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Mediacom Wants to Kill Public Broadband in Iowa

Lobbyists for Mediacom, one of America’s medium-sized cable operators, are reportedly behind the latest effort to curtail public broadband in the state of Iowa with a new bill designed to make life difficult for municipalities trying to get internet access to their residents.

Senate Study Bill 3009, proposed by Sen. Dan Dawson, the new chairman of the Iowa Senate Commerce Committee, would create an unfair playing field between cities and towns attempting to offer their residents broadband service and the state’s private cable and phone companies which often do not.

In addition to tying the hands of local officials in their efforts to obtain funding for such projects, the bill would also make a public record of private strategies used by providers to construct systems and market service to the public. Cable operators like Mediacom could be able to obtain business records from municipal providers that would give the company an unfair advantage identifying financial information and rollout schedules about where municipal systems would offer service next.

Iowa’s report for Mediacom’s lobbying activity shows their support for restricting public broadband.

The bill would also forbid communities from marketing their broadband service on bills sent for other municipal services, including power, gas, sewage, garbage removal, and water. Municipalities would also be forbidden from lowering rates to levels deemed unprofitable, even when incumbent providers like Mediacom cut prices in competitive service areas to keep business while quietly subsidizing those lower prices on the backs of their other subscribers in non-competitive areas.

Iowans can protest the new bill by sending e-mail to Sens. Dan Dawson ([email protected]) and Carrie Koelker, ([email protected]) the subcommittee chairperson reviewing the bill. Ask them to kill the bill, because Iowa needs more broadband service, not less.

Regulators… Captured: AT&T Gets FCC to Omit Bad Internet Speed Scores It Doesn’t Like

AT&T was unhappy with the low internet speed score the FCC was about to give the telecom giant, so it made a few phone calls and got the government regulator to effectively rig the results in its favor.

“Regulatory capture” is a term becoming more common in administrations that enable regulators that favor friendly relations with large companies over consumer protection, and under the Trump Administration, a very business-friendly FCC has demonstrated it is prepared to go the distance for some of the country’s largest telecom companies.

Today, the Wall Street Journal reported AT&T successfully got the FCC to omit DSL speed test results from the agency’s annual “Measuring Broadband America” report. Introduced during the Obama Administration, the internet speed analysis was designed to test whether cable and phone companies are being honest about delivering the broadband speed they advertise. Using a small army of test volunteers that host a free speed testing router in their home (full disclosure: Stop the Cap! is a volunteer host), automated testing of broadband performance is done silently by the equipment on an ongoing basis, with results sent to SamKnows, an independent company contracted to manage the data for the FCC’s project.

In 2011, the first full year of the program, results identified an early offender — Cablevision/Optimum, which advertised speed it couldn’t deliver to many of its customers because its network was oversold and congested. Within months, the company invested millions to dramatically expand internet capacity and speeds quickly rose, sometimes beyond the advertised level. In general, fiber and cable internet providers traditionally deliver the fastest and most reliable internet speed. Phone companies selling DSL service usually lag far behind in the results. One of those providers happened to be AT&T.

In the last year, the Journal reports AT&T successfully appealed to the FCC to keep its DSL service’s speed performance out of the report and withheld important information from the FCC required to validate some of the agency’s results.

The newspaper also found multiple potential conflicts of interest in both the program and SamKnows, its contracted partner:

  • Providers get the full names of customers using speed test equipment, and some (notably Cablevision/Optimum) regularly give speed test customers white glove treatment, including prioritized service, performance upgrades and extremely fast response times during outages that could affect the provider’s speed test score. Jack Burton, a former Cablevision engineer said “there was an effort to make sure known [users] had up-to-date equipment” like modems and routers. Cablevision also marked as “high priority” the neighborhoods that contained speed-testing users, ensuring that those neighborhoods got upgraded ahead of others, said other former Cablevision engineers close to the effort.
  • Providers can tinker with the raw data, including the right to exclude results from speed test volunteers subscribed to an “unpopular” speed tier (usually above 100 Mbps), those using outdated or troublesome equipment, or are signed up to an “obsolete” speed plan, like low-speed internet. Over 25% of speed test results (presumably unfavorable to the provider) were not included in the last annual report because cable and phone companies objected to their inclusion.
  • SamKnows sells providers immediate access to speed test data and the other data volunteers measure for a fee, ostensibly to allow providers to identify problems on their networks before they end up published in the FCC’s report. Critics claim this gives providers an incentive to give preferential treatment to customers with speed testing equipment.

