A similar group in Baltimore placed bus advertising complaining about the lack of FiOS in that city in 2010.

A Buffalo group backed by the Communications Workers of America is demanding a federal and state investigation into whether Verizon is intentionally bypassing urban, ethnic, and economically-challenged neighborhoods for its fiber-to-the-home service, FiOS.

The Don’t Bypass Buffalo Coalition has stepped up the pressure on Verizon with a new billboard campaign that accuses the company of exacerbating the digital divide in western New York.

“The Verizon FiOS deployment in Buffalo is a corporate redlining scheme undermining the City of Buffalo with intentional discriminate design,” said Coalition member Jim Anderson.

Verizon suspended FiOS deployment during the height of the economic downturn, leaving some cities with a patchwork of FiOS service in some locations, traditional copper phone wiring in others.  In Buffalo, suburban areas that quickly approved the FiOS network with few franchise pre-conditions were among the first to get the fiber network.  Other suburbs, and the city of Buffalo itself, were effectively bypassed when franchise agreements and negotiations were left uncompleted at the time Verizon suspended further expansion.

The Coalition released a letter signed by two dozen local officials and community leaders that suggests Verizon may be up to something more sinister, suggesting possible racial and economic discrimination by the company over its choice of areas to deploy the service.

Coalition members note that in the 10 suburbs where Verizon offers FiOS, the proportion of African American residents in those areas is more than 13 times lower than it is in the city of Buffalo, and the Hispanic population is nearly four times lower. Even more telling, the Coalition writes, is that the network infrastructure is already in place to deploy FiOS within Buffalo city limits.

The Coalition is among the most vocal among local pressure groups Verizon has faced since its decision to suspend further FiOS expansion.  Other cities, especially Baltimore, have their own coalitions to complain about Verizon’s apparent lack of interest in restarting fiber projects.

Verizon rejects most of the charges the Buffalo-based Coalition has made.

“As Verizon has told the Coalition and local officials countless times, our focus these days is meeting the buildout commitments in the 182 municipalities across the state where we currently have TV franchises,” a Verizon spokesman said in a statement. “The allegation of discrimination with respect to FiOS deployment is just plain wrong…period. The coalition simply needs to look at other FiOS deployment areas in New York and other states to see those allegations are off base.”

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Is Verizon Redlining Baltimore City 3-16-10.flv[/flv]

In March, 2010 Progressive Maryland held a public rally protesting the lack of Verizon FiOS in Baltimore.  (8 minutes)

The Florida Attorney General’s office is taking notice of an increasing number of consumer complaints regarding service providers auto-renewing contracts for subscription services without notifying customers in advance.

Among the worst offenders is satellite radio and Internet streaming provider SiriusXM, which some consumers say is notorious for shady billing and collection policies.

SiriusXM provides free trial service in any new and most used vehicles where receivers come pre-installed.  Most dealers activate the service trial for consumers, and pass along the name, address, and phone number of the individual buying the vehicle.  Within two weeks, SiriusXM will begin mailing customers invitations to convert their free trial into a paid subscription, usually with a discount offer.  Consumers who sign up for promotions like SiriusXM’s “5 months for $25” are invited to charge their subscription with a major credit card over the phone.

That’s where the trouble starts, several customers report.

Unbeknownst to them, SiriusXM will “automatically renew” active subscriptions with a credit card on file for “the convenience of the customer,” once the promotion expires.  Customers usually find out when they find a substantial charge on their credit card, often representing the next quarter of service, billed at the regular price of $12.95 per month, plus a “music royalty fee” and any additional state and local taxes.

Some subscribers find even bigger headaches when taking advantage of discounted annual rates that als0 auto-renew.  If the subscriber isn’t automatically billed for the renewal on a credit card, they will often find a bill in the mail, along with a fee for mailing the unexpected invoice.

Getting SiriusXM to cancel surprise bills can become a major headache, and has led to thousands of complaints with the Better Business Bureau.  SiriusXM’s overseas call centers can leave customers waiting on hold for more than half an hour, only to be connected with an English-challenged, uncooperative customer service agent that refuses to waive unexpected charges.

To be fair, SiriusXM’s subscriber agreement provides warnings that canceling service requires more than ignoring a billing statement.  Service will continue (along with billing) for up to three months before the service is suspended and the account is turned over to collections.  Consumers should not consider -any- SiriusXM plan or promotion a one-time, non-renewing offer.  Every promotion we’ve encountered will end with an account converted to regular price service.

