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Charter Customers Contend With Poor Customer Service in Washington State

Phillip Dampier January 19, 2010 Charter Spectrum, Video 1 Comment

A Kennewick, Washington couple became so exasperated with Charter Cable’s unwillingness to fix a cable hanging off their roof and into their yard they finally called a local television station for help.

Over a seven month period, the Dunbar family contended with a series of broken promises from Charter to fix the problem, but the company never did.  Ralph Dunbar, 82, finally climbed on the roof himself to get the cable out of the yard where someone might trip over it.

“I don’t want it on the ground where a child or dog could get hurt or my meter reader. It doesn’t belong on the ground or it would have been there in the first place so I want it fixed,” Laura Dunbar told KEPR Action News.

The Dunbar family endured this Charter Cable line hanging off their roof for seven months

Within hours of the station calling Charter, the problem was finally fixed.

Laura Dunbar remains upset it took a local television station to get Charter moving on their behalf, and KEPR reporter Chelsea Kopta called Charter looking for an explanation for the delay, to no avail.

“I called Charter headquarters in Phoenix with my questions,” Kopta reports. “By the close of business no one said they had time to answer my questions over the phone.”

John Miller, Director of Communications for Charter, later issued this statement:

We apologize for any concern this may have caused our customers or their neighbor.  We are pleased the issue has been successfully resolved for the Dunbars, who are long time Charter customers.

The story apparently drew enough attention the first day it was reported, the station’s follow-up report led the newscast the following evening.

Charter Cable recently emerged from bankruptcy reorganization.

[flv]http://www.phillipdampier.com/video/KEPR Pasco Dunbar Family Endures Charter Cable’s Bad Service 1-4 and 1-5-10.flv[/flv]

KEPR-TV in Pasco, Washington ran two reports about the Dunbar’s ongoing problems with Charter Cable. (January 4 & 5, 2010 – 3 minutes)

Astroturf Snow Job: Telecom Industry Promised ‘Big Savings’ For Wisconsin — They Got A 21% Average Rate Hike Instead

Dick Armey, head of FreedomWorks, a notorious industry-backed astroturf group, was a big proponent of Wisconsin's "statewide video franchise" bill pushed by AT&T

Wisconsin residents, in 2007 you were promised more competition, lower prices, and better service from your pay television and broadband provider.  Two years later, two things are certain:

  1. The Wisconsin Video Competition Act was didn’t exactly deliver what was promised to consumers by those pushing the legislation, but paid off handsomely for the one company lobbying the hardest for its passage — AT&T.
  2. You had a lower bill in 2007 than you now have in 2009.

A new audit released by the Wisconsin Legislative Audit Bureau exposes the truth AT&T’s astroturfing friends never wanted you to know: despite the passage of a new law in December 2007 that promised increased competition and lower rates, the average basic cable rate in Wisconsin actually increased an average of 21 percent over the past two years.

The Bureau analyzed ten providers’ monthly charges for basic and expanded basic service in 17 Wisconsin municipalities at two points in time—July 2007 and July 2009—using data reported to us by the providers. Over this two-year period, charges for basic service increased an average of 21.2 percent, and charges for expanded basic service increased an average of 11.5 percent. The reported data do not suggest that competition has had a substantial effect in reducing either basic or expanded basic video service charges or in slowing their rates of growth during the period we reviewed.

Wisconsin consumers were promised something very different.  So just how did Wisconsin get snookered into passing legislation that was supposed to help consumers, but in reality just helped AT&T?

Dick Armey, chairman of FreedomWorks, an industry-backed astroturf group that heavily promoted the bill, emphatically promised the Competition Act would bring prices down.  On November 19, 2007 Armey wrote:

The Wisconsin Video Competition Act would allow consumers to take advantage of new technologies by streamlining the franchise application process for potential providers. When companies compete to provide service, consumers win through more choices, lower prices and better service.

Unfortunately for consumers, the Video Competition Act was little more than a custom-written giveaway to AT&T.  From the bill’s earliest draft language crafted by lobbyists working with legislative aides, to the big budget sales job employing 15 lobbyists and a major media budget, AT&T ran the show from start to finish according to Madison’s Capital Times newspaper.