Some have claimed internet companies have gained almost total leverage over the FCC speed testing project.

The Journal:

Internet experts and former FCC officials said the setup gives the internet companies enormous leverage. “How can you go to the party who controls the information and say, ‘please give me information that may implicate you?’ ” said Tom Wheeler, a former FCC chairman who stepped down in January 2017. Jim Warner, a retired network engineer who has helped advise the agency on the test for years, told the FCC in 2015 that the rules for providers were too lax. “It’s not much of a code of conduct,” Mr. Warner said.

An FCC spokesman told the Journal the program has a transparent process and that the agency will continue to enable it “to improve, evolve, and provide meaningful results as we move forward.”

The stakes of the FCC’s speed tests are enormous for providers, now more reliant than ever on the highly profitable broadband segment of their businesses. They also allow providers to weaponize  favorable performance results to fight off consumer protection efforts that attempt to hold providers accountable for selling internet speeds undelivered. In some high stakes court cases, the FCC’s speed test reports have been used to defend providers, such as the lawsuit filed by New York’s Attorney General against Charter Communications over the poor performance of Time Warner Cable. The parties eventually settled that case.

In 2018, the key takeaway from the report celebrated by providers in testimony, marketing, and lobbying, was that “for most of the major broadband providers that were tested, measured download speeds were 100% or better of advertised speeds during the peak hours.”

Comcast often refers to the FCC’s results in claims about XFINITY internet service: “Recent testing performed by the FCC confirms that Comcast’s broadband internet access service is one of the fastest, most reliable broadband services in the United States.” But in 2018, Comcast also successfully petitioned to FCC to exclude speed test results from 214 of its testing customers, the highest number surveyed among individual providers. In contrast, Charter got the FCC to ignore results from 148 of its customers, Mediacom asked the FCC to ignore results from 46 of its internet customers.

Among the most remarkable findings uncovered by the Journal was the revelation AT&T successfully got the FCC to exclude all of its DSL customers’ speed test results, claiming that it would not be proper to include data for a service no longer being marketed to customers. AT&T deems its DSL service “obsolete” and no longer worthy of being covered by the FCC. But the company still actively markets DSL to prospective customers. This year, AT&T also announced it was no longer cooperating with SamKnows and its speed test project, claiming AT&T has devised a far more accurate speed testing project itself that it intends to use to self-report customer speed testing data.

Cox also managed to find an innovative way out of its poor score for internet speed consistency, which the FCC initially rated a rock bottom 37% of what Cox advertises. Cox claimed its speed test results were faulty because SamKnows’ tests sent traffic through an overcongested internet link yet to be upgraded. That ‘unfairly lowered Cox’s ratings’ for many of its Arizona customers, the company successfully argued, and the FCC put Cox’s poor speed consistency rating in a fine print footnote, which included both the 37% rating and a predicted/estimated reliability rating of 85%, assuming Cox properly routed its internet traffic.

The FCC report also downplays or doesn’t include data about internet slowdowns on specific websites, like Netflix or YouTube. Complaints about buffering on both popular streaming sites have been regularly cited by angry customers, but the FCC’s annual report signals there is literally nothing wrong with most providers.

Providers still fear their own network slowdowns or problems during known testing periods. The Journal reports many have a solution for that problem as well — temporarily boosting speeds and targeting better performance of popular websites and services during testing periods and returning service to normal after tests are finished.

James Cannon, a longtime cable and telecom engineering executive who left Charter in February admitted that is standard practice at Spectrum.

“I know that goes on,” he told the Journal. “If they have a scheduled test with a government agency, they will be very careful about how that traffic is routed on the network.”

As a result, the FCC’s “independent” annual speed test report is now compromised by large telecom companies, admits Maurice Dean, a telecom and media consultant with 22 years’ experience working on streaming, cable and telecom projects.

“It is problematic,” Dean said. “This attempt to ‘enhance’ performance for these measurements is a well-known practice in the industry,’ and makes the FCC results “almost meaningless for describing actual user experience.”

Tim Wu, a longtime internet advocate, likened the speed test program as more theoretical than actual, suggesting it was like measuring the speed of a car after getting rid of traffic.

