build out of 21st century IP-based networks can being to spur growth, create jobs, and stimulate new opportunity across America, but especially in rural communities that are often handicapped by distance and other opportunity-limiting barriers.
AT&T has the money to upgrade its rural wireline networks.
Unfortunately for the rural farm members of the National Farmers Union, the future proposed by AT&T isn’t as rosy as the NFU would have you believe:
AT&T has neglected its rural landline network for years. Whether the technology is wired or wireless, the bean counters at AT&T are clear: there is no Return on Investment formula that works for the company at the current low prices charged for traditional rural landline and DSL service. AT&T has poured billions into a half-measure upgrade, a fiber-copper wire compromise called U-verse, but only in urban areas where it can justify that investment to hungry shareholders. AT&T has no plans to deploy U-verse in rural areas. Instead, Wall Street’s economic expectation is that fixed wireless is the best solution for rural areas, because it delivers dramatically higher prices that accelerate return on investment and future enhanced earnings;
AT&T continues to be America’s lowest-rated wireless carrier — worst for dropped calls and worst for customer service. If you live in a rural area, you already know what AT&T wireless cell service is like. Do you want to depend on that network for all of your telecommunications needs, including emergency calls to 911?
AT&T’s DSL service starts at $15 a month on commonly available pricing promotions and has a barely enforced usage cap of 150GB a month. AT&T’s wireless smartphone plans start at $20 a month with a usage cap of 200MB a month. A 5GB plan costs $50 a month. On AT&T’s heavily marketed Family Share plan, 1GB of usage costs $40 a month. A typical broadband customer using between 15-20GB a month, now considered the national average, would pay $15 a month for AT&T’s DSL or $200 a month on AT&T’s wireless network, based on a plan designed to avoid overlimit fees;¹
AT&T’s plan also includes fringe benefits for itself: a transition to technology not subject to consumer protection and oversight laws, rate regulation, quality of service guarantees, and “carrier of last resort” obligations. In short, it means AT&T is not responsible if your wireless reception is unsuitable for voice or data use.
AT&T’s cash on hand. Q.: Where will they spend it, on their networks or on their shareholders? A.: “AT&T generated best-ever cash from operations and free cash flow in 2012, which let us return a record $23 billion in cash to shareholders, including dividends and share buybacks.” — AT&T 2012 Annual Report.
The National Farmers Union needs to consider whether AT&T’s proposal meets the terms the organization lays out in its own policy statement on rural telecommunications:
We support:
a) Efforts to ensure competitively priced, high-speed broadband access to the Internet for rural America, which should remain free of censorship and not interfere with other frequencies;
b) Collaborative efforts and public/private initiatives that leverage internet-based technology and use the internet to improve communications, reduce costs, increase access and grow farm business for producers and their cooperatives; and
c) Legislative action and efforts by the administration to encourage robust broadband and wireless deployment in rural America to drive economic development, better serve farmers and ranchers and to prevent a digital divide between rural and urban citizens.
Strong earnings growth.
Let’s consider how AT&T will manage with these tests:
Wireless competition in rural America exists even less than in urban America. For most, there are one or two choices, typically AT&T and Verizon Wireless, which charge nearly identical, expensive prices;
AT&T and its various front groups like the American Legislative Exchange Council (ALEC) lobby state lawmakers to prohibit public initiatives that would enhance rural broadband, particularly community-owned broadband networks. Advocating for AT&T’s imposed rural solution is a far cry from the NFU’s past. In 1934, President Franklin D. Roosevelt requested the group lead the charge for rural utilities cooperatives, owned and operated by the communities they served. In 2013, the group seems satisfied with whatever scraps AT&T is willing to throw the way of rural America;
A digital divide can exist in many ways. The NFU proposes to cut the digital divide by introducing a pricing divide. Can most rural Americans afford $200 a month for AT&T’s wireless service, assuming they can get a good signal? AT&T returned $23 billion in excess cash to shareholders in 2o12². Imagine what half of that would offer rural America if the company chose to upgrade its existing landline network for the same 21st century service it proposes to offer urban customers.
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