Florida state law requires providers like cable, satellite, and phone companies to warn subscribers at least 30 days in advance of any scheduled automatic renewal of a contract.  The law gives consumers time to opt out before they find themselves committed to a service they no longer want.  But many customers accuse SiriusXM of ignoring the law, and the first indication the radio service has been renewed arrives in the form of a bill.

Coping with the third party collection agency SiriusXM uses can be even more difficult than dealing with the company directly, according to several complaints.

Customers who have filed complaints with the BBB report the company usually bends to customer demands at that point.

We have had some long-standing experience dealing with SiriusXM customer service ourselves.  Here are some tips:

1. Don’t give them a credit card number over the phone.  Tell them to send you a bill in the mail and you will write them a check.  You can make a “one-time” credit card payment on their website that has never resulted in auto-payments for us.  Most of the automatically-renewing charges we’ve encountered came from overzealous telephone customer service representatives enrolling us in the “auto-payment” service without our authorization.
2. You almost never have to pay regular SiriusXM prices.  Their retention offers can be renewed over and over again just by telling them the regular price is too high.  But retention plans do not include “best of” channels from the sister provider (Sirius customers can get certain XM channels and vice-versa).  Routine promotions these days are 5 months for $25 or a year for $77 if you don’t want the hassle of calling every five months to renew your retention deal.  Either is much better than $12.95 a month.
3. Although getting “late fees” and “paper billing fees” waived is easy, getting the bill-padding “music royalty fee” forgiven is not.  But you can try.
4. The “lifetime” promotion only covers the life of the receiver (or your automobile).  It’s not a good deal.
5. When you sign up for a promotion, use a calendar application to start reminding you 30 days before it expires so you can call and extend it.  If your promotion expires, you will be billed regular prices and it is a major hassle to get them to waive or discount those charges in-between promotions.
6. If you want to listen to the music channels on offer from SiriusXM these days, you can sample them for free using their streaming service.

SiriusXM recently announced they intend to raise their monthly subscription price to $14.49 in January — just another reason not to pay the regular price.

[flv width=”360″ height=”290″]http://www.phillipdampier.com/video/WFTS Tampa Satellite radio irks some customers 9-19-11.mp4[/flv]

WFTS-TV in Tampa reports on increasing complaints about SiriusXM’s billing and auto-renewal practices.  (4 minutes)

KJCT-TV caught customers lined up literally out the door of this AT&T store in Grand Junction, Colorado.

AT&T store employees in the Grand Valley of Colorado are using the company’s upgrade of former Alltel service areas to 3G service as an excuse to tell customers they need to buy new cell phones if they continue to want to use their wireless service.

Customers lined up outside AT&T stores in communities like Grand Valley, Colorado on Monday fuming over service problems than began last weekend.

“I had about an half hour wait just to find out I had to buy a new phone and they wouldn’t credit me for it or anything,” customer Josh Simpson told KJCT-TV.

AT&T employees told the television newscast the company is “getting rid of the 2G service in Grand Junction to make room for larger networks.” Employees also said customers were sent a letter informing them about the service change, but customers might have overlooked the e-mail because it looked like spam.

Local employees shrugged their shoulders as customers repeatedly complained about having to foot the bill for brand new phones, often at full price, in order to continue using their service.

“It’s a corporate decision,” one replied.

At issue is AT&T’s adopted network, acquired originally by Verizon Wireless from Alltel but spun away to AT&T as part of an agreement with federal anti-trust officials.  Alltel’s network in the Grand Valley placed more prominence on its legacy 2G EDGE network than AT&T is willing to continue.  AT&T isn’t actually discontinuing the 2G network — it is moving 2G service to less-favorable spectrum it owns in order to make room for improved 3G coverage.  That might work fine in areas less expansive and rugged than western Colorado, but in the Grand Valley, it means many customers will find they no longer have data service at all.

The ongoing tower upgrades have also disrupted cell service generally, and when customers arrive at AT&T’s stores to complain, the employees on hand attempt to upsell them more expensive phones to “fix” the problem.

Customers calling to complain are met with busy signals or general statements from AT&T telling them the changes are for their own good.  But because so many basic cell phones don’t support 3G service, upgrades to phones that do often represent a major unexpected financial hit (and another two year contract and data plan if the phone happens to be a smartphone).

