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Big Cable, Telcos Spent $42 Million In 2013-2014 Lobbying for Deregulation, Against Net Neutrality

AT&T, Comcast, Verizon, Time Warner Cable and the cable industry’s chief lobbying group spent $42.8 million during the 2013-2014 election cycle to weigh in on issues including burying Net Neutrality, outlawing community broadband competition, winning tax breaks for themselves, and avoiding consumer protection regulations.

A Common Cause analysis of data from the Center for Responsive Politics and the Institute for Money in State Politics shows that the usual suspects poured money into political coffers on the state and federal level to influence lawmakers.

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On the federal level, murky party committees received the largest individual checks: a total of $862,223 for House and Senate Republicans and $552,605 for Democrats. Individual members of Congress also received their own contributions, including Republican House Speaker John Boehner ($98,175 from Comcast) and Democratic Senator Mark Pryor ($88,650 from Comcast, TWC, and National Cable and Telecom. Assn.) Pryor will need to spend his contributions quickly. He was de-elected by Arkansas voters last Tuesday.

Net Neutrality is a major topic on the minds of the cable and telco companies, as is ongoing deregulation and decommissioning rural landline service, and pushback on revelations AT&T and Verizon were only too happy to turn over your phone records to the federal government.

In the states, the bigger the issues coming up in the legislature, the bigger the campaign checks. In Florida, AT&T is the state’s single largest source of political donations, giving $1.53 million to state lawmakers in the past year and another $660,000 to Gov. Rick Scott (R) and his appointed heads of state agencies. AT&T is lobbying for eliminating Florida’s telecommunications tax, win the right to place cell towers wherever they wish without much interference from local officials, and further deregulation. Most of AT&T’s money goes into the hands of the state’s Republicans.

In New York and California, Democrats got a major chunk of money from Comcast and Time Warner Cable — New York Governor Andrew Cuomo received $60,800 each from both Comcast and Time Warner Cable (totaling $121,600). California Governor Jerry Brown received $54,400 from Time Warner Cable and $27,200 from Comcast. Both states are reviewing the merger of the two companies this year. AT&T and Verizon are also major donors – AT&T wants to dismantle the rural telephone network in California and Verizon is trying to convince the New York legislature to approve its own rural landline replacement – Voice Link. It also wants reduced scrutiny of its landline performance in New York and more access to New York City buildings where it faces resistance from property owners who want compensation from Verizon to install FiOS.

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New York Regulators Again Delay Final Decision on Comcast-Time Warner Merger

Phillip Dampier November 13, 2014 Comcast/Xfinity, Public Policy & Gov't Comments Off on New York Regulators Again Delay Final Decision on Comcast-Time Warner Merger

Stop the Cap! has learned the New York State Public Service Commission has again delayed its final decision on the merger of Comcast and Time Warner Cable.

The latest deadline the PSC will pass is Nov. 19, and the new deadline, accepted by both cable operators, is Dec. 31, 2014.

Sources tell us the multiple delays come as a result of regulators underestimating the complexity of the transaction and its potential impact on New York residents.

There is also an ongoing legal dispute over the possible public release of information both cable companies argue is proprietary and confidential. Public interest groups argue otherwise and consider details about current broadband subscriptions, future expansion plans, and the possible fate of Time Warner Cable’s $14.99 low price Internet plan worth sharing with New York residents.

AT&T Blackmails America: No (Phony) Fiber Upgrades Until You Kill Net Neutrality

Phillip Dampier November 12, 2014 AT&T, Consumer News, Net Neutrality, Public Policy & Gov't 1 Comment

ransomAT&T is putting its gigabit fiber network upgrades on hold as long as President Barack Obama continues to insist on robust Net Neutrality for American broadband.

AT&T Randall Stephenson told Wall Street investors attending this morning’s Wells Fargo Technology, Media, and Telecom Conference that the current state of “uncertainty” created after President Obama delivered remarks Monday in favor of strong Net Neutrality protections makes any investment in fiber upgrades too risky to continue.