Shocking Revelation: Big Telecom Companies Treating You Like Trash Turns Out to Be a Mistake

Jeff Kagan is a name familiar to anyone that follows the cable industry. For over 30 years, Kagan has been tracking consumer perceptions about the telecom industry and offering insight into the challenges these and other businesses were likely to face in the future.More recently, Kagan has been fretting about the growing trend of retail businesses paying more attention to cultivating their relationships with Wall Street while targeting their customers for abuse.

“I have been noticing how in recent years, retail is becoming increasingly unfriendly to the customer. This is a mistake,” Kagan offers in a new opinion piece on Equities.com. “New technologies and new ideas may be good for the bottom line in the short-term. They may solve problems like shoplifting, and that may make investors happy today. However, in the long-term, these customer unfriendly trends will take their toll as customers will shop where they feel appreciated, respected and wanted. Customers shop at stores they love. Love is an emotion. So, we must think of winning the customer with emotion. This is difficult for most businesspeople to understand.”

‘My way or the highway’-type attitudes from retailers come from all sorts of businesses. Warehouse clubs make you pay for the honor of shopping there. Chains like Walmart are beefing up security teams and in some places now demand to see receipts from customers exiting the store. But nobody has abused customers better and longer than the telecom industry. Not even the cattle car-like airlines.

Kagan

After literally decades of almost bragging about their “don’t care” customer service while throwing attitude and intransigence at customers unhappy with service or pricing, the nation’s biggest cable and phone companies are now experiencing long-overdue customer revenge. Kagan notes that cord-cutting is not just about switching to a competitor for service. Many customers are literally thrilled to see the back end of their long hated provider.

Decades of monopoly service made abusing customers a risk-free and very profitable strategy for companies like Comcast, AT&T, Charter, Cox, Mediacom, and Verizon. In fact, someone turned the concept of the “cable guy” into a horror movie. Did you stay home from work to wait for a service call that never materialized? Tough luck. Don’t like yet another rate increase? Too bad.

“The reason they did this was, they had no competition in their market area. That meant the customer could not leave them,” Kagan noted.

After years of getting a bad reputation, only two things threatened to scare telecom companies straight — the fear of imminent regulation, such as what happened in 1992 when reregulation of cable companies turned out to be the only bill that year to be vetoed by President George H. W. Bush and overridden by the U.S. Senate to become law.

The other, much more scary fear is competition. In the mid-1990s, the nation’s biggest phone companies including what we now know as AT&T and Verizon were contemplating getting into the video business. This proved far more threatening than the much smaller home satellite dish business, which attracted around three million Americans at the time. The cable industry spent years taking shots at satellite competitors, including sticking dishowners with the cost of buying a $300 descrambler box up front, and charging as much (or even more) for programming than cable customers paid, despite the fact homeowners had to purchase and service their own dish, often 6-12 feet wide and not cheap to install.

The cable industry feared phone companies would charge ratepayers to subsidize their entry into the television business and sought protective legislation prohibiting the same cross-subsidization the cable industry would later rely on to introduce broadband and phone service.

More recently, after the country reached “peak cable” — the year the highest number of us subscribed to cable TV, the industry recognized it was likely all downhill from there. Comcast, in particular, specialized in empty lip service gestures to improve the customer service experience. For years, it promised to do better, only to do worse. The company even attempted to shed its bad reputation by changing the brand of its products from Comcast to “XFINITY.” Customers were not fooled, but that did not stop Charter from following Comcast’s lead, introducing the “Spectrum” brand to its products and almost burying its corporate name, which it barely references these days.

Kagan notes not following through on the customer service experience made cable companies ripe for stunning customer losses as new competitors for video service emerged. Comcast and Charter are among the biggest losers of cable TV customers, but their bad attitudes persist. Their latest ideas? Keep raising prices, rely on tricky Broadcast TV surcharges that are soaring in cost, end customer retention offers for dissatisfied video customers, and make up the difference in lost revenue by jacking up the price of broadband service, which is already nearly all-profit.

“The bottom line for any business is always focus on the customer. If they are happy, your business will remain strong and growing,” Kagan warned.

At some point, customers will get more choices for broadband service. Community owned broadband solutions have been very successful in communities that have experienced the worst abuse AT&T, Comcast, and Charter can deliver. In the future, fixed 5G wireless may provide perfectly respectable internet service if it is not data capped. Next generation satellite providers, interloping independent fiber to the home providers, and mesh wireless providers may offer consumers a number of options that can deliver suitable service and perhaps finally put cable and phone companies in their place.

