Rutledge

Charter Communications is on an executive raiding mission, poaching at least four senior executives from Bethpage, N.Y., based Cablevision Industries this year alone.

So far, ex-Cablevision executives switching allegiance to Charter:

• Chief Executive Officer Tom Rutledge
• Chief Operating Officer John Bickham
• Chief Marketing Officer Jon Hargis
• Executive Vice-president of Network Operations Scott Weber

But senior management has not been packing bags for St. Louis, corporate home of Charter. Instead, the company has opened a new executive office in New York City. In fact, several existing Charter executives already in St. Louis are being moved to New York to continue their employment there. Weber will be based in Denver, where Charter maintains an engineering office.

St. Louis officials are worried the increasing emphasis on New York may eventually cost their city the corporate headquarters of Charter, which has at least 600 employees. It would not be the first time St. Louis has faced such a loss. Southwestern Bell, which later became AT&T, left St. Louis at the behest of then-CEO Ed Whitacre, who wanted the company run from Dallas. He got his wish.

Verizon customers can expect to pay more for the company’s fiber to the home service, FiOS, even as promised higher speeds arrive.

Most customers off contract can expect to pay $10-15 more a month under the new pricing regime, or cut back on selected television channels to keep their price the same. Verizon customers currently on a promotional offer will not see any price changes until their promotion expires.

Wall Street analysts call Verizon’s rate hikes a return to “pricing rationality.” The phone company has engaged in years of aggressive pricing, promotions, and rebate offers, especially in the northeast. At one point, Verizon was offering New York-area customers up to $500 in rebates when signing up for a triple play Verizon FiOS package. As Verizon pulls back from aggressive promotions, some analysts predict cable competitors Time Warner Cable and Cablevision will be able to resume more typical rate increases common before Verizon FiOS launched. Cablevision previously announced it would not increase rates during 2012, mostly in response to Verizon’s aggressive pricing.

Verizon has significantly boosted speeds on most of its broadband offerings, with the exception of its standard entry-level 15/5Mbps package, which remains unchanged. Verizon is hoping customers will find that entry level package less and less attractive and be amenable to upgrading to faster speed service at a higher price.

“We’re expecting that 80 percent of customers will want more than 15 megabits per second,” Arturo Picicci, Verizon’s director of product management told Reuters.

Under Verizon’s new pricing, triple play customers with unlimited calling, 15/5Mbps broadband, and 290 television channels pay $109.99. The next step up, for $15 more a month, would upgrade broadband to 50/25Mbps service.

Verizon is also shaming New York area cable operators with speed increases that Time Warner and Cablevision currently cannot match.

The company’s 150/65Mbps service is now priced at $99.99 a month, down from $209.99. Customers in some areas can also sign up for 300/65Mbps service for as low as $204.99 with a two-year contract.

In contrast, Comcast charges $200 a month for 105Mbps, Cablevision prices its 101Mbps service at $104.95 a month.

Did you know privately-run cable companies can get public tax subsidies, grants, and even loans at favorable interest rates? When opponents of community broadband complain government-funded broadband competes against the private sector, the hidden truth is many “private sector” companies also enjoy benefits at the public’s expense.

Cablevision is the latest example, reports the Star-Ledger. When the company noted its lease for a call center in Newark was set to expire in two years, the Economic Development Authority responded, approving a $37.5 million Urban Transit Hub tax credit for the private cable company.

“Cablevision has a long-standing and important relationship with the state of New Jersey and the city of Newark, and a commitment to local hiring, local jobs and supporting the local economy,” said Cablevision spokesman Jim Maiella. “We are pleased to be investing in a new state-of-the-art call center, larger than our existing facility, closer to mass transit and modernized for our more than 500 Newark employees.”

New Jersey is currently mired in a major budget battle, trying to find enough revenue to sustain a general tax cut for New Jersey residents.

Wi-Fi access is about to become a lot more ubiquitous if you happen to buy broadband from Comcast, Time Warner Cable, Cablevision, Bright House Networks, or Cox.  All five companies on Monday announced they will open up their free Wi-Fi hotspots to customers of any of these companies nationwide.

The collaborative agreement extends the authentication platforms cable operators use to verify customer accounts when granting access to services like TV Everywhere — the online video streaming services operated by pay television providers. By sharing basic account information, customers traveling outside of their home cable service area can “roam” on free Wi-Fi networks operated by the other providers.

For example, a Cablevision subscriber who lives on Long Island will be able to access Bright House Networks’ Wi-Fi in central Florida or Time Warner Cable’s growing wireless network in Los Angeles.