“We can’t go out and just invest that kind of money deploying fiber to 100 cities […] not knowing under what rules that investment will be governed,” Stephenson said, excluding the two million customers already upgraded under AT&T’s Project VIP, AT&T’s effort to boost its wireless infrastructure in rural areas and upgrade U-verse to handle incrementally faster broadband speeds. “We have to just put a stop on those kinds of investments that we are doing today.”

But Stephenson’s accusation that the president’s strong support for Net Neutrality is responsible for putting AT&T’s plans on hold ignores the financial realities that have been a part of AT&T’s proposed upgrades since the company first announced them in April 2014.

Construction of Verizon’s fiber to the home FiOS network required significantly enhanced spending for several years, much to the consternation of Wall Street, that frequently criticized the project as too costly. In contrast, there have been few complaints about AT&T’s much larger 100 city fiber project because financial reports show no significant spending increases or large-scale capex investments by AT&T. In fact, on Friday — three days before the president made his remarks on Net Neutrality — AT&T announced investment cuts of at least $3 billion for 2015.

Stop the Cap! has reported AT&T’s fiber upgrades lack appropriate financial support and will require billions in increased investments to offer more than a handful of demonstration projects limited to new housing developments and multi-dwelling units where construction costs are considerably lower.

Stephenson admitted that most of the company’s Project VIP upgrade effort is now nearly complete, allowing the company to return to “normal” spending levels seen when major upgrades are not underway.

“You say okay, here has been the [increased spending in the budget], those projects are finished, we spiked it,” Stephenson said. “Now we’re bringing it down to a more normal rate.”

Stephenson reminded investors that they will see a dramatic savings in investment spending starting late this year.

“Just the cost [to AT&T over the last few years of Project VIP and] to be putting away this much investment, [it has been] a big operating expense block […] that we have been dragging through the last three years as we did all these buildouts,” said Stephenson. “You will see in 2014 the fourth quarter that [level of] capex start to tail off.”

The Menace of the Unburied Line: Cable & Phone Companies Create Hazards for Homeowners

One Alabama customer found her fence the home of not one, but two artistically-managed Charter Cable lines serving her neighbors.

One Alabama customer found her fence the home of not one, but two artistically-Amanaged Charter Cable lines serving her neighbors.

All across the country, people are encountering communications wiring that belongs underground or on a utility pole, but is instead scattered on the ground or left dangling on fences or in the street. Isolated incidents or a consequence of deregulation that has left community leaders’ hands tied? Stop the Cap! investigates.

A Louisiana woman eight months pregnant is suing Cox Communications Louisiana and its contractor after tripping over an exposed cable wire in her mother’s backyard the company didn’t bother to bury.

In Fort Myers, Comcast connected a neighbor’s cable service in a senior living community by scattering a cable across lawns and sidewalks for nearly a year before finally burying it.

In Alabama, Charter Cable turned cable wiring into an art form, attaching multiple homeowners’ cable TV wires in artistic designs to a neighbor’s fence, and he wasn’t even a customer.

Welcome to the scourge of the unburied, exposed cable wire. Typically called a “drop” by cable installers, these lines are common in communities where a cable or phone company uses a third-party contractor to manage buried lines. Some manage them better than others.

In the northern United States, replacement drops installed during the winter months often stay on the ground until spring because the ground in frozen, but in warmer climates in the southeast, cable companies are notorious for “forgetting” about orphaned cable lines that can take weeks or months to bury, often only after intervention by a local media outlet or politician.

Chardae Nickae Melancon’s complaint claims Cox installed cable service in June, 2013 and left the cable wire exposed in the backyard. In late August, Melancon, who can take products like CBD UK, claims she tripped and fell over the wire injuring her arm, right side, and other unspecified injuries.  Her suit alleges Cox was warned the wire was installed improperly and only after her injury did Cox return to finish the job.

In Fort Myers, it took more than 11 months for Comcast to return and bury its line, snaked across lawns and sidewalks connecting several buildings in the retirement community.