“Alltel served us just fine for many years,” writes our Glade Park reader Tim. “When AT&T eventually showed up, we got everything we never wanted, and this should be a lesson for those who think AT&T will somehow ‘improve’ service at T-Mobile if they acquire them.”

AT&T customer Joan Burns told KJCT AT&T just made up her mind for her.

“I will never again sign a contract with them,” she said. “That’s bull.”

[flv width=”360″ height=”290″]http://www.phillipdampier.com/video/KJCT Grand Junction ATT Customers Forced To Upgrade Cell Phones 9-19-11.mp4[/flv]

KJCT in Grand Junction reports AT&T customers may be noticing a disturbance in their cell phone service, as AT&T employees use it as an opportunity to get customers to upgrade to more expensive phones.  (3 minutes)

Get ready for Qwikster

Netflix CEO Reed Hastings apologized this morning on the company’s blog for the perceived lack of “respect and humility in the way we announced the separation of DVD and streaming, and the price changes,” imposed on customers this month.

Many members love our DVD service, as I do, because nearly every movie ever made is published on DVD, plus lots of TV series. We want to advertise the breadth of our incredible DVD offering so that as many people as possible know it still exists, and it is a great option for those who want the huge and comprehensive selection on DVD. DVD by mail may not last forever, but we want it to last as long as possible.

I also love our streaming service because it is integrated into my TV, and I can watch anytime I want. The benefits of our streaming service are really quite different from the benefits of DVD by mail. We feel we need to focus on rapid improvement as streaming technology and the market evolve, without having to maintain compatibility with our DVD by mail service.

So we realized that streaming and DVD by mail are becoming two quite different businesses, with very different cost structures, different benefits that need to be marketed differently, and we need to let each grow and operate independently. It’s hard for me to write this after over 10 years of mailing DVDs with pride, but we think it is necessary and best: In a few weeks, we will rename our DVD by mail service to “Qwikster”.

We chose the name Qwikster because it refers to quick delivery. We will keep the name “Netflix” for streaming.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/YouTube An explanation and some reflections 9-19-11.flv[/flv]

Netflix CEO Reed Hastings apologizes and explains the company’s new mailed DVD service Qwikster.  (3 minutes)

Hastings promises little will change with Netflix’s DVD-rental business except the name.  But is that enough to erase the perceived price and policy changes customers are complaining about?  Some of our readers say no, and most of the 10,000+ comments on Netflix’s blog as of this afternoon were also very hostile.

“He’s re-arranging the deck chairs and calling them lounge seats, but they are really the same deck chairs,” shares reader Tom Defrancisco in Austin, who shared the story with us.  “The ship is still taking on water, and that will only get worse when the rest of Hollywood gets their piece.”

Defrancisco is referring to ongoing content contract renewals Netflix is pursuing to keep, and expand, its online video streaming.  With the potential forthcoming loss of content from Starz, which could take a significant amount of current movie titles offline, subscribers may not be willing to pay more for less content to stream.

“It’s inevitable Netflix will have to raise streaming prices in the next six months when some of their content deals are renewed, and I am asking myself if it is worth $10-12 a month to stream old documentaries, TV shows, and movies I barely care about when current movies are simply not available online,” Defrancisco adds.

[flv]http://www.phillipdampier.com/video/CNBC Netflix Quixster Equals Quitster 9-19-11.flv[/flv]

CNBC investors and analysts are calling Netflix’s announcement they are splitting up their streaming and DVD rental business a “the third strike” for the company and are telling investors to get out before it’s too late.  “Qwikster=QUITster,” says Michael Pachter, Wedbush Securities, who thinks customers are once again the big losers.  “In the last three months, customers have seen prices rise, the quality of streaming content decline, and they just made the service a lot more complicated.”  (4 minutes)

Several of our readers miss Netflix’s 1-out-DVD/streaming companion plan, which used to offer unlimited streaming and one DVD rental at a time for $9.99 a month.

“I don’t care if they call it Netflix or Qwikster or MasterWatch,” says our reader Kyle. “It’s the same thing at the same high price called something else.  Who are they trying to fool?  I think it’s very telling Mr. Hastings doesn’t even directly own shares in his own company, and has sold off tens of millions in indirect shares he controls.”

The company’s new YouTube channel is also being pelted with negative views of Netflix’s latest business moves.