TV4US counts AT&T among its corporate sponsors

TV4US (also known as WeWantChoice.com), an AT&T-supported astroturf group, ran television ads around Wisconsin promoting the bill.  In May 2007 the group sent every state legislator binders filled with what it claimed were the names of their constituents who wanted “an end to the cable monopoly” and competitive choice.  As The Center for Media & Democracy discovered, several people named, including two state lawmakers, didn’t support the bill and hadn’t given permission for their names to be included.

[flv]http://www.phillipdampier.com/video/TV4US Ad Wisconsin.mp4[/flv]

TV4US ran this ad across Wisconsin in 2007, promoting “cable competition.”

TV4US’ primary press contact Lizanne Sadlier just also happened to be employed by lobbying firm Fleishman-Hillard, which “has built its reputation by using strategic communications to deliver what its clients value most: meaningful, positive, and measurable impact on the performance of their organizations,” according to a press release from the group.

Fleishman-Hillard and AT&T are well acquainted with each other.  In fact, the PR firm was instrumental in rebranding the phone company as “the new AT&T” after the SBC-AT&T merger.  To this day, AT&T has several company bloggers actually employed by Fleishman-Hillard.

In March of 2007, the Wisconsin Merchants Federation turned up at a state hearing about the Competition Act. This struck several observers as odd, considering the WMF primarily concerns itself with retail store tax policies and strengthening retail theft laws. The WMF seemed well-prepared to articulate the proposed law’s benefits, which included, according to them:

  • increased competition in the video entertainment business;
  • creation of good-paying jobs;
  • bring (literally) hundreds of millions of dollars in capital investment to our state.

PR Watch wanted to know exactly what prompted the WMF to not only testify about a non-issue for retail stores, but also who wanted the group to get involved, and who exactly belongs to the WMF.

WMF’s David Storey told PR Watch that his group sees AB 207 / SB 107 as an economic development issue. “Where consumers have choices, not only are the consumers served, but the economy in general is served. The economy is made stronger,” he explained. “And this is all about consumer choice in the video entertainment field.”

Storey said that no particular member had asked WMF to support AB 207 / SB 107, but that he was personally interested in the issue, as the former Deputy Secretary of the Wisconsin Department of Commerce. Asked for a list of WMF members, Storey responded that one was not available, but that information would hopefully be added to the WMF website in the future.

One thing that is clear is that many of WMF’s partners in lobbying for AB 207 / SB 107 have ties to the telecom industry. The Coalition of Wisconsin Aging Groups, which is a member of the Wisconsin Video Choice Coalition, has received funding from AT&T and from SBC Wisconsin, which is now part of AT&T. The group also offers “discounts on assistive devices for the telephone such as volume amplifiers from the AT&T Special Needs Center.” Another Wisconsin Video Choice Coalition member, the Wisconsin Technology Council, lists AT&T among its major sponsors. Fellow coalition member Women Impacting Public Policy is a Washington DC based group that receives funding from AT&T and Verizon, among other corporate sponsors.

[flv]http://www.phillipdampier.com/video/Press event promoting Wisconsin bill Aug 2007.flv[/flv]

In August 2007, WMF turned up at a press event with other bill supporters to promote the results of a poll conducted by the Mellman Group, which isn’t a respected polling firm but rather a Washington, DC public relations firm that “develops effective communications strategies that lead people to choose our client’s product or service, join their organization, hold their opinion, or vote as we would like.” [1] (13 minutes, video begins at ten second mark)

In short, no matter where consumers turned during the push for the Wisconsin Video Competition Act, that big AT&T logo was always somewhere in sight.

Before the legislation was passed, some were warning Wisconsin the dog and pony astroturf show wasn’t actually working for the best interests of Wisconsin consumers, but were instead looking out for the best interests of AT&T.  Charles Uphoff is chair of the Fitchburg Broadband Telecommunications Commission, and wrote this back in 2007:

Lobbyists for telecommunications giant AT&T have been pressuring Wisconsin legislators to pass sweeping changes in the laws regulating cable TV with a million-dollar media campaign and behind the scenes arm-twisting that would make Karl Rove blush.

Under the guise of promoting increased consumer choice, lower cable rates and high-paying union jobs, AT&T is trying to steamroller bills that would prohibit any meaningful regulation of video service rates; eliminate funding for public access, educational and government channels; and effectively guarantee statewide franchises for the telecom giant in perpetuity.