Comcast left this cable lying across a sidewalk in a retirement community in Fort Myers, Fla. for 11 months.

Comcast left this cable lying across a sidewalk in a retirement community in Fort Myers, Fla. for 11 months.

“You know this [community] is 55 and older. We have got people in here that are 90 years old,” Bonnie Haines, a resident in the Pine Ridge Condo retirement community told WFTX-TV. “Could you imagine them walking or walking around that sidewalk and tripping over this, what would happen? They couldn’t see it at night. Fortunately for me I know it’s there. I’ve lived with it all this time but if somebody would come to visit an older person or something, they don’t know it’s there.”

Across the street lies another unburied Comcast cable.

“We’ve called multiple times. we’ve reported it multiple times,” said Eric Ray, the manager of the Pine Ridge Homeowners Association. “In fact, every time I see a Comcast truck in here I personally grab the driver, take him over to the spot, and he puts in a work order and takes pictures right in front of me and still no response.”

Comcast’s last reply before making the evening news:  “We’ll get to it soon.”

Twenty four hours after being a featured story on the station’s newscast, the cables were finally buried.

In Montgomery, Ala., an artistic cable installer has used one resident’s fence as the adopted home of Charter Cable’s lines. Jamie Newton, who isn’t a Charter customer, noticed an orange Charter Cable line attached to her fence one day after returning home. That was two years ago. Suddenly, an extra cable appeared, draped like Christmas tree garland.

[flv]http://www.phillipdampier.com/video/WFTX Ft Myers Residents worried about exposed cable tv wire 1-15-14.mp4[/flv]

Residents of a Ft. Myers, Fla. retirement community worry residents as old as 93 could be seriously injured if they trip over this Comcast Cable left on the sidewalk for at least 11 months. (3:00)

“At first I was surprised, and then it turned into a little bit of anger and frustration,” Newton told WSFA. “I have small children, I have friends’ children over, and the neighborhood kids come and play in my backyard. It’s not safe.”

Charter Cable is not interested because Newton is not a customer. Charter in fact recorded just one complaint from a Charter customer six months earlier, and they claimed a “glitch” was responsible for the cable not being buried.

(Image: WEWS-TV Cleveland)

(Image: WEWS-TV Cleveland)

While some customers have been encouraged to remove offending lines that cross property lines themselves, some have gotten into trouble doing so, charged with destruction of private property. The most common mistake homeowners make is cutting or displacing cables placed on or in a utility easement, which can be difficult to identify.

Some of the worst problems occur with cables that served now ex-customers. Residents complain AT&T, Comcast and Charter are not responsive to requests from non-customers to deal with abandoned wiring in disrepair. An outside line supervisor in San Francisco tells Stop the Cap! AT&T has few provisions to manage cabling no longer in service for a paying customers.

The city of Cleveland, Ohio is a prime example of how AT&T deals with unused cables. Residents reports dozens of abandoned lines snipped at head level and allowed to dangle off utility poles, eventually to fall to street level where children can handle them. Time Warner Cable was also accused of allowing cables to hang over Cleveland streets. Some are left over after demolishing vacant houses but the most frequent cause of hazardous cables is competition. When a customer cuts cable’s cord, drops a landline, or flips between providers, installation crews often cut and leave old lines swaying in the breeze or draped over sidewalks.

The problem grew so pervasive in Cleveland, city officials requested telecom companies coordinate an audit of their cable networks and remove dangerous wiring before someone gets hurt. But all they can do is ask. Ohio’s sweeping telecom deregulation law stripped local authority over AT&T and Time Warner Cable. The city’s leverage is now based on creative code enforcement and embarrassing the companies in the local media.

“We don’t have any regulation for phone and cable companies and hanging wires create a hazardous situation and it’s going to have to be regulated,” said Cleveland councilman Tony Brancatelli. “One of these times it’s going to be a hot line.”