The cable industry calls it a back door entry into mobile data, and unlike its existing partnership with Clearwire for WiMAX 4G service, Wi-Fi hotspots are available at no additional charge.

“We believe that Wi-Fi is a superior approach to mobile data,” said Kristin Dolan, head of projects at Cablevision. “Cable providers are best positioned to build the highest-capacity national network offering customers fast and reliable Internet connections when away from their home or business broadband service.”

More than 50,000 Wi-Fi hotspots are to be included in the project, all unified under the name “CableWiFi.”

Eventually, the companies hope to unveil automatic log-ins on the network, regardless of where customers access it.

The industry is aggressively expanding Wi-Fi services to give subscribers another reason to stick with their local cable company. Some may require customers to maintain both a cable-TV subscription and broadband to qualify for the service, others will only require a current broadband account. The free add-on may also make subscribers think twice about canceling service if it means losing access.

Comcast, Cablevision, and Time Warner Cable already have a deal in place to share their networks in southwestern Connecticut, New York City, parts of New Jersey and Philadelphia.

Cable operators will target high-traffic areas for Wi-Fi expansion — especially public parks, beaches, malls, eateries, stadiums and convention centers.  Don’t expect cable Wi-Fi to be common in residential neighborhoods, and users will have to temper their expectations. Most provide access suitable for web browsing and e-mail, but often have trouble keeping up with streaming video and other high bandwidth services.

Waiting for FiOS

For those who admire the apparent pervasiveness of competition between Time Warner Cable and Cablevision Industries vs. Verizon Communications’ FiOS, the idea the Big Apple has a broadband problem seems a bit ridiculous, particularly if you can’t get your local cable company to pick up their phone and AT&T will only hand you a 1.5Mbps DSL line, if you can get it.

But according to the Village Voice, New York City broadband “sucks,” and it will continue to suck for at least the next eight years.

“Though entrepreneurs in most parts of the city can access a fast broadband connection today, many of those we interviewed said that New York’s telecom infrastructure is well behind where it should be for a city vying to be one of the nation’s two leading technology hubs,” the study notes.

What it comes down to is that New York — despite being the world’s media capital — does not have adequate access or bandwidth to support tech companies’ needs.

For example, some companies might be able to get either FiOS or Time Warner Cable, but not both, which means they can’t have broadband backup.

“It’s like the elephant in the room is that bandwidth here sucks,” one entrepreneur told the researchers. “You should be able to walk into any building and have at least 150 megabit connection available to you. There has to be ways for the city to construct much better bandwidth availability for start-ups.”

Many cited told the researchers that their internet routinely goes down. And startups who want to set up shop in cheaper, industrial districts often can’t, because the cable companies would rather provide service to more lucrative residential areas. Sometimes, telecom concerns are willing to dig up streets and lay cable, but at a hefty price — around $80,000.

That $80,000 bill is handed to a prospective customer and does not come from cable operators’ capital expense fund.

Researchers gave New York a broadband grade of B to B-, which isn’t too bad considering what broadband is like in the mid-south, the midwest, and the rural west. But it doesn’t cut it for helping New York become a bigger tech city.

Waiting for "Business Class"

While Time Warner Cable and Cablevision have wired multi-dwelling units and homes across New York City, cable operators have only recently started to turn their serious attention to corporate business customers.  Time Warner Cable agreed, as part of its franchise renewal deal with the city, to invest $1.2 million per year for fiber connections to commercial buildings yet to be wired for cable. Cablevision, which can be found in boroughs like Brooklyn and out on Long Island, agreed to spend a more modest $600,000 a year for the same purpose.

Time Warner Cable has already warned investors its capital spending on wiring commercial office buildings across the country is increasing as the company sees lucrative new revenue opportunities competing with their usual nemesis — the phone company.

Verizon treats FiOS deployment in New York City as a long, long-term project. There are neighborhoods in Manhattan that can’t wait much longer for the fiber optic network as Verizon increasingly lets its old copper wiring go to pot, leaving some New Yorkers without phone service for weeks.  The city of New York has given Verizon until 2014 to wire the city, and the company appears likely to need those two additional years at their current pace, and that agreement only covers residential properties, not commercial ones.

Robust broadband is essential for many high technology startups and the multi-million dollar data centers that support them. New York mayor Michael Bloomberg considers it a top priority to reduce the city’s economic dependence on Wall Street, which generates considerable tax revenue for both the city and state. High tech enterprises fit that bill. But the city’s broadband grades do not.

“For a city that’s trying to be a tech powerhouse, we need to have an A,” said Jonathan Bowles, the author of the study, “New Tech City.”