Among the more astonishing features of this dubious legislation is a provision that specifically prohibits the state or local municipalities from reviewing franchise transfers. While initial applicants would have to establish their legal, financial and technical qualifications to obtain a statewide franchise, once granted, statewide franchises can be literally transferred to anyone — even politicians. Video franchise holders wouldn’t even have to inform the affected communities until 10 days after the transfer had been completed.

[…]

So how about the claim being made in the TV ads that cable rates have gone up 246 percent and the “Video Competition Act” would increase choice and save consumer millions? It sure sounds good, but these assertions are, at best, misleading. In the city of Fitchburg, for example, the basic cable rate has risen less than 6 percent over the past 10 years and is currently at $8.19 a month. Admittedly, premium packages have risen much more sharply, largely driven by the cost of content providers like the NFL Network, MTV and ESPN, but AT&T would be facing the same kind of costs if they want to include these offerings.

So if you are expecting whopping decreases in your cable TV bills if this legislation passes, don’t hold your breath. In fact, the ability of municipalities or the state to even regulate basic cable rates would be gone.

What’s happening in Wisconsin isn’t an isolated incident. Wholesale deregulation of the video services industry under the guise of fostering competition is being pushed in legislatures all across the country, backed by big money and conservative ideologues like former House Majority Leader Dick Armey, a Texas Republican whose right-wing “think-tank” has been pushing this legislation since before it had a bill number. Weeks before most members of the Wisconsin Legislature had even seen the bill, Armey’s Freedom Works Foundation was trying to line up sponsors. Major contributors to Dick Armey’s cause include AT&T, Verizon and Exxon-Mobile.

Sadly, the recent trend in video services and telecommunications has been toward increasing the concentration of ownership and control of the media, resulting in fewer consumer choices and less competition, not only in terms of price, but also in terms of ideas. The opinions expressed here are strictly my own, but it seems to me that in the arena where competition is most important to our democracy and our future, the competition of ideas, the net effect of these bills will be to decrease competition through the elimination of public access as a vehicle for information, dialogue and discussion of things that matter to our communities.

Despite playing fast and loose with the facts, the astroturf groups, aided by AT&T’s generous campaign contributions to Wisconsin state legislators helped grease the way towards passage of the Video Competition Act, which was signed into law in December 2007.

But rate increases for consumers aren’t the only problem impacting Wisconsin residents.  Collateral damage for those interested in public affairs television programming is now also becoming apparent.

One of the biggest opponents of the statewide video franchising law has been the Wisconsin Association of PEG Channels (WAPC).  “PEG” stands for public access, educational, and government access channels found on virtually every cable system in the country.  These non-profit channels are provided in the public interest to give subscribers access to customer-produced video programming, local government public meetings and hearings, and educational programming from local schools and universities.  They are traditionally financed by the cable system as part of their franchise agreement.  In return for tearing up local streets and yards, systems give something back to the community by making room for these public access channels, and often also provide equipment and training to assist in program production and distribution.

The Video Competition Act was no friend to PEG channels.  By moving to statewide video franchise agreements, local communities no longer had much say over their public access channels, and the bill’s passage quickly provided a convenient opportunity to bury PEG channels, kill their funding, or outright renege on local agreements.

[flv]http://www.phillipdampier.com/video/Hunting PEG Channels on U-verse.mp4[/flv]

AT&T’s U-verse doesn’t make it easy for video customers to find PEG channels.  In Wisconsin, the channels are housed on a website that appears on screen on channel 99, the equivalent of TV Channel Siberia for the remote control channel surfer.  From there, consumers have to navigate a series of menus on their remote control to find the right channel.  Mike Ryan, director of West Bend Community Television, discovers just how ponderous this procedure is, even for those dedicated to finding his channel.

In the case of Charter Cable, they’ve managed to go one step further and help destroy one city’s public access channels.

Funding for the Wausau Area Access Channels had been provided in part by the franchise agreement between the City of Wausau and local cable provider Charter Communications. While Wausau Access Channels served the greater Wausau area, only the City of Wausau franchise agreement provided any funding.