VoiceOreezn:

You guys just don’t get it. You don’t care what your subscribers want, and now are trying to justify your actions. Your streaming service sucks, and the pickings are very slim. I cancelled my account. It’s not about price, it’s about greed. You started off with a good concept, (but not enough streaming movies). Now, you’re just another greedy corporation. Want people back? Give them MORE, not less. I’d be very afraid of Amazon if I were you.

Netflix stock has lost nearly 50 percent of its value since the company first announced its price increase and plan changes on July 12.  Last week, Netflix admitted it was adding fewer new subscribers than forecast since raising prices nearly 60 percent on combination streaming-DVD plans.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Bloomberg Cory Johnson Discusses Netflix Subscriptions 9-16-11.flv[/flv]

Bloomberg talks with Cory Johnson about the outlook for Netflix Inc., after the company cut its U.S. subscribers forecast following a price increase.  Netflix has some surprise expenses coming up.   (2 minutes)

Some analysts, including Gabelli & Co analyst Brett Harriss don’t think today’s developments will make much of a difference, telling Reuters Hastings has talked repeatedly about separating the businesses in the past.

But one thing Qwikster will bring that Netflix never had: video game rentals for Wii, Playstation 3 and XBox 360 owners.

At least seven states including New York, California, Illinois, Pennsylvania, Washington and Ohio have announced they are joining the Justice Department lawsuit to stop AT&T’s attempted buyout of T-Mobile USA.

The merger has been heavily criticized by consumer groups for its potential to reduce wireless competition and stifle the marketplace with just two dominant carriers — AT&T and Verizon Mobile.  Now several Attorneys General have joined the voices of opposition to the merger.

“This proposed merger would stifle competition in markets that are crucial to New York’s consumers and businesses, while reducing access to low-cost options and the newest broadband-based technologies,” New York Attorney General Eric T. Schneiderman said in a statement.

Washington State Attorney General Rob McKenna said the deal would “result in less competition, fewer choices and higher prices for Washington state consumers.”

“The proposed merger would create highly concentrated markets in Massachusetts and could lead to higher prices and poorer service.” Massachusetts Attorney General Martha Coakley said.

Illinois Attorney General Lisa Madigan said the deal would “substantially lessen competition for mobile wireless telecommunications services in Illinois and across the United States.”

“Blocking this acquisition protects consumers and businesses against fewer choices, higher prices, less innovation, and lower quality service,” Madigan added.

“Our review of the proposed merger between AT&T and T-Mobile has led me to conclude that it would hinder competition and reduce consumer choice,” California Attorney General Kamala D. Harris said. “Enforcement of antitrust law is the responsibility of the Attorney General and is vital to protecting our state’s economic strength and tradition of innovation for the betterment of all Californians.”

Shuler

Although the level of opposition to the transaction continues to grow, AT&T itself claims to remain confident it can push the merger through.

“It is not unusual for state attorneys general to participate in DOJ merger review proceedings or court filings,” AT&T representative Michael Balmoris said.

Several Democratic lawmakers, most of whom receive substantial campaign contributions from AT&T, would seem to underline the company has the support of at least some in Congress.

Rep. Heath Shuler (D-North Carolina), joined 14 Democratic co-signers in a letter sent Thursday to President Barack Obama encouraging him to support the merger deal.

“By settling the proposed merger of AT&T and T-Mobile USA we can put thousands of Americans back to work and promote economic development across the country,” Shuler said. “I urge the President to strongly consider the vast benefits this merger will have on job creation and the economy and quickly resolve any concerns the Administration may have with the proposal.”

Among the co-signers: Rep. John Barrow, Rep. Mike Ross, Rep. Dan Boren, Rep. Dennis Cardoza, Rep. Joe Baca, Rep. Leonard Boswell, Rep. Ben Chandler, Rep. Jim Costa, Rep. Henry Cuellar, Rep. Mike McIntyre, Rep. Mike Michaud, Rep. Collin Peterson, Rep. Loretta Sanchez, and Rep. David Scott.

AT&T currently also has support for their deal from 11 states, many which receive very little service directly from T-Mobile: Alabama, Arkansas, Georgia, Kentucky, Michigan, Mississippi, North Dakota, South Dakota, Utah, West Virginia and Wyoming.

A court hearing is scheduled for Sept. 21 to discuss settlement options.

[flv width=”480″ height=”290″]http://www.phillipdampier.com/video/KFOR Oklahoma City ATT T Mobile Merger 9-19-11.mp4[/flv]

KFOR in Oklahoma City explores the latest developments in the T-Mobile/AT&T merger case.  (2 minutes)