Frontier Wrestles Worst ISP in America Award Away from Mediacom

“Frontier offers a level of suckage that cannot be proportionally compared with any other company in America. Stabbing yourself with knitting needles is less painful than their snail slow internet service and dealing with customer service agents that formerly served as prison guards at a Syrian detention camp.” — A deeply dissatisfied Frontier DSL customer in Ohio

Frontier Communications has achieved a new low in customer satisfaction, wrestling away the award for America’s worst ISP from perennial favorite Mediacom, in a newly released American Customer Satisfaction Index.

No internet service provider did particularly well in customer satisfaction, but Frontier managed to alienate more of their customers than any other this year, ranking poorly in speed, reliability, and customer service. Customers also complained about being given inaccurate information, inaccurate billing, and surprise charges on their bill.

Frontier’s worst performance is delivered in legacy DSL service areas, where its aging copper wire network is often incapable of delivering 21st century broadband speeds. In many areas, speeds drop well below 10 Mbps during peak usage. Even worse, company officials signaled that the company had few plans to improve its wireline network or service experience in 2019. As a result, many customers switched providers, if one was available. If Frontier is the only option, customers often have no options.

“For several years we have had no internet options except for Frontier. We receive 10 to 20% of the service we pay for time and time again,” wrote one customer in a complaint with the Better Business Bureau. “The service has even diminished over time, [and] whenever my work demands me to log online, I often have to leave my home at different times of the day or night to a location where I can get free Wi-Fi or drive 24 miles to my job. This is totally unacceptable. Every single weekend and every night my internet shuts off. I mean every night. Nothing has been done from a customer’s view to improve service.”

What seems to have driven Mediacom out of last place was not so much an improvement in their network or service.

“Mediacom has the second-lowest score among subscription TV services at 56, but has one of the highest-rated mobile apps, both in terms of quality and reliability,” the ACSI found.

Frontier has an improved website, but still offers many potential subscribers a severe disappointment when shopping for internet plans, and finding only one:

14,000 Consumers Cut Cable TV’s Cord Every Day Says New Study

The top 10 service providers in the United States collectively lost over 1.25 million paid television customers in the first three months of 2019, providing further evidence that cord-cutting is accelerating.

Multiscreen Index estimates if that trend continues, an average of 14,000 Americans cancel their paid cable or satellite television service daily.

AT&T suffered the greatest losses, primarily from its satellite television service DirecTV. More than a half-million satellite customers canceled service in the first quarter of the year. AT&T lost another 89,000 streaming customers as news spread that the service was increasing prices and restricting generous promotions to attract new subscribers. DISH Network, DirecTV’s satellite competitor, also lost more than 250,000 customers.

Many cable television providers announced this quarter they would no longer fret about the loss of cable TV customers, and many have dropped retention efforts that included deeply discounted service. As a result, customers are finding it easier than ever to cancel service. Comcast lost 107,000 TV customers, while Charter Spectrum lost 152,000. Spectrum recently increased the price of its Broadcast TV Fee to $11.99 a month and has pulled back on promotions discounting television service.

United States
Service Change
quarter
Subscribers
(millions)
1,280,200 81.90
AT&T TV/DirecTV -544,000 22.36
Comcast -107,000 20.85
Charter Spectrum -152,000 15.95
DISH Network -266,000 9.64
Verizon FiOS -53,000 4.40
Altice USA -10,200 3.30
Sling TV 7,000 2.42
DirecTV Now -89,000 1.44
Frontier -54,000 0.78
Mediacom -12,000 0.76
Source: informitv Multiscreen Index.

“There were losses across the top 10 television services in the United States, with even the DirecTV Now online service losing customers following previous heavy promotion. Between them, they lost over one-and-a-quarter million subscribers in three months. They still command a significant number of customers but the rate of attrition has increased,” said Dr. William Cooper, the editor of the informitv Multiscreen Index.

The total figures for the quarter show roughly 81.90 million Americans are still paying one of the top-10 providers for cable or satellite television service, amounting to less than 70% of television homes — a significant drop. Privately held Cox Communications is excluded because it does not report subscriber numbers or trends.

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