When the state passed the Competition Act replacing local franchise agreements with a standard state wide franchise, Wausau PEG support fees were eliminated after a three year sunset. That sunset would occur December 31, 2010. The City of Wausau has not received any PEG support fees from Charter Communication during the three year sunset period.

Apparently unwilling to meet even a three year commitment, Charter Cable’s non-payment led Wausau mayor Jim Tipple to announce Monday that the city would not continue to fund the station in 2010 because of budget constraints.

“We realize this is a tough decision, not only for the city of Wausau but for the entire community,” Tipple said.

The City of Wausau is pursuing legal remedies against Charter. PEG fee revenue had funded 60% of the station’s annual budget of $100,000.

“The City does not want the channels to go dark, but it can no longer fund them alone,” said John Jordan, Wausau Access Coordinator.

“We are stunned to hear about the closure of the Wausau community channels. It is hard to believe that residents of Wausau will no longer be able to see and participate in community television. We warned this could come with the passage of the Video Competition Act. We just didn’t expect it quite this soon,” said Mary Cardona, WAPC Executive Director.

On January 1, 2011, more stations will be in Wausau’s position. On that date, all dedicated PEG fees end as a result of the passage of the Video Competition Act.

[flv]http://www.phillipdampier.com/video/WSAW-WAOW Wausau Public Access Cut 12-21-09.flv[/flv]

WSAW & WAOW-TV, both in Wausau, Wisconsin headlined their newscasts with news that the community’s public access channels were on the chopping block. Loud Volume Alert (4 minutes)

The Cable Consumer Repair Bill (AB606) recently introduced by Representative Gary Hebl (D – Sun Prairie) could resolve serious problems with the Video Competition Act that took effect in January 2008. Since then, cable companies and AT&T have moved community channels to out of the way locations on the line-up, subjected the channels to interference problems, imposed transmission equipment costs, and withdrawn a commitment to provide dedicated revenue for public, education, and government access stations.

Of course, the industry players don’t like it one bit.  “Wired Wisconsin,” a non-profit group claiming to seek cutting edge broadband technology for Wisconsin, who unsurprisingly counts AT&T as a “partner,” thinks Hebl’s bill will gut the Competition Act.

“Even though the VCA was passed less than two years ago, we’ve already seen a great deal of progress under the bill.  It’s generated real competition, helped improve prices, created hundreds of new jobs, spurred millions in investment in infrastructure, improved customer service and expanded consumers’ access to new video providers, services and features all across the state,” said Wired Wisconsin’s executive director Thad Nation.

The state’s audit of cable pricing would seem to belie Nation’s views. That he holds them should come as no surprise.  After all, Nation is the former executive director of TV4US, the AT&T-backed astroturf effort that helped enact the law Nation seeks to defend.

“On balance, the law hasn’t been good for consumers but has been very good for the companies that wanted it. Two years from now, I don’t think you will be able to say that consumers saved a lot of money if any at all,” Barry Orton, a telecommunications professor at the University of Wisconsin-Madison, told the Milwaukee Journal Sentinel.

Has the bill brought about any savings for Wisconsin consumers?

“We haven’t seen it. I think the short answer is ‘no,’ ” said Curt Witynski, assistant director of the League of Wisconsin Municipalities, which represents 582 local governments.

“I think the public relations effort of AT&T and others was remarkable in convincing state legislators that this law would bring about all kinds of competition, and that consumers would benefit from it. But that hasn’t been the case,” Witynski added.

Indeed, with additional rate increases announced this week by AT&T’s U-verse, the much-heralded savings promised by AT&T and its various astroturf elements have become only more elusive for the hard-hit consumer struggling through ongoing economic challenges.  Those challenges aren’t exactly the same for AT&T, which increased its dividend payment to stockholders and has plenty left over to continue astroturfing its way to statewide video franchises in other states it serves.

Charter Cable Wants To Emerge From Bankruptcy And Overcharge Customers: Rate Hikes & Limits Under Consideration

Phillip Dampier November 19, 2009 Charter Spectrum, Data Caps, Editorial & Site News 1 Comment

charterYour company has been in bankruptcy since late March.  Investors wiped out, debtors in court fighting settlements, you try and hang on by keeping customers from fleeing for the limited alternatives.  You also overpay your management to make sure they don’t flee with annoyed customers.  Charter CEO Neil Smit, who waltzed Charter into bankruptcy under his leadership, effectively doubled his salary, becoming St. Louis’ top paid executive, negotiating a $6 million dollar bonus if he helped waltz the company out of bankruptcy.  If he agrees to do his job after that, he gets another bonus.  How nice.