Local media reported nearly the same problem four years earlier in Cleveland, and efforts to keep up with cables left in disrepair seem to wane after the media spotlight moves on.

[flv]http://www.phillipdampier.com/video/WEWS Cleveland Neighbors worry kids will get desensitized to seeing low wires 4-3-14.mp4[/flv]

Kids are at risk if they begin to disrespect hanging utility wires. An epidemic of abandoned cable and telephone cables are dangling over Cleveland streets and deregulation means cities have to ask providers nicely to deal with the problem. (3:00)

Time Warner Cable and AT&T have also pointed fingers at each other, implying the other is more responsible for the cables left hanging:

AT&T: “We certainly welcome attention on the topic of safety and any telephone wires that look out of place. To that end, we encourage you to share with your viewers the number for our statewide repair information line: 800-572-4545. Please do call this line to report locations of telephone wires that look out of place.  While your story pointed out that many of the problem lines you saw may not have been telephone lines, we look forward to removing or repairing any that we find, that indeed belong to our company.”

Time Warner Cable: “Maintaining line clearance is something we act quickly to correct anytime we identify a potential issue. Though it is not clear who owns the wires you cite in your story, when our lines need to be adjusted, we take immediate action.  If someone comes across a line they feel maybe too low, please call us and we will respond.”

One important tip from Stop the Cap! for both your safety and avoiding legal entanglements — don’t take on the job yourself.

Municipal officials tell us readers should call a local code enforcement officer and have them investigate utility cable issues. Unresponsive companies or those creating dangerous conditions for the public can be fined and most will respond quickly to an officer’s request to manage the problem, even when deregulated.

Customers allowing the cable company to install a temporary line in their own yard should check if they are signing a total liability waiver as part of the process. Doing so can limit your leverage if the cable company doesn’t return to bury the line.

[flv]http://www.phillipdampier.com/video/WEWS City of Cleveland promises to address low hanging wires 4-7-14.mp4[/flv]

WEWS-TV in Cleveland followed up on their earlier report after getting no response from cable and phone companies and finding even more hazardous, abandoned wiring littering Cleveland. (3:15)

[flv]http://www.phillipdampier.com/video/WEWS Cleveland Major utility and cable companies meet with City of Cleveland 4-17-14.mp4[/flv]

Cleveland officials asked cable and phone companies to send representatives to coordinate action to fix the problem, but deregulation makes the effort voluntary. (2:47)

AT&T Out of In-Flight 4G LTE Air-to-Ground Wireless Data Business; Will Focus on Overseas Acquisitions

Phillip Dampier November 10, 2014 AT&T, Competition, Consumer News, Wireless Broadband Comments Off on AT&T Out of In-Flight 4G LTE Air-to-Ground Wireless Data Business; Will Focus on Overseas Acquisitions

att_logoAT&T has decided it is too risky to get into the in-flight connectivity business and has pulled the plug on a plan to launch 4G LTE air-to-ground wireless data service in the United States.

“As AT&T explores opportunities for future growth and diversification, expanding our international presence has remained an area of interest,” an AT&T spokesperson told Runway Girl Network, an air transport intelligence news service. “On Friday we announced our intent to acquire Mexico wireless company Iusacell. After a thorough review of our investment portfolio, the company decided to no longer pursue entry into the Inflight Connectivity industry.  We are focusing our capital on transformative investments, such as international and video.”

The sudden cancellation of the project came as a surprise, because AT&T had been planning an extensive network that would offer Wi-Fi to in-flight passengers and was discussing partnerships with vendors and airlines in late September.

AT&T bought Iusacell instead, for $2.5 billion. The Mexican cell carrier serves 8.6 million subscribers across 70% of Mexico. AT&T could eventually rebrand the venture as “AT&T” and market it as America’s first “North American Mobile Service,” covering over 400 million consumers and businesses in Mexico and the United States without roaming charges for AT&T customers who often travel to Mexico.

Iusacell’s network is fully compatible with AT&T’s GSM network, but lacks 4G LTE data service.

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