Now that Charter is looking for the bankruptcy exit door, it’s time for someone to pay.  It won’t be Smit.  It will be Charter’s customers.

In addition to across the board price increases, Charter is also considering slapping Internet Overcharging schemes on their broadband customers with “consumption-based billing” sometime next year, Smit told Bloomberg News.

Charter’s failure didn’t come about because their broadband users are using their service too much.  It came from bad management decisions that have plagued the company since it went public in 1999.  Charter has never had a single year since when it did not report a loss, eventually accumulating an enormous $21 billion in debt through mergers and acquisitions and efforts to keep its position as the nation’s fourth largest cable operator.

Now, that same bad management team will be making all-new bad decisions to further alienate Charter’s remaining 5.3 million customers.  Many of them will be hearing from AT&T to switch to U-verse soon enough.

Perhaps instead of punishing customers, Charter should consider replacing the people that put the company where it is today.  If Charter needs money to upgrade their network, why not start with the ridiculous salaries paid to reward the people that failed the company and its customers in the first place.

Tell Charter Cable if they bring consumption billing to your area, you’ll waltz your business to the other provider in town.

The Many Challenges of Charter Cable: Rate Increases for Seniors, Bankruptcy, Employees Attacked, Customers Hassled

Phillip Dampier November 11, 2009 Charter Spectrum, Video 11 Comments

charterCharter Cable, which has been in Chapter 11 bankruptcy since March 28, has been among the worst hit cable operators by an American economy in trouble, accusations of poor service, excessive executive compensation, and spiraling debt.  Before entering bankruptcy protection, the company had $21 billion in debt — a significant amount for a cable operator serving just 5.5 million customers in 27 states.

Company founder Paul Allen, a co-founder of Microsoft who controlled 91 percent of Charter Cable before bankruptcy, will control just 35 percent of the company as it emerges from reorganization in the coming weeks.  Allen’s attention will then turn to the bankruptcy of another one of his concerns – Digeo Inc., which is best known for its Moxi HD DVR.

Despite the bankruptcy, Charter Cable aggressively continues to upgrade its broadband service to DOCSIS 3 in many of its service areas, introducing new faster broadband products to customers.  But broadband service from Charter is just one of three services they offer customers, and many are not satisfied with the service they are getting.

Beyond bankruptcy, Charter Cable continues to face bad press for providing poor service, hassling customers with aggressive telemarketing calls, dramatic rate increases, and in one shocking incident this week, a Charter Cable technician in Victorville, California was attacked and killed while on a service call.

Authorities are still searching for a motive for Monday’s unprovoked attack on 25-year-old Trevor Neiman, of Phelan, California.  After surviving three tours of duty in Iraq, Neiman was killed with a small hammer in a Victorville home.  Police say the attack came from a relative of the homeowner who was visiting at the time of the assault.  The suspect, Hesperia resident Johnny Acosta, 45, was arrested on suspicion of murder a short time after fleeing the scene.

“There was no exchange of words. There was nothing that occurred before the unprovoked attack,” said Jody Miller, a spokeswoman for the San Bernardino County Sheriff’s Department told KTLA News.

[flv width=”600″ height=”336″]http://www.phillipdampier.com/video/KABC Los Angeles Charter Cable Installer Killed With Hammer 11-10-09.flv[/flv]

KABC-TV Los Angeles shares the tragic story of Charter Cable technician Trevor Neiman, and the devastating impact Monday’s attack had on his wife and family. (2 minutes)

Beyond that horrific incident, Charter Cable has been irritating subscribers with a series of rate increases and annoying marketing campaigns across the country.

In West Covina, California Charter Cable is ridding itself of senior discounts and also dramatically increasing rates.  Broadcast basic cable customers face a whopping $10 monthly increase in their cable bill, and the more popular expanded basic service will increase by $5.25 a month.  The company claims the rate increases are part of “an investment in improving the overall customer service experience.”

Resident Hermine Deemer, 83, told the San Gabriel Valley Tribune her bill will increase to $67 a month from $53 – a 26 percent hike.

“That’s a big increase,” Deemer said. “Nobody gets that big of an increase. I know things go up but not that much.”

Charter Cable is calling customers trying to market bundled services including broadband and telephone, claiming the savings from bundling services together would be “higher than the senior discount ever gave.”

Deputy City Manager Chris Freeland said the city has received several calls on the increases but there is little they can do about it.

“We would much rather have the senior discount,” Freeland said. “It’s really beyond our control. The economy is tough and every little dollar for seniors is so precious.”

Customers commenting on the rate increase have encouraged seniors to cancel service and switch to DISH Network satellite service, and several seniors lament they are housebound and television is their primary window to the outside world.  With no increase in Social Security in 2010 and increasing medical costs, many seniors will face difficulty coping with the rate increases.

In Pendleton, Oregon, the city attorney blasted Charter Cable for a $5 increase in broadcast basic service (providing local broadcast channels and some public affairs cable networks) and a $3 increase in expanded basic, claiming it unfairly falls on those least able to afford it, all to subsidize discounts on their bundled service packages.  Peter H. Wells wrote an open letter to Charter Cable published in the East Oregonian:

Per-channel costs for Charter Cable in the Pacific Northwest

Per-channel costs for Charter Cable in the Pacific Northwest

By imposing the same $5.00 increase for all service tiers and, in fact, a lower increase for those with expanded basic service, the basic tier customer is paying for a greater portion of the company’s total costs than before the fee increase.

Through February 2005, less than five years ago, basic tier service cost the customer $12.91 per month. The rate change effective in December to $24.99 per month is such that those customers will have had a 93 percent rate increase in the past five years. It also appears that Pendleton’s basic tier customers are paying the same for less service than basic tier customers in other nearby service areas.

Charter representatives claim that the service charge increases over the past few years were to compensate the company for upgrades to the physical plant in Pendleton. I believe that argument is not appropriate. The physical plant upgrades were to allow Charter to provide additional services of telephone, digital cable and Internet. The cost of those upgrades should be borne by the users of those services, not the basic tier customers on whom the increase is being disproportionately imposed.

Unfortunately, Charter Cable’s rates are not within the control of the city management, so Wells could only ask that concerned residents contact Charter Cable and complain.

At least one customer fed up with Charter’s marketing practices found g0ing to a local TV station’s consumer watchdog reporter was even more effective.

Carole McGuire of Madison, Wisconsin turned down Charter’s relentless marketing of their “digital phone” product, which she doesn’t currently purchase.  Despite her disinterest, the visiting salesman left an application, and called her the next day to see if she changed her mind.  After that, McGuire began receiving a barrage of automated phone calls from Charter claiming she ordered the service, and needed to obtain third party verification to meet Federal Communications Commission obligations and process her order.

Not having placed an order, she ignored the calls, but they kept coming… over and over.

Exasperated, she turned to WISC-TV’s On Your Side reporter Erick Franke to see if he could get Charter to stop calling her.

[flv width=”530″ height=”316″]http://www.phillipdampier.com/video/WISC Madison Charter Cable Telemarketing 11-3-09.flv[/flv]

WISC-TV Madison’s On Your Side segment from November 3rd helps a Madison resident put a stop to annoying Charter Cable telemarketing efforts. (3 minutes)

Unfortunately, not even TV stations are immune from dealing with problems with Charter Cable.  About a month ago, residents in Clarksville, Tennessee discovered WKAG-TV in nearby Hopkinsville, Kentucky missing from their cable dial.

Charter Cable had removed the low-power 18,500 watt station claiming it couldn’t obtain a strong enough signal to carry it.  WKAG-TV happened to be the only station in the entire region that produced news programming for Clarksville residents, and had consistently served the community of 100,000 with local newscasts, sports coverage, weather, and public affairs programming.

WKAG management was surprised by the decision to drop the station, and mounted a public campaign to dispute Charter’s poor signal strength assertions.  Charter Cable ignored the station’s first press release and has now been confronted with embarrassing video evidence that the station can be received with a good over-the-air signal with just a two foot antenna from the top of a building at a location even more distant from Charter’s TV reception tower, and from a lower overall height.

[flv width=”640″ height=”480″]http://www.phillipdampier.com/video/WKAG Hopkinsville Charter Cable Dispute 11-5-09.flv[/flv]

WKAG-TV Hopkinsville, Kentucky prepared a web video showing evidence Charter Cable could restore the station to the cable dial in nearby Clarksville, Tennessee. (11/5/09 – 5 minutes)

Charter Cable used to import WKAG from a direct fiber feed, but dropped it several years ago in an apparent cost-cutting move.

Despite complaints from Clarksville residents, Charter continues to ignore customer demands for WKAG’s restoration.

From one side of the country to the other, Charter Cable’s finances are not the only challenge the company faces.  Providing affordable, responsive, and quality service to customers apparently also remains a challenge Charter Cable has yet to surmount.

Auburn, Alabama Approves Knology Application to Build Competing Cable Company

Auburn, Alabama

Auburn, Alabama

Residents of Auburn, Alabama will one day have a choice for cable television service.  Incumbent cable company, Charter Cable, which has been in bankruptcy, will eventually face competition from Knology, a cable “overbuilder” servicing more than a dozen cities in the southeastern U.S.

The Auburn City Council unanimously agreed Tuesday night to begin a non-exclusive cable franchise agreement with Knology, based in West Point, Georgia.  The cable company already serves several other Alabama communities including Dothan, Huntsville, Lanett, Montgomery, and Valley, and expects approval to construct a system in nearby Opelika shortly.

The decision to bring competition to the city of 56,000 was an easy one because residents demanded more choice:

“Thank goodness this has finally happened.  It is time that people in this area had a choice regarding their cable.  Charter has provided poor customer service as well as poor cable and internet service for years.  I am surprised that my internet has stayed up long enough for me to type this!” — psych1

This makes my day, now all we need is for satellite to have rights to the local channels and we’ll truly have the competition and choice we deserve…this is a huge step though!” — Matt

I will dump Charter the second Knology is here.” — lp95

Now we just need this in Opelika. I hate Charter with all my being.” — jackburnt

“Thank Goodness!  Charter is surely the worst cable company in history. I hope nobody reading this fell for their BS “contract” pricing lately.  They knew this was coming and tried to tie folks down for at least another year. This is truly a victory for the people of Auburn.” — tboone

“I am glad to see competition is coming in,” Ward 1 council member Arthur L. Dowdell told the Opelika-Auburn News. “I wish there was more coming in.”

One question remains on the table — When will Knology commence service in the area?

Chad S. Wachter, general counsel for Knology, said he didn’t know when Knology will be available for city residents.

“We’ll provide those answers with the city when we get them,” he said.

Ward 7 council member Gene Dulaney, the News noted, encouraged Wachter to build as fast as possible.

Charter Cable representatives followed the usual playbook cable operators use when competition is imminent.

Skip James, Charter’s director of government relations, addressed the council during citizens’ communications to express the company’s support for competition.

“We competed with Knology in the past and we will continue to in the future,” he said.

KnologyLogoKnology provides customers with cable television, telephone and broadband services.  Most of their systems offer broadband at around 8Mbps and there doesn’t appear to be a limit.  Knology is quietly upgrading their systems to DOCSIS 3 to provide “wideband” service, cable’s designated turn of phrase for next generation broadband speeds.  But the company is also following a familiar pattern of not spending the money to upgrade where competitive pressure doesn’t exist.

Knology chairman and CEO Rodger Johnson told investors during a 1st quarter 2009 earnings call that the company was prepared to upgrade, but isn’t going to jump the gun.

“We are enabling our markets to deliver Docsis 3.0 when we decide the time is right to push the trigger,” Johnson said. “A very expensive piece of that proposition is the transition of the cable modems to 3.0 cable modems. We will make that move at the time that we’re feeling competitive pressures to move to a 3.0 environment, but not until that time.”

Johnson should be careful about waiting too long.  Pinellas County is one of Knology’s service areas in Florida, and it has Verizon FiOS and Bright House Networks fighting for customers in an upgrade war Knology cannot win with slower broadband.

[flv]http://www.phillipdampier.com/video/Knology – Choices Ad.mp4[/flv]

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p style=”text-align: center;”>Knology “Choices” Ad (30 seconds)

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